---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington 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, 2009

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) 783-3331Registrant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 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 April 30, 2009, 37,436,692 shares of the registrants common
stock were outstanding.

---

|NEW JERSEY MINING COMPANY    
|-----------------------------
|QUARTERLY REPORT ON FORM 10-Q
|FOR THE QUARTERLY PERIOD     
|ENDED MARCH 31, 2009         
|                             
|                             
|TABLE OF CONTENTS            

|                                     |                                                                                             | Page
|------------------------------------ | ------------------------------------------------------------------------------------------- | ----
|PART I  FINANCIAL
      INFORMATION |                                                                                            
|Item 1:                              | Financial
      Statements                                                                  | 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                            | 11  
|Item 4:                              | Controls and Procedures                                                                     | 11  
|Item 4T:                             | Controls and Procedures                                                                     | 12  
|PART II  OTHER
      INFORMATION    |                                                                                            
|Item 1:                              | Legal
      Proceedings                                                                     | 12  
|Item 2:                              | Unregistered Sales of Equity Securities and Use of
      Proceeds                           | 12  
|Item 3:                              | Defaults Upon
      Senior Securities                                                       | 12  
|Item 4:                              | Submission of Matters to a Vote of Security Holders                                         | 12  
|Item 5:                              | Other
      Information                                                                     | 12  
|Item 6:                              | Exhibits                                                                                    | 12  
|SIGNATURES                           | 13                                                                                         
|CERTIFICATIONS                       |                                                                                            

2

---

PART I-FINANCIAL INFORMATION

Item 1: FINANCIAL STATEMENTS

|New Jersey Mining Company           
|------------------------------------
|(A Development Stage Company)       
|Balance Sheets (Unaudited)          
|March 31, 2009 and December 31, 2008

|ASSETS                                                                |  
|--------------------------------------------------------------------- | -
|                                                                      |  
|                                                                      |  
|Current assets:                                                       |  
|Cash and cash equivalents                                             | $
|Investment in marketable
      equity security at market              |  
|(cost-$6,531)                                                         |  
|Interest receivable                                                   |  
|Miscellaneous receivable                                              |  
|Prepaid expense                                                       |  
|Inventory                                                             |  
|Total current assets                                                  |  
|                                                                      |  
|Property, plant, and equipment, net of
      accumulated depreciation |  
|Mineral properties, net of accumulated amortization                   |  
|Reclamation bonds                                                     |  
|Total assets                                                          | $
|                                                                      |  
|                                                                      |  
|LIABILITIES AND
      STOCKHOLDERS EQUITY                            |  
|                                                                      |  
|Current liabilities:                                                  |  
|Accounts payable                                                      | $
|Accrued payroll and related
      payroll expenses                    |  
|Obligations under capital lease-current
      portion                 |  
|Notes payable-current portion                                         |  
|Total current liabilities                                             |  
|                                                                      |  
|Accrued reclamation costs                                             |  
|Obligations under capital lease-non-current                           |  
|Notes payable-non-current                                             |  
|                                                                      |  
|Total liabilities                                                     |  
|                                                                      |  
|Stockholders equity:                                                 |  
|Preferred stock, no par value,
      1,000,000 shares                 |  
|authorized;
      no shares issued and outstanding                    |  
|Common stock, no par value,
      50,000,000 shares authorized;       |  
|March 31,
      2009-37,419,442 and                                   |  
|December 31, 2008-37,160,392                                          |  
|shares
      issued and outstanding                                   |  
|Deficit accumulated during the
      development stage                |  
|Accumulated other comprehensive income                                |  
|Unrealized gain in marketable equity security                         |  
|Total stockholders equity                                            |  
|                                                                      |  
|Total
      liabilities and stockholders equity                      | $

