New Jersey Mining Company Provides Update On Operations

COEUR D'ALENE, ID - New Jersey Mining Company (NJMC) President and CEO, John Swallow, said, "As mentioned in our recent President's Letter prior, the second quarter reflects the completion of the first phase of the Idaho Pit in April and preparation for surface and underground development, drilling, etc. During the quarter we also focused on permitting of the Klondike Pit and layback of the Idaho Pit - and the eventual transition of surface operations to the new Klondike Pit. We recognized the rapidly changing global environment and it is our opinion that the adjustments made during the first half of the year fit nicely into a scenario of higher gold prices, increased production, resource expansion and exposure to the raw materials required of a low-carbon future."

For the quarter ending June 30, 2020 a total of 9,700 dry metric tonnes (dmt) were processed at the Company's New Jersey mill at a head grade of 2.96 grams gold per tonne (gpt) with gold recovery of 85.5%. Gold sales for the quarter were 844 ounces. Open pit mining progressed from the 976 bench to the 964 bench. Open pit mine production averaged 1,490 tonnes per day (mineralized material and waste). Mining was focused on the completion of the Idaho pit and preparation tasks such as land clearing and topsoil stockpiling were commenced for a new layback of the Idaho pit and start of the Klondike pit. Effort was expended for the maintenance and improvement of sediment control structures (BMPs) around the mine site. Significant engineering time was also spent working with state regulators on the permitting of the new surface mining areas. NJMC personnel also began the construction of a new shop building at the mine.

Underground mining focused on the 845 and 836 levels with significant effort spent backfilling the 836 North stope. Development of the new 877 Stope access ramp was started as well as preparations for deepening the main access ramp. Approximately 2,900 tonnes of ore were mined and 1,200 cubic meters of cement backfill were placed. Both the 845 North and 836 North stopes were extended over 40 meters from previous stopes indicating the extension of gold mineralization to the north.

Subsequent to the end of the second quarter, an additional "Jumbo" drill was purchased targeting additional headings available to drill, which will allow for increased production stoping and development rates. An LHD (underground loader) was also purchased to increase mechanical availability and facilitate the anticipated increased production rate. A second underground crew is anticipated to begin in mid-August so development work and mining can be performed concurrently.