Updated resource estimate New Jersey Mining Company Reports Updated Resource Estimate for the Golden Chest
KELLOGG, IDAHO Thursday, January 17, 2013 -- New Jersey Mining Company (OTCQB:NJMC) is pleased to announce an updated NI-43-101 compliant resource estimate for the Golden Chest gold mine located in Murray, Idaho. The Golden Chest is owned 50% by NJMC and 50% by Marathon Gold Corporation (MOZ-TSX) and NJMC is the operator.
“Comparing this new resource calculation with the previous one done in March 2012, there is a 25% increase in the amount of gold in the global resource. Not only was there a substantial increase in the amount of gold, the grade of the resource increased from 1.46 g/t to 1.71 g/t plus the quality of the resource improved with a higher proportion of resource in the Measured and Indicated and a corresponding reduction in the proportion of Inferred resource. Pit optimization shows that 68% of the global resource falls within a pit, assuming the parameters listed below. For the first time, an underground resource is being reported. The entire vein system which has a strike length of 1250 m is open down-dip, and it is expected that more drilling will result in greater underground resources.” stated Fred W. Brackebusch, CEO of NJMC.
| Golden Chest Mine Resource Estimate Update | Parameter | Measured and Indicated | Inferred |
| | |
| Global Resource @ 0.4 g/t gold cut-off |
| Idaho Vein System (Main body)1 | Tonnes | 4,552,000 | 3,065,000 |
| Grade (g/t Au) | 1.67 | 1.48 |
| Ounces of gold | 245,000 | 145,000 |
| Other Veins2 | Tonnes | 75,000 | 797,000 |
| Grade (g/t Au) | 3.69 | 3.04 |
| Ounces of gold | 9,000 | 78,000 |
| Total1+2 | Tonnes | 4,627,000 | 3,862,000 |
| Grade (g/t Au) | 1.71 | 1.80 |
| Ounces of gold | 254,000 | 223,000 |
| | |
| Grand Total (Measured + Indicated + Inferred) | 477,000 ounces |
| In Open Pit @ 0.3 g/t gold cut-off |
| Idaho Vein System + Other Veins | Tonnes | 4,371,000 | 2,369,000 |
| Grade (g/t Au) | 1.59 | 1.33 |
| Ounces of gold | 223,000 | 101,000 |
| Total (Measured + Indicated + Inferred) | 324,000 ounces |
| | |
| Potential Underground @ 2.0 g/t gold cut-off |
| Idaho Vein System + Other Veins | Tonnes | 196,600 | 738,300 |
| Grade (g/t Au) | 3.11 | 3.48 |
| Ounces of gold | 19,600 | 82,500 |
| Total (Measured + Indicated + Inferred) | 102,100 ounces |
The “Global Resource” estimate is that portion of the geologic block model above a cutoff grade of 0.40 g/t gold. The “In Open Pit” estimate is a conceptual open pit plan that is the result of an optimization routine used to determine what portion of the deposit is amenable to open pit mining at a gold price of US$1,455 with a given a set of economic, geologic and metallurgical parameters as described below. The “Potential Underground” resource is that portion of the resource beneath the open pit and above a cutoff of 2.0 g/t gold.
Resource Estimate Notes:
- The 0.4 g/t gold cut-off grade for the Global Resource numbers has not been constrained by economic parameters and it may be compared to the initial resource estimate of March, 2012.
- The mineral resource estimate reported at 0.3 g/t gold cut-off grade for a potential Open Pit is based on a number of parameters and assumptions including a gold price of US$1,455 per troy ounce, 92% metallurgical gold recovery, mining costs of US$2.00/tonne and process costs of US$9.50/tonne, general & administrative costs of US$2.00/tonne and environmental rehabilitation costs of US$0.20 per tonne treated.
- The 2.0 g/t gold cut-off grade for a potential Underground mine was suggested by Marathon Gold Corporation and New Jersey Mining Company based on their experience. The mineral resource estimate is reported at that cut-off grade.
