New Jersey Mining Company Provides Second Quarter Update on Operations and Corporate Activities
COEUR D'ALENE, Idaho, Aug. 15, 2018 (GLOBE NEWSWIRE) -- New Jersey Mining Company (OTCQB:NJMC/CSE:NJMC) (“NJMC” or the “Company”) today announced its consolidated operating and financial results for the second quarter of 2018. The full version of the Company’s interim consolidated financial statements and management’s discussion and analysis (MD&A) can be viewed on the Company’s web site, on SEDAR and EDGAR. All amounts are expressed in U.S. dollars unless otherwise specified.
Operational Highlights during the second quarter of 2018 include:
- For the quarter ending June 30, 2018, approximately 8,140 dry metric tonnes (dmt) were processed at the Company’s New Jersey Mill at a head grade of 2.0 grams per tonne (gpt) gold with recovery averaging 90.3 -percent. This resulted in production of 472 ounces of gold contained in flotation concentrates.
- Open-pit mining progressed from the 1036 bench to the 1027 bench as we continued to advance through the low grade, high waste stripping ratio area in between shoots. Open-pit mine production averaged 1,514 tonnes per day (mineralized material and waste). The on-site, low grade stockpile has increased and contains an estimated 43,000 tonnes at a gold grade of 0.65 gpt.
- Underground mining in the 851 stope advanced to the north. During the quarter approximately 1,250 tonnes of mineralized material were mined at an average grade of 6.3 gpt. The 851 north stope was completed in late July for a total mined tonnage of 1,830 tonnes at a gold grade of 7.38 gpt. Subsequent to the end of the quarter the Company completed the commissioning of its Cement Rockfill (CRF) batch plant and commenced backfilling activity.
- Core drilling commenced with the Company’s newly acquired drill and initially focused on exploring the Katie-Dora area of the Golden Chest for possible expansion of the surface mining operation.
- The Company continued to expand its land holdings in the Murray Gold Belt with the addition of the Butte Gulch and Potosi properties, adding 284 acres of patented mining claims. The Company has also added additional, strategically located unpatented mining claims.
NJMC CEO and President John Swallow stated “Despite the higher cost of sales during the first half of 2018 as we mined through the lower grade portion of the open-pit, we recorded higher revenues which included a one-time gain on the sale of non-strategic unpatented mining claims. This combined with our increased land position and ownership of a drill have allowed us to greatly expand our exploration activity within the Murray Gold Belt.”
Corporate Highlights include:
- The Company achieved revenues of $1,590,946 for the first half 2018 compared to the first half 2017 revenues of $1,952,008.
- For the first half of 2018, operating income was $1,776,486 compared to $119,708 for the same period in 2017. Included in operating income for the first half of 2018 is a gain of $2,947,862 on the sale of the Toboggan project. Without this gain, operating loss for the period is $1,181,376.
- Closed private placements during the first half of 2018 for net proceeds of $1,107,571, which included participation from Hecla Mining Company of $500,000.
- Completed the sale of its Toboggan project to Hecla Mining Company for $3 million and used the proceeds to reduce debt associated with the start-up of operations at the Golden Chest Mine, increase our land position and accelerate exploration activities in the Murray Gold Belt.
- Listing approved on the Canadian Securities Exchange.
Mr. Swallow concluded, “As anticipated, it has been a busy 2018 and we expect that trend to continue. As a result of the sale of the Toboggan land holdings and their increased land position, we welcomed Hecla Mining Company to the Murray Gold Belt during the quarter. Additionally, New Jersey Mining Company is now listed on the Canadian Securities Exchange and we anticipate expanding our industry presence as our big picture plans for the Murray Gold Belt come together.”
About New Jersey Mining Company
New Jersey Mining Company is headquartered in North Idaho, where it is producing gold at its Golden Chest Mine. NJMC has established a high-quality, early to advanced-stage asset base in three historic mining districts of Idaho and Montana 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 the 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 Company’s ability to increase exploration and production, the risk that the mine plan changes due to rising costs or other operational details, 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