New JerseyMining Co. said July 15 that it is set to begin small-scale open-pitmining operations at the Golden Chest gold mine in Idaho.

This will allow the company to generate cash flow duringsummer while underground mine workings will be dewatered.

The company has secured a private investment, subscribed toby its management through Ophir Holdings LLC, to fund the operations.

Under the terms, Ophir will be entitled to purchase 500ounces of 0.999 gold produced at US$935 per ounce. The gold will be deliveredor converted to cash starting Dec. 1, for two years.

The company secured permits to proceed with small-scale open-pitmining operations in June.