3

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

---

|New Jersey Mining Company                                        
|-----------------------------------------------------------------
|(A Development Stage Company)                                    
|Statements of Operations and Comprehensive Loss
      (Unaudited)
|For the Three Month Periods Ended March 31, 2009 and
      2008, 
|And from Inception (July 18, 1996) through March 31,
      2009  

|                                                 |   |            |   |   |                 |   |   | From Inception |  
|------------------------------------------------ | - | ---------- | - | - | --------------- | - | - | -------------- | -
|                                                 |   | March 31,  |   |   | (July 18, 1996) |  
|                                                 |   |            |   |   |                 |   |   | Through        |  
|                                                 |   | 2009       |   |   | 2008            |   |   | March 31, 2009 |  
|Income earned during the development stage:      |   |            |   |   |                 |   |   |                |  
|Sales of gold                                    | $ | 111,321    |   | $ | 50,559          |   | $ | 261,036        |  
|Sales of concentrate                             |   |            |   |   |                 |   |   | 601,168        |  
|                                                 |   | 111,321    |   |   | 50,559          |   |   | 862,204        |  
|                                                 |   |            |   |   |                 |   |   |                |  
|Costs and expenses:                              |   |            |   |   |                 |   |   |                |  
|Direct production costs                          |   | 127,004    |   |   | 65,933          |   |   | 1,076,541      |  
|Management                                       |   | 96,283     |   |   | 67,073          |   |   | 1,376,266      |  
|Exploration                                      |   | 16,324     |   |   | 113,407         |   |   | 2,185,598      |  
|Gain on sale of mineral property                 |   |            |   |   |                 |   |   | (90,000        | )
|Gain on default of
      mineral                 |   |            |   |   |                 |   |   |                |  
|property
      sale (Note 8)                     |   |            |   |   |                 |   |   | (270,000       | )
|Depreciation and
      amortization              |   | 47,524     |   |   | 52,616          |   |   | 592,152        |  
|General and administrative expenses              |   | 82,227     |   |   | 142,333         |   |   | 2,208,599      |  
|Total operating expenses                         |   | 369,362    |   |   | 441,362         |   |   | 7,079,156      |  
|                                                 |   |            |   |   |                 |   |   |                |  
|Other (income) expense:                          |   |            |   |   |                 |   |   |                |  
|Timber sales                                     |   |            |   |   |                 |   |   | (54,699        | )
|Timber expense                                   |   |            |   |   |                 |   |   | 14,554         |  
|Royalties and other income                       |   |            |   |   | (1,266          | ) |   | (71,703        | )
|Royalties expense                                |   | 1,113      |   |   | 656             |   |   | 35,386         |  
|Contract income                                  |   |            |   |   |                 |   |   | (23,725        | )
|Gain on sale of
      marketable equity security |   |            |   |   |                 |   |   | (70,109        | )
|Interest income                                  |   | (334       | ) |   | (3,563          | ) |   | (46,776        | )
|Interest expense                                 |   | 5,726      |   |   | 3,252           |   |   | 65,976         |  
|Write-off of goodwill                            |   |            |   |   |                 |   |   | 30,950         |  
|Write-off of investment                          |   |            |   |   |                 |   |   | 90,000         |  
|Total other
      (income) expense               |   | 6,505      |   |   | (921            | ) |   | (30,146        | )
|                                                 |   |            |   |   |                 |   |   |                |  
|Net loss                                         |   | 264,546    |   |   | 389,882         |   |   | 6,186,806      |  
|                                                 |   |            |   |   |                 |   |   |                |  
|Other comprehensive income:                      |   |            |   |   |                 |   |   |                |  
|Unrealized (gain) loss
      on marketable       |   |            |   |   |                 |   |   |                |  
|equity
      security                            |   | 6,531      |   |   | 122,460         |   |   | (3,266         | )
|                                                 |   |            |   |   |                 |   |   |                |  
|Comprehensive loss                               | $ | 271,077    |   | $ | 512,342         |   | $ | 6,183,540      |  
|                                                 |   |            |   |   |                 |   |   |                |  
|Net loss per common share-basic                  | $ | 0.01       |   | $ | .01             |   | $ | 0.32           |  
|                                                 |   |            |   |   |                 |   |   |                |  
|Weighted average common                          |   |            |   |   |                 |   |   |                |  
|shares outstanding-basic                         |   | 37,187,592 |   |   | 33,538,593      |   |   | 19,086,071     |  

