---

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 June 30, 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 August 1, 2007, 30,506,280 shares of the registrants common
stock were outstanding.

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

1

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|NEW JERSEY MINING COMPANY      
|-------------------------------
|QUARTERLY REPORT ON FORM 10-QSB
|FOR THE QUARTERLY PERIOD       
|ENDED JUNE 30, 2007            
|                               
|                               
|TABLE OF CONTENTS              

|                               |                                                                                            | Page
|------------------------------ | ------------------------------------------------------------------------------------------ | ----
|PART I  FINANCIAL INFORMATION |                                                                                           
|Item 1:                        | Financial Statements                                                                       | 3   
|Item 2:                        | Managements Discussion and Analysis of Financial Condition
      andResults of Operations | 8   
|Item 3:                        | Controls and Procedures                                                                    | 11  
|PART II  OTHER INFORMATION    |                                                                                           
|Item 1:                        | Legal Proceedings                                                                          | 11  
|Item 2:                        | Unregistered Sales of Equity Securities and Use of Proceeds                                | 11  
|Item 3:                        | Defaults Upon Senior Securities                                                            | 11  
|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 SHEET                
|June 30, 2007                
|(Unaudited)                  

|ASSETS                                                                |   |            |  
|--------------------------------------------------------------------- | - | ---------- | -
|Current assets:                                                       |   |            |  
|Cash and cash equivalents                                             | $ | 537,923    |  
|Investment in marketable equity security at market (cost-$7,500)      |   | 993,750    |  
|Interest receivable                                                   |   | 1,366      |  
|Inventory                                                             |   | 22,055     |  
|Deposits                                                              |   | 45,525     |  
|Total current assets                                                  |   | 1,600,619  |  
|                                                                      |   |            |  
|Property, plant, and equipment, net of
      accumulated depreciation |   | 1,313,677  |  
|Mineral properties, net of accumulated amortization                   |   | 877,051    |  
|Reclamation bonds                                                     |   | 123,676    |  
|                                                                      |   |            |  
|Total assets                                                          | $ | 3,915,023  |  
|                                                                      |   |            |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                  |   |            |  
|                                                                      |   |            |  
|Current liabilities:                                                  |   |            |  
|Accounts payable                                                      | $ | 81,572     |  
|Accrued
      payroll and related payroll expenses                    |   | 35,794     |  
|Obligation under capital
      lease-current portion                  |   | 37,640     |  
|Notes
      payable-current portion                                   |   | 36,712     |  
|Total current liabilities                                             |   | 191,718    |  
|                                                                      |   |            |  
|Accrued reclamation costs                                             |   | 18,000     |  
|Obligation under capital lease-non-current                            |   | 64,518     |  
|Notes payable-non-current                                             |   | 139,522    |  
|                                                                      |   |            |  
|Total liabilities                                                     |   | 413,758    |  
|                                                                      |   |            |  
|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; 30,506,280 shares issued and outstanding                  |   | 6,267,101  |  
|Deficit
      accumulated during the development stage                |   | (3,752,086 | )
|Accumulated other
      comprehensive income                          |   |            |  
|Unrealized gain in marketable equity security                         |   | 986,250    |  
|Total
      stockholders equity                                      |   | 3,501,265  |  
|                                                                      |   |            |  
|Total liabilities and stockholders equity                            | $ | 3,915,023  |  

3

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

---

|NEW JERSEY MINING COMPANY                                                                               
|--------------------------------------------------------------------------------------------------------
|(A Development Stage Company)                                                                           
|STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
      (LOSS)                                          
|For the Three and Six Month Periods ended June 30,
      2007 and 2006 and for the period from inception
|(July 18, 1996) through June 30, 2007                                                                   
|(Unaudited)                                                                                             

