10-Q

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, 2016

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 of incorporation or organization)	(I.R.S. employer identification No.)

201 N. Third Street, Coeur d’Alene, ID 83814

(Address of principal executive offices) (zip code)

(208) 503-0153

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 [X]  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, 2015, 94,760,148 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, 2016

TABLE OF CONTENTS

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PART I-FINANCIAL INFORMATION

Item 1: CONSOLIDATED FINANCIAL STATEMENTS

New Jersey Mining Company Consolidated Balance Sheets March 31, 2016 and December 31, 2015
ASSETS
		March 31, 2016		December 31, 2015
		(Unaudited)
Current assets:
Cash and cash equivalents	$	11,582	$	62,275
Joint venture receivables		5,230		3,109
Note receivable		58,386		58,386
Milling receivables		34,426		40,577
Other current assets		20,427		40,350
Total current assets		130,051		204,697
Property, plant and equipment, net of accumulated depreciation		5,716,733		5,698,831
Mineral properties, net of accumulated amortization		1,980,440		1,907,089
Investment in joint venture		435,000
Deposit on equipment				13,982
Total assets	$	8,262,224	$	7,824,599
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	103,549	$	58,267
Accrued payroll and related payroll expenses		15,228		14,513
Note and interest payable related parties, current portion		88,124		88,114
Notes payable, current portion, net of discount		549,377		488,435
Total current liabilities		756,278		649,329
Asset retirement obligation		29,979		28,656
Notes payable related parties, long term		1,001,231		598,127
Notes payable, long term, net of discount		611,870		731,940
Total long term liabilities		1,643,080		1,358,723
Total liabilities		2,399,358		2,008,052
Commitments (Note 3 and 9)
Stockholders’ equity:
Preferred stock, no par value, 1,000,000 shares authorized; no shares issued    or outstanding		-		-
Common stock, no par value, 200,000,000 shares authorized; December 31,    2015-91,760,148 shares and March 31, 2016-94,760,148 shares    issued and outstanding		13,825,380		13,590,739
Accumulated deficit		(11,171,912)		(10,981,432)
Total New Jersey Mining Company stockholders’ equity		2,653,468		2,609,307
Non-controlling interests		3,209,398		3,207,240
Total stockholders' equity		5,862,866		5,816,547
Total liabilities and stockholders’ equity	$	8,262,224	$	7,824,599

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

3

New Jersey Mining Company Consolidated Statements of Operations (Unaudited) For the Three Month Periods Ended March 31, 2016 and 2015
		March 31
		2016			2015
Revenue:
Gold sales	$		29,351
Milling income			14,614	$	391,120
Total revenue			43,965		391,120
Costs and expenses:
Milling			51,850		338,770
Exploration			41,423		47,057
Depreciation and amortization			2,098		48,919
Management			35,049		56,539
Professional services			50,686		60,777
General and administrative expenses			31,124		108,418
Total operating expenses			212,230		660,480
Operating income (loss)			(168,265)		(269,360)
Other (income) expense:
Timber expense			501
Royalties and other income			(200)
Interest income			(1,724)		(1,471)
Interest expense			11,207		11,638
Amortization of discount			12,454
Total other (income) expense			22,238		10,167
Income tax (provision) benefit
Net loss			(190,503)		(279,527)
Net loss attributable to non-controlling interests			(23)		(10,679)
Net loss attributable to New Jersey Mining Company	$		(190,480)	$	(268,848)
Net loss per common share-basic and diluted	$		Nil	$	Nil
Weighted average common shares outstanding-basic and diluted			93,837,071		91,760,148

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

4

New Jersey Mining Company Consolidated Statements of Cash Flows (Unaudited) For the Three Month Periods Ended March 31, 2016 and 2015
	March 31,
	2016		2015
Cash flows from operating activities:
Net loss	$	(190,503)	$	(279,527)
Adjustments to reconcile net loss to net cash (used) by operating activities:
Depreciation and amortization		2,098		48,919
Amortization of discount on note payable		12,454
Accretion of asset retirement obligation		1,323		1,323
Stock based compensation		24,641		27,458
Change in:
Joint venture receivables		(2,121)		(3,708)
Milling receivables		6,151		(109,885)
Other current assets		19,923		2,793
Interest payable				6,417
Accounts payable		45,282		57,457
Accrued payroll and related payroll expense		715		(7,325)
Interest payable related parties		10,209
Net cash (used) by operating activities		(69,828)		(256,078)
Cash flows from investing activities:
Purchases of property, plant and equipment		(20,000)		(3,852)
Purchase of mineral property		(59,369)
Purchase of investment in joint venture		(225,000)
Deposits on equipment				(38,524)
Net cash (used) by investing activities		(304,369)		(42,376)
Cash flows from financing activities:
Borrowings on notes payable, related parties		400,000
Principal payments on notes payable		(71,582)		(1,314)
Principal payments on note payables, related parties		(7,095)		(9,410)
Contributions from noncontrolling interest		2,181
Net cash provided (used) by financing activities		323,504		(10,724)
Net change in cash and cash equivalents		(50,693)		(309,178)
Cash and cash equivalents, beginning of period		62,275		336,525
Cash and cash equivalents, end of period	$	11,582	$	27,347
Non-cash investing and financing activities
Shares of common stock issued for investment in joint venture	$	210,000

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

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New Jersey Mining 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. 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, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016.

For further information refer to the financial statements and footnotes thereto in the Company’s audited financial statements for the year ended December 31, 2015 as filed with the Securities and Exchange Commission.

Principles of Consolidation

At March 31, 2016, the consolidated financial statements include the accounts of the Company, the accounts of our majority owned New Jersey Mill Joint Venture (“NJMJV”), Golden Chest LLC Joint Venture (“GCJV”) and GF&H Company. Intercompany items and transactions between companies included in the consolidation are eliminated.

Revenue Recognition

Revenue is recognized when title and risk of ownership of metals or metal bearing concentrate have passed and collection is reasonably assured. Revenue from the sale of metals may be subject to adjustment upon final settlement of estimated metal prices, weights and assays, and are recorded as adjustments to revenue in the period of final settlement of prices, weights and assays; such adjustments are typically not material in relation to the initial invoice amounts. Revenue received from drilling and exploration contracts with third parties is recognized when the contract has been established, the services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Income received as the operator of the Company’s joint ventures is recognized in the months during which those operations occur. Revenue received from engineering services provided is recognized when services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Revenues from mill operations and custom milling are recognized in the period in which the milling is completed, concentrates are shipped, and collection of payment is deemed probable.

Reclassifications

Certain prior period amounts have been reclassified to conform to the 2016 financial statement presentation. Reclassifications had no effect on net loss, stockholders’ equity, or cash flows as previously reported.

2.

Going Concern

As shown in the accompanying financial statements, the Company had minimal revenue and a net loss of $190,503 for the first quarter of 2016 as well as an accumulated deficit, negative working capital, and a cash and cash equivalents balance of $11,582 at March 31, 2016. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

However, the Company did put the New Jersey Mill into production in 2015. In the first quarter of 2016 the mill has been maintained with minimal activity as the Company is proceeding with plans to both mine and mill ore from the Golden Chest property starting the second quarter if successful in raising the required startup funds.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue its operations.

6

New Jersey Mining Company

Notes to Consolidated Financial Statements (Unaudited)

3.

Related Party Transactions

At March 31, 2016 and December 31, 2015 the Company had the following notes and interest payable to related parties:

		March 31, 2016		December 31, 2015
Mine Systems Design (MSD), a company in which our Company’s Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through October 2018	$	137,500	$	141,033
John Swallow, Company president, 5% interest, monthly payments of $5,834 with balloon payment of $475,973 in November 2017		541,646		545,208
John Swallow, Company president, 5% interest, principal and interest due January 2018		300,000
Margaret Bathgate, shareholder, 5% interest, principal and interest due January 2018		100,000
		1,079,146		686,241
Accrued interest payable		10,209
Total		1,089,355		686,241
Current portion		88,124		88,114
Long term portion	$	1,001,231	$	598,127
		Quarter Ended March 31,
		2016		2015
Related Party interest expense	$	13,892	$	5,319

4.

Joint Ventures

For joint ventures in which the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, and the Company has significant influence, the equity method is utilized.

