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 June 30, 2012

or

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

For the transition period from _____ to _____ 

Commission file number: 000-28837

NEW JERSEY MINING COMPANY

(Exact name of registrant as specified in its charter)

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

89 Appleberg Road, Kellogg, Idaho 83837

(Address of principal executive offices) (zip code)

(208) 783-3331

Registrant’s telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(D) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period as the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.

Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [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 August 1, 2012, 45,305,862 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 JUNE 30, 2012

TABLE OF CONTENTS

	Page
PART I – FINANCIAL INFORMATION
Item 1: Consolidated Financial Statements (unaudited)	3
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations	8
Item 3: Quantitative and Qualitative Disclosures about Market Risk	10
Item 4: Controls and Procedures	10
PART II – OTHER INFORMATION
Item 1: Legal Proceedings	10
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds	10
Item 3: Defaults Upon Senior Securities	10
Item 4: Mine Safety Disclosures	10
Item 5: Other Information	10
Item 6: Exhibits	11
SIGNATURES	12
CERTIFICATIONS

2

PART I-FINANCIAL INFORMATION

Item 1: CONSOLIDATED FINANCIAL STATEMENTS

New Jersey Mining Company

(A Development Stage Company)

Consolidated Balance Sheets

June 30, 2012 and December 31, 2011

ASSETS
		June 30, 2012			December 31, 2011
		(Unaudited)
Current assets:
Cash and cash equivalents	$	152,415		$	612,989
Investment in marketable equity security, at market (cost-$3,868)		33,851			19,344
Joint venture receivables		130,146			131,718
Deposits					44,280
Inventory		18,586			18,410
Other current assets		8,243			55,442
Total current assets		343,241			882,183
Property, plant, and equipment, net of accumulated depreciation		4,923,432			3,967,467
Mineral properties		699,575			699,575
Investment in Golden Chest LLC		533,413			553,205
Total assets	$	6,499,661		$	6,102,430
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	103,661		$	122,060
Accrued payroll and related payroll expenses		45,036			54,367
Account payable, related party		39,138			1,500
Accounts payable, related party joint venture		78,259
Obligations under capital lease, current		30,336			30,153
Notes payable, current		100,937			102,151
Total current liabilities		397,367			310,231
Asset retirement obligation		9,221			8,645
Obligations under capital lease, non-current		42,800			58,376
Notes payable, non-current		256,886			308,362
Total non-current liabilities		308,907			375,383
Total liabilities		706,274			685,614
Commitments (Note 5)
Stockholders’ equity:
Preferred stock, no par value, 1,000,000 shares               authorized; no shares issued and outstanding     Common stock, no par value, 200,000,000 shares authorized;               45,305,862 shares issued and outstanding, both periods		10,423,469			10,423,469
Deficit accumulated during the development stage		(7,699,401	)		(7,233,754	)
Accumulated other comprehensive income:
Unrealized gain in marketable equity security		29,983			15,475
Total New Jersey Mining Company stockholders' equity		2,754,051			3,205,190
Noncontrolling interest in New Jersey Mill Joint Venture		3,039,336			2,211,626
Total stockholders’ equity		5,793,387			5,416,816
Total liabilities and stockholders’ equity	$	6,499,661		$	6,102,430

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

New Jersey Mining Company

(A Development Stage Company)

Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)

For the Three and Six Month Periods Ended June 30, 2012 and 2011,

And from Inception (July 18, 1996) through June 30, 2012

														From Inception
														(July 18, 1996)
														Through
		June 30, 2012						June 30, 2011						June 30, 2012
		Three Months			Six Months			Three Months			Six Months
Income earned during the development stage:
Sales of gold													$	437,122
Sales of concentrate														601,168
Drilling and exploration contract income	$	356,040		$	769,084		$	223,501		$	407,336			2,371,344
Joint venture management fee income		17,784			41,025			17,702			31,737			120,057
Mill processing fee income		1,029			1,029									1,029
Engineering services income		28,800			68,700			36,850			69,550			232,522
Total income earned during the development stage		403,653			879,838			278,053			508,623			3,763,242
Costs and expenses:
Direct production costs		4,754			7,824			3,263			3,806			1,341,032
Drilling and exploration contract expense		117,874			347,760			138,689			247,686			1,197,305
Engineering servicing expense		9,750			19,500									71,591
Management		10,288			22,731			24,655			48,883			1,939,270
Exploration		330			914			4,486			7,299			2,419,995
Net loss (gain) on sale of or default on mineral property														(281,398	)
Net gain on sale of equipment											(12,895	)		(47,993	)
Depreciation and amortization		32,918			63,923			19,146			33,833			887,636
General and administrative expenses		64,481			176,227			85,873			188,138			3,261,243
Total operating expenses		240,395			638,879			276,112			516,750			10,788,681
Other (income) expense:
Timber sales														(54,699	)
Timber expense														14,554
Royalties and other income		(3,000	)		(6,000	)		(3,012	)		(11,624	)		(111,445	)
Royalties expense														44,089
Gain on sale of marketable equity security														(92,269	)
Interest income		(71	)		(288	)		(202	)		(560	)		(49,189	)
Interest expense								4,654			6,176			91,887
Write off of goodwill and investment														120,950
Equity in loss of Golden Chest LLC		310,853			714,793									714,793
Total other (income) expense		307,782			708,505			1,440			(6,008	)		678,671
Net income (loss)		(144,524	)		(467,546	)		501			(2,119	)		(7,704,110	)
Net loss attributable to noncontrolling interest-Mill JV		1,196			1,899			709			1,405			4,709
Net income (loss) attributable to the Company		(143,328	)		(465,647	)		1,210			(714	)		(7,699,401	)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable equity security		14,701			14,508			2,902			(6,770	)		29,983
Comprehensive income (loss) attributable to the Company	$	(128,627	)	$	(451,139	)	$	4,112		$	(7,484	)	$	(7,669,418	)
Net income (loss) per common share basic and diluted	$	Nil		$	(0.01	)	$	Nil		$	Nil		$	(0.32	)
Weighted average common shares outstanding basic and diluted		45,305,862			45,305,862			45,040,662			45,029,326			24,024,592

