SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C. 20549

                                 FORM 10-KSB

        ANNUAL REPORT UNDER SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE
                                 ACT OF 1934

                 For the fiscal year ended December 31, 2001

                         NEW JERSEY MINING COMPANY
                         --------------------------
                (Name of small business issuer in its charter)

IDAHO                                                82-0490295
---------------------------            -----------------------------------
(State or other jurisdiction           (I.R.S. Employer Identification No.)
of incorporation or organization)

P.O. Box 1019     (Street: 89 Appleberg Road)
Kellogg, Idaho                                                  83837
-------------------------------------------                -----------
(Address of principal executive offices)                     (Zip Code)

(208)783-3331
---------------------------
Issuer's telephone number


Securities registered under Section 12(b) of the Act:  None


-------------------                   ------------------------------
Title of each class                   Name of each exchange on which
registered


            Securities registered under Section 12(g) of the Act:

                      Common Stock- No Par Value
                       --------------------------
                            Title of Class

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such
shorter period that the registrant was required to file such reports), and
(2)
has been subject to such filing requirements for the past 90 days.
   Yes   XX   No
       ------    ------

Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B not contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definite proxy or
information statements incorporated in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. XX
                              -----

State issuer's revenues for its most recent fiscal year. $  8,176
                                                        ---------------

The aggregate market value of the registrant's voting common stock held by
non-affiliates was $477,847 as of March 1, 2002 based on the average of the
bid and ask prices quoted on the OTC Bulletin Board. As of March 1, 2002 the
number of shares of common stock outstanding was 12,995,690.


<PAGE>

                          TABLE OF CONTENTS
                                                                        Page
Glossary of Significant Mining Terms                                       2

                                    PART I

Item 1.  Description of Business.                                          4
Item 2.  Description of Property.                                          6
Item 3.  Legal Proceedings.                                               13
Item 4.  Submission of Matters to a Vote of Security Holders.             13

                                   PART II

Item 5.  Market for Common Equity and And Related Stockholder Matters.    13
Item 6.  Management's Discussion and Analysis of Financial Condition
and Results of Operations.                                                14
Item 7.  Financial Statements.                                            14
Item 8.  Changes In and Disagreements With Accountants on Accounting and
Financial Disclosure.                                                     22

                                  PART III

Item 9.  Directors, Executive Officers, Promoters and Control Persons;
Compliance With Section 16(a) of the Exchange Act.                        22
Item 10. Executive Compensation.                                          23
Item 11. Security Ownership of Certain Beneficial Owners.                 24
Item 12. Certain Relationships and Related Transactions.                  25
Item 13. Exhibits and Reports on Form 8-K.                                25


                                  GLOSSARY

Ag- Silver.

Au- Gold.

Alluvial- Adjectivally used to identify minerals deposited over time by
moving water.

Argillites- Metamorphic rock containing clay minerals

Arsenopyrite- An iron-arsenic sulfide. Common constituent of gold
mineralization.

Bedrock- Solid rock underlying overburden.

CIL- A standard gold recovery process involving the leaching with cyanide in
agitated tanks with activated carbon. CIL means "carbon-in-leach."

Crosscut- A nominally horizontal tunnel, generally driven at right angles to
the strike of a vein.

Deposit- A mineral deposit is a mineralized body which has been intersected
by sufficient closely-spaced drill holes or underground sampling to support
sufficient tonnage and average grade(s)of metal(s)to warrant further
exploration or development activities.

Development Stage- As defined by the SEC- includes all issuers engaged in the
preparation of an established commercially mineable deposit (reserves) for
its extraction which are not in the production stage.
<PAGE>

Drift- A horizontal mine opening driven on the vein.  Driving is a term
used to describe the excavation of a tunnel.

Exploration Stage- As defined by the SEC- includes all issuers engaged in the
search for mineral deposits (reserves) which are not in either the
development or production stage.

Fault- A fracture in the earth's crust accompanied by a displacement of one
side of the fracture with respect to the other and in a direction parallel to
the fracture.

Galena- A lead sulfide mineral.  The most important lead mineral in the
Coeur d'Alene Mining District.

Grade- A term used to assign the concentration of metals per unit weight
of ore.  An example - ounces of gold per ton of ore (opt). One ounce per ton
is 34.28 parts per million.

Mineralization-The presence of minerals in a specific area or geologic
formation.

Ore- A mineral or aggregate of minerals which can be mined and treated at a
profit.  A large quantity of ore which is surrounded by non-ore ore sub-ore
material is called an orebody.

Production Stage- As defined by the SEC - includes all issuers engaged in the
exploitation of a mineral deposit (reserve).

Pyrite- An iron sulfide.  A common mineral associated with gold
mineralization.

Quartz- Crystalline silica (SiO2). An important rock-forming and gangue
material in gold veins.

Quartzites- Metamorphic rock containing quartz.

Raise- An opening driven upward generally on the vein.

Reserves- That part of a mineral deposit which could be economically and
legally extracted or produced at the time of the reserve determination.
Reserves are subcategorized as either proven (measured) reserves, for which
(a) quantity is computed from dimensions revealed in outcrops, trenches,
workings, or drill holes, and grade and/or quality are computed from the
results of detailed sampling, and (b) the sites for inspection, sampling, and
measurement are spaced so closely and geologic character is so well defined
that size, shape, depth, and mineral content are well-established; or
probable (indicated) reserves, for which quantity and grade and/or quality
are computed from information similar to that used for proven (measured)
reserves, yet the sites for inspection, sampling and measurement are farther
apart.

Tetrahedrite- Sulfosalt mineral containing copper, antimony and silver.

Vein- A zone or body of mineralized rock lying within boundaries separating
it from neighboring wallrock.  A mineralized zone having a more or less
regular development in length, width and depth to give it a tabular form and
commonly inclined at a considerable angle to the horizontal.

Wallrock- Barren rock surrounding a vein.

<PAGE>

                                    PART I

                                    ITEM 1.

                          DESCRIPTION OF THE BUSINESS

BUSINESS DEVELOPMENT

Form and Year of Organization

New Jersey Mining Company (the company) is a corporation organized under the
laws of the State of Idaho on  July 18, 1996.  The Company was dormant until
December 31,1996, when all of the assets and liabilities of the New Jersey
Joint Venture ( a partnership) were transferred to the Company in exchange
for
10,000,000 shares of common stock. The New Jersey Joint Venture, a
partnership, was formed in 1994 to develop the New Jersey mine.  The
partnership consisted of Mine Systems Design, Inc. [75%], Plainview Mining
Company [13%], Silver Trend Mining Company [10%], Mark C. Brackebusch [1%],
and Mascot Silver-Lead Mines, Inc. [1%].  The New Jersey Joint Venture
brought the New Jersey mine into production by building a 100 ton per day
concentrator with a gravity circuit for gold recovery.

Any Bankruptcy, Receivership or Similar Proceedings

There have been no bankruptcy, receivership or similar proceedings.

Any Material Reclassification, Merger, Consolidation, or Purchase or Sale of
a
Significant Amount of Assets Not in the Ordinary Course of Business.

There have been no material reclassifications, mergers or purchases or sales
of a significant amount of assets not in the ordinary course of business for
the past three years.

BUSINESS OF THE COMPANY

General Description of the Business

The company is involved in exploring for and developing gold, silver and base
metal ore resources in northern Idaho.  The Company has a portfolio of six
mineral properties: the New Jersey mine, the Silver Strand mine, the CAMP
project, the Lost Eagle project, the Wisconsin-Teddy project and the
Roughwater Project. The New Jersey mine and the Silver Strand mine are the
Company's development stage properties while the other four properties are
exploration stage properties. The New Jersey mine is located 3 miles east of
Kellogg, Idaho.

The Company's New Jersey mine property has an area of approximately 370 acres
and includes a group of mineral leases. A mineral lease from Gold Run Gulch
Mining Company includes 5 patented claims containing 62 acres, four
unpatented claims surrounding the patented claims, and mineral rights to fee
land containing 108 acres.  The known orebody is located on the patented
claims.  Another mineral lease from William Zanetti in the New Jersey mill
area contains about 60 acres.  Both of these mineral leases carry a 5% Net
Smelter Royalty (NSR).  A third mineral lease of 68 acres was acquired from
Mine Systems Design, Inc. in September of 2001.  This lease carries a 3% NSR.