At March 31, 2016 and December 31, 2015, the Company’s percentage ownership and method of accounting for each joint venture is as follows:

	March 31, 2016			December 31, 2015
Joint Venture	% Ownership	Significant Influence?	Accounting Method	% Ownership	Significant Influence?	Accounting Method
New Jersey Mill Joint Venture(“NJMJV”)	67%	Yes	Consolidated	67%	Yes	Consolidated
Golden Chest LLC Joint Venture (“GCJV”)	100%	Yes	Consolidated	100%	Yes	Consolidated
Butte Highlands Joint Venture (“BHJV”)	50%	No	Cost	NA	NA	NA

New Jersey Mill Joint Venture Agreement

In June of 2012, Crescent Silver Corp. (“Crescent”) completed its buy-in for 35% of the NJMJV with a cumulative $3.2 million contribution to bring the capacity of the mill to 15 tonnes/hr. At March 31, 2016 and December 31, 2015, an account receivable existed with Crescent for $5,230 and $3,109, respectively, for monthly operating costs as defined in the JV agreement.

7

New Jersey Mining Company

Notes to Consolidated Financial Statements (Unaudited)

Golden Chest LLC Joint Venture

In December of 2015 the Company became the 100% owner of the Golden Chest property after purchasing the 52.22% share of GCJV held by a third party (Note 12).

Butte Highlands JV, LLC (“BHJV”)

On January 29, 2016 the Company purchased a 50% interest in BHJV from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000. The purchase was made utilizing proceeds from a promissory note at 5% interest rate extended to the Company by President John Swallow (Note.3) Highland Mining, LLC (“Highland”) is the other 50% owner of the joint venture. The company determine that it had no significant influence with the joint venture as Highland is funding the ongoing exploration program.

5.

Non-Controlling Interests

Non-controlling interests include Crescent’s interest in NJMJV (note 4) and other shareholders in GF&H Company of which the Company owns 66.2/3%. These interests changed as follows from December 31, 2015 to March 31, 2016:

		NJMJV		GF&H		TOTAL
Balance December 31, 2015	$	3,145,585	$	61,655	$	3,207,240
Contribution from non-controlling interest		2,181				2,181
Net loss attributable to non-controlling interest				(23)		(23)
Balance March 31, 2016	$	3,147,766	$	61,632	$	3,209,398

6.

Earnings per Share

For the three month periods ending March 31, 2016 and 2015, the effect of the Company’s potential issuance of shares from the exercise of 10,200,000 and 21,200,000 outstanding warrants, respectively, and 5,750,000 and 4,250,000 options to purchase common stock, respectively would have been anti-dilutive. Accordingly, only basic net loss per share has been presented.

7.

Property, Plant, and Equipment

Property, plant and equipment at March 31, 2016 and December 31, 2015, consisted of the following:

		March 31, 2016		December 31, 2015
Mill
Mill land	$	225,289	$	225,289
Mill building		536,193		536,193
Milling equipment		4,209,440		4,209,440
		4,970,922		4,970,922
Less accumulated depreciation		(285,420)		(285,420)
Total mill		4,685,502		4,685,502
Building and equipment at cost		382,188		362,188
Less accumulated depreciation		(219,836)		(217,738)
Total building and equipment		162,352		144,450
Land
Bear Creek		196,204		196,204
Little Baldy		72,139		72,139
BOW		230,449		230,449
Eastern Star		250,817		250,817
Gillig		79,137		79,137
Highwater		40,133		40,133
Total Land		868,879		868,879
Total	$	5,716,733	$	5,698,831

In the three month period ended March 31, 2015 $3,852 of interest was capitalized for the mill expansion project. No interest was capitalized for the mill expansion in 2016.

8

New Jersey Mining Company

Notes to Consolidated Financial Statements (Unaudited)

8.

Mineral Properties

Mineral properties at March 31, 2016 and December 31, 2015 consisted of the following:

		March 31, 2016		December 31, 2015
New Jersey	$	215,127	$	215,127
McKinley		250,000		250,000
Golden Chest		1,518,580		1,445,229
Toboggan		5,000		5,000
Less accumulated amortization		(8,267)		(8,267)
Total	$	1,980,440	$	1,907,089

In the three month period ended March 31, 2016 $6,253 of interest was capitalized for the Golden Chest development project.

9.

Notes Payable

At March 31, 2016 and December 31, 2015, notes payable are as follows:

	March 31, 2016		December 31, 2015
Property with shop 36 month note payable, 4.91% interest rate payable monthly, remaining principal of note due in one payment at end of term in June 2016, monthly payments of $474	$	41,799	$	42,726
Property 120 month note payable, 11.0% interest rate payable monthly, remaining principal of note due in one payment at end of term in March 2021, collateralized by property, monthly payments of $1,122		103,604		105,196
Tailings pump, 35 month note payable, 17.5% interest rate payable monthly, monthly payments of $3,268, collateralized by equipment		69,531		76,097
Mineral property, 10 quarterly payments, 0.0% interest rate discounted at 10%, collateralized by property, quarterly payments of $125,000		1,062,500		1,125,000
Total notes payable		1,277,434		1,349,019
Due within one year		635,811		572,806
Due after one year	$	641,623	$	776,213

Future principal payments of debt and related discount amortization at March 31, 2016 are as follows:

		Note		Discount		Net
1 year	$	635,811	$	(86,434)	$	549,377
2 years		537,338		(29,753)		507,585
3 years		8,089				8,089
4 years		3,062				3,062
5 years		93,134				93,134
Thereafter
Total	$	1,277,434	$	(116,187)	$	1,161,247

10.

Equity

Common Stock issued for Property

In the first quarter of 2016, 3,000,000 restricted shares of the Company’s common stock was issued to Timberline Resources in conjunction with the Company’s purchase of Timberline’s 50% interest in Butte Highlands JV (note 4). No shares of common stock were issued in 2015.

9

New Jersey Mining Company

Notes to Consolidated Financial Statements (Unaudited)

Stock Purchase Warrants Outstanding

No transactions in common stock purchase warrants occurred during the period ended March 31, 2016. The balance in stock purchase warrants is as follows:

	Number of Warrants		Exercise Prices
Balance December 31, 2014	21,200,000	$	0.10-0.20
Expired May 31, 2015	11,000,000		0.15
Balance December 31, 2015 and March 31, 2016	10,200,000		0.10-0.20

These warrants expire as follows:

Shares	Exercise Price	Expiration Date
3,000,000	$0.15	March 4, 2017
6,000,000	$0.20	August 11, 2017
1,200,000	$0.10	August 11, 2019

11.

Stock Options

On December 30, 2015, 1,500,000 options were granted to management, 750,000 options vested immediately and the remaining 750,000 will vest on December 30, 2016. The options expire 5 years after their corresponding vesting date. Each option allows the holder to purchase one share of the Company’s stock at $0.10 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of five years, a risk free rate of 1.80%, and expected volatility of 158.50%, a compensation cost of $110,208 is associated with the options. Of this, $55,104 was recorded as a general and administrative expense in 2015 and $13,776 was recognized in the first quarter of 2016. The remaining unrecognized compensation cost of $41,328 is expected to be recognized in the three remaining quarters of 2016.

On April 30, 2014, 2,250,000 options were issued to management, 750,000 options vested immediately and the remaining 1,500,000 vested at a rate of 750,000 each year on the anniversary for 2 additional years, and they expire 3 years after resting date. Each option allows the holder to purchase one share of the Company’s stock at $0.10 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of three years, a risk free rate of 0.87%, and expected volatility of 161.30%. Compensation costs recorded as a general and administrative expense of $10,865 was recognized in the first quarter of 2016. The remaining unrecognized compensation cost of $3,622 is expected to be recognized in the second quarter of 2016.

	Number of Options	Exercise Prices	Weighted Average Remaining Term (years)
Balance December 31, 2014	4,500,000	0.10-0.15	0.12
Cancelled	(250,000)	0.15	0.15
Issued	1,500,000	0.10	0.10
Balance December 31, 2015 and March 31, 2016	5,750,000	0.10-0.15	0.11
Exercisable at March 31, 2016	5,000,000	0.10-0.15	0.12

Outstanding options had no intrinsic value at March 31, 2016.

12.

Golden Chest Joint Venture

In December of 2015, the Company became the 100% owner of the Golden Chest Joint Venture (GCJV). The Company received the 52.22% share of GCJV held by a third party in exchange for $180,000 and a 2% NSR royalty on all future gold production from the property. In addition to the assets of GCJV, a note payable of $1,250,000 for the patented mining claims was assumed by the Company. The Company purchased the outstanding share in GCJV to consolidate ownership and facilitate exploration and mining plans going forward.

10

New Jersey Mining Company

Notes to Consolidated Financial Statements (Unaudited)

The unaudited pro forma financial information below represents the combined results of the Company’s operations as if the GCJV acquisition had occurred at the beginning of the period presented. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have occurred if the acquisition had taken place at January 1, 2015, nor is it indicative of future operating results.