4

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

---

|New Jersey Mining Company                                       
|----------------------------------------------------------------
|(A Development Stage Company)                                   
|Statements of Cash Flows (Unaudited)                            
|For the Three Month Periods Ended March 31, 2009 and
      2008,
|And from Inception (July 18, 1996) through March 31,
      2009 

|                                                               |   |           |   |   |                 |   |   | From Inception |  
|-------------------------------------------------------------- | - | --------- | - | - | --------------- | - | - | -------------- | -
|                                                               |   | March 31, |   |   | (July 18, 1996) |  
|                                                               |   |           |   |   |                 |   |   | through        |  
|                                                               |   | 2009      |   |   | 2008            |   |   | March 31, 2009 |  
|Cash flows from operating activities:                          |   |           |   |   |                 |   |   |                |  
|Net loss                                                       | $ | (264,546  | ) | $ | (389,882        | ) | $ | (6,186,806     | )
|Adjustments to
      reconcile net loss to net cash            |   |           |   |   |                 |   |   |                |  
|used by operating
      activities:                            |   |           |   |   |                 |   |   |                |  
|Depreciation and amortization                                  |   | 47,524    |   |   | 52,616          |   |   | 592,152        |  
|Write-off
      of equipment                                   |   |           |   |   |                 |   |   | 11,272         |  
|Write-off of goodwill and investment                           |   |           |   |   |                 |   |   | 120,950        |  
|Gain on
      sale of mineral property                         |   |           |   |   |                 |   |   | (90,000        | )
|Gain on default of mineral property sale                       |   |           |   |   |                 |   |   | (270,000       | )
|Gain on
      sale of marketable equity securities             |   |           |   |   |                 |   |   | (70,109        | )
|Common stock issued
      for:                                 |   |           |   |   |                 |   |   |                |  
|Management
      and directors fees                           |   | 70,800    |   |   | 19,350          |   |   | 845,837        |  
|Services and other                                             |   | 2,230     |   |   | 11,125          |   |   | 195,539        |  
|Exploration                                                    |   | 2,500     |   |   | 3,000           |   |   | 86,771         |  
|Mineral property agreement                                     |   |           |   |   |                 |   |   | 15,000         |  
|Change in:                                                     |   |           |   |   |                 |   |   |                |  
|Prepaid expense                                                |   |           |   |   |                 |   |   | (572           | )
|Inventory                                                      |   | (20,059   | ) |   | 31,209          |   |   | (119,152       | )
|Miscellaneous receivable                                       |   | (28,634   | ) |   |                 |   |   | (34,151        | )
|Interest
      receivable                                      |   | 324       |   |   | (1,045          | ) |   |                |  
|Other assets                                                   |   |           |   |   |                 |   |   | (778           | )
|Accounts
      payable                                         |   | 4,899     |   |   | 11,327          |   |   | 58,812         |  
|Accrued payroll and related payroll expenses                   |   | (17,569   | ) |   | 1,512           |   |   | 28,137         |  
|Accrued
      reclamation costs                                |   |           |   |   |                 |   |   | 20,300         |  
|Net cash used by operating
      activities                    |   | (202,531  | ) |   | (260,788        | ) |   | (4,796,798     | )
|Cash flows from investing activities:                          |   |           |   |   |                 |   |   |                |  
|Purchases of property,
      plant, and equipment              |   | (4,395    | ) |   | (7,304          | ) |   | (1,084,248     | )
|Purchase of mineral property                                   |   |           |   |   |                 |   |   | (17,904        | )
|Proceeds from sale of
      mineral property                   |   |           |   |   |                 |   |   | 120,000        |  
|Deposit received on sale of mineral
      property             |   |           |   |   |                 |   |   | 270,000        |  
|Purchase of reclamation
      bonds                            |   | (235      | ) |   |                 |   |   | (123,755       | )
|Purchase of marketable equity security                         |   |           |   |   |                 |   |   | (7,500         | )
|Proceeds from sales of
      marketable equity securities      |   |           |   |   |                 |   |   | 71,078         |  
|Cash of acquired companies                                     |   |           |   |   |                 |   |   | 38,269         |  
|Deferral of development
      costs                            |   |           |   |   | (68,781         | ) |   | (759,209       | )
|Net cash used by investing activities                          |   | (4,630    | ) |   | (76,085         | ) |   | (1,493,269     | )
|Cash flows from financing activities:                          |   |           |   |   |                 |   |   |                |  
|Exercise of stock purchase warrants                            |   |           |   |   | 1,206,000       |   |   | 2,537,600      |  
|Sales of common stock,
      net of issuance costs             |   |           |   |   |                 |   |   | 4,226,576      |  
|Principal payments on capital lease                            |   | (8,870    | ) |   | (9,545          | ) |   | (165,702       | )
|Principal payments on
      notes payable                      |   | (31,862   | ) |   | (28,746         | ) |   | (235,046       | )
|Net cash provided (used) by financing
      activities         |   | (40,732   | ) |   | 1,167,709       |   |   | 6,363,428      |  
|Net change in cash and cash equivalents                        |   | (247,893  | ) |   | 830,836         |   |   | 73,361         |  
|Cash and cash equivalents, beginning of period                 |   | 321,254   |   |   | 271,473         |   |   | 0              |  
|Cash and cash equivalents, end of period                       | $ | 73,361    |   | $ | 1,102,309       |   | $ | 73,361         |  
|                                                               |   |           |   |   |                 |   |   |                |  
|Supplemental disclosure of cash flow
      information:        |   |           |   |   |                 |   |   |                |  
|Interest paid in cash                                          | $ | 5,726     |   | $ | 9,504           |   | $ | 56,612         |  
|Non-cash investing and financing
      activities:             |   |           |   |   |                 |   |   |                |  
|Common stock issued for:                                       |   |           |   |   |                 |   |   |                |  
|Property, plant, and equipment                                 |   |           |   |   |                 |   | $ | 50,365         |  
|Mineral
      properties                                       |   |           |   |   |                 |   | $ | 315,300        |  
|Payment of accounts payable                                    |   |           |   |   |                 |   | $ | 12,205         |  
|Acquisitions of companies, excluding cash                      |   |           |   |   |                 |   | $ | 743,653        |  
|Capital lease
      obligation incurred for equipment acquired |   |           |   |   |                 |   | $ | 178,588        |  
|Notes payable for property and
      equipment acquired        |   |           |   |   |                 |   | $ | 482,634        |  

