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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 ended **March 31, 2007**

[   ] 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 May 2, 2007, 30,424,319 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 MARCH 31, 2007

TABLE OF CONTENTS

|                                                                                                    | Page
|--------------------------------------------------------------------------------------------------- | ----
|                                                                                                    |     
|PART I  FINANCIAL INFORMATION                                                                      | 3   
|                                                                                                    |     
|Item 1: Financial Statements                                                                        | 3   
|                                                                                                    |     
|Item 2: Managements Discussion and Analysis of Financial
      Condition and Results of Operations | 8   
|                                                                                                    |     
|Item 3: Controls and Procedures                                                                     | 11  
|                                                                                                    |     
|PART II  OTHER INFORMATION                                                                         | 11  
|                                                                                                    |     
|Item 1: Legal Proceedings                                                                           | 11  
|                                                                                                    |     
|Item 2: Unregistered Sales of Equity Securities and Use
      of Proceeds                           | 11  
|                                                                                                    |     
|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 and Reports on Form 8-K                                                            | 12  
|                                                                                                    |     
|SIGNATURES                                                                                          | 13  

[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(A Development Stage
Company)BALANCE SHEETMarch 31, 2007(Unaudited)

|ASSETS                                                                 |   |            |  
|---------------------------------------------------------------------- | - | ---------- | -
|Current assets:                                                        |   |            |  
|Cash and
      cash equivalents                                        | $ | 807,449    |  
|Investment in marketable
      equity security at market (cost-$7,500) |   | 993,750    |  
|Accounts
      receivable                                              |   | 11,588     |  
|Inventory                                                              |   | 92,642     |  
|Total current assets                                                   |   | 1,905,429  |  
|                                                                       |   |            |  
|Property, plant, and equipment, net of
      accumulated depreciation  |   | 1,209,288  |  
|Mineral properties, net of accumulated amortization                    |   | 827,571    |  
|Deposits                                                               |   | 43,550     |  
|Other assets                                                           |   | 2,500      |  
|                                                                       |   |            |  
|Total assets                                                           | $ | 3,988,338  |  
|                                                                       |   |            |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                   |   |            |  
|                                                                       |   |            |  
|Current liabilities:                                                   |   |            |  
|Accounts
      payable                                                 | $ | 50,453     |  
|Accrued payroll and
      related payroll expenses                     |   | 28,776     |  
|Obligation under capital lease-current portion                         |   | 36,539     |  
|Equipment notes
      payable-current portion                          |   | 19,771     |  
|Total current liabilities                                              |   | 135,539    |  
|                                                                       |   |            |  
|Accrued reclamation costs                                              |   | 18,000     |  
|Obligation under capital lease-non-current                             |   | 74,351     |  
|Equipment notes payable-non-current                                    |   | 39,187     |  
|                                                                       |   |            |  
|Total liabilities                                                      |   | 267,077    |  
|                                                                       |   |            |  
|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; 30,259,494 shares issued and outstanding                   |   | 6,115,941  |  
|Deficit accumulated
      during the development stage                 |   | (3,380,930 | )
|Accumulated other comprehensive income                                 |   |            |  
|Unrealized gain in marketable equity security                          |   | 986,250    |  
|Total stockholders equity                                             |   | 3,721,261  |  
|                                                                       |   |            |  
|Total liabilities and stockholders equity                             | $ | 3,988,338  |  

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

3

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NEW JERSEY MINING COMPANY(A Development Stage
Company) STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOMEFor
the Three-Month Periods ended March 31, 2007 and 2006 and for the period from
inception (July 18, 1996) through March 31, 2007(Unaudited)

