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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington D.C. 20549

FORM 10-QSB

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

For the quarterly period endedSeptember 30, 2006

[   ] 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 | (IRS employer identification no.)
|of incorporation)            |                                  

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

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

|Common Stock        | The OTC-Bulletin Board               
|------------------- | -------------------------------------
|Title of each class | Name and exchange on which registered

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 shell company
(as defined in Rule 12b-2 of the Exchange Act) Yes [   ] No [X]

On November 1, 2006, 27,290,235 shares of the registrants
common stock were outstanding.

Transitional Small Business Disclosure Format (Check one): Yes
[   ] No [X ]

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NEW JERSEY MINING COMPANY 
  QUARTERLY REPORT ON FORM 10-QSBFOR THE QUARTERLY PERIODENDED SEPTEMBER 30, 2006

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 | 7   
|                               |                                                                                             |     
|Item 3:                        | 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                                                             | 11  
|                               |                                                                                             |     
|Item 4:                        | Submission of Matters to a Vote of Security Holders                                         | 11  
|                               |                                                                                             |     
|Item 5:                        | Other Information                                                                           | 11  
|                               |                                                                                             |     
|Item 6:                        | Exhibits and Reports on Form 8-K                                                            | 11  
|                               |                                                                                             |     
|SIGNATURES                     | 12                                                                                         

[The balance of this page has been intentionally left blank.]

2

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PART I-FINANCIAL INFORMATION

Item 1: FINANCIAL STATEMENTS

NEW JERSEY MINING COMPANY(An Exploration Stage
Company)BALANCE SHEETSeptember 30, 2006(Unaudited)

|ASSETS                                                 |   |           | 
|------------------------------------------------------ | - | --------- | 
|Current assets:                                        |   |           | 
|Cash and
      cash equivalents                        | $ | 492,661   | 
|Accounts receivable                                    |   | 46,190    | 
|Inventories                                            |   | 45,594    | 
|Total current assets                                   |   | 584,445   | 
|                                                       |   |           | 
|Building and equipment, net of depreciation            |   | 942,231   | 
|Mineral properties, net of amortization                |   | 805,527   | 
|Investments                                            |   | 7,500     | 
|Other assets                                           |   | 2,500     | 
|Total assets                                           | $ | 2,342,203 | 
|                                                       |   |           | 
|LIABILITIES AND STOCKHOLDERS EQUITY                   |   |           | 
|                                                       |   |           | 
|Current liabilities:                                   |   |           | 
|Accounts
      payable                                 | $ | 54,561    | 
|Accrued payroll and
      related payroll expenses     |   | 32,038    | 
|Obligation under capital lease-current portion         |   | 27,647    | 
|Equipment note
      payable-current portion           |   | 6,686     | 
|Total current liabilities                              |   | 120,932   | 
|                                                       |   |           | 
|Accrued reclamation costs                              |   | 12,500    | 
|Obligation under capital lease-non-current             |   | 54,516    | 
|Equipment note payable, non-current                    |   | 25,013    | 
|                                                       |   |           | 
|Total liabilities                                      |   | 212,961   | 
|                                                       |   |           | 
|Stockholders equity:                                  |   |           | 
|Preferred stock, no par
      value; 1,000,000         |   |           | 
|shares authorized; no shares issued or outstanding     |   |           | 
|Common stock, no par
      value; 50,000,000 shares    |   |           | 
|authorized; 27,288,985 shares issued and outstanding   |   | 4,883,042 | 
|Deficit accumulated
      during the development stage |   | 2,753,800 | 
|Total stockholders equity                             |   | 2,129,242 | 
|                                                       |   |           | 
|Total liabilities and stockholders equity             | $ | 2,342,203 | 

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

3

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NEW JERSEY MINING COMPANY(An Exploration Stage
Company) STATEMENTS OF OPERATIONSFor the Three and Nine-Month
Periods ended September 30, 2006 and 2005 and for the period from inception
(July 18, 1996) through September 30, 2006(Unaudited)

From Inception(July 18, 1996)ThroughSeptember 30, 2006
      
      
      September 30, 2005
      
      
      September 30, 2006Three Months
      
      
      Nine Months
      
      
      Three Months
      
      
      Nine MonthsRevenue:Sales of gold
      $
      0
      
      $
      40,429
      
      $
      130
      
      $
      9,280
      
      $
      49,709Sales of concentrate
      
      116,947
      
      
      254,982
      
      
      97,931
      
      
      144,028
      
      
      506,995Total
        revenue
      
      116,947
      
      
      295,411
      
      
      98,061
      
      
      153,308
      
      
      556,704Cost and expensesProduction costs
      
      137,235
      
      
      384,120
      
      
      84,018
      
      
      202,515
      
      
      626,603Management fees
      
      56,344
      
      
      167,032
      
      
      48,937
      
      
      172,262
      
      
      531,086Exploration expense
      
      54,861
      
      
      182,253
      
      
      6,796
      
      
      42,788
      
      
      952,885Gain on sale of mineral property
      
      
      