5

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

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|New Jersey Mining Company    
|-----------------------------
|Notes to Financial Statements
|(Unaudited)                  

|1. | Basis of Presentation:
|-- | ----------------------

These unaudited interim financial statements have been prepared
by 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 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
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, 2009, are not necessarily indicative of the results that may be expected for
the full year ending December 31, 2009.

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, 2008.

The Company presents its financial statements in accordance
with Statement of Financial Accounting Standards (SFAS) No. 7, Accounting for
Development Stage Entities, as management believes that while the Companys
planned principal operations have commenced, the revenue generated from them is
not sufficient to cover all corporate costs. Additional development of the
Companys properties is necessary before a transition is made to reporting as a
production stage company.

|2. | Description of Business
|-- | -----------------------

The Company is an exploration stage company incorporated as an
Idaho corporation on July 18, 1996. The Company's primary business is exploring
for and developing gold, silver, and base metal mining resources in Idaho.

|3. | Going Concern
|-- | -------------

As shown in the accompanying financial statements, the Company
has minimal revenue and incurred an accumulated deficit of $6,186,806 through
March 31, 2009. These factors raise substantial doubt about the Companys
ability to continue as a going concern. Management intends to seek additional
capital from new equity securities offerings and joint venture agreements that
will provide funds needed to increase liquidity, fund internal growth and fully
implement its business plan.

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 in existence.