The Company's Silver Strand mine consists of fifteen unpatented lode claims
on federal land administered by the U.S. Forest Service.  The claims were
acquired from Trend Mining Company pursuant to a purchase agreement dated
July 14, 2000.

Effect of Existing or Probable Governmental Regulations on the Business
<PAGE>

All operating plans have been made in consideration of existing governmental
regulations. Regulations that would most affect operations are related to
water quality.  Plans of operation will be required before exploration or
mining activities can be conducted on Federal land that is administered by
the Bureau of Land Management. The Bunker Hill Superfund site is located
about 1 mile west of the New Jersey mine. It is possible that Superfund
status could be applied to the area around the New Jersey mine because of
historic mining activities.  There is no known evidence that previous
operations at the New Jersey mine prior to 1910 caused any ground water or
stream pollution or discharged any tailings into the South Fork of the Coeur
d'Alene River; however such evidence could be discovered.  Historic mine
tailings from upstream mining operations located near the New Jersey mill may
have to be covered or removed if Superfund status is applied.  The Bureau of
Land Management is currently revising its regulations relative to exploration
and mining operations, but the planned changes are not thought to have major
effects on planned operations at the New Jersey mine.

Costs and Effects of Compliance with Environmental Laws (Federal, State and
Local)

No major Federal permits [except EPA storm water permit which is a blanket
state-wide permit] are required for the New Jersey mine because most
operations are on private land and there are no process discharges to
streams.  Any exploration program conducted by the Company on unpatented
mining claims, usually administered by the U.S. Bureau of Land Management
(BLM), requires a Plan of Operation permit.  With respect to the Silver
Strand mine any exploration, development or production would require a Plan
of Operation to be submitted to the U.S. Forest Service for approval and
permit issuance.

The Company is also subject to the rules of the U.S. Department of Labor,
Mine Safety and Health Administration (MSHA) for the New Jersey mine
operations. When the mine is operating, MSHA performs a series of inspections
to verify compliance with mine safety laws.

With respect to the New Jersey mine, two important State of Idaho permits are
necessary to perform the mining and milling operation, both of which are in
hand.  The first is an Idaho Cyanidation Permit and the second is a
reclamation plan for surface mining operations. An Idaho cyanidation permit
was applied for, and the permit was granted October 10, 1995 [No. CN-000027]
The Idaho Cyanidation Permit was obtained through a 1 year permitting effort,
which is quite speedy compared to several other cases. The operation of the
cyanidation mill did not prove to be controversial locally, probably due to
the long mining history in the established Coeur d'Alene Mining District.
The deposition of tailings using paste technology is a unique part of the
permit. Tailings will be dewatered to a paste consistency using a high
density thickener. Cyanide will be destroyed in the paste using bleach, and
the tailings will be deposited on a sloped stack. Fred W. Brackebusch has
received a U.S. patent (5,636,942) on this new tailings technology.
Reclamation of the tailings stack will be done concurrently with mining. The
Cyanidation permit requires quarterly surface and groundwater monitoring
prior to startup of the CIL plant and monthly sampling once operations
commence. The current water monitoring program costs the company about $2,000
on an annual basis. The estimated annual cost for sampling after CIL
operations begin is $25,000.

The surface mining reclamation plan was approved by the Idaho State
Department of Lands in 1993.  The plan calls for grading of steep fill slopes
and planting of vegetation on the area disturbed by the open pit mine.  A
bond of $2,197 is held in a joint account to ensure that reclamation is
completed.
<PAGE>

The Company complies with local building codes and ordinances as required by
law.

Number of Total Employees and Number of Full Time Employees

The Company's total number of employees is three including the President Fred
Brackebusch, the Vice President Grant Brackebusch and Secretary Tina
Brackebusch. There are no full-time employees at this time.

REPORTS TO SECURITY HOLDERS

The Company is not required to deliver an annual report to shareholders,
however, it did deliver an annual report to shareholders in February of 2002.
The annual report did not contain audited financial statements, but an
unaudited balance sheet was included.  It is expected in the future that the
Company may deliver annual reports with audited financial statements. The
Company may also rely on the Internet in the future to deliver annual reports
to shareholders.

The Company filed a Form 10-SB with the Securities and Exchange Commission on
January 11, 2000.  The filing became effective on January 27, 2000.  The
Company has filed the required annual 10-KSB and quarterly 10-QSB reports
since that time.

The public may read a copy of any materials the Company files with the SEC at
the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.
20549. The  public may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330.  The SEC maintains an
Internet site (http://www.sec.gov)that contains reports, proxy and
information statements, and other information regarding issuers that file
electronically with the SEC.

The Company maintains a website where recent press releases and other
information can be found.  The address is www.newjerseymining.com.



<PAGE>


                                    ITEM 2.

                           DESCRIPTION OF PROPERTIES

NEW JERSEY MINE

Location

The New Jersey mine is located in the Gold Run Gulch area, comprising about
15 square miles in the Coeur d'Alene Mining District just east of Kellogg,
Idaho. The mine is adjacent to Interstate 90 and is easily accessed by local
roads throughout the entire year. The area is underlain by argillites and
quartzites of the Prichard formation [member of Belt Supergroup], which
commonly hosts gold mineralization.  The controlled property, known as the
New Jersey mine, has an area of approximately 370 acres and includes a group
of mineral leases and property held by the Company.

Mineral Leases

A mineral lease from Gold Run Gulch Mining Company includes 5 patented claims
containing 62 acres, seven unpatented claims surrounding the patented claims,
and mineral rights to fee land containing 108 acres. The known orebody is
located on the patented claims. A second mineral lease from William Zanetti
in the New Jersey mill area contains about 60 acres. Alliance Title and
Escrow Corporation of Wallace, Idaho has issued a Commitment for Title
Insurance for the fee simple property leased from Gold Run Gulch Mining
Company and William Zanetti. The unpatented claims leased from Gold Run Gulch
Mining Company are on federal land administered by the U.S. Bureau of Land
Management. The leases provide for the Company's exploration, development and
mining of minerals on patented and unpatented claims through October 2008 and
thereafter as long as mining operations are deemed continuous.  The lessors
may terminate the leases upon the Company's failure to perform under the
terms of the leases. The leases provide for royalties of 5% of net sales of
ores or concentrates less transportation also know as a Net Smelter Return.
Additional royalties of 1% to 5% are due if the gold price exceeds $587 per
ounce as of December 31, 2001. This additional royalty gold price is indexed
to the Consumer Price Index with the December 1988 CPI as the base. Also,
annual advance royalties totaling $2900 per year are required under the
leases. The advance royalties are accumulated and will be credited against
the royalty obligations. Both the Zanetti and Gold Run Gulch lease agreements
are incorporated as exhibits by reference to the Company's Form 10-SB filing.

A third mineral lease was acquired from Mine Systems Design, Inc. (MSD) in
2001 in exchange for 1,000,000 shares of the Company's Common Stock.  The
lease covers the mineral rights to 68 acres located north of the New Jersey
mine area.  The lease has a fifteen year term and thereafter so long as
mining operations are deemed continuous.  The lessors may terminate the
leases upon the Company's failure to perform under the terms of the lease.  A
3% Net Smelter Return (NSR)royalty will be paid to the lessors if production
is achieved.  However, the NSR shall not exceed 10% of the net proceeds, and
except that the NSR shall not be less than 1%. No advance royalties are
required by this lease.  The Mine Systems Design, Inc. lease is included as
an exhibit in this 10-K filing.

History

There are at least 14 gold prospects in or near the New Jersey mine area.
Most of the prospecting activity was completed before the turn of the
century, and almost no work has been done for at least 50 years. Just after
the turn of the century, at the New Jersey mine, more than 2,500 feet of
development workings including drifts, crosscuts, shafts, and raises, were
driven by the New Jersey Mining and Milling Company to develop the Coleman
vein and the northwest branch of the Coleman vein.  A 10 stamp gravity mill
was built and operated for a short period.  The amount of money spent from
1899 to 1910 appears to have been $500,000 to $1,000,000 in 1996 dollars.
The operation was discontinued because of the difficulty in recovering fine
gold without cyanidation technology, because of the lower price of gold
relative to mining costs, and because of inadequate drilling and mining
technology.  For example, the Coleman vein, a hard quartz vein, was so
difficult to drill using hand steel that drifts along the vein were not
driven to any great lengths.  A considerable portion of the gold is in free
grains, so there is a strong nugget effect.