      
      (90,000
      )
      
      
      
      
      
      
      
      (90,000
      )Depreciation and amortization
      
      40,109
      
      
      84,912
      
      
      23,272
      
      
      37,164
      
      
      142,702General and administrative expenses
      
      80,084
      
      
      248,658
      
      
      46,841
      
      
      145,360
      
      
      1,091,313Total operating expenses
      
      368,633
      
      
      976,975
      
      
      209,864
      
      
      600,089
      
      
      3,254,589Other (income) expense:Timber sales (net)
      
      793
      
      
      800
      
      
      
      
      
      
      
      
      (50,902
      )Net royalties and other income
      
      3,115
      
      
      12,001
      
      
      (40,393
      )
      
      (52,595
      )
      
      (40,424
      )Interest expense (net)
      
      823
      
      
      5,875
      
      
      2,113
      
      
      5,487
      
      
      26,292Write-off of goodwill
      
      
      
      
      
      
      
      
      
      
      
      
      
      30,950Write-off of investment
      
      
      
      
      
      
      
      
      
      
      
      
      
      90,000Total other
        (income) expense
      
      4,731
      
      
      18,676
      
      
      (38,280
      )
      
      (47,108
      )
      
      55,916Net loss
      $
      256,417
      
      $
      700,240
      
      $
      73,523
      
      $
      399,673
      
      $
      2,753,801Net loss per common share-basic
      $
      0.009
      
      $
      0.027
      
      $
      nil
      
      $
      0.018
      
      $
      0.177Weighted average common sharesoutstanding-basic
      
      27,288,985
      
      
      25,926,513
      
      
      22,269,926
      
      
      21,985,539
      
      
      15,493,876


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

4

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NEW JERSEY MINING COMPANY(An Exploration Stage
Company) STATEMENTS OF CASH FLOWSFor the Nine-Month Periods
ended September 30, 2006 and 2005 and for the period from inception (July
18, 1996) through September 30, 2006(Unaudited)