4
The accompanying notes are an integral part of these consolidated financial statements.

New Jersey Mining Company

(A Development Stage Company)

Consolidated Statements of Cash Flows (Unaudited)

For the Six Month Periods Ended June 30, 2012 and 2011,

And from Inception (July 18, 1996) through June 30, 2012

								From Inception
		June 30,						(July 18, 1996)
								through
		2012			2011			June 30, 2012
Cash flows from operating activities:
Net income (loss)	$	(467,546	)	$	(2,119	)	$	(7,704,110	)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Depreciation and amortization		63,923			33,833			887,636
(Gain) loss on sale of equipment					(12,895	)		(36,721	)
Write-off of goodwill and investment								120,950
Gain on sale of mineral property								(281,334	)
Gain on sale of marketable equity security								(92,269	)
Accretion of asset retirement obligation		576			1,736			8,383
Equity in loss of Golden Chest LLC		714,793						714,793
Common stock issued for:
Management and directors’ fees								1,169,335
Services and other								255,874
Exploration								96,521
Mineral property agreement								15,000
Change in:
Deposits		44,280
Inventory		(175	)		(1,061	)		(18,586	)
Joint venture receivables		1,572			(138,970	)		(130,144	)
Other current assets		47,200			11,967			(8,242	)
Other assets								(778	)
Accounts payable		(18,400	)		248,264			119,404
Accrued payroll and related payroll expense		(9,332	)		45,787			45,035
Accounts payable related party joint venture		78,259			27,848			78,259
Accrued reclamation costs								(1,443	)
Net cash provided (used) by operating activities		455,150			214,390			(4,762,437	)
Cash flows from investing activities:
Purchases of property, plant and equipment		(1,019,889	)		(1,238,808	)		(4,372,432	)
Deposit on equipment purchase					(419,458	)
Purchase (sales) of mineral property								(3,904	)
Proceeds from sale of mineral property								240,000
Deposit received on sale of mineral property								320,000
Contribution to Golden Chest LLC		(695,000	)					(695,000	)
Proceeds from sale of equipment					12,676			49,174
Redemption (purchase) of reclamation bonds					(110	)		(120,500	)
Purchase of marketable equity security								(7,500	)
Proceeds from sales of marketable equity securities								95,901
Cash of acquired companies								38,269
Deferral of development costs								(759,209	)
Net cash provided (used) by investing activities		(1,714,889	)		(1,645,700	)		(5,215,201	)
Cash flows from financing activities:
Exercise of stock purchase warrants								2,571,536
Sales of common stock, net of issuance costs					5,000			5,246,236
Principle payments on capital lease		(15,392	)		(6,751	)		(227,901	)
Principle payments on notes payable		(52,690	)		(44,669	)		(543,000	)
Note and interest payable, related party, net		37,638			1,500			39,138
Contributions from noncontrolling equity interest in Mill JV		829,609			1,671,347			3,044,044
Net cash provided by financing activities		799,165			1,626,427			10,130,053
Net change in cash and cash equivalents		(460,574	)		195,117			152,415
Cash and cash equivalents, beginning of period		612,989			357,317			0
Cash and cash equivalents, end of period	$	152,415		$	552,434		$	152,415
Supplemental disclosure of cash flow information
Interest paid in cash, net of amount capitalized				$	6,176		$	93,986
Non-cash investing and financing activities:
Common stock issued for:
Property, plant and equipment							$	50,365
Mineral properties agreement							$	351,600
Payment of accounts payable							$	18,730
Acquisitions of companies, excluding cash							$	743,653
Capital lease obligation incurred for equipment acquired							$	275,838
Notes payable for property and equipment acquired				$	401,763		$	884,397
Mineral property transferred to Golden Chest LLC							$	553,205
Debt relieved from sale of truck				$	2,785		$	2,785

5
The accompanying notes are an integral part of these consolidated financial statements.

New Jersey Mining Company

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Unaudited)

1. The Company and Significant Accounting Policies:

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

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the three and six month periods ended June 30, 2012, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2012.

For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

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

Principles of Consolidation

At June 30, 2012, the consolidated financial statements include the accounts of the Company and the accounts of our majority owned New Jersey Mill Joint Venture. Intercompany items and transactions between companies included in the consolidation are eliminated.