		March 31, 2015
Revenue	$	279,527
Operating expenses		(799,318)
Net loss from continuing operations		(193,195)
Net loss per common share, basic and diluted	$	0.01

13.

Butte Highlands Joint Venture

On January 29, 2016 the Company purchased a 50% interest in Butte Highlands JV, LLC (“BHJV”) from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000. The purchase was made utilizing proceeds from a promissory note at 5% interest rate extended to the Company by President John Swallow (Note 3). Highland Mining, LLC is the other 50% owner of the joint venture. The Company purchased the interest in the BHJV to provide additional opportunities for exploration and development and expand the Company’s mineral property portfolio.

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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 and the exhibits attached hereto contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. These statements include, but are not limited to, comments regarding:

·

the establishment and estimates of mineralization;

·

the grade of mineralization;

·

anticipated expenditures and costs in our operations;

·

planned exploration activities and the anticipated outcome of such exploration activities;

·

plans and anticipated timing for obtaining permits and licenses for our properties;

·

expected future financing and its anticipated outcome;

·

anticipated liquidity to meet expected operating costs and capital requirements;

·

our ability to obtain joint ventures partners and maintain working relationships with our current joint venture partners;

·

our ability to obtain financing to fund our estimated expenditure and capital requirements; and

·

factors expected to impact our results of operations.

Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including, without limitation:

·

risks related to our limited operating history;

·

risks related to our history of losses and our expectation of continued losses;

·

risks related to our properties being in the exploration or development stage;

·

risks related our mineral operations being subject to government regulation;

·

risks related to future legislation and administrative changes to mining laws;

·

risks related to future legislation regarding climate change;

·

risks related to our ability to obtain additional capital or joint venture partners;

·

risks related to land reclamation requirements and costs;

·

risks related to mineral exploration and development activities being inherently dangerous;

·

risks related to our insurance coverage for operating risks;

·

risks related to cost increases for our exploration and development projects;

·

risks related to a shortage of equipment and supplies adversely affecting our ability to operate;

·

risks related to mineral estimates;

·

risks related to the fluctuation of prices for precious and base metals, such as gold and silver;

·

risks related to the competitive industry of mineral exploration;

·

risks related to our title and rights in our mineral properties and mill;

·

risks related to joint venture partners and our contractual obligations therewith;

·

risks related to potential conflicts of interest with our management;

·

risks related to our dependence on key management;

·

risks related to the New Jersey Mill operations, management, and milling capacity;

·

risks related to our business model;

·

risks related to evolving corporate governance standards for public companies; and

·

risks related to our shares of common stock.

12

This list is not exhaustive of the factors that may affect our forward-looking statements. Some of the important risks and uncertainties that could affect forward-looking statements are described further under the sections titled “Description of Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed on March 28, 2016. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated, or expected. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as required by law.

Plan of Operation

The Company is utilizing its knowledge, experience, and operational capabilities to advance its cash flow focused mining, milling and royalty plan. The Company has the ability to evaluate mining and/or milling opportunities in addition to operating its New Jersey Mill (a mineral processing plant near Kellogg, Idaho), and conduct development and mining operations at its Golden Chest Mine near Murray, Idaho. The Company has been focused on project’s that have had considerable prior investment, as evidenced by the acquisition of 100-percent interest in the Golden Chest Mine and acquisition of its interest in Butte Highlands Joint Venture in early 2016. The Company has also conducted gold exploration in northern and central Idaho, western Montana, and evaluated new mining and/or milling opportunities around the western US.

The Company’s financial strategy is to generate cash flow from milling fees, royalties, and possible future mine operations so as to minimize the need for financing in the capital markets. NJMC seeks to minimize costs and share risks by forming joint ventures, mineral lease arrangements, partnerships and other forms of agreements with qualified mining industry players. In recent examples, the Company has leveraged its property and mineral processing assets into joint ventures that brought exploration or development funding from partners. The strategy includes finding and developing potential mineral deposits of significant quality and quantity to justify investment in mining and/or mineral processing facilities. The Company’s primary focus is on gold with silver and base metals of secondary emphasis. In 2014 and 2015 the Company received revenue from milling services, from royalties, and in management fees.

During the first quarter of 2016, the Company completed purchase of 50-percent interest in the Butte Highlands Joint Venture from Timberline Resources Corp. (See Company news release dated February 1, 2016). This acquisition fits into our plans to build upon our portfolio of assets having considerable prior investment and a path toward cash flow potential and/or in which we might provide our expertise to help advance the project or to provide milling services.  More than $30-million has been invested at Butte Highlands to-date by Montana State Gold Company (“MSGC”) and prior funding partner, Highland Mining LLC.

Through Q1 of 2016 NJMC’s progress includes (See Company news release dated March 29, 2016):

•

Development of a small-scale, two-year mine plan at Golden Chest, focusing on easily-accessible near-mine ore, retaining all upside potential of up-dip, down-dip, and on-strike zones, as well as larger district-scale potential;

•

Purchase of underground haul truck and loader, receipt of long-lead electrical components, and agreement for use of BHJV-owned equipment, in anticipation of resumed production at Golden Chest.

•

Purchase of 50-percent interest in Butte Highlands Joint Venture (BHJV) which owns the Butte Highlands Gold Mine;

•

Signing Memorandum of Understanding with partner Highland Mining LLC for NJMC to assume control of Permitting and Management at BHJV.

The Company’s focus during most of 2015 was focused on maintaining and running the New Jersey Mill in support of mining operations at the Golden Chest Mine. In anticipation of processing ores from the Golden Chest Mine, the Company invested in certain upgrades and expansions to the New Jersey Mill. The Company added a gravity processing circuit to the mill and expanded the tailings impoundment facility, among other minor modifications and adjustments. Gold Hill commenced construction and underground development during the third quarter of 2014, delivering the first ore to the New Jersey Mill in December of 2014. Mining activities continued during the year until Gold Hill ceased operations September, 2015 (See Company news release dated, September 21, 2015).

In October, 2015, the Company entered into an agreement to acquire 100-percent interest in the Golden Chest Mine from Marathon Gold Corporation, its joint venture partner in the project. It was considered by both parties that the Golden Chest Mine should have consolidated ownership going forward. The agreement with Marathon was completed in December (See Company news release dated December 4, 2015). The Company rendered payments of $180,000 to

13

Marathon for its 52.22% interest in the Golden Chest Joint Venture and Marathon retained a 2% NSR on production from the Golden Chest, as well as an adjacent Area of Interest. An estimated $7-$9 million was spent by the lessee of the Skookum Shoot, which included mine development and infrastructure and any remaining mineralized material.

Also during the year, in May, 2015, the Company announced a realignment of management as it transitioned into an operating company to remain focused on cash flow and corporate overhead (See Company news release dated May 7, 2015).

In 2015, NJMC accomplishments and project milestones included (See Company news release dated March 29, 2016):

•

Completion of mine development at the Golden Chest property, by Juniper Resources under the Skookum lease, totaling approximately $7 to $9-million;

•

Completion of upgrades and commencement of commercial operations at the New Jersey Mill, achieving revenue of more than $1.8 million;

•

Commercial production, achieved by Juniper at the Golden Chest Mine, totaling 40,840 dry metric tonnes of ore produced at an average grade of 6.65 grams of gold per tonne;

•

Production of approximately 8,000 ounces of gold from Golden Chest ore at the New Jersey Mill, including approximately 500 ounces of gold from a cyanide leaching project which led to a series of recommendations for improving the concentrate leach circuit;

•

Consolidation of 100-percent ownership of the Golden Chest project, after the departure of Juniper, with the buy-out of former partner Marathon Gold;

•

Completed internal scoping study at Golden Chest, outlining plans for resumed production of unmined ore from the Juniper mine plan and from other easily accessible zones.

Prior to recent activity, during 2011 and 2012, the New Jersey mineral processing plant was expanded in order to process ore from the nearby Crescent silver mine. NJMC executed a definitive venture agreement with United Silver Corp (USC) and its subsidiary United Mine Services (UMS), owner of the Crescent mine, in January 2011. The plant was expanded from a processing rate of 4 tonnes/hr to 15 tonnes/hr. USC paid the expansion cost, which was $3.2 million. The joint venture agreement anticipated that USC would be entitled to process up to 7,000 tonnes per month from the Crescent Mine and NJMC would have rights for up to 3,000 tonnes per month of capacity during the processing of Crescent ores. Under the agreement, each party would pay its processing costs and NJMC will charge a management fee of $2.50/tonne. The plant was commissioned during 2012, but ore production from the Crescent Mine was curtailed by USC for economic reasons so the plant became idle in September 2012. The mill remained idle through 2013 and most of 2014, until commissioning its new upgrades in November of 2014 (See Company news release dated November 12, 2014).