|                                                    |   |            |   |   |            |  |   | From Inception  |  
|--------------------------------------------------- | - | ---------- | - | - | ---------- |  | - | --------------- | -
|                                                    |   |            |   |   |            |  |   | (July 18, 1996) |  
|                                                    |   | March 31,  |   |   | March 31,  |  |   | Through         |  
|                                                    |   | 2007       |   |   | 2006       |  |   | March 31, 2007  |  
|Revenue:                                            |   |            |   |   |            |  |   |                 |  
|Sales of gold                                       | $ |            |   | $ | 40,429     |  | $ | 49,709          |  
|Sales of concentrate                                |   | 48,744     |   |   | 77,472     |  |   | 599,405         |  
|Total
      revenue                                 |   | 48,744     |   |   | 117,901    |  |   | 649,114         |  
|                                                    |   |            |   |   |            |  |   |                 |  
|Costs and expenses:                                 |   |            |   |   |            |  |   |                 |  
|Production costs                                    |   | 104,694    |   |   | 115,855    |  |   | 680,726         |  
|Management                                          |   | 63,184     |   |   | 52,241     |  |   | 711,692         |  
|Exploration                                         |   | 80,695     |   |   | 2,958      |  |   | 1,171,280       |  
|Gain on sale of mineral
      property              |   |            |   |   |            |  |   | (90,000         | )
|Depreciation and amortization                       |   | 29,169     |   |   | 21,500     |  |   | 209,745         |  
|General and
      administrative expenses           |   | 112,139    |   |   | 53,138     |  |   | 1,297,574       |  
|Total
      operating expenses                      |   | 389,881    |   |   | 245,692    |  |   | 3,981,017       |  
|                                                    |   |            |   |   |            |  |   |                 |  
|Other (income) expense:                             |   |            |   |   |            |  |   |                 |  
|Timber sales (net)                                  |   |            |   |   |            |  |   | (50,902         | )
|Net royalties and other income                      |   | (917       | ) |   | 3,898      |  |   | (42,156         | )
|Interest income                                     |   | (8,252     | ) |   |            |  |   | (8,252          | )
|Interest expense                                    |   | 3,800      |   |   | 3,425      |  |   | 29,387          |  
|Write-off of goodwill                               |   |            |   |   |            |  |   | 30,950          |  
|Write-off of investment                             |   |            |   |   |            |  |   | 90,000          |  
|Total other (income) expense                        |   | (5,369     | ) |   | 7,323      |  |   | 49,027          |  
|                                                    |   |            |   |   |            |  |   |                 |  
|Net loss                                            |   | 335,768    |   |   | 135,114    |  |   | 3,380,930       |  
|                                                    |   |            |   |   |            |  |   |                 |  
|Other comprehensive income                          |   |            |   |   |            |  |   |                 |  
|Unrealized gain on marketable equity
      security |   | (75,000    | ) |   |            |  |   | (986,250        | )
|                                                    |   |            |   |   |            |  |   |                 |  
|Comprehensive loss                                  | $ | 260,768    |   | $ | 135,114    |  | $ | 2,394,680       |  
|                                                    |   |            |   |   |            |  |   |                 |  
|Net loss per common share-basic                     | $ | 0.01       |   | $ | 0.01       |  | $ | 0.21            |  
|                                                    |   |            |   |   |            |  |   |                 |  
|Weighted average common                             |   |            |   |   |            |  |   |                 |  
|shares outstanding-basic                            |   | 29,736,290 |   |   | 23,221,965 |  |   | 16,131,965      |  

4

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

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NEW JERSEY MINING COMPANY(A Development Stage
Company) STATEMENTS OF CASH FLOWSFor the Three-Month Periods
ended March 31, 2007 and 2006 and for the period from inception (July 18,
1996) through March 31, 2007(Unaudited)