<PAGE>

Hershey [1916], a well known Coeur d'Alene district geologist, noted the
nugget effect and lack of drifting on the vein: "The average gold-content is
known to be very low, though it is said that one small shoot carried $55 gold
per ton (2.66 ounces per ton @ $20.67 per ounce which was the gold price at
that time). The great variation in the assays indicates a pockety
distribution.  This suggests that if this fine large vein were developed for
2000 ft. instead of merely 200 ft., a commercial ore-shoot might be found."

Present Condition and Work Completed on the Property

Presently, operations at the New Jersey mine are suspended due to the low
price of gold. Operations were suspended in mid 1997.  During the period from
1994 through the suspension of operations in 1997 many projects were
completed on the property. Several of the historic underground workings,
namely the 2400 level adit  and the Keyhole tunnel, were opened up.  This
permitted personnel to sample, map and evaluate the Coleman vein and
associated gold bearing structures.

A 100 ton per day gravity mill has been built and commissioned.  A crushing
plant was built and commissioned in 1996.  An open pit mining program on the
Coleman vein was initiated in 1995.  A series of haulage roads were also
upgraded in order to provide access from the open pit operation to the gold
plant (mill). Approximately 5,000 tons of ore were processed at the mill
during 1995 through 1996.  A gravity concentrate was produced and sold to
ASARCO in East Helena, Montana.  Gold recovery from the ore using gravity
methods of concentration was relatively low (approx. 60%) so the decision was
made to upgrade the mill to a CIL (Carbon-In-Leach) process. Testwork using
the CIL process on New Jersey ores indicated gold recovery rates up to 95%
were achievable. As previously stated the Company has received a Cyanide
Permit from the State of Idaho (Permit No. CN-000027).  In late 1996, the
Company began construction the permitted CIL mill upgrade with work mainly
consisting of the concrete foundation work for the new process facilities.
Other work included carpentry and metal working tasks. This work was
suspended in the spring of 1997 after completion of all the required concrete
work due to an inability of the company to raise sufficient funds. Since 1997
only regular maintenance and upkeep (including environmental monitoring) and
some geological work have been performed at the project site. During 2000,
management of the Company completed a modest construction project, a 32 foot
by 48 foot pole type building adjacent to the existing mill building.

During 2001, the Company completed a 325 meter diamond drilling exploration
program at the New Jersey mine.  Two holes were drilled to explore a
geophysical anomaly detected in the autumn of 2000.  The target was
approximately 240 meters north of the pit wall of the open pit on the Coleman
vein.  One of the drill holes was inclined at 50 degrees  with a bearing of
due east while the other hole was vertical.  The inclined hole intercepted a
broad zone of arsenopyrite mineralization, named the Grenfel zone, which
contained two separate zones of anomalous gold content.  The gold zone was
composed of 0.70 grams per tonne gold over two separate 10 meter intervals.
Although not economic ore, the zone is different than the Coleman vein system
and significantly expands the area of known gold mineralization.  Plans call
for extending the vertical drill hole to intercept the projection of the
Grenfel zone at depth.

If the Company can raise funds through a private placement, the following
exploration and development is planned for the New Jersey mine.

1. Diamond Drilling - The Company would drill approximately 1,800 meters of
diamond drill holes.  A portion of this drilling, about 800 meters, would be
done to increase the amount and certainty of gold resources on the Coleman
vein. Some of this drilling would also be more exploratory in nature and
would test geophysical anomalies and other vein prospects. This program would
cost about $150,000.

2. Mill Upgrade - An intermediate upgrade to enhance the gold gravity
recovery circuit by purchasing a new gravity concentrating machine is
proposed.  Should the metallurgical testwork prove positive, a new gravity
concentrator may increase gold recovery from 70% to 80% and provide an
intermediate upgrade step on the way to converting the mill to the CIL
process where gold recovery is predicted to be 95%.

Both of the above programs are dependent on the Company's ability to raise
money through a private placement and will not be completed until such a
placement takes place.

Geology and Reserve/Resource

The description of the geology of the New Jersey mine and the calculation of
mineral resources have been completed by the Company and not an independent

<PAGE>
third party. The description of the geology of the area can be verified from
third party published reports by the U.S. Geological Survey and unpublished
reports by Oscar Hershey, former Coeur d'Alene District geologist. The
Company is solely responsible for the resource calculations.

Geology

The Prichard formation, which is 25,000 feet in thickness, underlies the New
Jersey mine area which is adjacent to and north of the major Osburn fault.
The Osburn fault is in the center of a Proterozoic rifting basin.  The
Prichard formation is divided into nine rock units of alternating argillites
and quartzites, and the units exposed in the New Jersey mine area appear to
belong to the lower members.  A broad domal structure with a series of
tighter folds near the Osburn fault typifies the structure of the area.
South of the Osburn fault, the Wallace formation is exposed on the north
flank of the Big Creek anticline.  A fault was discovered by the 2001
drilling program.  The fault appears to be a fairly large east-west striking
structure that may separate the Coleman veins from the Grenfel zone.
Although, more information is required to confirm that hypothesis.

Gold mineralization is associated with sulfide-bearing quartz veins which cut
the bedding in Prichard argillite and quartzite.  Associated sulfides are
pyrite, arsenopyrite, chalcopyrite, low-silver tetrahedrite, galena, and
sphalerite. Most commonly in the Coleman vein of the New Jersey mine visible
gold is associated with the tetrahedrite. Gold prospects are concentrated in
the New Jersey mine area possibly because of the presence of lower Prichard
stratigraphic members, an anticlinal structure, and/or the existence of a
gold source.  Gold is associated with arsenic, copper, and antimony. Igneous
dikes are relatively rare.  Some wallrock alteration has been observed. The
Coleman vein shows a characteristic brecciation  The cumulative strike length
of the veins on the property based on exposures in drifts, outcrops and float
is about 460 meters.

Reserves

The only reserves at the New Jersey mine as of this date are those contained
within the open pit on the Coleman vein.  Open pit reserves are from the
planned pit which extends from the south portal north to the terminus of the
Coleman Vein. The vertical extent of the pit is from the surface outcrop down
to the Keyhole Tunnel level. Grade estimation for the blocks in the pit
reserve is based upon calculated head grades from 5,000 short tons of
gravity-mill production. Other sources include channel samples from the
outcrop and also from the Keyhole Tunnel

Open Pit Reserve (Proven and Probable)
============================================================================
Ore Blocks                           Metric            Grade         Ounces
                                     Tonnes       (Au grams/tonne)    (Au)
----------------------------------------------------------------------------
Coleman (17+00-21+00)              56,520               4.56         8,306
Coleman Split (21+0-23+00)         21,320               3.53         2,420
North Vein (21+00)                  2,990               8.57           825
----------------------------------------------------------------------------
Total                              80,830               4.45        11,551
============================================================================

The open pit reserve tonnages are diluted. That is, the expected dilution
from open pit mining is accounted for in the grade and tonnage of the reserve
blocks. The ounces stated in the above table are contained ounces.  According
to metallurgical testwork, approximately 95% of the gold contained in the
open pit reserve will be recovered at the mill using the CIL process.   The
reserve pit is based on a gold price of $350 per ounce.


<PAGE>

SILVER STRAND MINE

Location

The Silver Strand mine is located in Kootenai County, Idaho about 12 miles
east-northeast of Coeur d'Alene, Idaho.  The property consists of 15
unpatented lode claims.  It is situated on Lone Cabin Creek, a tributary of
Burnt Cabin Creek and of the Little North Fork Coeur d'Alene River.  Primary
access is from Coeur d'Alene via paved and dirt roads from Fernan Lake to
Lone Cabin Creek where the mine is located.

