New Jersey Mining Company Acquires Eastern Star Project
25 April 2014 - 11:00PM
New Jersey Mining Company ("NJMC" or the "Company") (OTC:NJMC)
today announced the purchase of the Red Elk claim group from
Premium Exploration Inc. (TSX-V:PEM) ("Premium"). NJMC will
hereafter refer to the property as the Eastern Star project.
The property consists of 13 patented mining claims covering 220
acres near Elk City, Idaho. The property includes the Bennett
Lumber Company mill site, a former industrial site well-suited for
mining infrastructure and facilities that includes industrial water
rights and highway access.
The Elk City Mining District is an historic gold mining region
dating back to the 1860's that supported more than 20 mines,
including the Eastern Star, along with placer dredging operations.
Modern exploration in the district by companies including
Cypress-Amax, Kinross Gold, and Bema Gold has focused on
near-surface bulk tonnage potential, while the many smaller-scale
high-grade gold occurrences have largely been ignored.
At the Eastern Star, high-grade samples have been collected from
three separate locations, representing nearly one-half mile of
mineralized trend. Of 25 grab samples acquired by Premium in 2011,
nine assayed greater than 0.493 ounces of gold per ton ("oz/ton")
(16.90 grams of gold per tonne ("g/t")). Although the property was
patented more than a century ago, very little exploration has ever
been conducted on it.
NJMC President John Swallow stated, "This property acquisition
provides us with considerable flexibility within our business
plan. We have thorough knowledge of the area which lies within
trucking distance to our mill in Kellogg. It fits our near-term
objectives of evaluating high-grade systems for production
potential as well as our longer-term vision of possibly building a
new mill capable of servicing an emerging mining district as local
operations are developed."
Pursuant to the agreement, NJMC will make $425,000 in cash
payments to Premium for the property, beginning with a $125,000
down payment upon signing of a definitive agreement. NJMC will
pay the remaining $300,000 in two balloon payments over the next 16
months, with the balance accruing interest at a rate of
5-percent.
NJMC also announced today the construction of a new circuit to
recover gravity recoverable gold (GRG) or visible gold in ores
processed at the New Jersey Mill in Kellogg, Idaho. The New Jersey
Mill currently produces only a flotation concentrate. The addition
of a gravity circuit is expected to produce another saleable
product and increase overall gold recovery within the plant. The
gravity circuit will initially be used to treat ores from the
Golden Chest and is also expected to benefit the Company's custom
milling business.
About New Jersey Mining Company
The new management team at New Jersey Mining Company (NJMC) is
implementing a new business plan. NJMC is located in
North Idaho's Silver Valley where it built and is the
majority-owner and operator of a fully-permitted 360-tonne per day
flotation mill and concentrate leach plant. The Company is actively
engaging clients for custom milling contracts while also pursuing
its own small-scale production opportunities.
The Company also owns a 47.88-percent interest in the Golden
Chest LLC which controls the Golden Chest Mine, a historical gold
producer with more than 12,000 feet of underground workings. Since
2003, more than $6-million has been spent on exploration, drilling,
and development at the Golden Chest Mine, including more than
$5-million by Marathon Gold since 2010. Golden Chest LLC recently
leased a portion of the Golden Chest Mine to Juniper Resources, a
mine development and production company.
The Company's common stock trades on the OTC Market under the
symbol "NJMC".
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.
CONTACT: For more information on New Jersey Mining Company,
please contact:
Del Steiner, CEO
Email: dsteiner@newjerseymining.com
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