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**UNITED STATESSECURITIES AND EXCHANGE COMMISSION** Washington, 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 ended  **June 30,
  2004**

** ̈******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




Yes **x******
  No ** ̈******

On July 30, 2004, 20,512,890 shares of the registrant's common
  stock were outstanding.

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NEW JERSEY MINING COMPANY 
  QUARTERLY REPORT ON FORM 10-QSBFOR THE QUARTERLY PERIOD ENDED JUNE 30, 2004

TABLE OF CONTENTS

|                                                                                                | Page
|----------------------------------------------------------------------------------------------- | ----
|                                                                                                |     
|PART I  FINANCIAL INFORMATION                                                                  |     
|                                                                                                |     
|Item 1: Financial Statements                                                                    | 1   
|                                                                                                |     
|Item 2: Management's Discussion and Analysis
      of Financial Condition and Plan of Operation | 4   
|                                                                                                |     
|Item 3. Controls and Procedures                                                                 | 6   
|                                                                                                |     
|PART II  OTHER INFORMATION                                                                     |     
|                                                                                                |     
|Item 1: Legal Proceedings                                                                       | 7   
|                                                                                                |     
|Item 2: Changes in Securities                                                                   | 7   
|                                                                                                |     
|Item 3: Defaults among Senior Securities                                                        | 7   
|                                                                                                |     
|Item 4: Submission of Matters to a Vote
      of Security Holders                               | 7   
|                                                                                                |     
|Item 5: Other Information                                                                       | 7   
|                                                                                                |     
|Item 6: Exhibits and Reports on Form 8-K                                                        | 7   
|                                                                                                |     
|SIGNATURES                                                                                      | 8   

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

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PART I-FINANCIAL INFORMATION

Item 1. Financial Statements

NEW JERSEY MINING COMPANY
  (A Development Stage Company)BALANCE SHEETS

|                                                       |   | (Unaudited) |   |   |              |  
|------------------------------------------------------ | - | ----------- | - | - | ------------ | -
|                                                       |   | June 30,    |   |   | December 31, |  
|                                                       |   | 2004        |   |   | 2003         |  
|                                                       |   |             |   |   |              |  
|ASSETS                                                 |  
|                                                       |   |             |   |   |              |  
|Current assets:                                        |   |             |   |   |              |  
|Cash and cash equivalents                              | $ | 388,821     |   | $ | 346,268      |  
|                                                       |   |             |   |   |              |  
|Total current assets                                   |   | 388,821     |   |   | 346,268      |  
|                                                       |   |             |   |   |              |  
|Building and equipment                                 |   | 433,953     |   |   | 271,676      |  
|Mineral properties                                     |   | 811,104     |   |   | 787,274      |  
|Other assets                                           |   | 5,809       |   |   | 2,346        |  
|                                                       |   |             |   |   |              |  
|Total
      assets                                     | $ | 1,639,687   |   | $ | 1,407,564    |  
|                                                       |   |             |   |   |              |  
|LIABILITIES AND STOCKHOLDERS' EQUITY                   |  
|                                                       |   |             |   |   |              |  
|Current liabilities:                                   |   |             |   |   |              |  
|Accounts payable                                       | $ | 131,290     |   | $ | 11,610       |  
|Notes payable to related
      party                   |   |             |   |   | 2,000        |  
|Total current liabilities                              |   | 131,290     |   |   | 13,610       |  
|                                                       |   |             |   |   |              |  
|Accrued reclamation costs                              |   | 12,500      |   |   | 12,500       |  
|Payable to officers, in common stock                   |   | 11,519      |   |   | 11,519       |  
|                                                       |   |             |   |   |              |  
|Total liabilities                                      |   | 155,309     |   |   | 37,629       |  
|                                                       |   |             |   |   |              |  
|Stockholders' equity:                                  |   |             |   |   |              |  
|Preferred stock, no par
      value; 1,000,000         |   |             |   |   |              |  
|shares authorized; no shares outstanding               |   |             |   |   |              |  
|Common stock, no par value;
      50,000,000 shares    |   |             |   |   |              |  
|authorized; 20,512,890 and 18,669,890 shares           |   |             |   |   |              |  
|issued and outstanding                                 |   | 2,515,556   |   |   | 1,910,456    |  
|                                                       |   |             |   |   |              |  
|Deficit accumulated during
      the development stage |   | (1,031,178  | ) |   | (540,521     | )
|                                                       |   |             |   |   |              |  
|Total stockholders' equity                             |   | 1,484,378   |   |   | 1,369,935    |  
|                                                       |   |             |   |   |              |  
|Total liabilities and stockholders' equity             | $ | 1,639,687   |   | $ | 1,407,564    |  