|                                                      |   |               |   |   |               |   |   | From Inception     |  
|----------------------------------------------------- | - | ------------- | - | - | ------------- | - | - | ------------------ | -
|                                                      |   |               |   |   |               |   |   | (July 18, 1996)    |  
|                                                      |   | September 30, |   |   | September 30, |   |   | Through            |  
|                                                      |   | 2006          |   |   | 2005          |   |   | September 30, 2006 |  
|                                                      |   |               |   |   |               |   |   |                    |  
|Cash flows from operating activities:                 |   |               |   |   |               |   |   |                    |  
|Net loss                                              | $ | (700,240      | ) | $ | (399,673      | ) | $ | (2,753,801         | )
|Adjustments to reconcile
      net loss to net cash   |   |               |   |   |               |   |   |                    |  
|used by operating activities:                         |   |               |   |   |               |   |   |                    |  
|Depreciation and amortization                         |   | 84,912        |   |   | 37,164        |   |   | 142,702            |  
|Write-off of
      equipment                          |   |               |   |   | 11,272        |   |   | 11,272             |  
|Write-off of goodwill and
      investment            |   |               |   |   |               |   |   | 120,950            |  
|Gain on sale of
      mineral property                |   | (90,000       | ) |   |               |   |   | (90,000            | )
|Stock issued for:                                     |   |               |   |   |               |   |   |                    |  
|Management and
      directors fees                   |   | 51,438        |   |   | 97,713        |   |   | 448,911            |  
|Services and other                                    |   | 56,736        |   |   | 30,838        |   |   | 129,004            |  
|Exploration                                           |   |               |   |   | 12,500        |   |   | 36,321             |  
|Change in:                                            |   |               |   |   |               |   |   |                    |  
|Inventories                                           |   | 23,216        |   |   | (40,000       | ) |   | (45,594            | )
|Accounts receivable                                   |   | (46,190       | ) |   |               |   |   | (46,190            | )
|Other assets                                          |   |               |   |   | 2,346         |   |   | 1,722              |  
|Accounts payable                                      |   | (42,710       | ) |   | 15,738        |   |   | 51,591             |  
|Accrued payroll and
      related payroll expenses    |   | 23,037        |   |   | 2,851         |   |   | 32,038             |  
|Accrued reclamation costs                             |   |               |   |   |               |   |   | 12,500             |  
|Net cash used by operating activities                 |   | (639,801      | ) |   | (229,251      | ) |   | (1,948,574         | )
|                                                      |   |               |   |   |               |   |   |                    |  
|Cash flows from investing
      activities:           |   |               |   |   |               |   |   |                    |  
|Purchases of building and
      equipment             |   | (300,319      | ) |   | (27,283       | ) |   | (699,787           | )
|Proceeds
      from sale of mineral property          |   | 120,000       |   |   |               |   |   | 114,096            |  
|Purchase of investments                               |   | (7,500        | ) |   |               |   |   | (7,500             | )
|Cash of
      acquired companies                      |   |               |   |   |               |   |   | 38,269             |  
|Deferral of development
      costs                   |   |               |   |   |               |   |   | (225,535           | )
|Net cash used by investing activities                 |   | (187,819      | ) |   | (27,283       | ) |   | (780,457           | )
|                                                      |   |               |   |   |               |   |   |                    |  
|Cash flows from financing
      activities:           |   |               |   |   |               |   |   |                    |  
|Exercise of stock
      purchase warrants             |   |               |   |   | 108,100       |   |   | 677,600            |  
|Sales of
      common stock, net of issuance costs    |   | 1,320,000     |   |   | 85,000        |   |   | 2,643,807          |  
|Principal payments on
      capital lease             |   | (16,582       | ) |   | (10,202       | ) |   | (79,715            | )
|Payments
      on note payable to bank                |   |               |   |   |               |   |   | (20,000            | )
|Net cash
      provided by financing activities       |   | 1,303,418     |   |   | 182,898       |   |   | 3,221,692          |  
|                                                      |   |               |   |   |               |   |   |                    |  
|Net change in cash                                    |   | 475,798       |   |   | (73,636       | ) |   | 492,661            |  
|Cash, beginning of period                             |   | 16,863        |   |   | 151,764       |   |   | 0                  |  
|Cash, end of period                                   | $ | 492,661       |   | $ | 78,128        |   | $ | 492,661            |  
|Interest paid in cash                                 | $ | 7,183         |   | $ | 5,487         |   | $ | 17,741             |  
|                                                      |   |               |   |   |               |   |   |                    |  
|Non-cash investing and
      financing activities:    |   |               |   |   |               |   |   |                    |  
|Common stock issued for:                              |   |               |   |   |               |   |   |                    |  
|Equipment                                             | $ | 12,200        |   | $ | 5,850         |   | $ | 34,526             |  
|Mineral properties                                    |   |               |   | $ | 65,000        |   | $ | 264,300            |  
|Acquisitions of companies, excluding cash             |   |               |   |   |               |   | $ | 743,653            |  
|Capital lease obligation
      for equipment acquired | $ | 23,690        |   | $ | 17,485        |   | $ | 134,450            |  
|Note
      payable for equipment acquired             | $ | 33,927        |   | $ |               |   | $ | 33,927             |  

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

5

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New Jersey Mining Company Notes to Financial Statements
(Unaudited)

1.          
Basis of Presentation:

The unaudited financial statements have been prepared by 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-QSB. 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. Operating results for the three and nine month periods ended September
30, 2006, are not necessarily indicative of the results that may be expected for
the full year ending December 31, 2006.

For further information refer to the financial statements and
footnotes thereto in the Companys Annual Report on Form 10-KSB for the year
ended December 31, 2005.

The Company presents its financial statements in accordance
with 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 exploration and development of the Companys properties is required
to report as an entity not in the development stage.

2.          
Description of Business

New Jersey Mining Company (the Company) was 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.          
Net Loss Per Share

Statement of Financial Accounting Standards No. 128, Earnings
per Share, requires dual presentation of basic earnings per share (EPS) and
diluted EPS on the face of income statements for all entities with complex
capital structures. Basic EPS is computed as net income divided by the weighted
average number of common shares outstanding for the period. Diluted EPS reflects
the potential dilution that could occur from common shares issuable through
stock options, warrants, and other convertible securities. For the three months
ended September 30, 2006 and 2005, the effect of the Companys outstanding
warrants would have been anti-dilutive. Accordingly, only basic EPS is
presented. As of September 30, 2006 the Company had 5,028,250 outstanding
warrants that could potentially dilute basic EPS in the future.