- The quantity and grade of reported Inferred mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define the Inferred mineral Resources as Indicated or Measured mineral Resources. It is uncertain if further exploration will result in upgrading them to Indicated or Measured mineral Resource categories.
- The mineral Resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. The effective date of this mineral Resource Estimate is January 16, 2013.
Global Mineral Resource Parameters:
- Estimations are based on sample composites of ~1.5 meters for both underground channels and drill holes. Grade capping was applied to a single outlier sample grading 864 g/t Au. Based on detailed statistical analysis combined with information from drill hole logs, no further grade capping was deemed necessary.
- A 0.40 g/t Au cut-off grade was applied for the 3D deposit modeling, in some cases lower grade material was included in order to get a reasonable shape in the interpretations.
- A constant specific gravity of 2.66 tonnes per cubic meter was used.
- Resources were modeled using 3D interactive modeling backed by sectional interpretation.
- The database for the Golden Chest deposit comprised a total of 24,140 meters of drilling (169 DDH and 26 RC), and 186 meters of sampling in 160 underground channels.
- The mineralized zones at the Golden Chest Mine extend approximately 1,250 meters along strike. The Open Pit Mineral Resource has been constrained by a conceptual open pit shell that includes Resources to a maximum depth of approximately 300 meters.
- Grade estimation was carried out using Ordinary Kriging interpolation for the Idaho Vein System (main body) and Inverse Distance Cubed for the other veins.
- Resource estimation for the main body is based on a block model with block dimensions of 5 meters East-West, 5 meters North-South and 5 meters in height. Grade estimation for the other veins estimations was based on a block model with block dimensions of 1 meter East-West, 1 meter North-South and 1 meter in height.
- Measured mineral resources include all mineralized blocks with a minimum of 3 drill holes within ~25 meter radius of the centroid of each block, and clean-up of isolated minor volumes.
- Indicated mineral resources include all mineralized blocks with a minimum of 3 drill holes within ~50 meter radius of the centroid of each block, and clean-up of isolated minor volumes.
- Inferred mineral resources include all the remaining mineralized blocks to the extent of the wireframe constraints. All blocks were interpolated with data from a minimum of 2 drill holes.
- Resource estimation for the potential underground mine was based on a cut-off grade of 2.0 g/t gold.
This Resource has been estimated in compliance with National Instrument 43-101 standards and a corresponding Technical Report will be posted on the Company’s website. The Micon staff responsible for this Resource Estimate are Messrs’ Charley Murahwi, M.Sc., P. Geo., FAusIMM and Alan J. San Martin, MAusIMM(CP). Both are Qualified Persons as defined in NI 43-101, and are independent of Marathon Gold Corporation and New Jersey Mining Company. Micon acknowledges that it has read this news release and confirms the accuracy of it.
The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms, such as "measured," "indicated," and "inferred resources," that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are cautioned not to assume that any or all of measured, indicated or inferred resources are economically or legally mineable or that these resources will ever be converted into reserves. U.S. investors are urged to consider closely the disclosure in our Form 10-K and Form 10-Q.
The Golden Chest Mine
The Golden Chest Mine is located two miles east of Murray, Idaho within the gold belt of the Coeur d’Alene Mining District. The mine has over 3,900 meters of underground workings and has the permits necessary to drill and operate on the deposit. The property includes 24 patented mining claims and 70 unpatented mining claims covering 515 hectares. The patented claims that cover the mine workings have mineral and surface rights enabling the joint venture to work efficiently on the mine property.
About New Jersey Mining Company:
New Jersey Mining Company is involved in exploring for and developing gold, silver and base metal resources in the Coeur d’Alene Mining District of northern Idaho. New Jersey Mining Company has a portfolio of mineral properties in the Coeur d’Alene Mining District including the New Jersey Mine which includes a new 360 tonne per day flotation mill and a concentrate leach plant.
For more information on New Jersey Mining Company, please contact:
Grant Brackebusch, P.E., Vice President
Phone: 1.208.783.1032
Email: ir@newjerseymining.com
Website: www.newjerseymining.com