First Shipments Of Concentrate From New Golden Chest Mine

COEUR D'ALENE, ID - New Jersey Mining Company reported shipments of approximately 100 tonnes of gold concentrate in five 20-tonne lots from its New Jersey Mill in Kellogg, Idaho.

The flotation concentrates are derived from ore produced at the nearby Golden Chest Mine by Juniper Mining LLC. Proceeds from the sale of the concentrates accrue to Gold Hill Reclamation and Mining Inc (Gold Hill), the lessee of the Golden Chest Mine. NJMC processes the ore at its New Jersey Mill, generating cash from milling fees and its share of a 2-percent NSR royalty on gold production.

The flotation concentrates contain gold, silver, and significant base metal (zinc and lead) sulfides. The total gold contained in the shipped concentrate is estimated at 540 troy ounces; and gold recovery continues to average approximately 94-percent. The mill concentration factor, or the ratio of the gold grade of the concentrate to that of the ore has been greater than 35:1, exceeding expectations.

The Golden Chest Mine commenced ore production in December 2014 and is operating in a ramp-up period, during which development is driving to deeper levels while ore production is building towards design capacity of approximately 300 tonnes per day. The gold grade of the concentrates has increased with each 20-tonne lot, reflecting the progression of mining from the upper margin of the orebody down into the higher-grade core of the deposit.