Mineral Lease

On July 14, 2000 the Company entered into a purchase agreement for the Silver
Strand  mine with Trend Mining Company. The purchase agreement covers 15
unpatented lode claims (approximately 300 acres)located on land administered
by the U.S. Forest Service.  Upon execution of the purchase agreement the
Company issued 50,000 shares of Common Stock to Trend Mining Company.  The
purchase agreement required New Jersey Mining Company to spend $200,000 in
exploration and development work commitments on the Silver Strand Mine over
three years from the date of the agreement. In July of 2001, Mine Systems
Design, Inc., majority shareholder of New Jersey, acquired Trend's remaining
interest in the Silver Strand including the 50,000 shares of NJMC.  Mine
Systems Design, Inc. waived the work commitments but retains a Net Smelter
Return (NSR) royalty.  The royalty is a 1.5% Net Smelter Return (NSR) capped
at $50,000 after which the NSR decreases to 0.5%.

History

The Silver Strand deposit was discovered during nearby logging activity
during the 1960's and mined during the 1970's and 1980's for siliceous
smelter flux.  Production was 13,752 tons grading 0.093 ounces per ton gold,
9.6 ounces per ton silver and 87.1% silica. The mining  operation was shut
down when the ASARCO Tacoma smelter closed in the early 1980's.  Previous
owner/operators include Silver Strand Mining Company, Silver Trend Mining
Company and Trend Mining Company. Mine Systems Design, Inc. (MSD) had an
exploration agreement with Silver Trend Mining Company that was terminated in
1997.  During the term of that lease, MSD made an agreement with U.S. Bureau
of Mines, Spokane Research Center to conduct a mining research product at the
Silver Strand mine.  The USBM monitored water quality and flows from the
mine, maintained the underground openings and conducted some diamond
drilling.

Present Condition and Work Completed on the Property

The Silver Strand mine is an underground mine that was mined during the
1970's and early 1980's.  No mining has taken place at the property since
that time.  Since mining was suspended only limited exploration has taken
place at the Silver Strand including geochemical sampling and diamond
drilling.  In 1997, Silver Trend Mining Company completed a four hole surface
diamond drilling program which totaled 795 meters.  The mine is accessed by
three horizontal openings called levels: the No. 2 Level, the No. 225 Level
and the No. 3 Level which is the lowest level and is located at the creek
bottom adjacent to forest road No. 411.  All three levels are accessible from
the surface via a network of dirt roads. The USBM installed a large culvert
at the portal of the No. 3 Level in order to stabilize that entrance.  No
surface infrastructure presently exists at the Silver Strand.  There is no
energy available at the site.  Any electrical energy requirements would have
to be satisfied with an on-site generator.

During 2001 only maintenance and upkeep tasks were done at the Silver Strand.
A drilling program of $5,000 is planned for the Silver Strand. However, the
proposed drilling program is dependent on the Company's ability to raise
funds through a private placement, and will not be completed until such funds
are in place.

Geology and Reserve/Resource

The description of the geology of the Silver Strand mine has been completed
by the Company and an independent third party, Don Springer - a former Coeur
d'Alene District consulting geologist. The description of the geology of the
area can be verified from third party published reports by Alfred L. Anderson
of the Idaho Bureau of Mines and Geology (Pamphlet 53). Mr. Springer
completed the calculations of the proven reserves while the Company is
responsible for the probable reserve calculations.

Geology

The Silver Strand is located in the Belt Basin about 25 miles northwest of
the Coeur d'Alene Mining District.  The upper part of the Revett Formation
outcrops at the mine.  The upper Revett member contains alternating sequences
of quartzite and siltite-argillite.  Beds dip shallowly to moderately
northerly (30 to 50 degrees).  Alfred L. Anderson of the Idaho Bureau of
Mines and Geology mapped the geology and discussed the mineral resources of
Kootenai County in 1940 (Pamphlet 53).  Anderson combined the Burke and
Revett formations and estimated the combined thickness to be from 1,000 to
3000 feet.  There are no major intrusive rocks near the Silver Strand mine.
A major diabase dike has intruded the Silver Strand mineralized zone.  The
diabase dike is weathered and altered near the surface, but appears fresh in
deeper drill hole intercepts.  The Burnt Cabin fault is the major geologic
structure near the Silver Strand mine.

The Silver Strand orebody consists of a nearly-vertical, silicified (quartz)
replacement zone which cuts the flat to moderately dipping Revett beds.  The
zone is not a fissure-filling vein.  The boundaries and shape of the
silicified zone were determined to some extent by the 1997 diamond drilling
program.  The sulfide ore mined to date appears to be enclosed within the
quartz zone.  The ore is black and very fine-grained.  Sulfide minerals are
not easy to identify because of the fine-grained texture.  Occasional
euhedral crystals of pyrite can be observed,  and tetrahedrite is visible in
the higher grade ore.  Minerals observed by microscopic study during
metallurgical tests include: pyrite, tetrahedrite, tennatite, sphalerite,
arsenopyrite and stibnite.

Reserves

The Silver Strand orebody was mined by underground methods from the surface
to a depth of approximately 150 feet.  The orebody has a mining width of
about 15 feet and a strike length of just under 100 feet.  The proven reserve
block of 4,500 tons resides between the No. 3 and No. 225 Levels and is
exposed vertically by a raise.  The probable reserve block is a projection of
the orebody 75 feet below the No. 3 level.  Grades for the reserve blocks are
based on previous ore production grades and channel sampling of the raise.

Silver Strand Mine Reserve (Proven and Probable)
============================================================================
Ore Blocks                Metric         Gold Grade          Silver Grade
                          Tonnes       (Au grams/tonne)     (Ag grams/tonne)
----------------------------------------------------------------------------
No. 3 Block (Proven)      4,080             3.19                 329
No. 4 Block (Probable)    6,350             3.19                 329
----------------------------------------------------------------------------
Total                    10,430             3.19                 329
============================================================================

The reserve tonnages are diluted. That is, the expected dilution from
underground mining is accounted for in the grade and tonnage of the reserve
blocks.

CAMP PROJECT

Location

The CAMP project is an underground exploration project without known ore
reserves.  It is located south of and adjacent to the City of Osburn, Idaho.
The CAMP is accessed by the Mineral Point mine road otherwise known as the
McFarren Gulch road.  The CAMP is located in the approximate center of the
silver belt of the Coeur d'Alene Mining District. The CAMP project covers
approximately 380 acres. The Company controls 17.75% of the land in the CAMP.
Merger Mines and Coeur d'Alene Mines Corp.(CDE:NYSE)control the remainder.
Coeur d'Alene Mines Corp. is the operator of the property. This property was
acquired by the Company in its January 1998 merger with Plainview Mining Co.
The CAMP area extends from the surface to 900 feet below sea level.  Sunshine
Mining Company owns the mineral property beneath the CAMP property.

Mineral Lease

As part of a July 26, 1978 lease agreement with Coeur d'Alene Mines Corp.
(Coeur), New Jersey  Mining Co. will receive a 7.1% Net Profits Interest
(NPI),if the property is put into production.  However, according to the
agreement Coeur can retain 93.925% of the net profits until Coeur is
reimbursed in total for its advance payments and expenditures.  The term of
the lease is 61 years. The Agreement also calls for Coeur to spend $50,000
annually on exploration. However, a December 18, 1992 Amendment to the
Agreement allowed Coeur to fulfill the exploration work requirement until
2006 by applying past work in the amount of $1,436,243 towards the
exploration work requirement.

History

Originally the CAMP project was leased to ASARCO during the period from 1969
through 1972. ASARCO developed an exploration drift on the 1400 level of the
Coeur d'Alene mine (aka Mineral Point mine), before terminating the drift
1000 feet short of its planned termination. The drift extended 1,000 feet
into the CAMP project area before terminating. A series of diamond drill
holes were planned along the 1400 level drift, but ASARCO terminated the
lease agreement before any drilling could take place.

In 1978, Coeur d'Alene Mines Corp. signed a new lease agreement with Merger
Mines and Plainview Mining Co. Coeur began an exploration program soon
thereafter consisting of geochemical soil sampling, trenching, an exploration
tunnel and diamond drilling (surface & underground).  The exploration program
continued through 1982. Coeur spent a total of  $1,436,243 on the project.
The property has not received any more exploration activity since 1982 and to
the best of our knowledge Coeur has no plans for exploration.