2. Related Party Transactions

The Company jointly owns with Marathon Gold USA (MUSA) and acts as the operator of the Golden Chest LLC (GC LLC). Accounts receivable are a part of normal operations which include operating costs, payroll, and drilling. As of June 30, 2012, a related party account receivable existed with MUSA and GC LLC for $16,758 for services rendered. In addition, income, expense, and equity in loss items for the three and six month periods ended June 30, 2012 related to MUSA and GC LLC were as follows:

			Three month		Six Month
•	Drilling and exploration contract income	$	356,040	$	769,084
•	Joint Venture Management fees income		17,784		41,025
•	Drilling and exploration contract expense		117,874		347,760
•	Equity in loss of Golden Chest LLC		310,853		714,792

Engineering services income includes engineering services provided to United Silver Corp. (USC). USC holds the noncontrolling interest in the Company's New Jersey Mill Joint Venture. Engineering services to USC in the three and six month periods ended June 30, 2012 were $28,800 and $68,700 respectively. As of June 30, 2012, a related party account receivable existed with the New Jersey Mill Joint Venture (Mill JV) and USC for $113,388. As of June 30, 2012, $78,259 was recorded as an account payable to Mine Fabrication and Machine, which is a wholly owned subsidiary of USC.

$1,500 is payable quarterly by the Company to Mine Systems Design (MSD), a company controlled by our CEO, for office rent. The second quarter's office rent to MSD was recorded as a related party account payable on June 30, 2012. Additionally, at June 30, 2012 a $37,638 line of credit existed between the Company and MSD at 0% interest.

3. Earnings per Share

For the three and six month periods ended June 30, 2011 and 2012, the effect of the Company’s potential issuance of shares from the exercise of 6,099,550 outstanding warrants would have been anti-dilutive. Accordingly, only basic net loss per share has been presented.

4. Fair Value Measurement

The table below sets forth our financial assets that were accounted for at fair value on at June 30, 2012 and December 31, 2011, and their respective hierarchy level. We had no other financial assets or liabilities accounted for at fair value on a recurring basis at June 30, 2012 and December 31, 2011.

6

	Balance at June 30, 2012	Balance at December 31, 2011	Hierarchy Level
Investments in marketable equity securities	$ 33,851	$19,344	Level 1

5. Joint Ventures

For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of noncontrolling 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 June 30, 2012 and December 31, 2011, the Company’s percentage ownership and method of accounting for each joint venture is as follows:

	June 30, 2012			December 31, 2011
Joint Venture	% Ownership	Significant Influence?	Accounting Method	% Ownership	Significant Influence?	Accounting Method
New Jersey Mill Joint Venture	67%	Yes	Consolidated	71%	Yes	Consolidated
Golden Chest LLC	50%	Yes	Equity	50%	No	Cost

New Jersey Mill Joint Venture Agreement

In June of 2012 USC completed their buy-in for 33% of the Mill JV with a $3.04 million contribution to bring the capacity of the mill to 15 tonnes/hr. The plant has been commissioned and the mineral processing fee income of $1,029 recognized by the company for the six months ended June 30, 2012 is income for processing USC ore.

Golden Chest LLC Joint Venture

Funding in 2012 is being provided based upon ownership at 50% per partner. The Company provided $695,000 of funding in the first half of 2012. These cash call commitments may continue throughout 2012. Because both partners have now completed their initial contribution and the Company is now contributing additional funding, the cost method has been replaced by the equity method of accounting for this joint venture as of January 1, 2012, and accordingly, the Company is now recognizing its proportional share of the LLC's losses as equity in loss of Golden Chest, The equity in loss for the first half of 2012 was $714,792.

6. Property, Plant, and Equipment

Property, plant and equipment at June 30, 2012 and December 31, 2011, consisted of the following:

		June 30, 2012			December 31,2011
Mill land at cost	$	269,569		$	225,289
Mill building at cost		522,786			430,118
Milling equipment at cost		3,685,866			2,802,925
Less accumulated depreciation		(82,299	)		(80,385	)
Total mill		4,395,922			3,377,947
Building and equipment at cost		771,419			771,419
Less accumulated depreciation		(503,318	)		(441,308	)
Total building and equipment		268,101			330,111
Land		259,409			259,409
Total	$	4,923,432		$	3,967,467

7

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

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

Cautionary Statement about Forward-Looking Statements

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

• The amount and nature of future capital, development and exploration expenditures;
• The timing of exploration activities; and
• Business strategies and development of our business plan.

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

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

Plan of Operation

The Company is conducting gold exploration in the Gold Belt of the Coeur d’Alene Mining District of northern Idaho and it operates a mineral processing plant near Kellogg, Idaho. The financial strategy involves forming joint ventures with partners who contribute cash to earn their interest. The strategy includes finding and developing ore reserves of significant quality and quantity to justify investment in mining and mineral processing facilities. The Company’s primarily focus is on gold with silver and base metals of secondary emphasis. The Company receives revenue for providing mineral processing, core drilling and engineering services from its joint venture partners, as well as management fees.

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

Exploration activities at the Golden Chest during the second quarter of 2012 were slowed considerably because of our partner’s financial condition. The Golden Chest project is a 50:50 joint venture agreement with Marathon Gold USA (MUSA), and the Company is the Operator. During the second quarter of 2012, 3,167 meters of drilling was completed. The Company conducted core drilling operations at the Golden Chest for the venture under a service agreement.

