New Jersey Mining Company: Form 10-Q - Filed by newsfilecorp.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2011

or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission file number: 000-28837

NEW JERSEY MINING COMPANY
(Exact name of registrant as specified in its charter)

Idaho 82-0490295
(State or other jurisdiction (I.R.S. employer identification No.)
of incorporation or organization)  

89 Appleberg Road, Kellogg, Idaho 83837
(Address of principal executive offices) (zip code)

(208) 783-3331
Registrant’s telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(D) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period as the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.
Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [ ] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer [     ] Accelerated Filer [     ]
Non-Accelerated Filer [     ] Smaller reporting company [ x ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)
Yes [ ] No [X]

On May 1, 2011, 45,040,662 shares of the registrant’s common stock were outstanding.

1



NEW JERSEY MINING COMPANY
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD
ENDED MARCH 31, 2011
 
 
TABLE OF CONTENTS

  Page
PART I – FINANCIAL INFORMATION  
Item 1: Consolidated Financial Statements (unaudited) 3
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations 7
Item 3: Quantitative and Qualitative Disclosures about Market Risk 10
Item 4: Controls and Procedures 10
PART II – OTHER INFORMATION  
Item 1: Legal Proceedings 10
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 10
Item 3: Defaults Upon Senior Securities 10
Item 4: Removed and Reserved 10
Item 5: Other Information 10
Item 6: Exhibits 10
SIGNATURES 11
CERTIFICATIONS  

2


PART I-FINANCIAL INFORMATION

Item 1: CONSOLIDATED FINANCIAL STATEMENTS

New Jersey Mining Company
(A Development Stage Company)
Consolidated Balance Sheets
March 31, 2011 and December 31, 2010

ASSETS  
    March 31, 2011     December 31, 2010  
    (Unaudited)        
Current assets:            
   Cash and cash equivalents $  425,102   $  357,317  
   Investment in marketable equity security at market (cost-$3,868)   9,672     19,344  
   Interest receivable         276  
   Miscellaneous receivable         1,676  
   United Mine Services receivable   14,854     9,848  
   Golden Chest Joint Venture receivable   146,392     2,065  
   Prepaid claim fees   8,400     13,440  
   Inventory   16,716     16,381  
                       Total current assets   621,136     420,347  
             
Property, plant, and equipment, net of accumulated depreciation   1,957,274     1,323,330  
Deposit on equipment   310,820        
Mineral properties, net of accumulated amortization   871,374     871,374  
Deposit on mineral property   10,000        
Investment in Golden Chest LLC   553,205     553,205  
Reclamation bonds   121,243     121,133  
             Total assets $  4,445,052   $  3,289,389  
             
             
LIABILITIES AND STOCKHOLDERS’ EQUITY  
             
Current liabilities:            
   Accounts payable $  141,423   $  42,958  
   Accrued payroll and related payroll expenses   56,731     15,986  
   Obligations under capital lease, current   10,755     13,246  
   Notes payable, current   56,779     54,661  
                       Total current liabilities   265,688     126,851  
             
Asset retirement obligation   30,253     29,385  
Obligations under capital lease, non-current   578     1,403  
Notes payable, non-current   104,375     64,720  
                       Total non-current liabilities   135,206     95,508  
             
                       Total liabilities   400,894     222,359  
             
Stockholders’ equity:            
   Preferred stock, no par value, 1,000,000 shares
              authorized; no shares issued and outstanding
 
   
 
   Common stock, no par value, 50,000,000 shares authorized;
              March 31, 2011-45,017,862 and
              December 31, 2010-45,017,862
              shares issued and outstanding
 


10,365,429
   


10,365,429
 
   Deficit accumulated during the development stage   (7,316,494 )   (7,313,874 )
   Accumulated other comprehensive income            
             Unrealized gain in marketable equity security   5,803     15,475  
                       Total New Jersey Mining Company stockholders' equity   3,054,738     3,067,030  
   Noncontrolling interest in Mill JV   989,420        
                       Total stockholders’ equity   4,044,158     3,067,030  
             
             Total liabilities and stockholders’ equity $  4,445,052   $  3,289,389  

3
The accompanying notes are an integral part of these consolidated financial statements.



New Jersey Mining Company
(A Development Stage Company)
Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
For the Three Month Periods Ended March 31, 2011 and 2010,
And from Inception (July 18, 1996) through March 31, 2011