Geology

The CAMP area lies astride the Silver Belt of the Coeur d'Alene Mining
District east of the Sunshine mine and west of the Coeur and Galena mines.
The north limb of the Big Creek anticline trends through the CAMP area.  Most
of the silver orebodies in adjacent properties are located in the north limb
of the Big Creek anticline.  Prospective fault structures that trend through
the CAMP property include the Polaris fault, Silver Summit vein-fault,
Chester fault, and other structures.  Favorable rock types are located in the
footwall of the Polaris fault including the St. Regis and Revett formation.

<PAGE>

LOST EAGLE PROJECT

Summary

The Lost Eagle is an exploration project without known ore reserves.  It is
located in the West Fork of Eagle Creek near Murray, Idaho.  The outcrop of
the Lost Eagle vein is located on the hillside above a USFS road.  Access to
the outcrop is by foot only.  The Company's two lode claims cover 40 acres
and are on federal land administered by the U.S. Forest Service.  The project
is a gold and silver exploration project. The Lost Eagle vein is a quartz
vein carrying sulfides that outcrops in the Revett formation.  The sulfide
minerals found in the vein are galena, pyrite, hessite and petzite.  Hessite
is a silver telluride mineral and petzite is a gold-silver telluride mineral.
The presence of tellurides is thought to be significant as tellurides are
usually associated with high-grade gold deposits near alkaline-igneous
bodies.  However, no known igneous bodies are mapped in the area.  Historical
workings included two short adits, say 5 meters long, located along the
strike of a quartz vein system.  The upper adit established by the old-timers
exposes the vein where it is mineralized.  During 2001, the Company partially
completed re-opening of the adit.  Several channel samples of the vein were
taken.  A geochemical soil sampling grid was also completed.  A lead anomaly
was detected in the soil along the projected strike of the vein as well as
near a major structure (fault)further up the hillside.

Plans call for completely re-opening the historic adit for additional
sampling.  Follow-up sampling and investigations of the surrounding geology
of the area are also planned. If the Company can raise funds through a
private placement of Common Stock, a 200 meter diamond drill hole to explore
the stratigraphy would be drilled at the Lost Eagle.

WISCONSIN-TEDDY PROJECT

Summary

The Wisconsin-Teddy is an exploration project without known ore reserves.
The project area lies north of the New Jersey mine and is accessed by a local
frontage road. The Company's claims cover 83 acres. The claims are unpatented
and are on federal land administered by the U.S. Bureau of Land Management.
The project is a base metal exploration project in the Prichard formation.
Several tunnels with an aggregate length of 2,000 feet were driven on the
property prior to 1930. This development was related to two veins systems - a
copper-gold vein and a zinc-lead-silver vein. Preliminary field
investigations have delineated a large structure about 30 meters in width
which contains anomalous copper, lead and silver mineralization. One shallow
exploration hole (500 feet) is planned for an initial investigation of this
structure. This property may contain a vent or fracture system related to
Sullivan-type mineralization. During 2001, a small sampling program of
surface outcrops was completed.

ROUGHWATER PROJECT

Roughwater is an exploration project without known ore reserves.  The
Roughwater prospect is comprised of nine unpatented claims in the Clark Fork
mining district about 60 miles north of Kellogg.  The property is located
near Bear Creek in the Lightening Creek drainage.  To date, the work
completed on the property includes sampling of surface outcrops and
preliminary metallurgical testwork.  The property is a copper-gold showing
with minor platinum group metal content. The host rock is a quartz diorite
sill which has intruded the Prichard formation.  A wide area of disseminated
copper mineralization has been observed which may be a cumulate layer in the
sill.  Plans for the 2002 exploration season include a thorough follow-up
surface reconnaissance of the Roughwater claim group.


                                    ITEM 3.

                               LEGAL PROCEEDINGS

The Company is not currently involved in any legal proceedings and is not
aware of any pending or potential legal actions.

                                    ITEM 4.

              SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      None.

                                   PART II.

                                   ITEM 5.

            MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Market Information

The Company's stock trades on the NASD's OTCBB under the symbol "NJMC". The
Company began trading on the OTCBB on January 28, 1998 following its merger
with Plainview Mining Company, Inc.

The following table sets forth, for the respective periods indicated, the
prices for the Company's Common Stock in the over-the-counter market
according to the NASD's OTC Bulletin Board. These prices represent inter-
dealer quotations, without adjustments for retail markups, markdowns or
commissions and may not necessarily represent actual transactions. All prices
in the following table have been rounded to the nearest whole cent.

Quarterly High/Low Bids
============================================================================
                                                      High Bid      Low Bid
----------------------------------------------------------------------------
Fiscal Year Ending December 31, 2001
First Quarter                                         $ 0.16       $ 0.03
Second Quarter                                        $ 0.18       $ 0.05
Third Quarter                                         $ 0.10       $ 0.06
Fourth Quarter                                        $ 0.12       $ 0.06
----------------------------------------------------------------------------
Fiscal Year Ending December 31, 2000
First Quarter                                         $ 0.16       $ 0.03
Second Quarter                                        $ 0.11       $ 0.06
Third Quarter                                         $ 0.06       $ 0.06
Fourth Quarter                                        $ 0.10       $ 0.05
============================================================================

Shareholders

As of December 31, 2001 there were approximately 410 shareholders of record
of the Company's Common Stock.  As of December 31, 2001 the Company had
issued and outstanding 12,995,690 shares of Common Stock.

Dividend Policy

The Company has not declared or paid cash dividends or made distributions in
the past and the Company does not anticipate that it will pay cash dividends
or make distributions in the foreseeable future. The Company currently
intends to retain and reinvest future earnings, if any, to finance its
operations.

Transfer Agent

The transfer agent for the Company's Common Stock is Columbia Stock Transfer
Company, P.O. Box 2196, Coeur d'Alene, Idaho 83816-2196.

                                    ITEM 6.

        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                          AND RESULTS OF OPERATIONS

The Company's cash requirements were lower in 2001 than in 2000, for which
the primary reason was reduced cash needed for capital lease payments.
Operating and administrative expenses increased from $5,906 in 2000 to
$12,016 in 2001.  Royalty from the lease of the New Jersey mine and mill
facilities was similar in 2001 to the previous year so net income declined
from $2,922 to a net loss of $3,840 in 2001.  The lease is continuing into
2002; therefore financial results in 2002 should be similar to 2001.

In 2001, 20,000 shares of common stock in Consil Corporation were sold
generating $1,392 in cash proceeds and $2,608 in capital loss.  At year end
2001, Consil had become a corporate shell with plans to become a medical
device and dental service company, and a 25:1 reverse stock split was
announced.  New Jersey Mining Company's assets increased by $125,000 due to
the acquisition of the Miner's Slough and Teddy fraction properties.  Total
liabilities decreased from $12,320 at the end of 2000 to $6,491 at the end of
2001.

With the acquisition of the Silver Strand mine in 2000 and the Lost Eagle
prospect in 2001, the Company's prospects for the future are relatively
equally related to silver and gold prices.  Both gold and silver prices would
have to increase significantly before the Company can resume financing
activities or resume construction of the mineral processing plant or resume
exploration and operations.

                                    ITEM 7.

                             FINANCIAL STATEMENTS


                        INDEPENDENT AUDITOR'S REPORT

                      [Nathan Wendt, C.P.A. LETTERHEAD]

Board of Directors
New Jersey Mining Company
PO Box 1019
Kellogg, Idaho 83837

Directors:

We have audited the accompanying balance sheet of New Jersey Mining Company
(a development stage company)as of December 31, 2001 and the related
statements of operations, stockholders' equity and cash flows for the year
then ended. These financial statements are the responsibility of New Jersey
Mining Company. Our responsibility is to express an opinion on financial
statements based on our audit.