|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   | From
    Inception |  
|----------------------------------------- | - | ------------- | - | - | ------------- | - | - | ------------------- | - | - | ---------- | - | - | ------------------ | -
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   | (July 18, 1996)    |  
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   | Through            |  
|                                          |   | June 30, 2007 |   |   | June 30, 2006 |   |   | June 30,
      2007 |  
|                                          |   | Three Months  |   |   | Six Months    |   |   | Three Months        |   |   | Six Months |   |   |                    |  
|Revenue:                                  |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Sales of gold                             | $ | 43,250        |   | $ | 43,250        |   | $ |                     |   | $ | 40,429     |   | $ | 92,959             |  
|Sales of
      concentrate                |   | 1,762         |   |   | 50,507        |   |   | 60,563              |   |   | 138,035    |   |   | 601,168            |  
|Total revenue                             |   | 45,012        |   |   | 93,757        |   |   | 60,563              |   |   | 178,464    |   |   | 694,127            |  
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Cost and expenses:                        |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Production costs                          |   | 94,600        |   |   | 199,296       |   |   | 131,031             |   |   | 246,886    |   |   | 775,327            |  
|Management                                |   | 68,014        |   |   | 131,198       |   |   | 58,446              |   |   | 110,687    |   |   | 779,706            |  
|Exploration                               |   | 144,244       |   |   | 224,939       |   |   | 124,434             |   |   | 127,392    |   |   | 1,315,525          |  
|Gain on sale of mineral property          |   |               |   |   |               |   |   | (90,000             | ) |   | (90,000    | ) |   | (90,000            | )
|Depreciation and
      amortization       |   | 27,126        |   |   | 56,295        |   |   | 23,303              |   |   | 44,803     |   |   | 236,871            |  
|General and administrative
      expenses |   | 82,408        |   |   | 194,547       |   |   | 115,443             |   |   | 168,581    |   |   | 1,379,982          |  
|Total operating expenses                  |   | 416,392       |   |   | 806,275       |   |   | 362,657             |   |   | 608,349    |   |   | 4,397,411          |  
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Other (income) expense:                   |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Timber sales
      (net)                  |   | (487          | ) |   | (487          | ) |   |                     |   |   |            |   |   | (51,389            | )
|Royalties and other income                |   |               |   |   | (1,501        | ) |   | (200                | ) |   | (591       | ) |   | (69,815            | )
|Royalty expense                           |   | 5,120         |   |   | 5,703         |   |   | 5,189               |   |   | 9,478      |   |   | 32,779             |  
|Interest income                           |   | (8,599        | ) |   | (16,851       | ) |   |                     |   |   |            |   |   | (16,851            | )
|Interest expense                          |   | 3741          |   |   | 7,541         |   |   | 1,626               |   |   | 5,052      |   |   | 33,128             |  
|Write off of goodwill                     |   |               |   |   |               |   |   |                     |   |   |            |   |   | 30,950             |  
|Write off of
      investment             |   |               |   |   |               |   |   |                     |   |   |            |   |   | 90,000             |  
|Total other (income) expense              |   | (225          | ) |   | (5,595        | ) |   | 6,615               |   |   | 13,939     |   |   | 48,802             |  
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Net loss                                  |   | 371,155       |   |   | 706,923       |   |   | 308,709             |   |   | 443,824    |   |   | 3,752,086          |  
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Other comprehensive income:               |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Unrealized gain
      on marketable       |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|equity security                           |   |               |   |   | (75,000       | ) |   |                     |   |   |            |   |   | (986,250           | )
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Comprehensive loss                        | $ | 371,155       |   | $ | 631,923       |   | $ | 308,709             |   | $ | 443,824    |   | $ | 2,765,836          |  
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Net loss per common share-basic           | $ | 0.01          |   | $ | 0.02          |   | $ | 0.01                |   | $ | 0.02       |   | $ | 0.23               |  
|                                          |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|Weighted average common shares            |   |               |   |   |               |   |   |                     |   |   |            |   |   |                    |  
|outstanding-basic                         |   | 30,485,293    |   |   | 30,112,861    |   |   | 27,233,896          |   |   | 25,233,985 |   |   | 16,491,545         |  

4

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

---

|NEW JERSEY MINING COMPANY                                                                                             
|----------------------------------------------------------------------------------------------------------------------
|(A Development Stage Company)                                                                                         
|STATEMENTS OF CASH FLOWS                                                                                              
|For the Six-Month Periods ended June 30, 2007 and 2006
      and for the period from inception (July 18, 1996) through
|June 30, 2007                                                                                                         
|(Unaudited)                                                                                                           