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

The Niagara copper-silver deposit, also located in the Murray, Idaho area, in the Revett formation was drilled in the 1970’s, and the Company drilled five holes since which expanded the resource. Results of the recent drilling also indicate that gold would be a significant byproduct. Preliminary open pit mining studies have been completed. Early in the fourth quarter of 2011, an option agreement was signed with Desert Copper USA Corp. relating to the Niagara and Copper Camp properties. The terms of the agreement with Desert Copper include an option to purchase the properties for $250,000 and 3.5 million shares of Desert Copper Corporation (the parent of Desert Copper USA Corp.). The option period is five years and Desert Copper is required to make annual payments of $20,000 to the Company as well as pay all costs associated with the properties. As a result of the option agreement with Desert Copper, the Company exercised its option with Revett Metals Associates to enter a mining agreement for the Niagara property. During the second quarter of 2012, the parent Canadian company of Desert Copper changed its name to Daycon Minerals Corporation.

At the Coleman underground mine future plans are to conduct further drilling to locate higher grade reserves.

The New Jersey mineral processing plant was expanded in order to process ore from the nearby Crescent silver mine. A letter of intent to form a joint venture with United Mine Services, Inc. (now United Silver Corp.) (USC) was signed in September 2010 and a definitive venture agreement was reached in January 2011. The plant has been expanded from a processing rate of 4 tonnes/hr to 15 tonnes/hr. USC has paid the expansion cost which was about $3.1 million. The Company owns 2/3 of the venture and USC owns 1/3. The Company is the operator of the venture. USC will have a minimum quota of ore of 7,000 tonnes per month and the Company will have 3,000 tonnes per month. Each party will pay its processing costs and the Company will charge a management fee of $2.50/tonne. Currently, the plant commissioning has been completed and the mill is processing development ore supplied by USC.

8

Changes in Financial Condition

The Company maintains an adequate cash balance by increasing or decreasing its exploration expenditures as limited by availability of cash from operations or from financing activities. The cash balance at the end of the second quarter of 2012 was $152,415. The cash balance decreased during the quarter, from $612,989 at year end to $152,415, primarily because the Golden Chest project became joint funding and service revenues decreased.

Results of Operations

Income Earned during the Development Stage (Revenue) for the second quarter of 2012 was $403,653 as compared to $278,053 for the second quarter of 2011. Revenue was higher in 2012 due to increased contracting services. The net loss for the second quarter of 2012 was $144,524 compared to a small income of $501 for the second quarter of 2011. The net loss for the second quarter of 2012 was greater than the corresponding quarter of 2011 because of joint funding at the Golden Chest.

There are no plans for gold production in 2012 because only limited exploration activities are planned for the Golden Chest mine.

Plans at the Golden Chest mine include only exploration in 2012 in order to increase resources and reserves before making a production decision.

The New Jersey mineral processing plant will be operated throughout the remainder of 2012. Development ore from the Crescent mine, owned by United Silver Corp. will be processed.

The amount of money to be spent on exploration at the Company’s mines and prospects depends primarily on contributions of our joint venture partners, particularly at the Golden Chest. If new joint venture partners are engaged at the Toboggan Project, exploration activities would increase. Also, Desert Copper may conduct a drilling program under its option agreement at the Niagara and Copper Camp projects.

The Company provides surface drilling services at the Golden Chest and receives payment from Golden Chest LLC. Currently, Golden Chest LLC is funded 50% by Marathon Gold and 50% by the Company. The Company also receives a management fee as Manager of the venture. The Company receives a management fee for processing ore for United Silver Corp. Additional financing activities may be necessary in 2012 if Marathon Gold does not exercise its option to increase its ownership of Golden Chest LLC to 60% by paying $3.5 million.

Changes in Other Current Assets
Other current assets decreased as of June 30, 2012, compared to December 31, 2011, because of a decrease in prepaid claim fees and other miscellaneous accounts receivable.

Changes in Deposits
Deposits decreased as of June 30, 2012, compared to December 31, 2011, because the deposit was returned and is no longer held.

Changes in Property, Plant, and Equipment, net of accumulated depreciation
Property, Plant and Equipment increased as of June 30, 2012, compared to December 31, 2011, because of increased investment in the New Jersey Mill Joint Venture by our joint venture partner.

Account Payable Related Party
Account payable related party increased as of June 30, 2012, compared to December 31, 2011, because of a line of credit that was extended to the company by MSD.

Accounts Payable , Joint Venture and related party
Accounts Payable, joint venture and related party increased as of June 30, 2012, compared to December 31, 2011, because of activity related to the New Jersey Mill Joint Venture expansion.

Drilling and Exploration Income
Drilling and Exploration income increased for the three and six month periods ended June 30, 2012, compared to last year because of drilling activity that was conducted at the Golden Chest under the Joint Venture agreement.

Drilling and Exploration Contract Expense
Drilling and Exploration contract expense increased for the six month period ended June 30, 2012, compared to the comparable period last year because of increased drilling activity at the Golden Chest in the first quarter of 2012.

Changes in Equity in Loss and Contributions to Golden Chest LLC
Equity in loss represents NJMC's share of losses in the Golden Chest LLC. As of January 1, 2012, the Company changed its method of accounting for the LLC from the cost method to the equity method. During the first 6 months of 2012 the Company contributed $695,000 to its investment in the Golden Chest LLC.

(Gain) Loss on Sale of Equipment
Gain on Sale of Equipment decreased in 2012 compared to 2011 because no sales have occurred in 2012.

Depreciation
Depreciation increased in the three and six month periods ending June, 2012, compared to the comparable period last year, most notably because of the new core drill which was placed in service in June 2011.

9

Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required for small reporting companies.

