New Jersey Mining To Commence Drilling At Toboggan Project

 

KELLOGG, ID - New Jersey Mining Company reported that it expects core drilling to start at its Toboggan project in mid-May. The Toboggan project is a gold exploration joint venture between New Jersey Mining Company and Newmont North America Exploration Limited.

Drilling is planned to start at the Mineral Ridge prospect, where Newmont's soil sampling program has identified a gold-in-soil anomaly about 200 meters wide by 700 meters long. The first drill hole is targeted to explore the northeastern part of the soil anomaly where soil sampling revealed a gold-in soil anomaly 73 meters wide with an average gold-in-soil content of 0.128 grams per tonne (gpt) gold. Rock samples from the area show signs of shearing or brecciation and silica-flooding. A rock float sample assayed 38.4 gpt gold, 19.6 gpt silver and 61 gpt tellurium. Mineral Ridge was the site of a small reverse-circulation drilling program with 850 meters drilled in the early 1990s that identified widespread gold mineralization associated with structural zones of fractured rock.

The next drilling target will be at the Golden Reward prospect, where soil sampling identified a gold-in-soil anomaly 240 meters wide by at least 400 meters long. Outcrop is poorly exposed in the Golden Reward soil anomaly area; however, rock float has been found in the center of the anomaly that assayed 67.6 gpt gold, 174 gpt silver, and 132 parts per million (ppm) tellurium. Other rock float samples from near the center of the soil anomaly have shown that high levels of beryllium (>1000 ppm) and scandium (>1000 ppm) may be associated with quartz veining. It appears that no historic exploration drilling has taken place at the Golden Reward prospect.

Core drilling will also take place at the Gold Butte prospect, where surface mapping and geophysics indicate a large altered zone containing gold mineralization along a north-trending, structurally disturbed zone related to a small fold. The mineralization appears to be a steeply dipping pyritic vein breccia with related quartz-sulfide veins. The mineralization occurs within a defined gold-in-soil anomaly approximately 90 meters wide by 570 meters long. Surrounding the gold mineralization appears to be a potassic alteration halo. The sulfide mineralization appears to occur along the eastern margin of an IP geophysical anomaly.

Newmont has submitted a Plan of Operations to the US Forest Service for four additional drill sites at Mineral Ridge and one additional site at Golden Reward.

Drilling services this season will be provided by New Jersey Mining Company's wholly-owned subsidiary, Toboggan Drilling Company, utilizing the Company's Sandvik core drill and personnel.

Fred Brackebusch, CEO of New Jersey Mining Company, commented, ``We are excited that Newmont will soon commence drilling of the three major prospects in the Toboggan joint venture. Drilling results are the bottom line of an exploration project, and we look forward to seeing those results.''

The companys address is 89 Appleberg Road, P.O. Box 1019, Kellogg, ID 83837, 208-783-1032, fax: 208-783-3331, email: [email protected].