|                                                               |   |           |   |   |           |   |   | From Inception  |  
|-------------------------------------------------------------- | - | --------- | - | - | --------- | - | - | --------------- | -
|                                                               |   |           |   |   |           |   |   | (July 18, 1996) |  
|                                                               |   | June 30,  |   |   | June 30,  |   |   | Through         |  
|                                                               |   | 2007      |   |   | 2006      |   |   | June 30, 2007   |  
|Cash flows from operating activities:                          |   |           |   |   |           |   |   |                 |  
|Net loss                                                       | $ | (706,923  | ) | $ | (443,824  | ) | $ | (3,752,086      | )
|Adjustments to
      reconcile net loss to net cash            |   |           |   |   |           |   |   |                 |  
|used by operating
      activities:                            |   |           |   |   |           |   |   |                 |  
|Depreciation and amortization                                  |   | 56,295    |   |   | 44,803    |   |   | 236,870         |  
|Write-off of equipment                                         |   |           |   |   |           |   |   | 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                                  |   | 42,000    |   |   | 42,688    |   |   | 566,537         |  
|Services and other                                             |   | 10,700    |   |   | 51,336    |   |   | 144,854         |  
|Exploration                                                    |   | 22,560    |   |   |           |   |   | 58,881          |  
|Change in:                                                     |   |           |   |   |           |   |   |                 |  
|Inventories                                                    |   | 110,031   |   |   | 28,050    |   |   | (22,055         | )
|Accounts receivable                                            |   | 13,628    |   |   | (61,117   | ) |   |                 |  
|Interest receivable                                            |   | (1,366    | ) |   |           |   |   | (1,366          | )
|Other assets                                                   |   |           |   |   |           |   |   | (778            | )
|Accounts payable                                               |   | (18,856   | ) |   | (1,814    | ) |   | 90,807          |  
|Accrued payroll and related
      payroll expenses             |   | 4,273     |   |   | (5,479    | ) |   | 35,794          |  
|Accrued reclamation costs                                      |   |           |   |   |           |   |   | 18,000          |  
|Net cash used by operating activities                          |   | (467,658  | ) |   | (435,357  | ) |   | (2,582,320      | )
|Cash flows from investing activities:                          |   |           |   |   |           |   |   |                 |  
|Purchases of property,
      plant, and equipment              |   | (146,742  | ) |   | (123,047  | ) |   | (928,682        | )
|Deposits on equipment purchases                                |   | (45,525   | ) |   |           |   |   | (45,525         | )
|Purchases of mineral
      property                            |   |           |   |   |           |   |   | (10,404         | )
|Proceeds from sale of mineral property                         |   |           |   |   | 120,000   |   |   | 120,000         |  
|Purchase of reclamation
      bonds                            |   | (121,176  | ) |   |           |   |   | (123,676        | )
|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                            |   | (76,078   | ) |   |           |   |   | (301,613        | )
|Net cash used by investing activities                          |   | (189,521  | ) |   | (3,047    | ) |   | (1,259,131      | )
|Cash flows from financing activities:                          |   |           |   |   |           |   |   |                 |  
|Exercise of stock purchase warrants                            |   | 120,000   |   |   |           |   |   | 797,600         |  
|Sales of common stock,
      net of issuance costs             |   | 1,025,319 |   |   | 1,320,000 |   |   | 3,717,626       |  
|Principal payments on capital lease                            |   | (17,211   | ) |   | (9,994    | ) |   | (101,630        | )
|Principal payments on
      notes payable                      |   | (9,827    | ) |   |           |   |   | (34,222         | )
|Net cash provided by financing activities                      |   | 1,118,281 |   |   | 1,310,006 |   |   | 4,379,374       |  
|Net change in cash                                             |   | 461,102   |   |   | 871,602   |   |   | 537,923         |  
|Cash, beginning of period                                      |   | 76,821    |   |   | 16,863    |   |   | 0               |  
|Cash, end of period                                            | $ | 537,923   |   | $ | 888,465   |   | $ | 537,923         |  
|Supplemental disclosure of cash flow information:              |   |           |   |   |           |   |   |                 |  
|Interest paid in cash                                          | $ | 7,541     |   | $ | 5,521     |   | $ | 27,865          |  
|Non-cash investing and financing activities:                   |   |           |   |   |           |   |   |                 |  
|Common stock issued
      for:                                 |   |           |   |   |           |   |   |                 |  
|Property,
      plant, and equipment                           | $ | 7,000     |   | $ | 2,000     |   | $ | 41,526          |  
|Mineral properties                                             |   |           |   |   |           |   | $ | 279,300         |  
|Payment of
      accounts payable                              | $ | 12,205    |   |   |           |   | $ | 12,205          |  
|Acquisitions of companies, excluding cash                      |   |           |   |   |           |   | $ | 743,653         |  
|Capital lease obligation incurred for
      equipment acquired |   |           |   |   |           |   | $ | 178,588         |  
|Notes payable issued
      for property and equipment acquired | $ | 145,938   |   | $ | 33,927    |   | $ | 191,225         |  

5

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

---

|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 six month periods ended June 30,
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 and six month periods ended June 30,
2007 and 2006, the effect of the Companys outstanding warrants would have been
anti-dilutive. Accordingly, only basic EPS is presented. As of June 30, 2007,
the Company had 6,170,543 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.

|5. | Notes Payable
|-- | -------------

Two of the notes assumed by the Company in the second quarter
of 2007 were personally guaranteed by the president of the Company. The assets
pertaining to these notes are held by the Company and will revert to Companys
possession upon payment in full of the notes to the respective lenders.