Item 4: CONTROLS AND PROCEDURES

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

Changes in internal control over financial reporting.
The President, Chief Executive Officer, and principal financial officer conducted evaluations of the Company’s internal controls over financial reporting to determine whether any changes occurred during the quarter ended June 30, 2012 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. No material changes in internal control over financial reporting occurred in the quarter ended June 30, 2012.

PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

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

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

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

No shares of the Company's stock were issued in the second quarter of 2012.

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 recently enacted 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 June 30, 2012, the Company received no citations for violations of mandatory health or safety standards that could significantly and substantially (S&S citations) 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. However, two S&S citations were issued to a local contractor at the New Jersey mill. 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

10

Item 6. EXHIBITS

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

* as filed herewith .

11

SIGNATURES

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

NEW JERSEY MINING COMPANY
By:	/s/ Fred W. Brackebusch
	Fred W. Brackebusch, its
	President, Treasurer & Director  Date August 10, 2012
By:	/s/ Grant A. Brackebusch
	Grant A. Brackebusch, its
	Vice President & Director
	Date: August 10, 2012

12

EX-31.1

Exhibit 31.1

Certification

I, Fred W. Brackebusch, 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: August 10, 2012
By /s/ FRED W. BRACKEBUSCH
Fred W. Brackebusch, President, Chief Executive Officer, & Director

EX-31.2

Exhibit 31.2

Certification

I, Fred W. Brackebusch, 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: August 10, 2012
By /s/ FRED W. BRACKEBUSCH
Fred W. Brackebusch, Principal Financial Officer

EX-32.1

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 June 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Fred W. Brackebusch, President, 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: August 10, 2012

By /s/ FRED W. BRACKEBUSCH
Fred W. Brackebusch, President, Chief Executive Officer, & Director

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-K

EX-32.2

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 June 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Fred W. Brackebusch, President, Treasurer, Principal 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: August 10, 2012

By /s/ FRED W. BRACKEBUSCH
Fred W. Brackebusch, President, Treasurer, Principal Financial Officer, and Director

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-K

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Fair Value Measurement

6 Months Ended

Jun. 30, 2012

Fair Value Measurement [Text Block]

4. Fair Value Measurement

The table below sets forth our financial assets that were accounted for at fair value on at June 30, 2012 and December 31, 2011, and their respective hierarchy level. We had no other financial assets or liabilities accounted for at fair value on a recurring basis at June 30, 2012 and December 31, 2011.

	Balance at June 30, 2012	Balance at December 31, 2011	Hierarchy Level
Investments in marketable equity securities	$33,851	$19,344	Level 1

XML

Earnings per Share

6 Months Ended

Jun. 30, 2012

Earnings per Share [Text Block]

3. Earnings per Share

For the three and six month periods ended June 30, 2011 and 2012, the effect of the Company’s potential issuance of shares from the exercise of 6,099,550 outstanding warrants would have been anti-dilutive. Accordingly, only basic net loss per share has been presented.

XML

Statement of Financial Position (USD $)	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 152,415	$ 612,989
Investment in marketable equity security, at market (cost-$3,868)	33,851	19,344
Joint venture receivables	130,146	131,718
Other current assets	8,243	55,442
Deposits	0	44,280
Inventory	18,586	18,410
Total current assets	343,241	882,183
Property, plant, and equipment, net of accumulated depreciation	4,923,432	3,967,467
Mineral properties	699,575	699,575
Investment in Golden Chest LLC	533,413	553,205
Total assets	6,499,661	6,102,430
Current liabilities:
Accounts payable	103,661	122,060
Accrued payroll and related payroll expenses	45,036	54,367
Account payable, related party	39,138	1,500
Accounts payable, related party joint venture	78,259	0
Obligations under capital lease, current	30,336	30,153
Notes payable, current	100,937	102,151
Total current liabilities	397,367	310,231
Asset retirement obligation	9,221	8,645
Obligations under capital lease, non-current	42,800	58,376
Notes payable, non-current	256,886	308,362
Total non-current liabilities	308,907	375,383
Total liabilities	706,274	685,614
Commitments	0	0
Stockholders' equity:
Preferred stock, no par value, 1,000,000 shares authorized; no shares issued and outstanding Common stock, no par value, 200,000,000 shares authorized; 45,305,862 shares issued and outstanding, both periods	10,423,469	10,423,469
Deficit accumulated during the development stage	(7,699,401)	(7,233,754)
Accumulated other comprehensive income:
Unrealized gain in marketable equity security	29,983	15,475
Total New Jersey Mining Company stockholders' equity	2,754,051	3,205,190
Noncontrolling interest in New Jersey Mill Joint Venture	3,039,336	2,211,626
Total stockholders' equity	5,793,387	5,416,816
Total liabilities and stockholders' equity	$ 6,499,661	$ 6,102,430

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The Company and Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

The Company and Significant Accounting Policies [Text Block]

1. The Company and Significant Accounting Policies:

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

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company's financial position and results of operations. Operating results for the three and six month periods ended June 30, 2012, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2012.

For further information refer to the financial statements and footnotes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

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

Principles of Consolidation

At June 30, 2012, the consolidated financial statements include the accounts of the Company and the accounts of our majority owned New Jersey Mill Joint Venture. Intercompany items and transactions between companies included in the consolidation are eliminated.

