New Jersey Mining Forms Joint Venture With Newmont

KELLOGG, ID - New Jersey Mining Company reported that it has signed a definitive agreement with Newmont North American Exploration Limited under which the parties created a joint venture to explore for gold deposits within a 38 square mile area north of Murray, Idaho. The joint venture, known as the Toboggan Project, covers all of NJMC's mining claims within this area except the Niagara property. Under the terms of the agreement, Newmont can earn a 51% interest in the joint venture by spending $2,000,000 over three years. Newmont can increase its interest to 70% by spending an additional $10,000,000 or completing a feasibility study in the years four through seven, whichever comes first.
As part of the terms of the agreement, Newmont retains an option to include the Niagara property into the Toboggan Project which is exercisable starting at the end of year one and extending to the end of year three. If Newmont elects to include the Niagara property, it would be required to spend at least another $1,000,000 or twice what NJMC spends on exploration of the Niagara, whichever is greater, to earn its 51% interest.
Fred Brackebusch, CEO, commented: "We think the joint venture with Newmont will accelerate the exploration of a potentially large gold system in structural zones related to alkaline intrusive rocks buried at depth in the Murray area. We look forward to the ensuing exploration program to be conducted by Newmont and to a potential mining project in the future."
New Jersey has other properties in the Murray area which are not part of the Toboggan Project including the Golden Chest project where a ramp is being driven to access deeper gold ore reserves, and the Copper Camp property, a copper-silver exploration prospect.
The company's address is 89 Appleberg Road, P.O. Box 1019, Kellogg, ID 83837, 208-783-1032, fax: 208-783-3331, email: [email protected].