The accompanying notes are an integral part of the financial
  statements.
  1

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NEW JERSEY MINING COMPANY
  (A Development Stage Company)STATEMENTS OF OPERATIONSFor the Three and Six-Month Periods ended June 30, 2004 and 2003 and for
  the period from 
  inception (July 18, 1996) through June 30, 2004(Unaudited)

|                                          |   |               |   |   |               |   |   |               |   |   |              |   |   | From Inception  |  
|----------------------------------------- | - | ------------- | - | - | ------------- | - | - | ------------- | - | - | ------------ | - | - | --------------- | -
|                                          |   |               |   |   |               |   |   |               |   |   |              |   |   | (July 18, 1996) |  
|                                          |   |               |   |   |               |   |   | Through       |  
|                                          |   | June 30, 2004 |   |   | June 30, 2003 |   |   | June 30, 2004 |  
|                                          |   |               |   |   |               |   |   | ( As Restated |   |   | (As Restated |  
|                                          |   |               |   |   |               |   |   | See Note 3)   |   |   | See Note 3)  |  
|                                          |   | Three Months  |   |   | Six Months    |   |   | Three Months  |   |   | Six Months   |   |   |                 |  
|Operating expenses:                       |   |               |   |   |               |   |   |               |   |   |              |   |   |                 |  
|Expenses paid with common
      stock:    |   |               |   |   |               |   |   |               |   |   |              |   |   |                 |  
|Management fees                           |   |               |   |   |               |   |   |               |   |   |              |   | $ | 137,126         |  
|Directors fees                            |   |               |   |   |               |   |   |               |   |   |              |   |   | 9,450           |  
|Services                                  | $ | 1,000         |   | $ | 2,500         |   |   |               |   |   |              |   |   | 22,390          |  
|Exploration                               |   | 6,600         |   |   | 6,600         |   |   |               |   |   |              |   |   | 14,600          |  
|Exploration expense                       |   | 329,237       |   |   | 364,954       |   | $ | 62,500        |   | $ | 65,390       |   |   | 478,338         |  
|General and administrative
      expenses |   | 59,673        |   |   | 118,446       |   |   | 28,562        |   |   | 35,117       |   |   | 309,321         |  
|Total operating expenses                  |   | 396,510       |   |   | 492,500       |   |   | 91,062        |   |   | 100,507      |   |   | 971,225         |  
|                                          |   |               |   |   |               |   |   |               |   |   |              |   |   |                 |  
|Other (income) expense:                   |   |               |   |   |               |   |   |               |   |   |              |   |   |                 |  
|Royalty and other income                  |   | (1,025        | ) |   | (1,843        | ) |   | (304          | ) |   | (662         | ) |   | (60,997         | )
|Write-off of goodwill                     |   |               |   |   |               |   |   |               |   |   |              |   |   | 30,950          |  
|Write-off of investment                   |   |               |   |   |               |   |   |               |   |   |              |   |   | 90,000          |  
|Total other (income) expense              |   | (1,025        | ) |   | (1,843        | ) |   | (304          | ) |   | (662         | ) |   | 59,953          |  
|                                          |   |               |   |   |               |   |   |               |   |   |              |   |   |                 |  
|Net loss                                  | $ | 395,485       |   | $ | 490,657       |   | $ | 90,758        |   | $ | 99,845       |   | $ | 1,031,178       |  
|                                          |   |               |   |   |               |   |   |               |   |   |              |   |   |                 |  
|Net loss per common share-basic           | $ | 0.020         |   | $ | 0.025         |   | $ | nil           |   | $ | nil          |   | $ | 0.078           |  
|                                          |   |               |   |   |               |   |   |               |   |   |              |   |   |                 |  
|Weighted average common shares            |   |               |   |   |               |   |   |               |   |   |              |   |   |                 |  
|Outstanding-basic                         |   | 20,165,555    |   |   | 19,884,972    |   |   | 17,097,287    |   |   | 16,917,761   |   |   | 13,189,980      |  