In April 2014, Hale Capital Partners, through its subsidiary Crescent Silver LLC (“Crescent Silver”), acquired the assets of United Mine Services in a consensual foreclosure process. This transaction included the UMS stake in the New Jersey Mill JV. Hence, Crescent Silver is the Company’s current joint venture partner at the New Jersey Mill. Crescent Silver produced no ore during 2014.

NJMC geologists conducted limited programs at the McKinley and Eastern Star projects during 2014 and 2015. The Company drilled just under 400 meters of small-diameter core from the underground workings at McKinley. The drill results returned several high-grade intersections that may warrant follow-up, including 2.5m of 43.7 gpt Au and 3.5m of 18.5 gpt Au. The McKinley Project is at a very early stage of exploration, but there are high-grade (+30 gpt Au) showings over more than 3.8 kilometers of prospecting on the 1,800-hectare (4,443 acres) project, (see Company news release dated January 2, 2015).

During 2014 and 2015, the Company also conducted limited exploration work at the Eastern Star Project in the Elk City District of central Idaho. The property was acquired under a purchase option agreement with Premium Exploration Inc., (see Company news release dated April 25, 2014). In the first field season on the project, NJMC geologists collected rock samples and channel samples that included 11.34 gpt Au over 4.3 meters and 14.15 gpt over 0.9 meters. There has been no drilling at Eastern Star, so the project will require considerable additional work in order to assess its economic potential.

The Toboggan Project is a group of claims to the north of Golden Chest. Formerly joint ventured with Newmont Mining and including a lease agreement with Hecla Mining, the properties have seen well over $2.0 million in exploration investment in recent years. The gold prospects at Toboggan appear to be associated with alkalic intrusions and alteration is widespread.

At the Coleman underground mine, which is part of the New Jersey Mine and Mill property, the Company conducted no significant exploration during 2014 or 2015, but Company geologists are currently evaluating the known gold-bearing

14

veins and historic targets for their future potential. Now that the New Jersey Mill is processing ores from the Golden Chest Mine, the potential economics of nearby gold prospects may have improved.

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 March 31, 2016 was $11,582 compared to $62,275 at the end of 2015.

Results of Operations

There was $43,965 in revenue in the three month period ending March 31, 2016 compared to $391,120 for the comparable period in 2015. The revenue in 2015 was from milling of ore at the Golden Chest Mine whereas minimal activity occurred in the first quarter of 2016. The net loss of $190,503 for the three month period ending March 31, 2016 compared to the net loss of $279,527 in the comparable period of 2015 are a result of reduced activity in the first quarter of 2016. In the first quarter of 2015 the Company was beginning to process the Golden Chest Ore.

The Company invested $191,374 in additional facilities at the mill in 2015 and processed ore from the Golden Chest (Skookum Project) that started production in December 2014 through the third quarter of 2015. The mining at the Golden Chest during this period was conducted by Gold Hill under a lease agreement. The Company plans to continue production at the Golden Chest in 2016 with the Company as operator of both the mine and the mill.

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, fundraising, and cash flow from the mill.

The audit opinion and notes that accompany our consolidated financial statements for the period ended March 31, 2016, disclose a ‘going concern’ qualification to our ability to continue in business. The accompanying consolidated financial statements have been prepared under the assumption that we will continue as a going concern. We are operating a start-up mineral processing operation, but we also remain an exploration stage company that has incurred losses since our inception. We do not have sufficient cash to fund normal operations and meet debt obligations for the next 12 months without seeing increased revenue from our milling and mining operations, deferring payment on certain current liabilities, and/or raising additional funds. We believe that the going concern condition cannot be removed with confidence until the Company has entered into a business climate where the stability of our business is more assured. We currently have no historical recurring source of revenue and our ability to continue as a going concern is dependent on our ability to profitably execute our business plan or raise capital to fund our future exploration and working capital requirements. Our plans for the long-term return to and continuation as a going concern include growing milling revenues, sales of our common stock and/or debt, and the eventual profitable exploitation of our mining properties.

Additionally, the current capital markets and general economic conditions in the United States are significant obstacles to raising the required funds. These factors raise substantial doubt about our ability to continue as a going concern.

Cash and Cash Equivalents

Cash and cash equivalents decreased as of March 31, 2016 compared to December 31, 2015 as a result of minimal revenue generating and fund raising activity in the quarter.

Other Current Assets

Other current assets decreased in the first quarter of 2016 as a result of the receipt of funds due the Company and accrued prepaid claim fees being recognized.

Property, Plant, and Equipment and Mineral properties, and Investment in Joint Venture

Property, plant, and equipment and mineral properties increased in the first quarter of 2016 because of equipment purchased in preparation for production at the Golden Chest property.

Investment in Joint Venture

Investment in Joint Venture increased in the first quarter of 2016 because of the acquisition of the 50% interest in the Butte Highlands JV.

Deposit on Equipment

Deposit on equipment has decreased in the first quarter of 2016 because electrical equipment for which a deposit was made has been received.

15

Accounts Payable

Accounts payable have increased as of March 31, 2016 compared to December 31, 2015 because of increased spending in anticipation of production at the Golden Chest.

Notes Payable Related Party

Notes payable related party increased as of March 31, 2016 compared to December 31, 2015 because two notes totaling $400,000 were extended to the Company, one by President John Swallow and additional one by Martha Bathgate, a major shareholder. The proceeds of the notes were utilized for the Butte Highlands joint venture purchase and continuing operations.

Gold Sales

Gold sales income increased in the first quarter of 2016 as a result leaching of materials from the New Jersey Mine property.

Milling Income

Milling income decreased in 2016 compared to 2015 as a result of termination of the Skookum lease in September 2015.

Milling Costs

Milling income decreased in 2016 compared to 2015 as a result of termination of the Skookum lease in September 2015.

Depreciation

Depreciation decreased in 2016 compared to 2015 as a result of units of production depreciation calculations as the mill processes the Skookum ore in 2015.

General and Administrative Expenses

General and administrative expenses were lower in the first three months of 2016 compared to the comparable period of 2015 as a result of decreased activity at the Company.

Amortization of Discount

Amortization of discount is a new item related to the purchase of the Golden Chest property in December 2015 and the corresponding non-interest bearing liability that was assumed by the Company.

Milling Receivables

Milling receivables decreased in 2016 compared to 2015 as a result of termination of the Skookum lease in September 2015.

Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for small reporting companies.

Item 4:

 CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

At March 31, 2016, our President who also serves as our Chief Accounting Officer evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(e) of the Securities Exchange Act of 1934 (the “Exchange Act”), which disclosure controls and procedures are designed to insure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized, and reported within required time periods specified by the Securities & Exchange Commission rules and forms.

Based upon that evaluation, it was concluded that our disclosure controls were effective as of March 31, 2016, to ensure timely reporting with the Securities and Exchange Commission. Specifically, the Company’s corporate governance and disclosure controls and procedures provided reasonable assurance that required reports were timely and accurately reported in our periodic reports filed with the Securities and Exchange Commission.

Changes in internal control over financial reporting

The President and Principal Accounting Officer conducted evaluations of our internal controls over financial reporting to determine whether any changes occurred during the quarter ended March 31, 2016 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. There was no material change in internal control over financial reporting in the quarter ended March 31, 2016.

16

PART II - OTHER INFORMATION

Item 1.

 LEGAL PROCEEDINGS

None

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.

During the first quarter of 2016 the Company issued 3,000,000 shares of unregistered common stock at $0.07 per share for a total consideration of $210,000 as a part of the Butte Highlands mineral property purchase. No shares of the Company’s stock were issued in the first quarter of 2015.

The Company relied on the transaction exemption afforded by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D Rule 506(b). The common shares are restricted securities which may not be publicly sold unless registered for resale with the Securities and Exchange Commission or exempt from the registration requirements of the Securities Act of 1933, as amended.

Item 3.

 DEFAULTS UPON SENIOR SECURITIES

The Company has no outstanding senior securities.

Item 4.

 MINE SAFETY DISCLOSURES

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. During the quarter ended March 31, 2016, the Company had no citations for a violation of mandatory health or safety standards that could significantly and substantially (S&S citation) contribute to the cause and effect a mine safety or health hazard under section 104 of the Federal Mine Safety and Health Act of 1977. 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 5.

 OTHER INFORMATION

None

Item 6.

