Drilling High-Grade Gold-Quartz Veins Continues In The Klondike Area

COEUR D'ALENE, ID - New Jersey Mining Company (NJMC) reported that the latest assay results from the ongoing core drilling program at the Golden Chest mine. These recent gold intercepts lie within the Klondike area and come from drill hole GC 21-205. GC 21-205 is the third diamond drill hole completed in the Klondike to show highly favorable results in what is quickly developing into an extensive mineral system. NJMC will continue with its step-out drilling program in order to define the limits of this new gold resource. All intervals are reported in drill thickness (as vein orientations have yet to be determined) and in grams of gold per tonne (gpt).

It is an important distinction that these intercepts, except the last one, are all located above the Idaho Fault. This is a notable departure from the geological setting at the Golden Chest mine, where most historic gold mineralization is located below the Idaho Fault. The two previous drill holes (GC 21-203 & GC 21-204) as well as GC 21-205 all encountered an exceptionally large, new fault structure in excess of 20 meters wide, which is by far the largest fault ever identified within the Golden Chest mine area. Our new mineralization, with its intensive alteration, develops just below this large fault and represents another key mining target north of the existing underground operations in the Skookum.

GC 21-205, drilled down-dip of GC21-203 & GC21-204, encountered widespread hornfels alteration with intense silica flooding. Hornfels are baked and hardened rocks that result from the heat of igneous masses and indicates that the igneous rocks could be the source of the gold mineralization at the Golden Chest. Additionally, many of the silica-flooded intervals contain thick intervals (>15 m) of low-grade (~ 1 gram) gold values, which are anchored by high-grade, gold-bearing banded quartz veins. Eight of these veins, with widths from 0.1 to 0.5 meters, have impressive gold assays ranging from 22 to 138 gpt Au.

Vice President of Exploration, Rob Morgan, said, “All three drill holes in the Klondike area have contained very sizable intervals of gold mineralization. Our ongoing drilling will continue to plumb the extents and depths of this gold mineralization, which remains open in all directions. The next planned holes will continue to step-out and expand on these exciting results at the Klondike, until we are chased out by snow sometime in November."