                From Inception  
                (July 18, 1996)  
                Through  
                March 31, 2011  
    March 31, 2011     March 31, 2010     (Unaudited)  
Income earned during the development stage:                  
     Sales of gold $     $     $  437,122  
     Sales of concentrate               601,168  
     Drilling and exploration contract income   183,836           543,751  
     Joint venture management fee income   14,035           14,035  
     Engineering services income   32,700           64,723  
    230,571           1,660,799  
                   
Costs and expenses:                  
     Direct production costs   544     18,478     1,319,515  
     Drilling and exploration contract expense   108,997     5,119     316,064  
     Engineering services expense               13,090  
     Management   24,228     66,868     1,853,855  
     Exploration   2,813     31,260     2,411,044  
     Gain on sale of mineral property               (90,000 )
     Gain on default of mineral property sale       (50,000 )   (320,000 )
     Net gain on sale of equipment   (12,895 )         (47,993 )
     Depreciation and amortization   14,687     13,194     744,467  
     General and administrative expenses   102,265     83,678     2,795,989  
             Total operating expenses   240,639     168,597     8,996,031  
                   
Other (income) expense:                  
     Timber sales               (54,699 )
     Timber expense               14,554  
     Royalties and other income   (8,612 )         (96,433 )
     Royalties expense               44,089  
     Gain on sale of marketable equity security               (92,269 )
     Interest income   (358 )   (214 )   (48,339 )
     Interest expense   1,522     3,001     93,409  
     Write-off of goodwill               30,950  
     Write-off of investment               90,000  
             Total other (income) expense   (7,448 )   2,787     (18,738 )
                   
Net loss   2,620     171,384     7,316,494  
                   
Other comprehensive (income) loss:                  
     Unrealized (gain) loss on marketable equity security   9,672     387     (5,803 )
                   
Comprehensive loss $  12,292   $  171,771   $  7,310,691  
                   
Net loss per common share-basic $  Nil   $  Nil   $  0.33  
                   
Weighted average common shares outstanding-basic   45,017,862     40,996,413     22,171,430  

4

The accompanying notes are an integral part of these consolidated financial statements.



New Jersey Mining Company
(A Development Stage Company)
Consolidated Statements of Cash Flows (Unaudited)
For the Three Month Periods Ended March 31, 2011 and 2010,
And from Inception (July 18, 1996) through March 31, 2011