XML

Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions (Details)	6 Months Ended
	Jun. 30, 2012
Joint Venture Partnerships Schedule Of Collaborative Arrangements And Non-collaborative Arrangement Transactions 1	67.00%
Joint Venture Partnerships Schedule Of Collaborative Arrangements And Non-collaborative Arrangement Transactions 2	71.00%
Joint Venture Partnerships Schedule Of Collaborative Arrangements And Non-collaborative Arrangement Transactions 3	50.00%
Joint Venture Partnerships Schedule Of Collaborative Arrangements And Non-collaborative Arrangement Transactions 4	50.00%

XML

Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Text Block]

2. Related Party Transactions

The Company jointly owns with Marathon Gold USA (MUSA) and acts as the operator of the Golden Chest LLC (GC LLC). Accounts receivable are a part of normal operations which include operating costs, payroll, and drilling. As of June 30, 2012, a related party account receivable existed with MUSA and GC LLC for $16,758 for services rendered. In addition, income, expense, and equity in loss items for the three and six month periods ended June 30, 2012 related to MUSA and GC LLC were as follows:

			Three month		Six Month
•	Drilling and exploration contract income	$	356,040	$	769,084
•	Joint Venture Management fees income		17,784		41,025
•	Drilling and exploration contract expense		117,874		347,760
•	Equity in loss of Golden Chest LLC		310,853		714,792

Engineering services income includes engineering services provided to United Silver Corp. (USC). USC holds the noncontrolling interest in the Company's New Jersey Mill Joint Venture. Engineering services to USC in the three and six month periods ended June 30, 2012 were $28,800 and $68,700 respectively. As of June 30, 2012, a related party account receivable existed with the New Jersey Mill Joint Venture (Mill JV) and USC for $113,388. As of June 30, 2012, $78,259 was recorded as an account payable to Mine Fabrication and Machine, which is a wholly owned subsidiary of USC.

$1,500 is payable quarterly by the Company to Mine Systems Design (MSD), a company controlled by our CEO, for office rent. The second quarter's office rent to MSD was recorded as a related party account payable on June 30, 2012. Additionally, at June 30, 2012 a $37,638 line of credit existed between the Company and MSD at 0% interest.

XML

Statement of Financial Position (Parenthetical) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Investments at cost	$ 3,868	$ 0
Preferred Stock, No Par Value	$ 0.0	$ 0.0
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, No Par Value	$ 0.0	$ 0.0
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	45,305,862	45,305,862
Common Stock, Shares, Outstanding	45,305,862	45,305,862

XML

Related Party Transactions (Narrative) (Details) (USD $)	6 Months Ended
	Jun. 30, 2012
Related Party Transactions 1	$ 16,758
Related Party Transactions 2	28,800
Related Party Transactions 3	68,700
Related Party Transactions 4	113,388
Related Party Transactions 5	78,259
Related Party Transactions 6	1,500
Related Party Transactions 7	$ 37,638
Related Party Transactions 8	0.00%

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 01, 2012
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Trading Symbol	njmc
Entity Registrant Name	NEW JERSEY MINING CO
Entity Central Index Key	0001030192
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		45,305,862
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2

XML

Earnings per Share (Narrative) (Details)	6 Months Ended
	Jun. 30, 2012 warrants
Earnings Per Share 1	6,099,550

XML

Statement of Operations (USD $)	3 Months Ended		6 Months Ended		191 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012
Income earned during the development stage:
Sales of gold	$ 0	$ 0	$ 0	$ 0	$ 437,122
Sales of concentrate	0	0	0	0	601,168
Drilling and exploration contract income	356,040	223,501	769,084	407,336	2,371,344
Joint venture management fee income	17,784	17,702	41,025	31,737	120,057
Mill processing fee income	1,029	0	1,029	0	1,029
Engineering services income	28,800	36,850	68,700	69,550	232,522
Total income earned during the development stage	403,653	278,053	879,838	508,623	3,763,242
Costs and expenses:
Direct production costs	4,754	3,263	7,824	3,806	1,341,032
Drilling and exploration contract expense	117,874	138,689	347,760	247,686	1,197,305
Engineering servicing expense	9,750	0	19,500	0	71,591
Management	10,288	24,655	22,731	48,883	1,939,270
Exploration	330	4,486	914	7,299	2,419,995
Net loss (gain) on sale of or default on mineral property	0	0	0	0	(281,398)
Net gain on sale of equipment	0	0	0	(12,895)	(47,993)
Depreciation and amortization	32,918	19,146	63,923	33,833	887,636
General and administrative expenses	64,481	85,873	176,227	188,138	3,261,243
Total operating expenses	240,395	276,112	638,879	516,750	10,788,681
Other (income) expense:
Timber sales	0	0	0	0	(54,699)
Timber expense	0	0	0	0	14,554
Royalties and other income	(3,000)	(3,012)	(6,000)	(11,624)	(111,445)
Royalties expense	0	0	0	0	44,089
Gain on sale of marketable equity security	0	0	0	0	(92,269)
Interest income	(71)	(202)	(288)	(560)	(49,189)
Interest expense	0	4,654	0	6,176	91,887
Write off of goodwill and investment	0	0	0	0	120,950
Equity in loss of Golden Chest LLC	310,853	0	714,793	0	714,793
Total other (income) expense	307,782	1,440	708,505	(6,008)	678,671
Net income (loss)	(144,524)	501	(467,546)	(2,119)	(7,704,110)
Net loss attributable to noncontrolling interest-Mill JV	1,196	709	1,899	1,405	4,709
Net income (loss) attributable to the Company	(143,328)	1,210	(465,647)	(714)	(7,699,401)
Other comprehensive income (loss):
Unrealized gain (loss) on marketable equity security	14,701	2,902	14,508	(6,770)	29,983
Comprehensive income (loss) attributable to the Company	$ (128,627)	$ 4,112	$ (451,139)	$ (7,484)	$ (7,669,418)
Net income (loss) per common share basic and diluted			$ (0.01)		$ (0.32)
Weighted average common shares outstanding basic and diluted	45,305,862	45,040,662	45,305,862	45,029,326	24,024,592