The accompanying notes are an integral part of these financial statements.
  2

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NEW JERSEY MINING COMPANY
  (A Development Stage Company)STATEMENTS OF CASH FLOWSFor the Six-Month Periods ended June 30, 2004 and 2003 and for the period
  from
  inception (July 18, 1996) through June 30, 2004(Unaudited)

|                                                      |   |          |   |   |              |   |   | From Inception  |  
|----------------------------------------------------- | - | -------- | - | - | ------------ | - | - | --------------- | -
|                                                      |   |          |   |   |              |   |   | (July 18, 1996) |  
|                                                      |   | June 30, |   |   | June 30,     |   |   | Through         |  
|                                                      |   | 2004     |   |   | 2003         |   |   | June 30, 2004   |  
|                                                      |   |          |   |   | (As Restated |   |   | (As Restated    |  
|                                                      |   |          |   |   | See Note 3)  |   |   | See Note 3)     |  
|Cash flows from operating activities:                 |   |          |   |   |              |   |   |                 |  
|Net loss                                              | $ | (490,657 | ) | $ | (99,845      | ) | $ | (1,031,178      | )
|Adjustments to reconcile
      net loss to net cash   |   |          |   |   |              |   |   |                 |  
|used by operating activities:                         |   |          |   |   |              |   |   |                 |  
|Write-off of goodwill                                 |   |          |   |   |              |   |   | 30,950          |  
|Write-off of investment                               |   |          |   |   |              |   |   | 90,000          |  
|Stock issued for:                                     |   |          |   |   |              |   |   |                 |  
|Management fees                                       |   |          |   |   |              |   |   | 137,126         |  
|Directors fees                                        |   |          |   |   |              |   |   | 9,450           |  
|Services                                              |   | 2,500    |   |   |              |   |   | 22,391          |  
|Exploration                                           |   | 6,600    |   |   |              |   |   | 14,600          |  
|Change in:                                            |   |          |   |   |              |   |   |                 |  
|Other assets                                          |   | (3,463   | ) |   |              |   |   | (4,087          | )
|Accounts payable                                      |   | 119,680  |   |   | (6,512       | ) |   | 128,320         |  
|Accounts payable to related party                     |   | (2,000   | ) |   |              |   |   |                 |  
|Accrued reclamation costs and other
      liabilities |   |          |   |   | (46          | ) |   | 12,500          |  
|Payable to officers                                   |   |          |   |   |              |   |   | 11,519          |  
|Net
      cash used by operating activities           |   | (367,340 | ) |   | (106,403     | ) |   | (578,409        | )
|                                                      |   |          |   |   |              |   |   |                 |  
|Cash flows from investing activities:                 |   |          |   |   |              |   |   |                 |  
|Purchases of building and
      equipment             |   | (162,277 | ) |   | (135         | ) |   | (236,411        | )
|Purchases of mineral property                         |   |          |   |   |              |   |   | (5,904          | )
|Deferral of development
      costs                   |   | (23,830  | ) |   | (36,500      | ) |   | (249,365        | )
|Net
      cash used by investing activities           |   | (186,107 | ) |   | (36,635      | ) |   | (491,680        | )
|                                                      |   |          |   |   |              |   |   |                 |  
|Cash flows from financing activities:                 |   |          |   |   |              |   |   |                 |  
|Exercise of stock purchase
      warrants             |   | 222,500  |   |   | 150,000      |   |   | 423,250         |  
|Sales of common stock, net
      of issuance costs    |   | 373,500  |   |   |              |   |   | 1,060,867       |  
|Principal payments on capital
      lease             |   |          |   |   |              |   |   | (43,476         | )
|Payments on note payable
      to bank                |   |          |   |   |              |   |   | (20,000         | )
|Net
      cash provided by financing activities       |   | 596,000  |   |   | 150,000      |   |   | 1,420,641       |  
|                                                      |   |          |   |   |              |   |   |                 |  
|Cash of acquired companies                            |   | -        |   |   |              |   |   | 38,269          |  
|                                                      |   |          |   |   |              |   |   |                 |  
|Net change in cash                                    |   | 42,553   |   |   | 6,962        |   |   | 388,821         |  
|Cash, beginning of period                             |   | 346,268  |   |   | 40,436       |   |   | 0               |  
|Cash, end of period                                   | $ | 388,821  |   | $ | 47,398       |   | $ | 388,821         |  
|                                                      |   |          |   |   |              |   |   |                 |  
|Non-cash investing and financing activities:          |   |          |   |   |              |   |   |                 |  
|Common stock issued for:                              |   |          |   |   |              |   |   |                 |  
|Equipment                                             |   |          |   |   |              |   | $ | 3,000           |  
|Mineral properties                                    |   |          |   |   |              |   | $ | 199,300         |  
|Acquisitions of companies, excluding cash             |   |          |   |   |              |   | $ | 743,653         |  
|Capital lease obligation for equipment acquired       |   |          |   |   |              |   | $ | 18,275          |  

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

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NEW JERSEY MINING COMPANYNOTES 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 six month period ended June 30, 2004 are not necessarily indicative
  of the results that may be expected for the full year ending December 31, 2004.

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, 2003.