                From Inception  
                (July 18, 1996)
    March 31,     through  
                March 31, 2011  
    2011     2010     (Unaudited)  
Cash flows from operating activities:                  
     Net loss $  (2,620 ) $  (171,384 ) $  (7,316,494 )
     Adjustments to reconcile net loss to net cash                  
        Used by operating activities:                  
             Depreciation and amortization   14,687     13,194     744,467  
             (Gain) loss on sale of equipment   (12,895 )   400     (36,721 )
             Write-off of goodwill and investment               120,950  
             Gain on sale of mineral property         (50,000 )   (410,000 )
             Gain on sale of marketable equity security               (92,269 )
             Accretion of asset retirement obligation   868     868     5,783  
     Common stock issued for:                  
             Management and directors’ fees               1,139,335  
             Services and other         425     239,834  
             Exploration               95,521  
             Mineral property agreement               15,000  
     Change in:                  
             Prepaid claim fees   5,040     6,965     (8,400 )
             Inventory   (335 )         (16,716 )
             Miscellaneous receivable   1,676     919        
             Interest receivable   276     309        
             United Mine Services receivable   (5,006 )         (14,854 )
             Golden Chest LLC receivable   (144,327 )         (146,392 )
             Other assets               (778 )
             Accounts payable   98,465     17,799     151,185  
             Accrued payroll and related payroll expense   40,745     17,054     56,731  
             Accrued reclamation costs               (1,443 )
                      Net cash used by operating activities   (3,426 )   (163,451 )   (5,475,261 )
Cash flows from investing activities:                  
     Purchases of property, plant and equipment   (588,604 )   (9,547 )   (1,693,895 )
     Deposit on equipment purchase   (310,820 )         (310,820 )
     Purchase of mineral property               (23,904 )
     Deposit on mineral property purchase   (10,000 )         (10,000 )
     Proceeds from sale of mineral property               120,000  
     Deposit received on sale of mineral property               320,000  
     Proceeds from sale of equipment   12,676     1,000     49,174  
     Redemption (purchase) of reclamation bonds   (110 )   (45 )   (121,243 )
     Purchase of marketable equity security               (7,500 )
     Proceeds from sales of marketable equity securities               95,901  
     Cash of acquired companies               38,269  
     Deferral of development costs               (759,209 )
                       Net cash provided (used) by investing activities   (896,858 )   (8,592 )   (2,303,227 )
Cash flows from financing activities:                  
     Exercise of stock purchase warrants               2,571,536  
     Sales of common stock, net of issuance costs         529,170     5,241,236  
     Principal payments on capital lease   (3,316 )   (2,363 )   (198,081 )
     Principal payments on notes payable   (18,035 )   (16,311 )   (400,521 )
     Note and interest payable, related party, net         (23,558 )      
     Contributions from noncontrolling equity interest in Mill JV   989,420           989,420  
             Net cash provided (used) by financing activities   968,069     486,938     8,203,590  
Net change in cash and cash equivalents   67,785     314,895     425,102  
Cash and cash equivalents, beginning of period   357,317     34,087     0  
Cash and cash equivalents, end of period $  425,102   $  348,982   $  425,102  
Supplemental disclosure of cash flow information                  
Interest paid in cash, net of amount capitalized $  1,522   $  3,001   $  81,389  
Non-cash investing and financing activities:                  
     Common stock issued for:                  
             Property, plant and equipment             $  50,365  
             Mineral properties agreement             $  351,600  
             Payment of accounts payable             $  12,730  
             Acquisitions of companies, excluding cash             $  743,653  
     Capital lease obligation incurred for equipment acquired             $  184,213  
     Notes payable for property and equipment acquired $  62,613         $  545,247  
     Mineral property transferred to Golden Chest LLC             $  553,205  
     Debt relieved from sale of truck $  2,785         $  2,785  

5

The accompanying notes are an integral part of these consolidated financial statements.



New Jersey Mining Company
(A Development Stage Company)
Notes to Consolidated Financial Statements
(Unaudited)

1.

The Company and Significant Accounting Policies:

These unaudited interim consolidated financial statements have been prepared by the management of New Jersey Mining Company (the Company) in accordance with accounting principles generally accepted in the United States of America for interim financial information, as well as the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. In the opinion of the Company’s management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the interim consolidated financial statements have been included.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the three month period ended March 31, 2011, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2011.

For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

The Company presents its consolidated financial statements in accordance with accounting guidance for development stage entities, as management believes that while the Company’s planned principal operations have commenced, the revenue generated from them is not sufficient to cover all corporate costs. Additional development of the Company’s properties is necessary before a transition is made to reporting as a production stage company.

Principles of Consolidation
At March 31, 2011, the consolidated financial statements include the accounts of the Company and the accounts of our majority owned New Jersey Mill Venture. Intercompany items and transactions between companies included in the consolidation are eliminated.

2.

Related Party Transactions

The Company jointly owns with Marathon Gold USA (MUSA) and acts as the operator of the Golden Chest LLC. Accounts receivable are a part of normal operations which include operating costs, payroll, drilling costs, and drilling income. As of March 31, 2011 the following related party balances existed with Marathon Gold and GC LLC:

  •   Accounts receivable   $  146,392  
  •   Drilling and exploration contract income     183,836  
  •   Management fees     14,035  
  •   Drilling and exploration contract expense     108,997  

    Engineering income includes engineering services provided to United Mine Services (UMS). UMS holds the noncontrolling interest in the Company's Mill Joint Venture. Engineering services to UMS in the first quarter of 2011 were $32,700. $1,500 was paid to Mine Systems Design, a related party, for office rent in the first quarter of 2011.

    3.

    Fair Value Measurement

    The table below sets forth our financial assets that were accounted for at fair value on at March 31, 2011 and December 31, 2010, and their respective hierarchy level. We had no other financial assets or liabilities accounted for at fair value at March 31, 2011 and December 31, 2010.



    Balance at
    March 31,
    2011
    Balance at
    December 31,
    2010
    Hierarchy
    Level
    Investments in marketable equity securities $ 9,672 $19,344 Level 1

    4.