We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material aspects, the financial position of New Jersey Mining Company at
December 31, 2001, and the results of its operation and its cash flow for the
year then ended, in conformity with generally accepted accounting principles.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in note 7 to the
financial statements, the Company has generated a loss to date and is in the
development stage. These conditions raise substantial doubt about its ability
to continue as a going concern. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

/s/ Nathan Wendt
----------------
Certified Public Accountant

Kellogg, Idaho
March 4, 2002

<PAGE>

<TABLE>

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

ASSETS

                                          Dec. 31      Dec. 31       Dec. 31
                                           2001          2000          1999
                                          --------     ---------     --------
       <S>                              <C>           <C>           <C>
       Current Assets
              Cash                       $    211      $  1,772     $    282

       Property & Equipment
              Building                   $ 33,894      $ 33,894     $ 33,894

              Equipment                  $246,536      $246,536     $246,536

       Other Assets
              Deferred Development
              Costs                      $ 80,881      $ 80,881     $ 80,881

              Investment in Mining
              Claims                     $205,204      $ 74,704

              Investment in Consil
              Corporation                $  3,000      $  7,000     $ 38,000

              Mining Reclamation Bond    $  2,197      $  2,073     $  1,722

              Goodwill                   $ 30,950      $ 30,950     $ 30,950

       Total Assets                      $602,873      $477,810     $432,265
</TABLE>

<TABLE>
LIABILITIES AND STOCKHOLDERS EQUITY
       <S>                              <C>           <C>           <C>
       Current Liabilities

              Accounts Payable &
              accrued expenses          $    570      $      0      $      0

             Current Maturities of
             Capital Lease Obligations  $  5,921      $  6,645      $ 10,860

       Total Current Liabilities        $  6,491      $  6,645      $ 10,860

       Capital Lease Obligations
       (less current maturities)        $      0      $  5,675      $  8,486

       Total Liabilities                $  6,491      $ 12,320      $ 19,346

       Stockholders Equity

       Preferred Stock
       No shares issued

       Common Stock
       No Par Value, 20,000,000 shares authorized

<PAGE>
       2000 Dec. 31, 2001
       14,942,834 Issued                $ 858,239

       2000 Dec. 31, 2000                              $ 720,899
       13,569,434 Issued

       1999 Dec. 31, 1999
       13,457,334 Issued                                            $ 647,836

       Treasury Stock                   $(136,300)     $(136,300)
$(136,300)
       (1,947,744 shares)

       Retained Earnings                $ (50,678)     $(44,230)    $(23,738)

       Deficit Accumulated in
       the Development Stage            $ (74,879)     $(74,879)    $(74,879)

       Total Stockholders Equity        $ 596,382      $465,490     $412,919

       Total Liabilities and
       Stockholders Equity              $ 602,873      $477,810     $432,265
</TABLE>

<PAGE>

<TABLE>
                              STATEMENT OF OPERATIONS

                                        Dec. 31       Dec. 31       Dec. 31
                                         2001           2000          1999
                                        --------      -------       --------
<S>                                    <C>           <C>            <C>
Revenues                               $  8,176      $  8,828      $ 24,036

Operating and Administrative Expenses  $(12,016)     $ (5,906)     $  (274)

Net Income or (Loss and Deficit
Accumulated in the Development Stage)  $ (3,840)     $  2,922      $ 23,762

Loss on Devaluation of Investments     $ (2,608)     $(23,414)     $(47,500)

Net Loss                               $ (6,448)     $(20,492)     $(23,738)

Basic Earnings (Loss) Per Share        $ (0.0004)    $(0.001)      $(0.002)

</TABLE>

<PAGE>

<TABLE>
                       STATEMENT OF STOCKHOLDERS' EQUITY

                        Common Stock        Treasury   Accumulated
                                             Stock       Deficit
                    Shares       Amount                              Total
                    -------     --------    --------   ----------    ------
<S>                 <C>           <C>        <C>            <C>        <C>
Balances
December
31, 1998        11,430,890      $647,836   $(136,300)   $(74,879)   $436,657

Issuance of
common shares
for services
1999                79,300                                          $ -0-

Net Loss year
ended December
31, 1999                                                $(23,738)   $(23,738)

Balances
December
31, 1999        11,510,190      $647,836   $(136,300)   $(98,617)   $412,919

Issuance of
common shares
for investments
2000                50,000      $ 68,750                            $ 68,750

Issuance of
common shares
for services
2000                62,100      $  4,313                            $  4,313

Net Loss year
Ended December
31, 2000                                                $(20,492)   $(20,492)

Balances
December 31,
2000            11,622,290      $720,899   $(136,300)   $(119,109)  $465,490

Issuance of
common shares
for investments
2001             1,305,000      $130,500                            $130,500

Issuance of
common shares
for services
2001                68,400      $  6,840                            $  6,840

Net Loss year
Ended December
31, 2001                                                $  (6,448)  $ (6,448)

Balances
December 31
2001            12,995,690      $858,239   $(136,300)   $(125,557)  $596,382
</TABLE>


<PAGE>

<TABLE>
                             STATEMENT OF CASH FLOWS

                                        Dec. 31        Dec. 31       Dec. 31
                                          2001          2000          1999
                                        --------       -------       --------
<S>                                   <C>             <C>          <C>
INCREASE (DECREASE) IN CASH

Cash Flows From Operating Activities
       Net Income (Loss)               $ (6,448)      $(20,492)    $ 23,762

       Increase in investments in
       operating activities            $   (124)      $  3,441

       Increase in accounts payable
       and accrued expenses            $    570       $      0     $ (7,979)

       Net cash used in operating
       activities                      $ (6,002)      $(17,051)    $ 15,783

Cash Flows From Investing Activities

       Net Loss due to investing
       activities                      $ 25,567       $ 25,567

       Net cash used in investing
       activities                      $ 25,567       $ 25,567     $      0

Cash Flows From Financing Activities

       Principal payments on capital
       lease obligations               $ (5,829)      $( 7,026)    $(15,586)

       Net cash provided by
       financing activities            $ (5,829)      $( 7,026)    $(15,586)

Net Increase (Decrease)in Cash         $ (1,561)      $  1,490     $    197

Cash, Beginning of Year                $   1,772      $    282     $     85

Cash, End of Year                      $     211      $  1,772     $    282


Supplemental Schedule of Noncash
Investing and Financing
Activities
<PAGE>

Devaluation of Investment in ConSil                                 $(47,500)

Investment in Mining Claims            $100,000       $(71,263)
                                          5,000
                                         25,500

</TABLE>



                       NOTES TO FINANCIAL STATEMENTS

                                     2001

NOTE 1- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

New Jersey Mining Company (the Company) was incorporated as an Idaho
corporation on July 18, 1996.  The Company was dormant until December 31,
1996 when all of the assets and liabilities of New Jersey Joint Venture (a
partnership) were transferred to the Company in exchange for 10,000,000
shares of common stock. Such assets and liabilities, transferred at
historical cost, consisted of:

       Assets acquired:
              Cash                                     $ 16,565
              Property & Equipment                     $176,267
              Other Assets                             $ 63,306
                                                       ---------
                                                       $256,138

       Liabilities assumed:
              Accounts payable                         $  2,969
              Note payable to bank                     $ 20,000
              Capitalized lease obligation             $ 25,201
                                                       ---------
                                                       $ 48,170

       Net assets acquired December 31, 1997           $207,968

The Company owns and leases various patented and unpatented mining claims in
the Coeur d'Alene Mining District near Kellogg, Idaho. The Company is
considered to be a development stage company, as only nominal operations have
occurred to date.  Planned principal operations include commercial open pit
mining and milling of ore to produce and sell gold concentrate.

