COEUR D’ALENE, Idaho, September 6, 2018 (GLOBE NEWSWIRE) — New Jersey Mining Company (OTCQB/CSE:NJMC) (“NJMC” or the “Company”) announced today that it has added the Butte Gulch patented land package and adjacent lode mineral rights to its Murray Gold Belt land position. Butte Gulch is located directly East and adjacent to the Golden Chest Mine.
Our acquisition of the land package in Butte Gulch is an important development for NJMC and advancement of the Murray Gold Belt. Significant placer gold production has occurred in Butte Gulch with several campaigns of placer mining over the past century, however much of the ground has been reclaimed and the source of the placer gold has not been identified. NJMC’s review of the geologic environment at the operating Golden Chest Mine and preliminary field work indicate that the Butte Gulch area is prospective for additional lode gold mineralization. Recent placer operators have reported encountering several gold-bearing quartz vein and shear zones as they mined to bedrock without any known follow-up core drilling or other lode exploration programs.
NJMC VP of Exploration, Rob Morgan commented, “This acquisition benefits us in two ways. First of all, we have a great relationship with the surface owner/placer operator and plan to core drill the potentially gold-bearing quartz and shear zones this winter. Secondly, acquisition of the surface land adjacent to the Golden Chest provides flexibility for future mining operations at the Chest – including our ability to develop a larger open-pit resource.”
The Company acquired 60 acres of patented mining claims (both surface and mineral rights) located next to the Golden Chest land package, and 153 acres of adjacent patented lode mineral rights beneath the current and historic placer operations in Butte Gulch. The Company also staked unpatented claims East of Butte Gulch. The patented land and mineral rights package was purchased for $250,000 and the seller retained a 2% NSR within a defined Area of Interest. An additional 71 acre patented land package located southwest of the Golden Chest was included in the transaction and will be further discussed in an upcoming press release.
NJMC CEO and President John Swallow stated, “We are playing the long game in the Murray Gold Belt. Acquisition of the Butte Gulch property demonstrates our belief in not only the future of the Golden Chest, but in the long overlooked potential of certain locations within this prolific and historic gold district. The Butte Gulch property acquisition is part of our overall big-picture strategy within the Murray Gold Belt and demonstrates our ability to both expand the base while providing for future upside potential.”
About New Jersey Mining Company
New Jersey Mining Company is headquartered in North Idaho, where it is producing gold at its Golden Chest Mine. Gold was first discovered in the Coeur d’Alene District within the Murray Gold Belt in 1879, but by 1888 mining declined as the center of activity and demand for labor shifted to the Silver Valley following the discovery of the Bunker Hill, Sunshine, Lucky Friday, and other iconic regional mines. The rebirth of the long-forgotten Murray Gold Belt has been led by NJMC, as evidenced by production from open-pit and underground operations at the Golden Chest Mine, its extensive land package and superior knowledge of the district gained from current development and production, and ongoing exploration activities.
NJMC has established a high-quality, early to advanced-stage asset base in three historic mining districts of Idaho and Montana, developed with more than $50-million by NJMC and other companies. The Company’s objective is to use its considerable in-house skill sets to build a portfolio of mining and milling operations, with a longer-term vision of becoming a mid-tier producer. Management is shareholder focused and owns more than 17-percent of NJMC stock.
The Company’s common stock trades on the OTC-QB and CSE Market under the symbol “NJMC.”
For more information on New Jersey Mining Company go to www.newjerseymining.com or call:
Monique Hayes, Corporate Secretary/Investor Relations
Forward Looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Such statements are based on good faith assumptions that New Jersey Mining Company believes are reasonable, but which are subject to a wide range of uncertainties and business risks that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such factors include, among others, the risk that , the risk that the mine plan changes due to rising costs or other operational details the risk that exploration results do not result in identification of additional resources or future production from the open pit at the Golden Chest Mine, the risk that the Company is unable to obtain sufficient funds necessary for expansion or the risks and hazards inherent in the mining business (including risks inherent in developing mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver and the potential impact on revenues from changes in the market price of gold and cash costs, a sustained lower price environment, as well as other uncertainties and risk factors. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. NJMC disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.