    New Jersey Mill Venture Agreement

    The Company has one subsidiary. In January 2011, the New Jersey Mill Venture agreement was signed by the Company and United Mine Services, Inc. (UMS) relating to the New Jersey mineral processing plant. To earn a one third interest in the venture, UMS will provide funding to expand the processing plant to 15 tonnes/hr, which is estimated to cost $2.5 million. The proposed expansion budget included purchasing land held by the Company, known as the Zanetti Mining Lease, which was cancelled by the purchase of the land. The Company is the operator of the venture and will charge operating costs to UMS for milling its ore up to 7,000 tonnes/month, retain a milling capacity of 3,000 tonnes/month, and as the operator of the venture receive a fee of $2.50/tonne milled. UMS has contributed $989,420 for a vested, noncontrolling interest of 13% as of March 31, 2011. The Company holds the remaining interest.

    6



    5

    Subsequent Events

    In April of 2011 Newmont North American Exploration (Newmont) withdrew from the Toboggan joint venture it held with the Company. Newmont quitclaimed the entire land package and will transfer to the Company all exploration data obtained during the three years of work that was conducted on the project.

    Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

    When we use the terms "New Jersey Mining Company," the "Company," "we," "us," or "our," we are referring to New Jersey Mining Company (the Company) and its subsidiaries, unless the context otherwise requires.

    Cautionary Statement about Forward-Looking Statements

    This Quarterly Report on Form 10-Q includes certain statements that may be deemed to be "forward-looking statements." All statements, other than statements of historical facts, included in this Form 10-Q that address activities, events or developments that our management expects, believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements include discussion of such matters as:

    Forward-looking statements also typically include words such as "anticipate," "estimate," "expect," "potential," "could" or similar words suggesting future outcomes. These statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions, expected future developments and other factors we believe are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, including such factors as the volatility and level of metal prices, currency exchange rate fluctuations, uncertainties in cash flow, expected acquisition benefits, exploration mining and operating risks, competition, litigation, environmental matters, the potential impact of government regulations, and other matters related to the mining industry, many of which are beyond our control. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements.

    The Company is under no duty to update any of these forward-looking statements after the date of this report. You should not place undue reliance on these forward-looking statements.

    Plan of Operation
    The Company modified its strategy in 2010 and is continuing that modified strategy in 2011. The former strategy was to conduct exploration for gold, silver and base metal deposits in the greater Coeur d’Alene Mining District of northern Idaho while concurrently conducting mining and mineral processing operations on ore reserves it has located on its exploration properties. The new strategy now deemphasizes the generation of cash by mining and milling and emphasizes the exploration of its properties in order to increase the amount of reserves before making a production decision. The new financial strategy involves forming joint ventures with partners who contribute cash to earn their interest. The strategy includes finding and developing ore reserves of significant quality and quantity to justify investment in mining and mineral processing facilities. The Company’s primarily focus is on gold with silver and base metals of secondary emphasis. The Company receives revenue for providing core drilling and engineering services from its joint venture partners, as well as management fees.

    All exploration is now being done at the Golden Chest mine. Other exploration properties include the Toboggan, Niagara/Copper Camp, the Silver Strand, the Coleman, and the Giant Ledge.

    Exploration activities at the Golden Chest during the first quarter of 2011 increased substantially compared to prior periods. Exploration activity increased because of the venture agreement with Marathon Gold USA (MUSA) that was signed in December 2010. MUSA contributed $1,000,000 cash at the December closing and $500,000 on March 31, 2011 as required by the venture terms. MUSA is scheduled to contribute $500,000 by June 30, 2011, $1,000,000 by September 30, 2011 and $1,000,000 by November 30, 2011, bringing the total cash contribution by MUSA to $4 million for a 50% ownership of the venture. MUSA has the right to contribute an additional US$3.5 million by November 30, 2012 to take its ownership interest to 60% of the venture. MUSA also has the option to accelerate any of these contributions. During the first quarter of 2011, 1,750 meters of drilling was completed of the planned 10,000 meters drilling for 2011. The Company conducted core drilling operations at the Golden Chest for the venture under a service agreement.

