New Jersey Mining Company Starts Feasibility Study
New Jersey Mining Company announces it will commence a feasibility study for a 5,000 tonnes per day flotation mill in the Murray, Idaho area. The study will investigate the economics of a central mill processing copper-silver ore from the Niagara deposit and gold ore from the Golden Chest mine, and possibly other sources. Currently, the company has 17.3 million tonnes of gold, silver and copper resources and reserves in the Murray area.
A feasibility study is necessary to evaluate the economics of the Niagara and Golden Chest resources, which if economic, can be converted to reserves. The study will involve cost estimating for a mining operation with necessary infrastructure such as electrical power and roads. Various mining methods for the Niagara copper-silver deposit will also be evaluated. It is expected that a pre-feasibility report will be completed in 12 months, and if positive, the feasibility study would then continue, ultimately producing a bankable document.
As part of the study, drilling is planned for the Niagara to firm up the resource with more closely spaced drillholes. At the Golden Chest, the Idaho ramp has been started which will provide access to drill-indicated reserves on the Idaho vein, and provide a platform for more exploration drilling. The Idaho ramp will be 590 meters long, and about 30 meters of the ramp has been completed. Delivery of a hydraulic percussion drill later this month is expected to significantly accelerate the pace of ramp development.
The flowsheet of the mineral processing plant being developed by W. C. Rust, consulting metallurgist, includes crushing to 150 mm, covered coarse ore storage, semi-autogenous grinding, ball mill grinding, bulk flotation, concentrate dewatering, and paste tailings disposal. Both the Niagara and Golden Chest materials are amenable to bulk sulfide flotation. Copper concentrates would be shipped to smelters and gold-bearing pyrite concentrates would be processed at the company’s leach plant in Kellogg.
Company President Fred Brackebusch, commented, “It is exciting to get started on the feasibility process for a large mill in the Murray area. Exploration will continue and will possibly increase the resource to be considered for mining. I expect exploration drilling to commence in 2007 at the Gold Butte property will increase the Company’s resources in the Murray area.”
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. The Company has a portfolio of mineral properties in the Coeur d’Alene Mining District including the Niagara copper-silver deposit, the Golden Chest mine, the New Jersey mine, the Silver Strand mine, and several other exciting exploration prospects.
This release contains certain forward-looking statements within the meaning of the Federal Securities Laws. Such statements are based on assumptions that the Company believes are reasonable but which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in the Company’s periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB for the year ended December 31, 2006.
Further information about New Jersey Mining Company and it’s properties can be found at the company’s website at www.newjerseymining.com or on the website of the Securities and Exchange Commission at www.sec.gov.
Source: New Jersey Mining Company