|                                                        |   |           |   |   |           |   |   | From Inception  |  
|------------------------------------------------------- | - | --------- | - | - | --------- | - | - | --------------- | -
|                                                        |   |           |   |   |           |   |   | (July 18, 1996) |  
|                                                        |   | March 31, |   |   | March 31, |   |   | Through         |  
|                                                        |   | 2007      |   |   | 2006      |   |   | March 31, 2007  |  
|                                                        |   |           |   |   |           |   |   |                 |  
|Cash flows from operating activities:                   |   |           |   |   |           |   |   |                 |  
|Net loss                                                | $ | (335,768  | ) | $ | (135,114  | ) | $ | (3,380,931      | )
|Adjustments to
      reconcile net loss to net cash     |   |           |   |   |           |   |   |                 |  
|used by operating
      activities:                     |   |           |   |   |           |   |   |                 |  
|Depreciation and amortization                           |   | 29,169    |   |   | 21,500    |   |   | 209,744         |  
|Write-off of equipment                                  |   |           |   |   |           |   |   | 11,272          |  
|Write-off of goodwill and
      investment              |   |           |   |   |           |   |   | 120,950         |  
|Gain on sale of mineral property                        |   |           |   |   |           |   |   | (90,000         | )
|Stock issued for:                                       |   |           |   |   |           |   |   |                 |  
|Management and directors fees                           |   | 22,200    |   |   | 26,438    |   |   | 546,737         |  
|Services and other                                      |   | 7,700     |   |   | 7,561     |   |   | 141,854         |  
|Exploration                                             |   | 21,200    |   |   |           |   |   | 57,521          |  
|Change in:                                              |   |           |   |   |           |   |   |                 |  
|Inventories                                             |   | 39,444    |   |   | 39,384    |   |   | (92,642         | )
|Accounts receivable                                     |   | 2,041     |   |   | (30,000   | ) |   | (11,587         | )
|Other assets                                            |   |           |   |   |           |   |   | (778            | )
|Accounts payable                                        |   | (49,975   | ) |   | (54,688   | ) |   | 59,688          |  
|Accrued payroll and related payroll expenses            |   | (2,745    | ) |   | (7,439    | ) |   | 28,776          |  
|Accrued reclamation costs                               |   |           |   |   |           |   |   | 18,000          |  
|Net cash used by
      operating activities             |   | (266,734  | ) |   | (132,358  | ) |   | (2,381,396      | )
|Cash flows from investing activities:                   |   |           |   |   |           |   |   |                 |  
|Purchases of property, plant, and
      equipment       |   | (147,279  | ) |   | (530      | ) |   | (931,719        | )
|Deposits on equipment
      purchases                   |   | (43,550   | ) |   |           |   |   | (43,550         | )
|Purchases of mineral property                           |   |           |   |   |           |   |   | (10,404         | )
|Proceeds from sale of
      mineral property            |   |           |   |   |           |   |   | 120,000         |  
|Proceeds from maturity of certificates
      of deposit |   | 200,000   |   |   |           |   |   |                 |  
|Purchase of marketable
      equity securities          |   |           |   |   |           |   |   | (7,500          | )
|Cash of acquired companies                              |   |           |   |   |           |   |   | 38,269          |  
|Deferral of development
      costs                     |   | (24,337   | ) |   |           |   |   | (249,872        | )
|Net cash used by investing
      activities             |   | (15,166   | ) |   | (530      | ) |   | (1,084,776      | )
|Cash flows from financing activities:                   |   |           |   |   |           |   |   |                 |  
|Exercise of stock purchase warrants                     |   |           |   |   |           |   |   | 677,600         |  
|Sales of common stock,
      net of issuance costs      |   | 1,025,319 |   |   | 529,500   |   |   | 3,717,626       |  
|Principal payments on capital lease                     |   | (8,478    | ) |   | (4,655    | ) |   | (92,897         | )
|Payments on notes
      payable to bank                 |   | (4,313    | ) |   |           |   |   | (28,708         | )
|Net cash provided by
      financing activities         |   | 1,012,528 |   |   | 524,845   |   |   | 4,273,621       |  
|Net change in cash                                      |   | 730,628   |   |   | 391,957   |   |   | 807,449         |  
|Cash, beginning of period                               |   | 76,821    |   |   | 16,863    |   |   | 0               |  
|Cash, end of period                                     | $ | 807,449   |   | $ | 408,820   |   | $ | 807,449         |  
|Interest paid in cash                                   | $ | 3,801     |   | $ | 3,425     |   | $ | 24,125          |  
|                                                        |   |           |   |   |           |   |   |                 |  
|Non-cash investing and financing activities:            |   |           |   |   |           |   |   |                 |  
|Common stock issued
      for:                          |   |           |   |   |           |   |   |                 |  
|Equipment                                               |   |           |   |   |           |   | $ | 34,526          |  
|Mineral properties                                      |   |           |   |   |           |   | $ | 279,300         |  
|Exchange
      for accounts payable                     | $ | 12,205    |   |   |           |   | $ | 12,205          |  
|Acquisitions of companies, excluding cash               |   |           |   |   |           |   | $ | 743,653         |  
|Capital lease obligation for equipment
      acquired   |   |           |   |   |           |   | $ | 178,588         |  
|Notes payable for
      equipment acquired              | $ | 22,378    |   |   |           |   | $ | 67,665          |  