Summary of Significant Accounting Policies:

a. Plant and equipment - Plant and equipment are stated at cost.  No
depreciation has been recorded through December 31, 2001, as substantially
all assets are under construction or have not yet been placed into service.
Depreciation will be provided when the assets are placed into service, using
straight-line and accelerated methods over the estimated useful lives of the
assets.

b. Deferred development costs - Certain costs of developing the Company's
mining claims and related property have been capitalized.  Such costs,
consisting principally of clearing, drilling, blasting, and similar
activities, less nominal sales of concentrate, will be amortized to expense
based on production. If production does not commence, the costs will be
charged to expense.
<PAGE>

c. Impairment - Impairment is recognized when it is probable that a loss will
be incurred in the realization of a recorded asset.  Management has
determined that no impairment of assets has occurred at December 31, 2001, as
adequate ore reserves are available for production and sale to recover all
capitalized costs.

d. Income taxes - Federal and state income taxes are provided for the tax
effects of transactions reported in the financial statements and consist of
taxes currently due and deferred tax assets and liabilities based on the
differences between their tax bases for financial and tax purposes.  Such
differences relate principally to deferred development costs. In addition, a
deferred tax asset is recognized for tax-basis operating losses being carried
forward.  A valuation allowance for deferred tax assets is also recognized
when appropriate.

e. Loss per share - Basic loss per share has been calculated on the basis of
the weighted average number of shares outstanding during the year.

f. Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amount of assets,
liabilities, revenue and expenses, and the disclosure of contingent assets
and liabilities. Significant estimates used in preparing these financial
statements include those relating to the evaluation of asset impairment.
Actual results could differ from these estimates.

NOTE 2 - LEASES OF MINING CLAIMS

The Company has been assigned mining leases with Gold Run Gulch Mining
Company and William Zanetti.  The leases provide for the Company's
exploration, development, and mining of minerals on patented and unpatented
claims through October 2008 and thereafter as long as mining operations are
deemed continuous. The leases provide for production royalties of 5% of net
sales of ores or concentrates. Additional production royalties of 1% to 5%
are due if the price of gold exceeds $587 per troy ounce. Also, advance
royalties totaling $2,900 are required under the lease.  The advance
royalties, charged to expense as incurred, are accumulated and will be
credited against the production royalty obligations. The lessors may
terminate the leases upon the Company's failure to perform under the term of
the leases.  The Company may also terminate the leases at any time. Mine
Systems Design, Inc., the majority shareholder of New Jersey Mining Company -
66.6%, has agreed to fulfill all mineral lease requirements necessary for
mineral lease permits.

A third mineral lease was acquired from Mine Systems Design, Inc. (MSD) in
2001 in exchange for 1,000,000 shares of the Company's Common Stock.  The
lease covers the mineral rights to 68 acres located north of the New Jersey
mine area.  The lease has a fifteen year term and thereafter so long as
mining operations are deemed continuous.  The lessors may terminate the
leases upon the Company's failure to perform under the terms of the lease.  A
3% Net Smelter Return (NSR)royalty will be paid to the lessors if production
is achieved.  However, the NSR shall not exceed 10% of the net proceeds, and
except that the NSR shall not be less than 1%. No advance royalties are
required by this lease.

NOTE 3 - PLAINVIEW MERGER

In October 1997, the Company made an exchange offer for the outstanding
common shares of Plainview Mining Company, Inc.(Plainview).  The offer
allowed Plainview's stockholders to exchange their shares on the basis of one
share of Plainview stock for two shares of the Company's stock.  Plainview
was also a minority shareholder of the Company as a result of its
participation as partner in New Jersey Joint Venture (see Note 1).

At December 31, 1998, a total of 1,500,000 (100%) shares of Plainview had
been exchanged for 3,000,000 shares of the Company. The Company is accounting
for the business combination of Plainview on the purchase method.  The
estimated fair value of the Company's shares issued in the exchange ($0.10
per share) was used to reflect the purchase price of the investment.


<PAGE>


The acquisition of 1,947,144 shares of the Company's Common Stock owned by
Plainview was accounted for in 1998 as a purchase of treasury stock, based on
the fair value of the shares issued, $0.07, or $136,000.

At March 12, 1998, Plainview's summarized (unaudited) balance sheet consisted
of the following at fair values:

      Assets:
            Cash                                 $ 12,750
            Property & mining claims             $ 30,000
            Investment, at cost:
                  Consil Corporation             $ 90,000
                  New Jersey Mining Company      $136,300
                  (1,947,144 common shares)
                  Goodwill                       $ 30,950
                                                 --------
                        Total Assets             $300,000

      Stockholders' equity                       $300,000

NOTE 4 - INVESTMENTS

The Company owns 15,000 shares of Consil Corporation.  These shares were
received from the merger with Plainview (see Note 3).  At the date of the
merger these shares were valued at $0.45 per share or $85,500.  During all of
2001, the price of these shares was below $0.15 per share.  Due to Consil
Corporation's lack of a business plan, the value is not expected to rise
above $0.20 per share.  Our value of shares owned is $3,000.

The Company purchased from Trend Mining Company on July 14, 2000 the Silver
Strand unpatented mining claims and property in exchange for stock and future
royalty commitments.  The Company also purchased the Grenfel Mineral lease
(Teddy & Miner's Slough Parcels) and the Roughwater claims from Roughwater
Mining Company.  New Jersey Mining Company issued 50,000 shares for the
Mineral Rights of the Lost Eagle Project.

NOTE 5 - CAPITAL LEASE OBLIGATIONS

The Company leases certain equipment under capital lease obligations. The
capitalized cost of such equipment at December 31, 2001 totaled $54,273.
Amortization of the cost has not begun (see Note 1). In January 1999, the
Company entered into a royalty agreement with Mine Systems Design, Inc.
(MSD). The agreement states that MSD will pay all of the accounts payable,
expenses, and yearly lease obligations in exchange for use of the Company's
equipment. During 2001, the total royalties received were $3,400. Following
are the future minimum lease payments and net capital lease obligations at
December 31, 2001:

            Years Ending December 31                  Amount
            ------------------------                  -------
            2002                                      $ 6,464
            2003                                      $     0
                                                      -------
            Total minimum payments required           $ 6,464
            Less Interest                             $   543
                                                      -------
            Net capital lease obligations             $ 5,921
            Less current maturities                   $(5,921)
                                                      -------
            Noncurrent capital lease obligations      $     0

Interest expense totaled $421 for 2000.

NOTE 6 - INCOME TAXES

At December 31, 2001, the Company had deferred tax assets of $20,000, which
were fully reserved by valuation allowances. For the year ended December 31,
2001, the Company has recognized the net tax benefit for its operating loss
in the statement of operations, as valuation allowances offset such benefit.

The Company has a tax-basis operating loss carry-forward of approximately
$125,557 that is available to offset future taxable income through 2016.

NOTE 7 - GOING CONCERN

The accompanying financial statements have been prepared on the basis that
the Company will continue as a going concern, although the Company is in the
development stage.  As shown in the accompanying statement of operations, the
Company incurred a net loss of $6,448 in 2001.  The ability of the Company to
recover its capitalized costs of assets and continue as a going concern is
dependent upon the Company's evolution to the operating stage, the success of
future operations, and obtaining additional capital and financing.  The
financial statements do not include any adjustments that might be necessary
if the Company is unable to continue as a going concern.


                                    ITEM 8.

                CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
                     ACCOUNTING AND FINANCIAL DISCLOSURE

None.

                                  PART III

                                   ITEM 9.

   DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE
WITH SECTION 16(a) OF THE EXCHANGE ACT


Directors and Executive Officers
============================================================================
Name & Address          Age        Position        Date First        Term
                                                    Elected         Expires
----------------------------------------------------------------------------
Fred W. Brackebusch     57         President        7/18/96
P.O. Box 1019                      Director
Kellogg, Idaho 83837               Treasurer
----------------------------------------------------------------------------
Grant A. Brackebusch    32         Vice President   7/18/96
P.O. Box 131                       Director
Silverton, ID 83867
----------------------------------------------------------------------------
Charles F. Asher        77         Director          1/1/97
15 Alvarado
Rancho Viejo
TX 78575
----------------------------------------------------------------------------
Tina C. Brackebusch     32         Secretary         1/1/97
P.O. Box 131
Silverton, ID 83867
----------------------------------------------------------------------------
Ronald Eggart           80         Director          1/1/97
HC-01 Box 187
Kellogg, ID 83837
----------------------------------------------------------------------------
============================================================================

Directors are elected by shareholders at each annual shareholders meeting to
hold office until the next annual meeting of shareholders or until their
respective successors are elected and qualified.

