New Jersey Mining completes GF&H acquisition

31 August 2016 (Last Updated August 31st, 2016 18:30)

New Jersey Mining (NJMC) has finalised its purchase of GF&H, which owns 374 acres of mining claims close to NJMC's Golden Chest Mine Project near Murray, Idaho, US.

New Jersey Mining (NJMC) has finalised its purchase of GF&H, which owns 374 acres of mining claims close to NJMC's Golden Chest Mine Project near Murray, Idaho, US.

The GF&H land package includes claims that are just south of the mine property.

NJMC performed modern exploration at the Golden Chest property, including nearly 30,000m of drilling, which found seven NW-trending ore shoots.

Initially, the company bought a controlling interest in GF&H in 2014, for the location and mineral potential of the claims, as well as their potential for timber harvesting and land swaps.

"We have firmly believed in the district-scale potential of the Golden Chest property for a long time."

Separately, NJMC has started small-scale open-pit mining at Golden Chest and stockpiled its first ore on-site before its shipment to the company’s nearby New Jersey Mill.

The starter pit at Golden Chest contains around 13,000t of mineralised material with potential for expansion.

The company is also carrying out work towards dewatering of the underground mine workings at the Golden Chest and plans to resume underground operations immediately following this process.

NJMC president John Swallow said: “We have firmly believed in the district-scale potential of the Golden Chest property for a long time, therefore it was always our plan to advance the property package following Juniper’s lease on the Skookum Shoot.

“The acquisition of GF&H and purchase of Marathon’s portion of Golden Chest LLC were logical steps toward our goal of consolidating ownership and resuming operations at the mine.”

In 2012, Golden Chest completed a NI 43-101 technical report and published an updated NI 43-101 compliant open pit resource estimate the following year.

NJMC also owns and operates a 360t per day flotation mill and cyanide leach plant and holds a 50% interest in the Butte Highlands gold project.