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:

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 month period ended March 31, 2007, are
not necessarily indicative of the results that may be expected for the full year
ending December 31, 2007.

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, 2006.

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

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

SFAS 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 March 31, 2007 and
2006, the effect of the Companys outstanding warrants would have been
anti-dilutive. Accordingly, only basic EPS is presented. As of March 31, 2007
the Company had 6,370,543 outstanding warrants that could potentially dilute
basic EPS in the future.

4.          
Reclassifications

Certain prior period amounts have been reclassified to conform
to the 2007 financial statement presentation. These reclassifications have no
effect on net loss as previously reported.

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

6

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5. **Adoption of New Accounting Principles**

On January 1, 2007, the Company adopted SFAS No. 155
Accounting for Certain Hybrid Financial Instruments, which amends SFAS No. 133
Accounting for Derivative Instruments and Hedging Activities and SFAS No. 140
Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities. SFAS No. 155 resolves issues addressed in Statement 133
Implementation Issue No. D1 Application of Statement 133 to Beneficial
Interests in Securitized Financial Assets, and:

- Permits fair value remeasurement for any hybrid financial instrument that
  contains an embedded derivative that otherwise would require bifurcation;
- Clarifies which interest-only strips are not subject to the requirements
  of SFAS No. 133;
- Establishes a requirement to evaluate interests in securitized financial
  assets to identify interests that are freestanding derivatives or that are
  hybrid financial instruments that contain an embedded derivative requiring
  bifurcation;
- Clarifies that concentrations of credit risk in the form of subordination
  are not embedded derivatives; and
- Amends SFAS No. 140 to eliminate the prohibition on a qualifying
  special-purpose entity from holding a derivative financial instrument that
  pertains to a beneficial interest other than another derivative financial
  instrument.

The Company adopted SFAS No. 155 using the modified prospective
transition method, which requires the application of the accounting standard as
of January 1, 2007. There was no impact on the financial statements as of and
for the three months ended March 31, 2007 as a result of the adoption of SFAS No
155. 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 No. 155.

On January 1, 2007, the Company adopted Financial Accounting
Standards Board Interpretation No. 48 (FIN No. 48) Accounting for Uncertainty
in Income Taxes. FIN No. 48 clarifies the accounting for uncertainty in income
taxes recognized in accordance with SFAS No. 109 Accounting for Income Taxes,
prescribing a recognition threshold and measurement attribute for the
recognition and measurement of a tax position taken or expected to be taken in a
tax return. In the course of our assessment, we have determined that we are
subject to examination of our income tax filings in the United States and state
jurisdictions for the 2003 through 2006 tax years. In the event that the Company
is assessed penalties and or interest, penalties will be charged to other
operating expense and interest will be charged to interest expense.

The Company adopted FIN No. 48 using the modified prospective
transition method, which requires the application of the accounting standard as
of January 1, 2007. There was no impact on the financial statements as of and
for the three months ended March 31, 2007 as a result of the adoption of FIN No.
48. 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 FIN No. 48.

6.          
New Accounting Pronouncements

In February 2007, the Financial Accounting Standards Board
(FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities (SFAS 159), which will permit entities to choose to
measure many financial assets and financial liabilities at fair value.
Unrealized gains on items for which the fair value option has been elected are
to be reported in earnings. SFAS 159 will become effective in our 2008 financial
statements. We have not yet determined the effect that adoption of SFAS 159 may
have on our results of operations or financial position.

