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New Jersey Mining Company Provides Third Quarter Update on Operations and Corporate Activities

November 14, 2019
COEUR D'ALENE, ID / ACCESSWIRE / November 14, 2019 / New Jersey Mining Company (OTCQB:NJMC) (CSE:NJMC) ("NJMC" or the "Company") today announced its consolidated operating and financial results for the third quarter of 2019. The full version ...
COEUR D'ALENE, ID / ACCESSWIRE / November 14, 2019 / New Jersey Mining Company (OTCQB:NJMC) (CSE:NJMC) ("NJMC" or the "Company") today announced its consolidated operating and financial results for the third quarter of 2019. The full version ...

COEUR D’ALENE, ID / ACCESSWIRE / November 14, 2019 / New Jersey Mining Company (OTCQB:NJMC) (CSE:NJMC) (“NJMC” or the “Company”) today announced its consolidated operating and financial results for the third quarter of 2019. The full version of the Company’s interim unaudited consolidated financial statements and management’s discussion and analysis (MD&A) can be viewed on the Company’s web site, on SEDAR, and EDGAR. All amounts are expressed in U.S. dollars unless otherwise specified.

Operational Highlights for 2019 include:

NJMC President and CEO, John Swallow stated, “It is evident that each quarter reveals a message unique to the challenges and accomplishments of the folks responsible for the results. Our team came together in a way that once again resulted in virtually every metric we use to measure the health of the business improving during the quarter and in the year over year comparisons.

This quarter we are also providing additional metrics of comparison - cash cost per ounce of gold produced and our all-in sustaining cost per ounce of gold produced. The trend of these per ounce comparisons is impressive and reflects a battle-hardened team maturing into its operations and a company looking ahead for those that want to be part of its future. Not everyone recognizes a pivot when it happens or how the right ecosystem and a win-win attitude can provide a base of value beyond the obvious. We are in the people business and our team once again deserves all of the credit.”

Corporate Highlights include:

Cash Costs and All In Sustaining Costs Reconciliation to GAAP-Reconciliation of cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) to cash cost per ounce and all-in sustaining costs (AISC) per ounce (non-GAAP).

20192018
Three MonthsNine MonthsThree MonthsNine Months

Cost of sales and other direct production costs and depreciation, depletion and amortization

$1,405,451$3,960,315$1,227,666$3,425,408

Depreciation, depletion, and amortization

(158,768)(429,626)(103,987)(249,551)

Change in product inventory

49,781(2,185)113,341190,256

Cash Cost

$1,296,464$3,528,504$1,237,020$3,366,113

Pre-development expense

51,873117,440--

Exploration

55,625182,830160,147368,417

Sustaining capital

19,66083,61224,403534,955

General and administrative

75,971396,316110,219295,917

Less stock based compensation and other non cash items

(2,286)(196,776)(17,557)(59,591)

All in sustaining costs

$1,497,307$4,111,926$1,514,232$4,505,811

Divided by ounces produced

1,3983,5868472,276

Cash cost per ounce

$927.37$983.97$1,460.47$1,478.96

All in sustaining cost (AISC) per ounce

$1,071.05$1,146.66$1,787.76$1,979.71

The table above presents reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion and amortization to the non-GAAP measures of cash cost per ounce and all in sustaining costs per ounce for the Company’s gold production in the three and nine month periods ending September 30, 2019 and 2018.

Cash cost per ounce is an important operating measure that we utilize to measure operating performance. AISC per ounce is an important measure that we utilize to assess net cash flow after costs for pre-development, exploration, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold do not capture all of the expenditures incurred to discover, develop, and sustain gold production.

Qualified person

NJMC’s Vice President, Grant A. Brackebusch, P.E. 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 Company 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 center of activity and demand for labor 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 NJMC, 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 ongoing exploration activities.

NJMC has established a high-quality, early to advanced-stage asset base in three historic mining districts of Idaho and Montana, which includes the currently producing Golden Chest Mine. The Company’s objective is to use its considerable in-house skill sets to build a portfolio of mining and milling operations, with a longer-term vision of becoming a mid-tier producer. Management is shareholder focused and owns more than 15-percent of NJMC stock.

The Company’s common stock trades on the OTC-QB and the CSE Market under the symbol “NJMC.”

For more information on New Jersey Mining Company go to www.newjerseymining.com or call:

Monique Hayes, Corporate Secretary/Investor Relations

Email:

(208) 625-9001

Forward Looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Such statements are based on good faith assumptions that New Jersey Mining Company believes are reasonable, but which are subject to a wide range of uncertainties and business risks that could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such factors include, among others, the Company’s ability to increase production and revenues, the risk that the mine plan changes due to rising costs or other operational details, an increased risk associated with production activities occurring without completion of a feasibility study of mineral reserves demonstrating economic and technical viability, the risks and hazards inherent in the mining business (including risks inherent in developing mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver and the potential impact on revenues from changes in the market price of gold and cash costs, a sustained lower price environment, as well as other uncertainties and risk factors. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. NJMC disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE: New Jersey Mining Company

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