Should the Company be unable to raise capital through future
private placements and/or joint venture agreements or achieve significant
revenues from its operations, its business, and, as a result, its financial
position, results of operations and cash flow will likely be materially
adversely impacted. We expect to receive cash flow from the gold sales and by
providing drilling services to Newmont on our joint venture.

6

---

|4. | Equity
|-- | ------

Common Stock Issued for Cash, Goods, and
Services

The Company issued 153,000 shares of unregistered common stock
to President Fred W. Brackebusch for management services rendered in the three
month period ending March 31, 2009. The shares were valued at $0.30 per share.
The Company also issued 83,000 shares of unregistered common stock to Vice
President Grant A. Brackebusch for management services rendered in the three
month period ending March 31, 2009. The shares were valued at $0.30 per share.

During the three month period ended March 31, 2009, the Company
issued 10,550 shares of unregistered common stock to individuals for goods and
services at fair value prices ranging from $0.20 to $0.30 per share.

During the three month period ended March 31, 2009, the Company
issued 12,500 shares of unregistered common stock to individuals for exploration
services. The shares were valued at $0.20.

|5. | Fair Value Measurement
|-- | ----------------------

On January 1, 2008, the Company adopted SFAS 157, which
establishes a framework for measuring fair value and expands disclosure about
fair value measurements. It also establishes a fair value hierarchy.

Hierarchy level is determined by segregating fair value
measurements using quoted prices in active markets for identical assets or
liabilities (Level 1), significant other observable inputs (Level 2), and
significant unobservable inputs (Level 3).

The table below sets forth our financial assets that were
accounted for at fair value at March 31, 2009 and December 31, 2008, and its
respective hierarchy level. We had no other financial assets or liabilities
accounted for at fair value at March 31, 2009 and December 31, 2008.

Balance at March 31, 2009
    Balance at December 31, 2008
    Hierarchy LevelInvestments in marketable     
      equity securities
    $ 9,797
    $16,328
    Level 1Inventories
    119,152
    99,092
    Level 2


|6. | New Accounting Pronouncement
|-- | ----------------------------

In April 2009, FASB Staff Position (FSP) No. 107-1 and APB 28-1
was issued to amend SFAS No. 107, Disclosures about Fair Value of Financial
instruments, to require disclosures about fair value of financial instruments
for interim reporting periods as well as in annual financial statements. This
FSP also amends APB Opinion No. 28, Interim Financial Reporting, to require
those disclosures in summarized financial information at interim reporting
periods. FSP No. FAS 107-1 and APB 28-1 is effective for interim reporting
periods ending after June 15, 2009. Adoption of this guidance is not expected to
have a material impact on our financial statements.

In April 2009, FSP No. FAS 157-4, Determining Fair Value
When the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not Orderly,
was issued to provide additional guidance for estimating fair value in
accordance with SFAS No. 157, Fair Value Measurements, when the volume
and level of activity for the asset or liability have significantly decreased.
This FSP also provides guidance on identifying circumstances that indicate a
transaction is not orderly. FSP No. FAS 157-4 is effective for interim and
annual reporting periods ending after June 15, 2009, and shall be applied
prospectively. Adoption of this guidance is not expected to have a material
impact on our financial statements.

7

---

|7. | Mining Venture Agreements
|-- | -------------------------

Newmont Venture Agreement

The Company entered into a venture agreement with Newmont North
America Exploration Limited ("Newmont") in March 2008, relating to exploration
of the Company's Toboggan Project. Newmont is conducting exploration in a 38
square mile area centered on the prospects that the Company has staked. To earn
a participating interest in the Venture, Newmont is required to contribute
$2,000,000 in exploration expenditures as follows: $300,000 on or before March
2009, an additional $700,000 by March 2010, and an additional $1,000,000 by
March 2011.

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 executing its strategy to conduct exploration
for gold, silver and base metal deposits in the greater Coeur dAlene Mining
District of northern Idaho while concurrently conducting mining and mineral
processing operations on higher grade ore reserves it has located on its
exploration properties. The financial strategy is to generate cash from these
operations to pay for corporate expenses and to provide additional funds for
exploration, thus reducing the need to raise funds through financing activities
including sale of common stock. The strategy includes finding and developing ore
reserves in order to increase production of gold, silver, and base metals. In
addition, the sale or joint venture of mineral properties is used as a source of
funds and to reduce exploration costs.