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.              Restated
  Financial Statements

Change in Accounting Policy

During the fourth quarter of 2003, the Company changed its
  accounting policy, retroactive to January 1, 2002, with respect to its accounting
  for exploration costs. The Company now records exploration costs as operating
  expenses in the period that they occur, and only capitalizes exploration costs
  on areas of interest that have proven reserves and are in development for production.
  The Company's previous policy was to capitalize all such expenditures as deferred
  development costs of the properties being explored. The change was made in order
  for the Company's accounting practices to be consistent with prevailing mining
  industry accounting trends and securities regulations.

The effect of this change for the three month period and six
  month period ended June 30, 2003 was an increase in net loss of $62,500 and
  $65,390, respectively. The effect on net loss per share for same periods was
  nominal.

Item 2. Management's Discussion and Analysis of Financial
  Condition and Plan of Operation

General

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.

4

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Item 2. Management's Discussion and Analysis of Financial
  Condition and Plan of Operation, Continued:

Plan of Operation

The Company is executing its plan 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 which are nearly ready
  to commence production: the Golden Chest, the New Jersey, and the Silver Strand.
  Exploration projects at all three mines are being conducted as well as in other
  out-lying areas.

An exploration ramp at the Golden Chest mine has recently
  been completed. It exposed a high grade gold vein drilled by Newmont Exploration
  Limited (NEL) about 15 years ago. The Katie Dora vein, which was intercepted
  by the ramp, was then drifted on for a distance of 46 meters. Approximately
  $300,000 was spent on the ramp and the drift. Samples have been taken and the
  results are currently being evaluated to design a mining plan and calculate
  resources. The feasibility of a 50 tonne/day mining operation is being evaluated.

Operating permits for a seasonal mining operation at the Silver
  Strand mine have still not been received from the U.S. Forest Service, although
  a favorable decision seems imminent. The permitting process has now been ongoing
  for over 15 months, which is longer than had been expected. All preproduction
  work must await receipt of the operating permits. Planned pre-production work
  for 2004 has been cancelled because of the permitting delay, but permits should
  be received in order to commence pre-production work in the spring of 2005.

The Company is continuing to upgrade its mineral processing
  plant, the New Jersey mill, to add the flotation process which is needed to
  produce marketable concentrates for smelters. Included in the upgrade are eight
  new flotation cells, pumps, a filter press, a concentrate bin, and various fabricated
  structures. It is expected that completion of the upgrade will be on September
  1, 2004. The mill will be commissioned using ore available from the New Jersey
  open pit mine and from the development material mined at the Golden Chest mine.

An exploration drilling program has been completed in 2004
  with favorable results. Mineralized intercepts have been drilled at the Enterprise
  and Scotch Thistle areas of interest near the New Jersey mine. Drilling at the
  Golden Chest has been especially significant because, not only have gold bearing
  veins been drilled, but an understanding of the mineralization has been gained
  which will aid future exploration.

An open pit mine design has been completed for the resource
  drilled by NEL at the Golden Chest mine. While final conclusions have not been
  made, it appears that open pit mining would only be feasible if done in conjunction
  with underground mining. A mineralized material inventory of 230,000 ounces
  of gold (not reserves) determined by NEL was confirmed by the Company's current
  work.

A surface geophysical program at the Silver Strand mine is
  underway to test for extension of the mineralized zone both eastward and westward
  on strike. Reconnaissance geochemical sampling has been completed in an area
  surrounding the Silver Strand mine, but results are not yet available.

5

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The Company has sufficient funding to complete projects which
  are currently underway, but additional funding will be necessary for projects
  in 2005. Plans are being made to secure additional funding needed.

Production is planned to commence in September 2004 when the
  mill upgrade project has been completed. Some cash flow may be generated by
  production in the 4th quarter of 2004.

The Company currently has four employees and uses consultants
  or contractors for project tasks. Up to 8 additional employees may be hired
  in 2005.

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 our disclosure controls and procedures. And on that evaluation, the Company's
  president and principal financial officer concluded that disclosure controls
  and procedures were effective as of June 30, 2004, in ensuring that all material
  information required to be filed in this quarterly report has been made known
  to them in a timely fashion.

There has been no change in our internal controls over financial
  reporting during the quarter ended June 30, 2004 that has materially affect
  or is reasonable likely to materially affect, our internal controls over financial
  reporting.

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

6

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PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

None

Item 2. CHANGES IN SECURITIES

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.

Item 3. DEFAULTS UPON SENIOR SECURITIES

The registrant 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 AND REPORTS ON FORM 8-K

Exhibits

|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

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

7

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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:                      
| |                          
| |                          
| |                          
| |                          

8

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