Ms. Monique Hayes reports
NEW JERSEY MINING COMPANY PROVIDES SECOND QUARTER UPDATE ON OPERATIONS AND CORPORATE ACTIVITIES
New Jersey Mining Company has released its consolidated operating and financial results for the second quarter of 2019. The full version of the company's interim consolidated financial statements, and management's discussion and analysis can be viewed on the company's website, on SEDAR and EDGAR. All amounts are expressed in United States dollars unless otherwise specified.
Operational highlights for 2019 include:
- For the quarter ending June 30, 2019, approximately 13,329 dry metric tonnes (dmt) were processed at the company's New Jersey mill at a head grade of 3.22 grams per tonne with gold recovery of 86.81 per cent. Gold sales for the quarter were 1,228 ounces.
- Open pit mining progressed from the 1009 bench to the 1003 bench. The trend of lower stripping ratios in the open pit continued during the second quarter as the Skookum shoot was fully exposed in the pit. Open pit mine production averaged 1,150 tonnes per day (mineralized material and waste).
- Underground mining focused on the completion of mining the 857 stope along with mining of the 848 stope. Backfilling of the 848 north stope was completed during the quarter and the addition of the Cat AD22 haul truck provided a substantial increase in the backfilling rate that reduced the time required to fill the stope (and get back to production) by 50 per cent.
- The company completed a column leaching test, achieving 88-per-cent gold recovery of an oxidized sample of quartzitic footwall material collected in the pit with a head grade of 1.19 g/t. As demonstrated by these favourable results, the oxidized footwall material in the current open pit at the Golden Chest is readily amenable to heap leaching. The company intends to conduct additional column tests of other mineralized material at the Golden Chest mine to fully assess the potential economic benefits of processing lower-grade mineralized material.
- Subsequent to the end of the second quarter, the company achieved record production for the month of July, processing 5,374 dry metric tonnes at the company's New Jersey mill.
New Jersey Mining president and chief executive officer John Swallow stated: "Virtually every metric we use to measure the health of the business improved substantially during the quarter and in the year-over-year comparisons. Most notably, our revenue from gold production increased over 50 per cent in comparison to the first six months of 2018, while our overall cost of sales increased by roughly 15 per cent for the same period. By utilizing existing cash flow and without incurring additional dilution, and with a considerable amount of prior investment and debt behind us, we gained the ability to add a new underground haul truck and a newer underground loader. Both pieces of equipment immediately improved efficiencies, safety and the bottom line. The labour freed up from these improved efficiencies will also allow for additional headings and the ability to perform development work while still producing revenue."
Corporate highlights include:
- The company achieved revenue from gold sales of $1,547,654 and $2,692,328 for the three- and six-month periods ending June 30, 2019, compared with $489,555 and $1,590,946 for the comparable periods of 2018.
- Overall cost of sales was $1,470,119 and $2,554,864 for the three- and six-month periods ending June 30, 2019, compared with $1,102,963 and $2,197,742 for the comparable periods of 2018.
- The company had a net loss of $465,172 in the six-month period ending June 30, 2019, compared with net income of $1,752,747 in the comparable period of 2018. The consolidated net loss for the first six months 2019 included non-cash charges as follows: depreciation and amortization of $270,858 ($145,564 in 2018), accretion of asset retirement obligation of $4,471 ($7,007 in 2018), stock-based compensation of $190,019 ($27,140 in 2018), change in fair value of forward gold contracts of nil in 2019 ($7,887 in 2018), and gain on sale of mineral property of nil in 2019 ($2,947,862 which is reflected in the net income for 2018).
Mr. Swallow concluded: "Our focus on building the business and a base of value during difficult times is coming together just as we are entering a time of higher gold prices. Furthermore, we feel the establishment approach to our industry changed during the last downturn yet went largely unnoticed until the next upturn was already upon us. Relevant and local experience will prove to be a valuable commodity in this next phase for those seeking support for mineral development and/or project expansion."
New Jersey Mining's vice-president, Grant A. Brackebusch, PE, is a qualified person as such term is defined in National Instrument 43-101, and has reviewed and approved the technical information and data included in this press release.
Production is not based on a feasibility of mineral study of mineral reserves demonstrating economic and technical viability; as a result there is increased uncertainty, and economic and technical risks.
About New Jersey Mining Company
New Jersey Mining is headquartered in North Idaho, where it is producing gold at its Golden Chest mine. Gold was first discovered in the Coeur d'Alene district within the Murray gold belt in 1879, but by 1888 mining declined as the centre of activity and demand for labour shifted to the Silver Valley following the discovery of the Bunker Hill, Sunshine, Lucky Friday and other iconic regional mines. The rebirth of the long-forgotten Murray gold belt has been led by New Jersey Mining, as evidenced by production from open pit and underground operations at the Golden Chest mine, its extensive land package and superior knowledge of the district gained from current development and production, and continuing exploration activities.
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