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Principles of Consolidation [Policy Text Block]

Principles of Consolidation

At June 30, 2012, the consolidated financial statements include the accounts of the Company and the accounts of our majority owned New Jersey Mill Joint Venture. Intercompany items and transactions between companies included in the consolidation are eliminated.

XML

Property, Plant, and Equipment

6 Months Ended

Jun. 30, 2012

Property, Plant, and Equipment [Text Block]

6. Property, Plant, and Equipment

Property, plant and equipment at June 30, 2012 and December 31, 2011, consisted of the following:

		June 30, 2012			December 31,2011
Mill land at cost	$	269,569		$	225,289
Mill building at cost		522,786			430,118
Milling equipment at cost		3,685,866			2,802,925
Less accumulated depreciation		(82,299	)		(80,385	)
Total mill		4,395,922			3,377,947
Building and equipment at cost		771,419			771,419
Less accumulated depreciation		(503,318	)		(441,308	)
Total building and equipment		268,101			330,111
Land		259,409			259,409
Total	$	4,923,432		$	3,967,467

XML

Schedule of Property, Plant and Equipment (Details) (USD $)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 1	269,569
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 2	225,289
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 3	522,786
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 4	430,118
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 5	3,685,866
Property, Plant and Equipment, Net	$ 4,923,432	$ 3,967,467
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 6	2,802,925
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 7	(82,299)
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 8	(80,385)
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 9	4,395,922
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 10	3,377,947
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 11	771,419
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 12	771,419
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 13	(503,318)
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 14	(441,308)
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 15	268,101
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 16	330,111
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 17	259,409
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 18	259,409
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 19	4,923,432
Property, Plant, And Equipment Schedule Of Property, Plant And Equipment 20	3,967,467

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Joint Venture Partnerships (Narrative) (Details) (USD $)	6 Months Ended
	Jun. 30, 2012
Joint Venture Partnerships 1	50.00%
Joint Venture Partnerships 2	33.00%
Joint Venture Partnerships 3	$ 3,040,000
Joint Venture Partnerships 4	15
Joint Venture Partnerships 5	1,029
Joint Venture Partnerships 6	50.00%
Joint Venture Partnerships 7	695,000
Joint Venture Partnerships 8	$ 714,792

XML

Joint Venture Partnerships (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions [Table Text Block]

	June 30, 2012			December 31, 2011
Joint Venture	% Ownership	Significant Influence?	Accounting Method	% Ownership	Significant Influence?	Accounting Method
New Jersey Mill Joint Venture	67%	Yes	Consolidated	71%	Yes	Consolidated
Golden Chest LLC	50%	Yes	Equity	50%	No	Cost

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Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Related Party Revenues and Expenses [Table Text Block]

			Three month		Six Month
•	Drilling and exploration contract income	$	356,040	$	769,084
•	Joint Venture Management fees income		17,784		41,025
•	Drilling and exploration contract expense		117,874		347,760
•	Equity in loss of Golden Chest LLC		310,853		714,792

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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Fair Value, by Balance Sheet Grouping [Table Text Block]

	Balance at June 30, 2012	Balance at December 31, 2011	Hierarchy Level
Investments in marketable equity securities	$33,851	$19,344	Level 1

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Property, Plant, and Equipment (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Property, Plant and Equipment [Table Text Block]

		June 30, 2012			December 31,2011
Mill land at cost	$	269,569		$	225,289
Mill building at cost		522,786			430,118
Milling equipment at cost		3,685,866			2,802,925
Less accumulated depreciation		(82,299	)		(80,385	)
Total mill		4,395,922			3,377,947
Building and equipment at cost		771,419			771,419
Less accumulated depreciation		(503,318	)		(441,308	)
Total building and equipment		268,101			330,111
Land		259,409			259,409
Total	$	4,923,432		$	3,967,467

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Schedule of Fair Value, by Balance Sheet Grouping (Details) (USD $)	6 Months Ended
	Jun. 30, 2012
Fair Value Measurement Schedule Of Fair Value, By Balance Sheet Grouping 1	$ 33,851
Fair Value Measurement Schedule Of Fair Value, By Balance Sheet Grouping 2	$ 19,344

