New Jersey Mining has obtained formal notice from Juniper Resources and its US affiliate companies that it will end mining operations at the Golden Chest Mine this week.
The Skookum Shoot portion lessee also requested a concurrent termination of its mining lease with Golden Chest at that time. Mining operations at the site will cease on 23 September.
Juniper said it will forfeit the remaining mineralised material in the Skookum Shoot, along with all mine infrastructure back to Golden Chest and give up the remaining royalty prepayment that it had been owed by New Jersey Mining.
Until the stockpile depletion is expected by the month-end, New Jersey Mining will continue to process Golden Chest ore at its New Jersey Mill.
New Jersey Mining CEO Del Steiner said: "While we are disappointed that Juniper has decided to terminate its lease at the Golden Chest, we see great opportunity for our shareholders going forward.
"The company may be able to use the first-class infrastructure constructed by Juniper and its mine contractor, Small Mine Development (SMD), either to jump-start resumed production or as a platform for exploration and drilling of possible near-mine mineralisation."
New Jersey Mining leased the Skookum Shoot portion of the Golden Chest Mine in 2013 to Juniper, which developed a gold mine that reached full production in May 2015.
NJMC manages and 47.88% owns Golden Chest, and has processed ore at its New Jersey Mill.
The mill processed 38,960 dry metric tonnes of ore from the Golden Chest from the ramp-up period that began in late-2014, until 11 September 2015.
New Jersey Mining president John Swallow said: "We maintain a greatly enhanced project stake at Golden Chest, with excellent potential for near-mine mineralisation and historically productive high-grade shoots elsewhere on the property."
Located two miles east of Murray in north Idaho, the mine was the historic lode producer of gold in the Coeur d’Alene mining district.
Image: Juniper will forfeit the remaining mineralised material in the Skookum Shoot back to Golden Chest. Photo: courtesy of duron123/FreeDigitalPhotos.net.