Tuesday, November 24, 2015

New Jersey Mining Company (NJMC) Opens Golden Chest in 2015

Idaho-based New Jersey Mining Company (NJMC) built and is the majority-owner and operator of a fully-permitted, recently upgraded, 360-tonne per day flotation mill and concentrate leach plant. The company is manager and 47.88-percent owner of Golden Chest LLC, which owns the Golden Chest Mine, a historic lode gold producer on patented claims near Murray, Idaho. NJMC recently signed an Option to Purchase Agreement, giving it the right to acquire the remaining interest in Golden Chest.

In its recent 10Q filing, NJMC reported revenue of $603,057 and $1,866,421 for the three- and nine-month periods ended September 30, 2015, a steep increase compared to $6,229 and $6,368 for the comparable periods of 2014. Net income of $120,087 for the three-month period and net loss of $17,953 for the nine-month period also mark an improvement over the prior year periods, as compared to a three-month net loss of $371,632 and nine-month net loss of $934,632. The company attributes the 2015 revenue and income to the Golden Chest Mine.

Earlier this month NJMC announced that it has commissioned data compilation and scoping studies of the Golden Chest Mine. This follows the September termination of the company’s partnership with Juniper Resources LLC, in which Juniper forfeit the remaining mineralized material and mine infrastructure of the Skookum Shoot back to Golden Chest LLC. At the time, NJMC said it would continue to process Golden Chest ore at its New Jersey Mill through stockpile depletion.

Though NJMC currently has no additional candidate projects for milling production, it is moving forward with business development and exploration to generate future mill feed for the New Jersey Mill. These plans call for an analysis of continuing the Golden Chest production with NJMC as the operator.

The aforementioned scoping study is focused on near-mine mineralization, including areas that were included in the Juniper mine plan but were not mined, as well as other accessible, drill-tested areas. NJMC intends to use the data to develop a small-scale mining plan, with a production target of 2,000 to 3,000 tons of ore per month, processed at the New Jersey Mill.

In a letter to shareholders, dated November 4, 2015, NJMC President John Swallow addressed the benefits of the company’s current position, in part saying:

“As part of our base building and focus on cash flow, we intend to exercise our recently acquired Option within the next few weeks, securing ownership of the Golden Chest Mine and greater control of our own destiny, embracing the opportunities and the challenges that come with it.

“Juniper and Small Mine Development did a great job of developing the mine, leaving a high-quality platform for us to build upon, including a tremendous amount of data and knowledge and an area of potential ore already blocked out.

“The road ahead… We are evaluating three possible paths. With the addition of the Golden Chest Mine to our New Jersey Mill asset base, we could obviously go into “care and maintenance” mode until market conditions improve. Or we could bring in a partner and joint venture the advancement of the mine. However, our preferred path is to evaluate the possibility of going into small-scale production ourselves, and that process is currently underway.”

Moving forward, NJMC has a newly developed mine, a recently operating mill, and district scale exploration potential, which could provide a nice level of optionality for its investors.

For more information, visit the company’s website at www.newjerseymining.com

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