    The Toboggan Project is a group of prospects in the Murray, Idaho District that contain gold and silver telluride minerals. The Toboggan Project was being explored by Newmont North America Exploration Limited under a joint venture agreement. Newmont did not complete their earn-in by March 20, 2011 and the joint venture agreement was terminated. Newmont returned all the unpatented claims held by the venture to the Company. The Company is now actively searching for a new joint venture partner to continue exploration of the favorable gold prospects examined by Newmont.

    The Niagara copper-silver deposit, also located in the Murray, Idaho area, in the Revett formation was drilled in the 1970’s, and the Company drilled five holes since which expanded the resource. Results of the recent drilling also indicate that gold would be a significant byproduct. Preliminary open pit mining studies have been completed. Currently the Company is seeking a joint venture partner for exploration and development of the Niagara deposit, and the Copper Camp prospect will be included in the proposed venture. These properties would be kept separate from the Toboggan Project.

    7


    The Silver Strand mine is ready for small scale production of about 5,000 tonnes per year. However the New Jersey mineral processing plant is in a construction phase to expand capacity and won’t be re-commissioned until late 2011. Consequently, the Company is seeking a buyer for the mine.

    At the Coleman underground mine future plans are to conduct further drilling to locate higher grade reserves. No work is planned in 2011.

    The New Jersey mineral processing plant is being expanded in order to process ore from the nearby Crescent silver mine. A letter of intent to form a joint venture with United Mine Services, Inc. was signed in September 2010 and a definitive venture agreement was reached in January 2011. The plant will be expanded from a processing rate of 4 tonnes/hr to 15 tonnes/hr during 2011. UMS will pay the expansion cost estimated to be $2.5 million. After completion of the expansion, the Company will own 2/3 of the venture and UMS will own 1/3. The Company is the operator of the venture. UMS will have a minimum quota of ore of 7,000 tonnes per month and the Company will have 3,000 tonnes per month. Each party will pay its processing costs and the Company will charge a management fee of $2.50/tonne. Currently, the plant is under construction and most equipment is on order or already received. UMS has contributed $989,420 for a vested, noncontrolling interest of 13% as of March 31, 2011. The Company holds the remaining interest.

    Changes in Financial Condition
    The Company maintains an adequate cash balance by increasing or decreasing its exploration expenditures as limited by availability of cash from operations or from financing activities. The cash balance at the end of the first quarter was $425,102, and Figure 1 shows the corresponding balances for previous accounting periods.


    The cash balance increased during the quarter, starting from $357,317, primarily due to increases in cash in the New Jersey Mill Joint Venture accounts.

    Results of Operations
    Income Earned during the Development Stage (Revenue) for the first quarter of 2011 was $230,571 as compared to nil for the first quarter of 2010. Revenue was higher in 2011 due to contracted services. Figure 2 shows a net loss for the first quarter of 2011 of $2,620 compared to $171,384 for the comparable period of 2010. The net loss for 2011 was less than 2010 because of higher revenue.

    8



    There was no gold production in the first quarters of 2011 and 2010. No gold production is expected for 2011 because the mill is shutdown due to construction and only exploration activities are planned for the Golden Chest mine.

    Preliminary plans at the Golden Chest mine include only exploration in 2011 but in 2012, ramp access may be extended to the Idaho vein reserves. When the Idaho vein ramp development is completed there will be more than 200,000 tonnes available for production from currently-existing reserves.

    No production is planned at the Silver Strand mine in 2011 because plans are to sell the mine or engage a joint venture partner. The mine is ready for production on a seasonal basis.

    About $2.5 million in capital expenditures are planned at the New Jersey mineral processing plant to increase the processing rate to 15 tonnes per hour. Expansion costs are paid by our partner, United Mine Services.

    The amount of money to be spent on exploration at the Company’s mines and prospects depends primarily on contributions of our joint venture partners, particularly at the Golden Chest. If new joint venture partners are engaged at the Toboggan Project and Niagara-Copper Camp Projects, exploration activities would increase .

    The Company provides surface drilling services at the Golden Chest and receives payment from Golden Chest LLC from funds provided by Marathon Gold. The Company also receives a management fee as Manager of the venture. The Company receives payment for engineering services from United Mine Services for the mill expansion project. No additional financing activities are necessary in 2011 unless exploration plans are expanded.