 EXHIBITS

Number	Description
3.1	Articles of Incorporation. Filed as an exhibit to the registrant's registration statement on Form 10 (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 (Commission File No. 000-28837) and incorporated by reference herein.
10.1	Member Interest Purchase Agreement of 50% Interest in Butte Highlands Joint Venture, LLC, dated January 29, 2016
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 Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* as filed herewith

17

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/ John Swallow

John Swallow,

its: President

Date May 16, 2016

By:   /s/ Delbert Steiner

Delbert Steiner,

its: Chief Executive Officer and Chief Financial Officer

Date: May 16, 2016

18

EX-31

Exhibit 31.1

Certification

I, Delbert Steiner, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of New Jersey Mining Company.

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5) I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 16, 2016

By /s/     Delbert Steiner        

Delbert Steiner

Chief Executive Officer

EX-31

Exhibit 31.2

Certification

I, Delbert Steiner, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of New Jersey Mining Company.

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

(4) I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5) I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 16, 2016

By /s/              Delbert Steiner               

Delbert Steiner

Chief Financial Officer

EX-32

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of New Jersey Mining Company, (the "Company") on Form 10-Q for the period ending March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Delbert Steiner, Chief Executive Officer and Director of New Jersey Mining Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 16, 2016

By /s/  Delbert Steiner

Delbert Steiner

Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 has been provided to New Jersey Mining Company and will be retained by New Jersey Mining Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished in accordance with Securities and Exchange Commission Release No. 34-47551 and shall not be considered filed as part of the Form 10-Q

EX-32

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of New Jersey Mining Company, (the "Company") on Form 10-Q for the period ending March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Delbert Steiner, Chief Financial Officer and Director of New Jersey Mining Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 16, 2016

By /s/  Delbert Steiner

Delbert Steiner

Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 has been provided to New Jersey Mining Company and will be retained by New Jersey Mining Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished in accordance with Securities and Exchange Commission Release No. 34-47551 and shall not be considered filed as part of the Form 10-Q

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 01, 2016
Document and Entity Information:
Entity Registrant Name	New Jersey Mining Company
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Trading Symbol	njmc
Amendment Flag	false
Entity Central Index Key	0001030192
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		94,760,148
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

XML

New Jersey Mining Company Consolidated Balance Sheets March 31, 2016 (unaudited) and December 31, 2015 - USD ($)		Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents		$ 11,582	$ 62,275
Joint venture receivables		5,230	3,109
Note receivable		58,386	58,386
Milling receivables		34,426	40,577
Other current assets		20,427	40,350
Total current assets		130,051	204,697
Property, plant and equipment, net of accumulated depreciation		5,716,733	5,698,831
Mineral properties, net of accumulated amortization		1,980,440	1,907,089
Investment in joint venture		435,000
Deposit on equipment			13,982
Total assets		8,262,224	7,824,599
Current liabilities:
Accounts payable		103,549	58,267
Accrued payroll and related payroll expenses		15,228	14,513
Note and interest payable related parties, current portion		88,124	88,114
Notes payable, current portion, net of discount		549,377	488,435
Total current liabilities		756,278	649,329
Asset retirement obligation		29,979	28,656
Notes payable related parties, long term		1,001,231	598,127
Notes payable, long term, net of discount		611,870	731,940
Total long term liabilities		1,643,080	1,358,723
Total liabilities		2,399,358	2,008,052
Commitments	[1]	0	0
Stockholders' equity:
Preferred stock, no par value, 1,000,000 shares authorized; no shares issued or outstanding		0	0
Common stock, no par value, 200,000,000 shares authorized; December 31, 2015-91,760,148 shares and March 31, 2016-94,760,148 shares issued and outstanding		13,825,380	13,590,739
Accumulated deficit		(11,171,912)	(10,981,432)
Total New Jersey Mining Company stockholders' equity		2,653,468	2,609,307
Non-controlling interests		3,209,398	3,207,240
Total stockholders' equity		5,862,866	5,816,547
Total liabilities and stockholders' equity		$ 8,262,224	$ 7,824,599

[1] Notes 3 and 9

XML

New Jersey Mining Company Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Gold sales	$ 29,351
Milling income	14,614	$ 391,120
Total revenue	43,965	391,120
Costs and expenses:
Milling	51,850	338,770
Exploration	41,423	47,057
Depreciation and amortization	2,098	48,919
Management	35,049	56,539
Professional services	50,686	60,777
General and administrative expenses	31,124	108,418
Total operating expenses	212,230	660,480
Operating income (loss)	(168,265)	(269,360)
Other (income) expense:
Timber expense	501
Royalties and other income	(200)
Interest income	(1,724)	(1,471)
Interest expense	11,207	11,638
Amortization of discount	12,454
Total other (income) expense	22,238	10,167
Income tax (provision) benefit	0	0
Net loss	(190,503)	(279,527)
Net loss attributable to non-controlling interests	(23)	(10,679)
Net loss attributable to New Jersey Mining Company	$ (190,480)	$ (268,848)
Net loss per common share-basic and diluted	$ 0	$ 0
Weighted average common shares outstanding-basic and diluted	93,837,071	91,760,148

XML

New Jersey Mining Company Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (190,503)	$ (279,527)
Adjustments to reconcile net loss to net cash (used) by operating activities:
Depreciation and amortization	2,098	48,919
Amortization of discount on note payable	12,454
Accretion of asset retirement obligation	1,323	1,323
Stock based compensation	24,641	27,458
Change in:
Joint venture receivables	(2,121)	(3,708)
Milling receivables	6,151	(109,885)
Other current assets	19,923	2,793
Interest payable		6,417
Accounts payable	45,282	57,457
Accrued payroll and related payroll expense	715	(7,325)
Interest payable related parties	10,209
Net cash (used) by operating activities	(69,828)	(256,078)
Cash flows from investing activities:
Purchases of property, plant and equipment	(20,000)	(3,852)
Purchase of mineral property	(59,369)
Purchase of investment in joint venture	(225,000)
Deposits on equipment		(38,524)
Net cash (used) by investing activities	(304,369)	(42,376)
Cash flows from financing activities:
Borrowings on notes payable, related parties	400,000
Principal payments on notes payable	(71,582)	(1,314)
Principal payments on note payables, related parties	(7,095)	(9,410)
Contributions from noncontrolling interest	2,181
Net cash provided (used) by financing activities	323,504	(10,724)
Net change in cash and cash equivalents	(50,693)	(309,178)
Cash and cash equivalents, beginning of period	62,275	336,525
Cash and cash equivalents, end of period	11,582	$ 27,347
Non-cash investing and financing activities
Shares of common stock issued for investment in joint venture	$ 210,000

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1. The Company and Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Notes

1. The Company and Significant Accounting Policies:

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. 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, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016.

For further information refer to the financial statements and footnotes thereto in the Company’s audited financial statements for the year ended December 31, 2015 as filed with the Securities and Exchange Commission.

Principles of Consolidation

At March 31, 2016, the consolidated financial statements include the accounts of the Company, the accounts of our majority owned New Jersey Mill Joint Venture (“NJMJV”), Golden Chest LLC Joint Venture (“GCJV”) and GF&H Company. Intercompany items and transactions between companies included in the consolidation are eliminated.

Revenue Recognition

Revenue is recognized when title and risk of ownership of metals or metal bearing concentrate have passed and collection is reasonably assured. Revenue from the sale of metals may be subject to adjustment upon final settlement of estimated metal prices, weights and assays, and are recorded as adjustments to revenue in the period of final settlement of prices, weights and assays; such adjustments are typically not material in relation to the initial invoice amounts. Revenue received from drilling and exploration contracts with third parties is recognized when the contract has been established, the services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Income received as the operator of the Company’s joint ventures is recognized in the months during which those operations occur. Revenue received from engineering services provided is recognized when services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Revenues from mill operations and custom milling are recognized in the period in which the milling is completed, concentrates are shipped, and collection of payment is deemed probable.

Reclassifications

Certain prior period amounts have been reclassified to conform to the 2016 financial statement presentation. Reclassifications had no effect on net loss, stockholders’ equity, or cash flows as previously reported.

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2. Going Concern

3 Months Ended

Mar. 31, 2016

Notes

2. Going Concern

2.   Going Concern

As shown in the accompanying financial statements, the Company had minimal revenue and a net loss of $190,503 for the first quarter of 2016 as well as an accumulated deficit, negative working capital, and a cash and cash equivalents balance of $11,582 at March 31, 2016. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

However, the Company did put the New Jersey Mill into production in 2015. In the first quarter of 2016 the mill has been maintained with minimal activity as the Company is proceeding with plans to both mine and mill ore from the Golden Chest property starting the second quarter if successful in raising the required startup funds.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue its operations.