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Statement of Cash Flows (USD $)	6 Months Ended		191 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012
Cash flows from operating activities:
Net income (loss)	$ (467,546)	$ (2,119)	$ (7,704,110)
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
Depreciation and amortization	63,923	33,833	887,636
(Gain) loss on sale of equipment	0	(12,895)	(36,721)
Write-off of goodwill and investment	0	0	120,950
Gain on sale of mineral property	0	0	(281,334)
Gain on sale of marketable equity security	0	0	(92,269)
Accretion of asset retirement obligation	576	1,736	8,383
Equity in loss of Golden Chest LLC	714,793	0	714,793
Common stock issued for:
Management and directors' fees	0	0	1,169,335
Services and other	0	0	255,874
Exploration	0	0	96,521
Mineral property agreement	0	0	15,000
Change in:
Deposits	44,280	0	0
Inventory	(175)	(1,061)	(18,586)
Joint venture receivables	1,572	(138,970)	(130,144)
Other current assets	47,200	11,967	(8,242)
Other assets	0	0	(778)
Accounts payable	(18,400)	248,264	119,404
Accrued payroll and related payroll expense	(9,332)	45,787	45,035
Accounts payable related party joint venture	78,259	27,848	78,259
Accrued reclamation costs	0	0	(1,443)
Net cash provided (used) by operating activities	455,150	214,390	(4,762,437)
Cash flows from investing activities:
Purchases of property, plant and equipment	(1,019,889)	(1,238,808)	(4,372,432)
Deposit on equipment purchase	0	(419,458)	0
Purchase (sales) of mineral property	0	0	(3,904)
Proceeds from sale of mineral property	0	0	240,000
Deposit received on sale of mineral property	0	0	320,000
Contribution to Golden Chest LLC	(695,000)	0	(695,000)
Proceeds from sale of equipment	0	12,676	49,174
Redemption (purchase) of reclamation bonds	0	(110)	(120,500)
Purchase of marketable equity security	0	0	(7,500)
Proceeds from sales of marketable equity securities	0	0	95,901
Cash of acquired companies	0	0	38,269
Deferral of development costs	0	0	(759,209)
Net cash provided (used) by investing activities	(1,714,889)	(1,645,700)	(5,215,201)
Cash flows from financing activities:
Exercise of stock purchase warrants	0	0	2,571,536
Sales of common stock, net of issuance costs	0	5,000	5,246,236
Principle payments on capital lease	(15,392)	(6,751)	(227,901)
Principle payments on notes payable	(52,690)	(44,669)	(543,000)
Note and interest payable, related party, net	37,638	1,500	39,138
Contributions from noncontrolling equity interest in Mill JV	829,609	1,671,347	3,044,044
Net cash provided by financing activities	799,165	1,626,427	10,130,053
Net change in cash and cash equivalents	(460,574)	195,117	152,415
Cash and cash equivalents, beginning of period	612,989	357,317	0
Cash and cash equivalents, end of period	152,415	552,434	152,415
Supplemental disclosure of cash flow information
Interest paid in cash, net of amount capitalized	0	6,176	93,986
Non-cash investing and financing activities:
Capital lease obligation incurred for equipment acquired	0	0	275,838
Notes payable for property and equipment acquired	0	401,763	884,397
Mineral property transferred to Golden Chest LLC	0	0	553,205
Debt relieved from sale of truck	0	2,785	2,785
Common stock issued for:
Property, plant and equipment	0	0	50,365
Mineral properties agreement	0	0	351,600
Payment of accounts payable	0	0	18,730
Acquisitions of companies, excluding cash	$ 0	$ 0	$ 743,653

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Joint Venture Partnerships

6 Months Ended

Jun. 30, 2012

Joint Venture Partnerships [Text Block]

5. Joint Ventures

For joint ventures where the Company holds more than 50% of the voting interest and has significant influence, the joint venture is consolidated with the presentation of noncontrolling 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 June 30, 2012 and December 31, 2011, the Company’s percentage ownership and method of accounting for each joint venture is as follows:

	June 30, 2012			December 31, 2011
Joint Venture	% Ownership	Significant Influence?	Accounting Method	% Ownership	Significant Influence?	Accounting Method
New Jersey Mill Joint Venture	67%	Yes	Consolidated	71%	Yes	Consolidated
Golden Chest LLC	50%	Yes	Equity	50%	No	Cost

New Jersey Mill Joint Venture Agreement

In June of 2012 USC completed their buy-in for 33% of the Mill JV with a $3.04 million contribution to bring the capacity of the mill to 15 tonnes/hr. The plant has been commissioned and the mineral processing fee income of $1,029 recognized by the company for the six months ended June 30, 2012 is income for processing USC ore.

Golden Chest LLC Joint Venture

Funding in 2012 is being provided based upon ownership at 50% per partner. The Company provided $695,000 of funding in the first half of 2012. These cash call commitments may continue throughout 2012. Because both partners have now completed their initial contribution and the Company is now contributing additional funding, the cost method has been replaced by the equity method of accounting for this joint venture as of January 1, 2012, and accordingly, the Company is now recognizing its proportional share of the LLC's losses as equity in loss of Golden Chest, The equity in loss for the first half of 2012 was $714,792.

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Schedule of Related Party Revenues and Expenses (Details)	6 Months Ended
	Jun. 30, 2012
Related Party Transactions Schedule Of Related Party Revenues And Expenses 1	356,040
Related Party Transactions Schedule Of Related Party Revenues And Expenses 2	769,084
Related Party Transactions Schedule Of Related Party Revenues And Expenses 3	17,784
Related Party Transactions Schedule Of Related Party Revenues And Expenses 4	41,025
Related Party Transactions Schedule Of Related Party Revenues And Expenses 5	117,874
Related Party Transactions Schedule Of Related Party Revenues And Expenses 6	347,760
Related Party Transactions Schedule Of Related Party Revenues And Expenses 7	310,853
Related Party Transactions Schedule Of Related Party Revenues And Expenses 8	714,792