4.****
Revenue Recognition

Revenue is recognized when title and risk of ownership of
metals or metal bearing concentrate have passed and collection is reasonably
assured. Revenue from the sale of metals may be subject to adjustment upon final
settlement of estimated metal prices, weights and assays, and are recorded as
adjustments to revenue in the period of final settlement of prices, weights and
assays; such adjustments are typically not material in relation to the initial
invoice amounts.

6

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5.          
Inventory

Gold and concentrate inventories are stated at the lower of
cost or net realizable value determined by using a weighted average method.

6.          
Reclassifications

Certain prior period amounts have been reclassified to conform
to the 2006 financial statement presentation. These reclassifications have no
effect on net loss or accumulated deficit as previously reported.

7. **Adoption of New Accounting Principle**

On January 1, 2006, the Company adopted Statement of Financial
Accounting Standards No. 123 (revised 2004), Share-Based Payment, (SFAS
123(R)) which requires the measurement of the cost of employee services
received in exchange for an award of an equity instrument based on the
grant-date fair value of the award. SFAS 123(R) supersedes previous accounting
guidance under the intrinsic value method prescribed by Accounting Principles
Board Opinion No..25, Accounting for Stock Issued to Employees (APB 25).

The Company adopted SFAS 123(R) using the modified prospective
transition method, which requires the application of the accounting standard as
of January 1, 2006. There was no impact on the financial statements as of and
for the three and nine months ended September 30, 2006 as a result of the
adoption of SFAS 123(R). In accordance with the modified prospective transition
method, the financial statements for prior periods have not been restated to
reflect, and do not include, the impact of SFAS 123(R).

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

Plan of Operation

This report contains both historical and prospective statements
concerning the Company and its operations. Prospective statements (known as
"forward-looking statements") may or may not prove true with the passage of time
because of future risks and uncertainties. The Company cannot predict what
factors might cause actual results to differ materially from those indicated by
prospective statements.

The Company is executing its strategy to conduct 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 Company plans to continue exploration for
gold, silver and base metal deposits in the greater Coeur dAlene Mining
District of northern Idaho. The Company has three mines at which most
exploration is being conducted; the Golden Chest, the Silver Strand, and the New
Jersey. Production of gold ore is in progress at the Golden Chest mine.
Permitting has been completed and production of silver-gold ore is planned at
the Silver Strand mine in 2007. Production from lower grade reserves at the New
Jersey open pit mine is conducted from time to time to provide mill feed when
higher grade ore from the Golden Chest is not available.

The Companys highest ranked exploration project is the Idaho
vein at the Golden Chest mine. During the second quarter seven additional
exploration drillholes were completed, mostly to the south of the previous
drillholes. This recent drilling shows that the Idaho vein is limited to the
south so future exploration will be done to the north and down dip to the west.
It is planned to conduct future exploration of the Idaho vein by using an
underground ramp and short drill holes. Drilling of the other targets at the
Golden Chest has been deferred until 2007 because of the lateness of the season.

During the third quarter, the Company staked 6 unpatented lode
claims on a new gold prospect, named the Gold Butte, near the Golden Chest mine.

7

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Mining operations on the Katie Dora vein at the Golden Chest
mine continued in the third quarter of 2006. The vein was exposed in a drift on
955 level, 10 m below the previous mining level. The strike length of the ore
shoot increased from 23 to over 40 m from 965 to 955 level. A raise was being
driven from the 955 level to the 965 level on the southwest end of the ore shoot
during the quarter.

Management ranks its Silver Strand mine as the next most
promising exploration site ranking behind the Idaho vein. Operating permits have
been received for mining and exploration at the Silver Strand mine which is
located on unpatented claims on public land. Some preparation work was conducted
in the third quarter including fabrication of settling tanks, installing gates
and purchase of equipment. It is planned to resume work at the Silver Strand in
spring 2007 because the permitted operational period is from May through
October. Management decided it was too late in the season to continue work in
2006.

Management also thinks exploration in the New Jersey mine area
has promising potential. Previous drilling has indicated higher grade
mineralization in the North Coleman vein area and at the Scotch Thistle
prospect, and interesting silver-base metal mineralization has been drilled at
the Enterprise prospect. It is planned to drive a crosscut at the lowest adit
level to test the North Coleman area, and further drilling may be conducted at
the Scotch Thistle and Enterprise prospects. During the third quarter,
preparations were being made to commence underground exploration at the lower
Coleman adit.

The 2006 Plan includes adding a concentrate leach circuit at
the New Jersey mineral processing plant. Concentrate would be leached and a
gold-silver dore produced for sale. The reason for adding the concentrate leach
circuit will be to obtain more revenue compared to selling concentrates by
increasing recovery and eliminating concentrate freight as well as to avoid any
potential difficulties in marketing concentrates. Currently, the plant is about
65% complete with commissioning scheduled for the first quarter of 2007.