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3. Related Party Transactions

3 Months Ended

Mar. 31, 2016

Notes

3. Related Party Transactions

3.   Related Party Transactions

At March 31, 2016 and December 31, 2015 the Company had the following notes and interest payable to related parties:

		March 31, 2016		December 31, 2015
Mine Systems Design (MSD), a company in which our Company’s Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through October 2018	$	137,500	$	141,033
John Swallow, Company president, 5% interest, monthly payments of $5,834 with balloon payment of $475,973 in November 2017		541,646		545,208
John Swallow, Company president, 5% interest, principal and interest due January 2018		300,000
Margaret Bathgate, shareholder, 5% interest, principal and interest due January 2018		100,000
		1,079,146		686,241
Accrued interest payable		10,209
Total		1,089,355		686,241
Current portion		88,124		88,114
Long term portion	$	1,001,231	$	598,127
		Quarter Ended March 31,
		2016		2015
Related party interest expense	$	13,892	$	5,319

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4. Joint Ventures

3 Months Ended

Mar. 31, 2016

Notes

4. Joint Ventures

4.   Joint Ventures

For joint ventures in which the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of non-controlling interest. For joint ventures in which the Company does not have joint control or significant influence, the cost method is used. For those joint ventures in which there is joint control between the parties, and the Company has significant influence, the equity method is utilized.

At March 31, 2016 and December 31, 2015, the Company’s percentage ownership and method of accounting for each joint venture is as follows:

	March 31, 2016			December 31, 2015
Joint Venture	% Ownership	Significant Influence?	Accounting Method	% Ownership	Significant Influence?	Accounting Method
New Jersey Mill Joint Venture(“NJMJV”)	67%	Yes	Consolidated	67%	Yes	Consolidated
Golden Chest LLC Joint Venture (“GCJV”)	100%	Yes	Consolidated	100%	Yes	Consolidated
Butte Highlands Joint Venture (“BHJV”)	50%	No	Cost	NA	NA	NA

New Jersey Mill Joint Venture Agreement

In June of 2012, Crescent Silver Corp. (“Crescent”) completed its buy-in for 35% of the NJMJV with a cumulative $3.2 million contribution to bring the capacity of the mill to 15 tonnes/hr. At March 31, 2016 and December 31, 2015, an account receivable existed with Crescent for $5,230 and $3,109, respectively, for monthly operating costs as defined in the JV agreement.

Golden Chest LLC Joint Venture

In December of 2015 the Company became the 100% owner of the Golden Chest property after purchasing the 52.22% share of GCJV held by a third party (Note 12).

Butte Highlands JV, LLC (“BHJV”)

On January 29, 2016 the Company purchased a 50% interest in BHJV from Timberline Resources Corporation for $225,000 in cash and 3,000,000 restricted shares of the Company’s common stock valued at $210,000 for a total consideration of $435,000. The purchase was made utilizing proceeds from a promissory note at 5% interest rate extended to the Company by President John Swallow (Note.3) Highland Mining, LLC (“Highland”) is the other 50% owner of the joint venture. The company determine that it had no significant influence with the joint venture as Highland is funding the ongoing exploration program.

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5. Non-controlling Interests

3 Months Ended

Mar. 31, 2016

Notes

5. Non-controlling Interests

5.   Non-Controlling Interests

Non-controlling interests include Crescent’s interest in NJMJV (note 4) and other shareholders in GF&H Company of which the Company owns 66.2/3%. These interests changed as follows from December 31, 2015 to March 31, 2016:

		NJMJV		GF&H		TOTAL
Balance December 31, 2015	$	3,145,585	$	61,655	$	3,207,240
Contribution from non-controlling interest		2,181				2,181
Net loss attributable to non-controlling interest				(23)		(23)
Balance March 31, 2016	$	3,147,766	$	61,632	$	3,209,398

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Earnings Per Share

3 Months Ended

Mar. 31, 2016

Notes

Earnings Per Share

6.   Earnings per Share

For the three month periods ending March 31, 2016 and 2015, the effect of the Company’s potential issuance of shares from the exercise of 10,200,000 and 21,200,000 outstanding warrants, respectively, and 5,750,000 and 4,250,000 options to purchase common stock, respectively would have been anti-dilutive. Accordingly, only basic net loss per share has been presented.

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7. Property, Plant, and Equipment

3 Months Ended

Mar. 31, 2016

Notes

7. Property, Plant, and Equipment

7.   Property, Plant, and Equipment

Property, plant and equipment at March 31, 2016 and December 31, 2015, consisted of the following:

		March 31, 2016		December 31, 2015
Mill
Mill land	$	225,289	$	225,289
Mill building		536,193		536,193
Milling equipment		4,209,440		4,209,440
		4,970,922		4,970,922
Less accumulated depreciation		(285,420)		(285,420)
Total mill		4,685,502		4,685,502
Building and equipment at cost		382,188		362,188
Less accumulated depreciation		(219,836)		(217,738)
Total building and equipment		162,352		144,450
Land
Bear Creek		196,204		196,204
Little Baldy		72,139		72,139
BOW		230,449		230,449
Eastern Star		250,817		250,817
Gillig		79,137		79,137
Highwater		40,133		40,133
Total Land		868,879		868,879
Total	$	5,716,733	$	5,698,831

In the three month period ended March 31, 2015 $3,852 of interest was capitalized for the mill expansion project. No interest was capitalized for the mill expansion in 2016.

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8. Mineral Properties

3 Months Ended

Mar. 31, 2016

Notes

8. Mineral Properties

8.   Mineral Properties

Mineral properties at March 31, 2016 and December 31, 2015 consisted of the following:

		March 31, 2016		December 31, 2015
New Jersey	$	215,127	$	215,127
McKinley		250,000		250,000
Golden Chest		1,518,580		1,445,229
Toboggan		5,000		5,000
Less accumulated amortization		(8,267)		(8,267)
Total	$	1,980,440	$	1,907,089

In the three month period ended March 31, 2016 $6,253 of interest was capitalized for the Golden Chest development project.

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9. Notes Payable

3 Months Ended

Mar. 31, 2016

Notes

9. Notes Payable

9.   Notes Payable

At March 31, 2016 and December 31, 2015, notes payable are as follows:

	March 31, 2016		December 31, 2015
Property with shop 36 month note payable, 4.91% interest rate payable monthly, remaining principal of note due in one payment at end of term in June 2016, monthly payments of $474	$	41,799	$	42,726
Property 120 month note payable, 11.0% interest rate payable monthly, remaining principal of note due in one payment at end of term in March 2021, collateralized by property, monthly payments of $1,122		103,604		105,196
Tailings pump, 35 month note payable, 17.5% interest rate payable monthly, monthly payments of $3,268, collateralized by equipment		69,531		76,097
Mineral property, 10 quarterly payments, 0.0% interest rate discounted at 10%, collateralized by property, quarterly payments of $125,000		1,062,500		1,125,000
Total notes payable		1,277,434		1,349,019
Due within one year		635,811		572,806
Due after one year	$	641,623	$	776,213

Future principal payments of debt and related discount amortization at March 31, 2016 are as follows:

		Note		Discount		Net
1 year	$	635,811	$	(86,434)	$	549,377
2 years		537,338		(29,753)		507,585
3 years		8,089				8,089
4 years		3,062				3,062
5 years		93,134				93,134
Thereafter		-		-		-
Total	$	1,277,434	$	(116,187)	$	1,161,247

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10. Equity

3 Months Ended

Mar. 31, 2016

Notes

10. Equity

10.   Equity

Common Stock issued for Property

In the first quarter of 2016, 3,000,000 restricted shares of the Company’s common stock was issued to Timberline Resources in conjunction with the Company’s purchase of Timberline’s 50% interest in Butte Highlands JV (note 4). No shares of common stock were issued in 2015.

Stock Purchase Warrants Outstanding

No transactions in common stock purchase warrants occurred during the period ended March 31, 2016. The balance in stock purchase warrants is as follows:

	Number of Warrants		Exercise Prices
Balance December 31, 2014	21,200,000	$	0.10-0.20
Expired May 31, 2015	11,000,000		0.15
Balance December 31, 2015 and March 31, 2016	10,200,000		0.10-0.20

These warrants expire as follows:

Shares	Exercise Price	Expiration Date
3,000,000	$0.15	March 4, 2017
6,000,000	$0.20	August 11, 2017
1,200,000	$0.10	August 11, 2019

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11. Stock Options

3 Months Ended

Mar. 31, 2016

Notes

11. Stock Options

11.   Stock Options

On December 30, 2015, 1,500,000 options were granted to management, 750,000 options vested immediately and the remaining 750,000 will vest on December 30, 2016. The options expire 5 years after their corresponding vesting date. Each option allows the holder to purchase one share of the Company’s stock at $0.10 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of five years, a risk free rate of 1.80%, and expected volatility of 158.50%, a compensation cost of $110,208 is associated with the options. Of this, $55,104 was recorded as a general and administrative expense in 2015 and $13,776 was recognized in the first quarter of 2016. The remaining unrecognized compensation cost of $41,328 is expected to be recognized in the three remaining quarters of 2016.