In September 2006, the FASB issued SFAS No. 157, Fair Value
Measurements, (SFAS 157), which will become effective in our 2008 financial
statements. SFAS 157 establishes a framework for measuring fair value and
expands disclosure about fair value measurements, but does not require any new
fair value measurements. We have not yet determined the effect that adoption of
SFAS 157 may have on our results of operations or financial position.

7

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

Plan of Operation

The Company is executing its strategy to conduct mining and
mineral processing operations on higher grade ore reserves it has located on its
exploration and development 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 strategy includes finding
and developing ore reserves in order to increase production of gold, silver, and
base metals.

The Company has four mines at which most exploration and
development is being conducted; the Niagara, the Golden Chest, the Silver
Strand, and the Coleman. The Niagara copper-silver deposit was acquired during
late 2006. The Niagara deposit was drilled in the 1970s, and although more
drilling is needed, the Company will conduct economic studies to determine if
the deposit can be mined profitably. The Golden Chest is considered to be in the
development stage as the Company has, based upon a feasibility study which
considers the proven and probable reserves and historical cost for mining and
processing, determined that the operation is economically feasible. Production
of gold ore at the Golden Chest mine was suspended during the quarter while a
ramp is being driven to access a block of reserves discovered by drilling from
the surface. Permitting has been completed and production of silver-gold ore is
planned at the Silver Strand mine in 2007. An exploration crosscut at the
Coleman underground mine intersected the vein during the quarter, and drifting
on the vein commenced. No ore grade mineralization has yet been exposed by the
drifting operation. Production from the reserves at the Coleman open pit mine
and from material mined from the underground drifting operation will be
processed until ore from the Silver Strand mine is available.

At the Silver Strand mine, operating permits have been received
for mining and exploration. In the second quarter of 2007 a $120,000 bond has
been posted and operations are expected to begin. Mining plans are to develop
infrastructure, drive a new adit, and mine a reserve block above the main adit
level in 2007. Drilling plans are to test geophysical anomalies which were found
in 2004.

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. Drifting will continue on the 740 level Coleman vein
when work at the Silver Strand is suspended for the winter season, and further
drilling may be conducted at the Scotch Thistle and Enterprise prospects.

The concentrate leach circuit at the New Jersey mineral
processing plant is now approaching completion and will be commissioned in the
second quarter. Concentrate will be leached and a gold-silver dore produced for
sale. The reason for adding the concentrate leach circuit was 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.

In the 2007 season, exploration will continue in the Murray
area where the Golden Chest mine is located. The Companys exploration program
has been very successful in finding new drilling targets. The most promising
target is called the Gold Butte prospect where a 50 m wide breccia zone with
gold mineralization occurs. The Niagara deposit was also acquired as part of the
2006 exploration effort. The Company has ordered a core drilling rig and plans
to conduct its own drilling operations starting in June 2007. Operating permits
have been submitted to the U.S. Forest Service for exploration drilling in the
Murray area. The Companys long term objective in the Murray area is to
establish enough ore reserves to justify construction of a larger mineral
processing plant in the area. A feasibility study for the processing plant has
commenced with a pre-feasibility report due in about 12 months.

8

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Financial Condition-The Company maintains an adequate cash
balance by increasing or decreasing its exploration and development expenditures
as limited by availability of cash from operations or from financing activities.
The cash balance on March 31, 2007 was $807,449; this increase was due to
financing activities which raised $1,025,319 during the quarter. Figure 1 shows
the corresponding balances for previous accounting periods.



Results of Operations-Revenue for the first quarter 2007 was
$48,744 compared to $117,901 in the first quarter of 2006. Figure 2 shows the
net loss for the first quarter of 2007 of $335,768 and the net losses in
previous accounting periods. The net loss increased in the first quarter of 2007
because of less revenue due to lower tonnes milled and lower grade ore than the
first quarter of 2006 and higher exploration and general and administrative
costs.