The Company has several properties at which most exploration is
being conducted; the Toboggan Project, the Niagara, the Golden Chest, the Silver
Strand, the Coleman, and the Giant Ledge. The Toboggan Project is a group

8

---

of prospects in the Murray, Idaho District that appear to be
related to alkaline magmatism and contain gold and silver telluride minerals.
The Toboggan Project is being explored by Newmont North America Exploration
Limited under a joint venture agreement. Newmont is conducting exploration in a
38 square mile area centered on the prospects that the Company has staked
previously and on new claims staked by Newmont. During 2008 Newmont completed
soil and stream sediment sampling surveys, geological mapping, and geophysical
surveys. Newmont has made plans for drilling certain targets in 2009. 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 5 holes in
2008 which expanded the resource. Results of the 2008 drilling also indicate
that gold would be a significant byproduct. The Company will continue in-fill
drilling on the known resource and is planning to drill to intercept a deeper
stratabound target in the Revett formation. At the Golden Chest mine, during
2008, a ramp was being driven to access a block of reserves discovered by
drilling from the surface. The ramp development work was suspended near yearend
in order to conserve cash, and small scale production from remnants was
re-started and continued through the first quarter of 2009. Currently, most of
the remnants have been mined and further work on the ramp will have to await
financing. Permits are in place and development of infrastructure has been
completed in order to be able to begin production of silver-gold ore at the
Silver Strand mine in May 2009, although it has not been decided to operate the
mine in 2009. At the Coleman underground mine, no work is planned in 2009.

The Company did not conduct any core drilling operations in the
first quarter of 2009 but will commence drilling at the Toboggan Project for
Newmont in May 2009.

The New Jersey mineral processing plant processed 862 dry
tonnes during the first quarter. The plant operated on a regular schedule of 4
days per week, 10 hours per day, processing ore from the Golden Chest mine.

Changes in Financial ConditionThe
Company maintains an adequate cash balance by increasing or decreasing its
exploration expenditures as limited by availability of cash from operations or
from financing activities. The cash balance at the end of the first quarter of
2009 was $73,361, and Figure 1 shows the corresponding balances for previous
accounting periods.



The cash balance declined during the first quarter due to lack
of sufficient sales and financing activities.

Results of OperationsIncome Earned
during the Development Stage (Revenue) for the first quarter of 2009 was
$111,321 as compared to $50,559 for the first quarter of 2008. Figure 2 shows a
net loss for the first quarter of 2009 of $264,546 compared to $389,882 for the
first quarter of 2008.

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Gold production was 134 ounces in the first quarter of 2009 as
compared to 31 ounces for the comparable period of 2008. Gold production for the
remainder of 2009 is expected to decrease due to the lack of ore from the Golden
Chest mine.

Ore mining operations at the Golden Chest mine will end in May
2009 when all known remnants have been mined. If financing can be obtained, ramp
access will be extended to the Idaho vein reserves. If the Idaho vein ramp
development can be completed there will be more than 200,000 tonnes available.

Ore production could start at the Silver Strand mine in the
second quarter of 2009 but that is dependent on financing of sufficient working
capital. If the Company is able to proceed depending on financing, production
could commence in 30 days after mobilization in May 2009, depending on weather.
Operating results at the Silver Strand mine will depend upon the price of silver
as well as gold. Present silver and gold prices are sufficient in managements
estimation to generate a gross profit at the Silver Strand mine based on the
operating plan which was part of the permitting process.

No capital expenditures are planned at the New Jersey mineral
processing plant at the present time.

The amount of money to be spent on exploration at the Companys
mines and prospects will depend upon the amount of gross profit generated by
operations and the amount of money raised by financing activities. Management
expects that all mines and the mineral processing plant will be idled in the
second quarter of 2009 and remain idle indefinitely.