On April 30, 2014, 2,250,000 options were issued to management, 750,000 options vested immediately and the remaining 1,500,000 vested at a rate of 750,000 each year on the anniversary for 2 additional years, and they expire 3 years after resting date. Each option allows the holder to purchase one share of the Company’s stock at $0.10 prior to expiration. Utilizing the Black Scholes option pricing model, an expected life of three years, a risk free rate of 0.87%, and expected volatility of 161.30%. Compensation costs recorded as a general and administrative expense of $10,865 was recognized in the first quarter of 2016. The remaining unrecognized compensation cost of $3,622 is expected to be recognized in the second quarter of 2016.

	Number of Options	Exercise Prices	Weighted Average Remaining Term (years)
Balance December 31, 2014	4,500,000	0.10-0.15	0.12
Cancelled	(250,000)	0.15	0.15
Issued	1,500,000	0.10	0.10
Balance December 31, 2015 and March 31, 2016	5,750,000	0.10-0.15	0.11
Exercisable at March 31, 2016	5,000,000	0.10-0.15	0.12

Outstanding options had no intrinsic value at March 31, 2016.

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12. Golden Chest Joint Venture

3 Months Ended

Mar. 31, 2016

Notes

12. Golden Chest Joint Venture

12.   Golden Chest Joint Venture

In December of 2015, the Company became the 100% owner of the Golden Chest Joint Venture (GCJV). The Company received the 52.22% share of GCJV held by a third party in exchange for $180,000 and a 2% NSR royalty on all future gold production from the property. In addition to the assets of GCJV, a note payable of $1,250,000 for the patented mining claims was assumed by the Company. The Company purchased the outstanding share in GCJV to consolidate ownership and facilitate exploration and mining plans going forward.

The unaudited pro forma financial information below represents the combined results of the Company’s operations as if the GCJV acquisition had occurred at the beginning of the period presented. The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have occurred if the acquisition had taken place at January 1, 2015, nor is it indicative of future operating results.

		March 31, 2015
Revenue	$	279,527
Operating expenses		(799,318)
Net loss from continuing operations		(193,195)
Net loss per common share, basic and diluted	$	0.01

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1. The Company and Significant Accounting Policies: Use of Estimates, Policy (Policies)

3 Months Ended

Mar. 31, 2016

Policies

Use of Estimates, Policy

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, 2016 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2016.

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1. The Company and Significant Accounting Policies: Principles of Consolidation (Policies)

3 Months Ended

Mar. 31, 2016

Policies

Principles of Consolidation

Principles of Consolidation

At March 31, 2016, the consolidated financial statements include the accounts of the Company, the accounts of our majority owned New Jersey Mill Joint Venture (“NJMJV”), Golden Chest LLC Joint Venture (“GCJV”) and GF&H Company. Intercompany items and transactions between companies included in the consolidation are eliminated.

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1. The Company and Significant Accounting Policies: Revenue Recognition (Policies)

3 Months Ended

Mar. 31, 2016

Policies

Revenue Recognition

Revenue Recognition

Revenue is recognized when title and risk of ownership of metals or metal bearing concentrate have passed and collection is reasonably assured. Revenue from the sale of metals may be subject to adjustment upon final settlement of estimated metal prices, weights and assays, and are recorded as adjustments to revenue in the period of final settlement of prices, weights and assays; such adjustments are typically not material in relation to the initial invoice amounts. Revenue received from drilling and exploration contracts with third parties is recognized when the contract has been established, the services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Income received as the operator of the Company’s joint ventures is recognized in the months during which those operations occur. Revenue received from engineering services provided is recognized when services are rendered and collection of payment is deemed probable. These services are not a part of normal operations. Revenues from mill operations and custom milling are recognized in the period in which the milling is completed, concentrates are shipped, and collection of payment is deemed probable.

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1. The Company and Significant Accounting Policies: Reclassifications (Policies)

3 Months Ended

Mar. 31, 2016

Policies

Reclassifications

Reclassifications

Certain prior period amounts have been reclassified to conform to the 2016 financial statement presentation. Reclassifications had no effect on net loss, stockholders’ equity, or cash flows as previously reported.

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3. Related Party Transactions: Schedule of Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Schedule of Related Party Transactions

		March 31, 2016		December 31, 2015
Mine Systems Design (MSD), a company in which our Company’s Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through October 2018	$	137,500	$	141,033
John Swallow, Company president, 5% interest, monthly payments of $5,834 with balloon payment of $475,973 in November 2017		541,646		545,208
John Swallow, Company president, 5% interest, principal and interest due January 2018		300,000
Margaret Bathgate, shareholder, 5% interest, principal and interest due January 2018		100,000
		1,079,146		686,241
Accrued interest payable		10,209
Total		1,089,355		686,241
Current portion		88,124		88,114
Long term portion	$	1,001,231	$	598,127
		Quarter Ended March 31,
		2016		2015
Related party interest expense	$	13,892	$	5,319

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4. Joint Ventures: Schedule of percentage ownership and method of accounting (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Schedule of percentage ownership and method of accounting

	March 31, 2016			December 31, 2015
Joint Venture	% Ownership	Significant Influence?	Accounting Method	% Ownership	Significant Influence?	Accounting Method
New Jersey Mill Joint Venture(“NJMJV”)	67%	Yes	Consolidated	67%	Yes	Consolidated
Golden Chest LLC Joint Venture (“GCJV”)	100%	Yes	Consolidated	100%	Yes	Consolidated
Butte Highlands Joint Venture (“BHJV”)	50%	No	Cost	NA	NA	NA

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5. Non-controlling Interests: Changes in non controlling interest during period (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Changes in non controlling interest during period

		NJMJV		GF&H		TOTAL
Balance December 31, 2015	$	3,145,585	$	61,655	$	3,207,240
Contribution from non-controlling interest		2,181				2,181
Net loss attributable to non-controlling interest				(23)		(23)
Balance March 31, 2016	$	3,147,766	$	61,632	$	3,209,398

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7. Property, Plant, and Equipment: Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Property, Plant and Equipment

		March 31, 2016		December 31, 2015
Mill
Mill land	$	225,289	$	225,289
Mill building		536,193		536,193
Milling equipment		4,209,440		4,209,440
		4,970,922		4,970,922
Less accumulated depreciation		(285,420)		(285,420)
Total mill		4,685,502		4,685,502
Building and equipment at cost		382,188		362,188
Less accumulated depreciation		(219,836)		(217,738)
Total building and equipment		162,352		144,450
Land
Bear Creek		196,204		196,204
Little Baldy		72,139		72,139
BOW		230,449		230,449
Eastern Star		250,817		250,817
Gillig		79,137		79,137
Highwater		40,133		40,133
Total Land		868,879		868,879
Total	$	5,716,733	$	5,698,831

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8. Mineral Properties: Schedule of mineral properties (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Schedule of mineral properties

		March 31, 2016		December 31, 2015
New Jersey	$	215,127	$	215,127
McKinley		250,000		250,000
Golden Chest		1,518,580		1,445,229
Toboggan		5,000		5,000
Less accumulated amortization		(8,267)		(8,267)
Total	$	1,980,440	$	1,907,089

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9. Notes Payable: Schedule of Debt (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Schedule of Debt

	March 31, 2016		December 31, 2015
Property with shop 36 month note payable, 4.91% interest rate payable monthly, remaining principal of note due in one payment at end of term in June 2016, monthly payments of $474	$	41,799	$	42,726
Property 120 month note payable, 11.0% interest rate payable monthly, remaining principal of note due in one payment at end of term in March 2021, collateralized by property, monthly payments of $1,122		103,604		105,196
Tailings pump, 35 month note payable, 17.5% interest rate payable monthly, monthly payments of $3,268, collateralized by equipment		69,531		76,097
Mineral property, 10 quarterly payments, 0.0% interest rate discounted at 10%, collateralized by property, quarterly payments of $125,000		1,062,500		1,125,000
Total notes payable		1,277,434		1,349,019
Due within one year		635,811		572,806
Due after one year	$	641,623	$	776,213