During the third quarter, Barrick Goldstrike, Inc. decided to
terminate the concentrate purchase agreement with the Company. An interim
concentrate purchase agreement has been arranged so that concentrate can be sold
until the new leach plant is completed. This situation with concentrate sales
has reinforced the Companys strategy to build a concentrate leach plant.

Financial Condition  The Company has maintained a minimal cash
balance by increasing or decreasing its exploration expenditures as limited by
availability of cash from operations or from financing activities. The cash
balance declined to $492,661 in the third quarter because of capital
expenditures and other expenses. Figure 1 shows the corresponding balances for
previous accounting periods.

8

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Results of Operations  Production costs exceeded revenue for
the third quarter of 2006 by $20,288 due to lower grade ore than expected. For
the nine month period of 2006, production costs exceeded revenue by $88,709 due
to lower grade ore and driving a ramp extension. Figure 2 shows the net loss for
the third quarter of 2006 of $256,417 and the net losses in previous accounting
periods.

The Companys net loss increases as exploration activity
increases because most exploration costs are expensed. Most non-tangible costs
are expensed even if related to mine startup, as at the Silver Strand mine.



9

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Gold production in pyrite concentrates was 196 ounces in the
third quarter and 442 ounces year to date. Gold production was less than
expected because of suspension of stoping at the Golden Chest while driving ramp
and processing lower grade ore from development and the Coleman open pit. Gold
production is expected to range from 200 to 400 ounces per quarter during the
next two quarters. Revenues from concentrate sales were $116,947 in the third
quarter compared to $98,061 for the corresponding 2005 period and $295,411 for
the nine month period compared to $153,308 for the corresponding 2005 period.

Mining operations at the Golden Chest mine are projected to
continue for approximately 12 months based on existing ore reserves. Efforts are
being made to expand the amount of ore reserves in parallel veins and separate
ore shoots, but no assurance can be made at this time whether additional
reserves will be found. Mining and mineral processing operations have continued
through the third quarter in a normal manner. New automatic samplers were
installed in the mineral processing plant during the quarter.

Mining operations are planned to start at the Silver Strand
mine in the spring of 2007. Initial work will involve driving a new adit,
building the water collection and land application system and other
infrastructure work. Production of ore is not expected to start until the third
quarter of 2007. The Company has sufficient funds to commence operations at the
Silver Strand mine.

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.

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 to be able to continue the present operating scenario at the Golden
Chest mine, to be able to commence production at the Silver Strand mine, to
continue to operate the mineral processing plant, to conduct underground
exploration at the Coleman mine and to conduct planned exploration drilling
activities for the foreseeable future, considering available funds and projected
cash flows from operations.

Item 3. Controls and Procedures

An evaluation was performed by the Companys president and
principal financial officer of the effectiveness of the design and operation of
the Companys disclosure controls and procedures. Upon that evaluation, the
Companys president and principal financial officer concluded that disclosure
controls and procedures were effective as of September 30, 2006, in ensuring
that all material information required to be filed in this quarterly report has
been made known to them in a timely fashion.

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
registrants securities filers nor the rights evidenced by the registrants
outstanding common stock have been modified, limited or qualified.

The Company issued 14,580 shares of restricted common stock to
President Fred W. Brackebusch for management services rendered in the third
quarter of 2006. The shares were valued at a price of $0.60 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.

10

---

During the third quarter of 2006, the Company issued 29,150
shares at an average price of $0.54 to various accredited and sophisticated
individuals for goods and services. 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

On August 10, 2006, the Company held an Annual Meeting of
Shareholders. The primary matter of the meeting was to elect Directors. A second
matter was to transact such other business as may properly come before the
Annual Meeting. No other business was transacted at the meeting. A total of
22,089,170 shares or 81.1% of the shares eligible to vote were represented by
proxy or person at the meeting. Results are summarized in the table below:

Director
    For
    Against
    Abstain
    Non-votesFred W. Brackebusch
    22,088,170
    0
    1,000
    5,134,685Grant A. Brackebusch
    22,088,170
    0
    1,000
    5,134,685Ivan R. Linscott
    22,088,170
    0
    1,000
    5,134,685William C. Rust
    22,088,170
    0
    1,000
    5,134,685M. Kathleen Sims
    22,088,170
    0
    1,000
    5,134,685


Item 5. OTHER INFORMATION

None

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

|Exhibit |                                                                                                                                        
|------- | ---------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description                                                                                                                            
|        |                                                                                                                                        
|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.

Reports on Form 8-K.

None.

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

12

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