Plans have been made for the Company to drill for Newmont at
the Toboggan Project on a contract basis during the summer season, and a Service
Contract has been signed. Newmont currently pays for all exploration activities
on the Toboggan Project.

As shown in the accompanying financial statements, the Company
has minimal revenue and incurred an accumulated deficit of $6,186,806 through
March 31, 2009. These factors raise substantial doubt about the Companys
ability to continue as a going concern. Management intends to seek additional
capital from new equity securities offerings and joint venture agreements that
will provide funds needed to increase liquidity, fund internal growth and fully
implement its business plan.

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 in existence.

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Should the Company be unable to raise capital through future
private placements and/or joint venture agreements or achieve significant
revenues from its operations, its business, and, as a result, its financial
position, results of operations and cash flow will likely be materially
adversely impacted. We expect to receive cash flow from the gold sales and by
providing drilling services to Newmont on our joint venture.

For the remainder of 2009, the Company has plans to reduce its
discretionary exploration expenditures as well as its overhead expenses. With
these reductions, the Company believes it will only need an estimated $200,000
to continue operations through the next nine months.

Changes in Direct Production Costs Direct
production costs increased because milling activity was more consistent in the
three month period ended March 31, 2009 compared to the comparable period last
year. The increase was due to suspension of other activities and concentration
on mining accessible remnants at the Golden Chest mine. Also, inventory
increased for the period and the grade of the ore that was mined resulted in
costs that exceeded the current sale price.

Changes in Management CostsManagement
expenses increased for the three month period ending March 31, 2009 compared to
the comparable period last year. The increase was due to increased production
activities and salaries. 50% of management salary was paid in stock to help
conserve available funds.

Changes in Exploration Costs Exploration
expenses decreased for the three month period ending March 31, 2009 compared to
the comparable period last year. The decrease was due to a lack of discretionary
funding being available.

Changes in General and Administrative Costs
General and administrative cost decreased for the three month periods ending
March 31, 2009 compared to the comparable period last year. The Company
decreased the number of its employees, and other costs were cut to conserve
available funds.

Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK

Not required for small reporting companies.

Item 4: CONTROLS AND PROCEDURES

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

Changes in internal control over financial
reporting.The President, Chief Executive Officer, and
principal financial officer conducted evaluations of the Companys internal
controls over financial reporting to determine whether any changes occurred
during the quarter ended March 31, 2009 that have materially affected, or are
reasonably likely to materially affect, the Companys internal control over
financial reporting. No material changes in internal control over financial
reporting occurred in the quarter ended March 31, 2009.

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Item 4T. CONTROLS AND PROCEDURES

Information regarding internal control over financial reporting
has been set forth in Item 4.

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.

The Company issued 153,000 shares of unregistered common stock
to President Fred W. Brackebusch for management services rendered on March 31,
2009. The shares were valued at a price of $0.30 per share. In managements
opinion, the securities were issued pursuant to exemption from registration
under Section 4(2) of the Securities Act of 1933, as amended.

The Company issued 83,000 shares of unregistered common stock
to Vice President Grant A. Brackebusch for management services rendered on March
31, 2009. The shares were valued at a price of $0.30 per share. In managements
opinion, the securities were issued pursuant to exemption from registration
under Section 4(2) of the Securities Act of 1933, as amended.

During the first quarter the Company issued 10,550 shares of
unregistered common stock at an average price of $0.21 to other accredited and
sophisticated individuals for goods and services, and 12,500 shares valued at
$0.20 for exploration services during the quarter. In managements opinion, the
securities were issued pursuant to exemptions from registration under Section
4(2) of the Securities Act of 1933, as amended.

Item 3. DEFAULTS UPON SENIOR SECURITIES

The Company has no outstanding senior securities.

Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

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- 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.                                                                                                              
|32.1   | Certification
        pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
        of the Sarbanes-Oxley Act of 2002.                                                       

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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:                      
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| |                          
| |                          
| |                          
| |                          
| | By:                      
| |                          
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| |                          

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