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9. Notes Payable: Schedule of Maturities of Long-term Debt (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Schedule of Maturities of Long-term Debt

		Note		Discount		Net
1 year	$	635,811	$	(86,434)	$	549,377
2 years		537,338		(29,753)		507,585
3 years		8,089				8,089
4 years		3,062				3,062
5 years		93,134				93,134
Thereafter		-		-		-
Total	$	1,277,434	$	(116,187)	$	1,161,247

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10. Equity: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Schedule of Stockholders' Equity Note, Warrants or Rights

	Number of Warrants		Exercise Prices
Balance December 31, 2014	21,200,000	$	0.10-0.20
Expired May 31, 2015	11,000,000		0.15
Balance December 31, 2015 and March 31, 2016	10,200,000		0.10-0.20

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10. Equity: Warrant expiration (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Warrant expiration

Shares	Exercise Price	Expiration Date
3,000,000	$0.15	March 4, 2017
6,000,000	$0.20	August 11, 2017
1,200,000	$0.10	August 11, 2019

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11. Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Schedule of Share-based Compensation, Stock Options, Activity

	Number of Options	Exercise Prices	Weighted Average Remaining Term (years)
Balance December 31, 2014	4,500,000	0.10-0.15	0.12
Cancelled	(250,000)	0.15	0.15
Issued	1,500,000	0.10	0.10
Balance December 31, 2015 and March 31, 2016	5,750,000	0.10-0.15	0.11
Exercisable at March 31, 2016	5,000,000	0.10-0.15	0.12

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12. Golden Chest Joint Venture: Business Acquisition, Pro Forma Information (Tables)

3 Months Ended

Mar. 31, 2016

Tables/Schedules

Business Acquisition, Pro Forma Information

		March 31, 2015
Revenue	$	279,527
Operating expenses		(799,318)
Net loss from continuing operations		(193,195)
Net loss per common share, basic and diluted	$	0.01

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1. The Company and Significant Accounting Policies (Details)

3 Months Ended

Mar. 31, 2016

Details

Basis of Accounting

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. 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.

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2. Going Concern (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Details
Net loss	$ 190,503	$ 279,527
Cash and cash equivalents	$ 11,582	$ 27,347	$ 62,275	$ 336,525

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3. Related Party Transactions: Schedule of Related Party Transactions (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Details
Due to related parties before interest	$ 1,079,146	$ 686,241
Interest Expense, Related Party	10,209
Due to Related Parties	1,089,355	686,241
Due to Other Related Parties, Classified, Current	88,124	88,114
Notes payable related parties, long term	1,001,231	598,127
Interest Paid, Net	$ 13,892	$ 5,319

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4. Joint Ventures: Schedule of percentage ownership and method of accounting (Details)	Mar. 31, 2016	Dec. 31, 2015
Details
Investment Owned, Percent of Net Assets	67.00%	67.00%
Investment owned percentage of net assets 2	100.00%	100.00%
Investment owned percentage of net assets 3	50.00%

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4. Joint Ventures (Details) - USD ($)	Jan. 29, 2016	Mar. 31, 2016	Dec. 31, 2015
Details
Joint venture receivables, detail of accounts receivable		$ 5,230	$ 3,109
Investment owned percentage of net assets 2		100.00%	100.00%
Payments for Purchase of Other Assets	$ 225,000
Stock Issued During Period, Shares, Purchase of Assets	3,000,000
Stock Issued During Period, Value, Purchase of Assets	$ 210,000
Investment in joint venture	$ 435,000	$ 435,000

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5. Non-controlling Interests: Changes in non controlling interest during period (Details) - USD ($)			3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Details
Other Noncontrolling Interests	$ 3,209,398	$ 3,207,240	$ 3,209,398
Proceeds from Contributions from Affiliates	$ 2,181
Net loss attributable to non-controlling interests		$ (23)	$ (23)	$ (10,679)

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Earnings Per Share (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Warrants	10,200,000	21,200,000
Stock options	5,750,000	4,250,000

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7. Property, Plant, and Equipment: Property, Plant and Equipment (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Details
Mill land	$ 225,289	$ 225,289
Mill building	536,193	536,193
Milling equipment	4,209,440	4,209,440
Mill buildings and improvements, accumulated depreciation	(285,420)	(285,420)
Mill Buildings and Improvements, Net	4,685,502	4,685,502
Buildings and Improvements, Gross	382,188	362,188
Buildings and improvements, accumulated depreciation	(219,836)	(217,738)
Buildings and improvements net	162,352	144,450
Bear Creek Land	196,204	196,204
Little Baldy Land	72,139	72,139
BOW Land	230,449	230,449
Eastern Star Land	250,817	250,817
Gillig Land	79,137	79,137
Highwater Land	40,133	40,133
Land	868,879	868,879
Property, plant and equipment, net of accumulated depreciation	$ 5,716,733	$ 5,698,831

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7. Property, Plant, and Equipment (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Interest Costs Capitalized	$ 6,253	$ 3,852

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8. Mineral Properties: Schedule of mineral properties (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Details
Mineral Properties 1	$ 215,127	$ 215,127
Mineral Properties 2	250,000	250,000
Mineral Properties 3	1,518,580	1,445,229
Mineral Properties 4	5,000	5,000
Mineral properties amortization	(8,267)	(8,267)
Mineral properties net	$ 1,980,440	$ 1,907,089

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8. Mineral Properties (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Interest Costs Capitalized	$ 6,253	$ 3,852

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9. Notes Payable: Schedule of Debt (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Details
Note payable, property	$ 41,799	$ 42,726
Note payable, property	103,604	105,196
Note payable, equipment	69,531	76,097
Note payable, mineral property	1,062,500	1,125,000
Long-term Debt	1,277,434	1,349,019
Notes Payable, Current	635,811	572,806
Notes Payable, Noncurrent	$ 641,623	$ 776,213

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9. Notes Payable: Schedule of Maturities of Long-term Debt (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Details
Note payable maturity 2016	$ 635,811
Note payable maturity 2016, discount	(86,434)
Note payable maturity 2016, net	549,377
Note payable maturity 2017	537,338
Note payable maturity 2017, discount	(29,753)
Note payable maturity 2017, net	507,585
Note payable maturity 2018	8,089
Note payable maturity 2018, net	8,089
Note payable maturity 2019	3,062
Note payable maturity 2019, net	3,062
Note payable maturity 2020	93,134
Note payable maturity 2020, net	93,134
Long-term Debt	1,277,434	$ 1,349,019
Note payable maturity, discount	(116,187)
Notes payable net	$ 1,161,247

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11. Stock Options (Details) - USD ($)		3 Months Ended	12 Months Ended
	Dec. 30, 2015	Mar. 31, 2016	Dec. 31, 2015
Other General and Administrative Expense			$ 55,104
Remaining unrecognized compensation cost		$ 13,776
Options issued to management
Stock options issued to management			1,500,000
Fair Value Assumptions, Expected Term	5 years
Fair Value Assumptions, Risk Free Interest Rate	1.80%
Fair Value Assumptions, Expected Volatility Rate	158.50%
Officers' Compensation	$ 110,208
Remaining unrecognized compensation cost			$ 41,328
Stock options issued to management			1,500,000
Options issued to management, additional
Stock options issued to management			2,250,000
Fair Value Assumptions, Expected Term	3 years
Fair Value Assumptions, Risk Free Interest Rate	0.87%
Fair Value Assumptions, Expected Volatility Rate	161.30%
Other General and Administrative Expense		10,865
Remaining unrecognized compensation cost		$ 3,622
Stock options issued to management			2,250,000

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11. Stock Options: Schedule of Share-based Compensation, Stock Options, Activity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2014
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	5,750,000	4,500,000
Cancelled	$ (250,000)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	1,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	5,000,000

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12. Golden Chest Joint Venture: Business Acquisition, Pro Forma Information (Details)	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares
Details
Business Acquisition, Pro Forma Revenue	$ 279,527
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations before Changes in Accounting and Extraordinary Items, Net of Tax	(799,318)
Business Acquisition, Pro Forma Net Income (Loss)	$ (193,195)
Basic Earnings Per Share, Pro Forma | $ / shares	$ 0.01

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Items (Details) - USD ($)	Jan. 29, 2016	Mar. 31, 2016
Details
Payments for Purchase of Other Assets	$ 225,000
Stock Issued During Period, Shares, Purchase of Assets	3,000,000
Stock Issued During Period, Value, Purchase of Assets	$ 210,000
Investment in joint venture	$ 435,000	$ 435,000