6

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|6. | Reclamation Bonds
|-- | -----------------

Various laws and permits require that financial assurances be
in place for certain environmental and reclamation obligations and other
potential liabilities. The reclamation bond balance at June 30, 2007, represents
an investment in U.S. government agency bonds. The bonds are restricted to
ensure that reclamation is performed at certain properties where the Company is
conducting mining and exploration activities.

|7. | 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 and six month periods ended June 30, 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 2004 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 and six month periods ended June 30, 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.

|8. | 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

7

---

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.

|**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 properties 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 is conducting economic studies to determine if
the deposit can be mined profitably. Production of gold ore at the Golden Chest
mine is suspended while a ramp is being driven to access a block of reserves
discovered by drilling from the surface. Permitting has been completed and
preparations are being made for some production of silver-gold ore at the Silver
Strand mine in 2007. A drift on the vein at the Coleman underground mine exposed
some ore grade mineralization during the quarter, but drifting was suspended
until November 2007 because the mining crew was sent to the Silver Strand.
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, development of infrastructure began
during the quarter. 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. Higher grade mineralization was encountered during the quarter on the
740 level Coleman drift. Drifting will resume 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 prospect.

The concentrate leach circuit at the New Jersey mineral
processing plant was completed and commissioning activities were conducted
during the quarter. Commissioning is planned to be completed during the third
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 is being conducted 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. During the
quarter, a new prospect called the Mineral Ridge was located where wide zones of
gold mineralization were detected by soil and float sampling. Another promising
target is called the Gold Butte prospect where a 50 m wide breccia

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zone with gold mineralization occurs. The Niagara deposit,
which was acquired as part of the 2006 exploration effort, was examined for open
pit mining potential during the quarter. The open pit study has so far indicated
that closer spaced drilling is needed, but that the deposit may be amenable to
open pit mining. The Company acquired a core drilling rig for $186,174 on July
1st,2007 and drilling operations started early in the third quarter.
The cost of the core drill, less the 10% down payment, was financed upon
delivery through a note payable. The backlog of drilling targets is sufficient
to keep drilling operations going on a continual basis. 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.

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 June 30, 2007 was $537,923, a decrease from $807,449 at the
end of the first quarter. Figure 1 shows the corresponding balances for previous
accounting periods.



Results of Operations-Revenue for the second quarter 2007 was
$45,012 compared to $60,563 in the second quarter of 2006. Figure 2 shows the
net loss for the second quarter of 2007 of $371,155 and the net losses in
previous accounting periods. The net loss increased in the second quarter of
2007 because of less revenue due to lower tonnes milled and lower grade ore than
the second quarter of 2006 and higher exploration and general and administrative
costs. Additionally, during the second quarter of 2006 the Company saw a gain
from the sale of the Camp project.

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Gold and silver production in pyrite concentrates were 19
ounces and 210 ounces, respectively, in the second quarter compared to 137
ounces and 0 ounces, respectively, for the second quarter of 2006. Gold
production was lower in 2007 due to lower grade ore than 2006 and fewer tonnes
processed. Gold production is expected to be approximately 30 ounces for the
third quarter and then to increase, along with silver production, when Silver
Strand ore processing starts.

Mining 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 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.

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. Mill feed will come from the Coleman
open pit, Coleman underground and the Silver Strand mine for the next two
quarters of 2007.

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 June 30, 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 2006 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 June 30, 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.

The Company issued 29,836 shares of restricted common stock to
President Fred W. Brackebusch for management services rendered in the second
quarter of 2007. The shares were valued at a price of $0.664 per share. In
managements opinion, the securities were issued pursuant to exemption from
registration under Section 4(2) of the Securities Act of 1933, as amended.

During the second quarter of 2007, the Company issued 200,000
shares at a price of $0.60 with regards to the exercise of outstanding warrants,
15,250 shares at an average price of $0.66 and an additional 1,700 shares at an
average price of $0.80 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.

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|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.

None

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

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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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