    Drilling and Exploration Income
    Drilling and Exploration income increased for the three month period ending March 31, 2011 compared to last year because of drilling activity that was conducted at the Golden Chest under the newly formed Joint Venture agreement.

    Joint Venture Management Fees
    Joint venture management fees are an income item related to the operation of the recently formed Golden Chest joint venture.

    Changes in Direct Production Costs
    Direct production costs decreased for the three month period ending March 31, 2011 compared to the comparable period last year because efforts have been redirected towards exploration.

    Drilling and Exploration Contract Expense
    Drilling and Exploration contract expense has increased for the three month period ending March 31, 2011 compared to the comparable period last year because of increased drilling activity at the Golden Chest.

    Changes in Management Costs
    Management expenses decreased for the three month period ending March 31, 2011 compared to the comparable period last year because some of the costs have been absorbed by the joint ventures.

    Changes in Exploration Costs
    Exploration expenses decreased for the three month period ending March 31, 2011 compared to the comparable period last year because most employees have been redirected to the Golden Chest or drilling activities.

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    Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    Not required for small reporting companies.

    Item 4: CONTROLS AND PROCEDURES

    Disclosure Controls and Procedures

    The Company’s President and Chief Executive Officer who also serves as the Company’s principal financial officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures pursuant to Rule 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934 (the Exchange Act), as of the end of the period covered by this report. Based on such evaluation, the Company’s President, Chief Executive Officer, and principal financial officer has concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective in recording, processing, summarizing, and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files under the Exchange Act.

    Changes in internal control over financial reporting.

    The President, Chief Executive Officer, and principal financial officer conducted evaluations of the Company’s internal controls over financial reporting to determine whether any changes occurred during the quarter ended March 31, 2011 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. No material changes in internal control over financial reporting occurred in the quarter ended March 31, 2011.

    PART II - OTHER INFORMATION

    Item 1. LEGAL PROCEEDINGS

    The Company is currently a plaintiff along with Shoshone County, Idaho, and George E. Stephenson in a complaint against the USA, Secretary of the Department of Agriculture, Chief of the Forest Service, etc., for Declaratory Judgment and Quiet Title regarding a public right-of-way for the East Fork of Eagle Creek Road near Murray, Idaho. The complaint was filed on October 5, 2009 in the United States District Court, District of Idaho. The plaintiffs are bringing the action to adjudicate/declare under the Quiet Title Act, and under the Declaratory Judgment Act that the East Fork Eagle Creek Road is a public road as it crosses the lands owned by the USA in accordance with R.S. 2477.

    Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

    Neither the constituent instruments defining the rights of the Company’s securities filers nor the rights evidenced by the Company’s outstanding common stock have been modified, limited or qualified.

    No shares of stock were issued by the Company in the first quarter of 2011.

    Item 3. DEFAULTS UPON SENIOR SECURITIES

    The Company has no outstanding senior securities.

    Item 4. REMOVED AND RESERVED

    Item 5. OTHER INFORMATION

    Dodd-Frank Disclosure
    During the quarter ended March 31, 2011, the Company had no reportable health and safety violations, orders or citations, remedied or remitted to the Mine Safety and Health Administration. There were no legal actions, mining-related fatalities, or similar events in relation to the Company’s United States operations requiring disclosure pursuant to Section 1503(a) of the Dodd-Frank Act.

    Item 6. EXHIBITS

    Number Description
    3.1 Articles of Incorporation. Filed as an exhibit to the registrant's registration statement on Form 10-SB (Commission File No. 000-28837) and incorporated by reference herein.
    3.2 Bylaws. Filed as an exhibit to the registrant's registration statement on Form 10-SB (Commission File No. 000-28837) and incorporated by reference herein.
    31.1 Certification pursuant to Section 302 of the Sarbanes-Oxley act of 2002.
    31.2 Certification pursuant to Section 302 of the Sarbanes-Oxley act of 2002.
    32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
    32.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

    10


    SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

       NEW JERSEY MINING COMPANY
         
      By: /s/ Fred W. Brackebusch
         
        Fred W. Brackebusch, its
        President, Treasurer & Director
       Date March 14, 2011  
         
         
       By: /s/ Grant A. Brackebusch
         
        Grant A. Brackebusch, its
        Vice President & Director
       Date: March 14, 2011  

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