9

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Gold production in pyrite concentrates was 32 ounces in the
first quarter compared to 119 ounces for the first quarter of 2006. Gold
production was lower in 2007 due to lower grade ore than 2005 and fewer tonnes
processed. Gold production is expected to be approximately 50 ounces for the
second quarter and then to increase, along with silver production, when Silver
Strand ore processing starts.

The production operations at the Golden Chest mine are expected
to be suspended for approximately one year while the access ramp is being
extended to the Idaho vein reserves. Once the Idaho vein ramp development is
completed there will be enough reserves for many years of mining at the current
processing rate of 4,000 tonnes/year. If a larger mill is built in the Murray
area, the production rate from Idaho vein reserves would be increased. Estimated
proven and probable reserves for the Golden Chest are 158,958 tonnes at an
average grade of 5.52 grams per tonne for a total of 28,214 ounces of Gold.

Mining operations are planned to start at the Silver Strand
mine in the third quarter of 2007. 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 major capital expenditures are required for the mineral
processing plant for the remainder of 2007, however the concentrate leaching
plant will be completed and commissioned in the second quarter of 2007. Mill
feed will come from the Coleman open pit, Coleman underground and the Silver
Strand mine for the next three quarters of 2007. The cost of the core drill
which has been ordered for exploration drilling is $186,400 of which 10% has
been paid. The entire cost including the 10% deposit will be financed upon
delivery through a lease agreement.

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. Basically,
management expects to be able to continue the present operating scenario with
its three active mines and mineral processing plant indefinitely, but expanded
exploration or production activities depend upon the results of financing
activities.

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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 March 31, 2007, in ensuring that
all material information required to be filed in this quarterly report has been
made known to them in a timely fashion.

As disclosed in our 2007 Form 10KSB, it was determined that
there were material weaknesses affecting our internal control over financial
reporting. These material weaknesses are as follows:

- The Company lacks proper segregation of duties. As with any company the
  size of the Companys, this lack of segregation of duties is due to limited
  resources.
- The Company lacks accounting personnel with sufficient skills and
  experience to ensure proper accounting for complex, non-routine transactions.

Managements Remediation Initiatives

We are aware of these material weaknesses and have procedures
in place to ensure that independent review of material transactions is
performed. In addition, we plan to consult with independent experts when complex
transactions are entered into.

There has been no change in the Companys internal controls
over financial reporting during the quarter ended March 31, 2007, that has
materially affected, or is reasonably likely to materially affect, the Companys
internal controls over financial reporting.

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.

On February 12, 2007, the Company completed an offering to
certain accredited and sophisticated investors. No underwriter or brokers were
involved in the sale and, therefore, no commissions were paid. Units were sold
for $0.40 and each unit consisted of one share of restricted common stock plus
one half warrant whereby each whole warrant could purchase one share of the
Company restricted common stock at $0.55 per share until December 31, 2008. The
full offering, which was initialized in the fourth quarter of 2006, resulted in
the sale of 2,684,584 units for $1,073,819. Of this 2,563,334 units valued at
$1,025,319 were issued in 2007. Both the common stock and the common stock
underlying the warrants are restricted as defined under Rule 144. In
managements opinion, the offer and sale of the securities were made in reliance
on exemptions from registration provided by Section 4(2) and Rule 506 of
Regulation D of the Securities Act of 1933, as amended and other applicable
Federal and state securities laws.

The Company issued 36,425 shares of restricted common stock to
President Fred W. Brackebusch for management services rendered in the first
quarter of 2007. The shares were valued at a price of $0.61 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.

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During the first quarter of 2007, the Company issued 30,500
shares at a price of $0.695 to Ivan Linscott, a Director of the Company, for
exploration services and an additional 42,750 shares at an average price of
$0.47 to other 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

None

Item 5. OTHER INFORMATION

None

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

|Exhibit |                                                                                                                                        
|------- | ---------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description                                                                                                                            
|        |                                                                                                                                        
|31.1    | Certification pursuant
      to Section 906 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.

ITEM 3.02      UNREGISTERED SALES OF
EQUITY SECURITIES, February 13, 2007.

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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:                          
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| |                              

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