Fred W. Brackebusch, P.E. is the President and a Director of the Company.  He
has a B.S. and an M.S. in Geological Engineering both from the University of
Idaho. He is a consulting engineer with extensive experience in mine
development, mine backfill, mine management, permitting, process control and
mine feasibility studies.  He has over 25 years of experience in the Coeur
d'Alene Mining District principally with Hecla Mining Co.  He has been the
principal owner of Mine Systems Design, Inc., a mining consulting business,
since 1987.  Mr. Brackebusch is also on the Board of Directors of Mascot
Silver-Lead Mines, Inc.

Grant A. Brackebusch, P.E. is the Vice President and a Director of the
Company. He holds a B.S. in Mining Engineering from the University of Idaho.
He worked for Newmont Gold Co. in open pit mine planning and pit supervision
for 3 years. Since that time he as worked with Mine Systems Design performing
various engineering and geotechnical tasks. He also supervised New Jersey
Mining Co.'s mining and milling operations prior to the suspension of
operations.

Charles Asher is a Director of the Company.  He is also President and a
Director of Mascot Silver-Lead Mines Inc.  He was formerly President of
Plainview Mining Co. and Silver Trend Mining Co.  Mr. Asher has extensive
experience as an underground mine operator in the Coeur d'Alene Mining
District.

Tina C. Brackebusch is Secretary of the Company.  She has served as Office
Manager for the Company.  She holds a B.S. in Secondary Education from the
University of Idaho.

Ronald Eggart is a Director of the Company.  He is a retired CPA with a long
record of experience with Coeur d'Alene Mining District mining ventures.  He
is also a Director and Secretary for Mascot Silver-Lead Mines Inc.

Family Relationships

Fred W. Brackebusch is the father of Grant A. Brackebusch.  Tina C.
Brackebusch is the wife of Grant A. Brackebusch.

                                   ITEM 10.

                           EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE
============================================================================
Name &      Year    Salary     Bonus    Other      Restrct.  Options    LTIP
Principal            ($)       ($)      Annual     Stock      SARs     Payout
Position                                Comp.($)   Awards($)             ($)
----------------------------------------------------------------------------
F.          1999     -0-        -0-       -0-        -0-        -0-      -0-
Brackebusch 2000     -0-        -0-       -0-        188        -0-      -0-
President   2001     -0-        -0-       -0-        300        -0-      -0-
----------------------------------------------------------------------------
G.          1999     -0-        -0-       -0-        -0-        -0-      -0-
Brackebusch 2000     -0-        -0-       -0-        188        -0-      -0-
Vice Pres.  2001     -0-        -0-       -0-        300        -0-      -0-
----------------------------------------------------------------------------
C. Asher    1999     -0-        -0-       -0-        -0-        -0-      -0-
Director    2000     -0-        -0-       -0-        188        -0-      -0-
            2001     -0-        -0-       -0-        300        -0-      -0-
----------------------------------------------------------------------------
T.          1999     -0-        -0-       -0-        -0-        -0-      -0-
Brackebusch 2000     -0-        -0-       -0-        188        -0-      -0-
Secretary   2001     -0-        -0-       -0-        300        -0-      -0-
----------------------------------------------------------------------------
R. Eggart   1999     -0-        -0-       -0-        -0-        -0-      -0-
Director    2000     -0-        -0-       -0-        188        -0-      -0-
            2001     -0-        -0-       -0-        300        -0-      -0-
----------------------------------------------------------------------------
============================================================================

There been no accruance for, any Officer or Director of the Company for cash
remuneration for services which are related to the duties of those Officers
or Directors.  There are no immediate plans to pay any cash remuneration to
any Officers or Directors related to their respective duties until the
Company is able to afford payment.

The Board of Directors agreed to pay Officers and Directors for their
services 3,000 shares of restricted (Rule 144) common stock per year for the
years 1999, 2000 and 2001. There are no plans at this time to change the
number of shares awarded to Directors and Officers of the Company. No value
was ascribed to the stock in 1999. However, a value of $0.0625 per share was
ascribed to the shares in 2000 and $0.10 per share in 2001. The Company does
not have a standard arrangement pursuant to which Directors or Officers are
compensated for their services.

                                   ITEM 11.

               SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                                  MANAGEMENT


The following table sets forth information on the ownership of the Company's
voting securities by Officers, Directors and major shareholders as those who
own beneficially more than five percent of the Company's common stock through
the most current date - March 8, 2001.

Security Ownership of Certain Beneficial Owners and Management
============================================================================
Title Of     Name and Address of         Amount & Nature of       Percent of
Class         Beneficial Owner            Beneficial Owner          Class
----------------------------------------------------------------------------
Common       Plainview Shareholders Trust    828,634 (a)               6.38%
             Tina C. Brackebusch, Trustee
             P.O. Box  1019
             Kellogg, ID 83837
----------------------------------------------------------------------------
Common       Fred W. Brackebusch           7,937,037 indirect(b)      61.24%
             President & Director             22,000 direct
             P.O. Box 1019
             Kellogg, Idaho 83837
----------------------------------------------------------------------------
Common       Grant A. Brackebusch            921,263 indirect(c)       7.38%
             Vice Pres. & Director             36,276 direct
             P.O. Box 131
             Silverton, ID 83837
----------------------------------------------------------------------------
Common       Charles F. Asher, Director        58,000                   0.45%
             15 Alvarado
             Rancho Viejo, TX 78575
----------------------------------------------------------------------------
Common       Tina C. Brackebusch, Secretary    12,000                   0.09%
             P.O. Box 131
             Silverton, ID 83867
----------------------------------------------------------------------------
Common       Ronald Eggart, Director           51,332                   0.39%
             HC-01 Box 187
             Kellogg, ID 83837
----------------------------------------------------------------------------
============================================================================

(a) The Plainview Shareholders Trust was created in order to hold shares for
those shareholders of Plainview Mining Company who have not participated in
the merger with the Company as of this date. As Plainview shareholders
exchange their shares for New Jersey shares, the number of shares in the
Trust declines. Tina C. Brackebusch is the Trustee and retains the right to
vote those shares. The Plainview Shareholders Trust does not have the right
to acquire any securities pursuant to options, warrants, conversion
privileges or other rights.

(b) Fred Brackebusch owns 89.6% of Mine Systems Design, Inc.(MSD) which is a
Schedule S corporation that owns 8,858,300 common shares of New Jersey Mining
Co. Neither MSD nor Fred Brackebusch have the right to acquire any securities
pursuant to options, warrants, conversion privileges or other rights.

(c) Grant Brackebusch owns 10.4% of Mine Systems Design, Inc.(MSD) which is a
Schedule S corporation that owns 8,858,300 common shares of New Jersey Mining
Co. Neither MSD nor Grant Brackebusch have the right to acquire any
securities pursuant to options, warrants,
conversion privileges or other rights.

None of the directors or officers have the right to acquire any securities
pursuant to options, warrants, conversion privileges or other rights.

                                    ITEM 12.

                  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The Company exchanged 255,000 shares of its Common Stock for all the
outstanding shares of Roughwater Mining Company, an Idaho corporation, on
September 10, 2001.  Roughwater's sole asset was its nine unpatented mineral
claims in the Clark Fork Mining District of northern Idaho.  Mine Systems
Design, Inc., owned 50% of Roughwater Mining Co. and received 125,000 shares
of New Jersey Common Stock for its interest.  Mine Systems Design, Inc. is
the majority shareholder of the Company.  The co-owners of Mine Systems
Design, Inc. are Fred and Grant Brackebusch.

On September 12, 2001, the Company entered into a mineral lease agreement
with Mine Systems Design, Inc. for property near the New Jersey mine in
exchange for 1,000,000 shares of the Company's Common Stock.  The lease
covers 68 acres.  Mine Systems Design, Inc. is the majority shareholder of
the Company.  The co-owners of Mine Systems Design, Inc. are Fred and Grant
Brackebusch.

On July 14, 2000 the Company entered into an agreement for the purchase of
the Silver Strand unpatented lode claims from Trend Mining Company. At the
time Mr. Fred Brackebusch was a Director of Trend Mining Company. Mr. Kurt
Hoffman is the CEO and a Director of Trend Mining Company.  Mr. Hoffman
resigned as a director of New Jersey Mining Company on July 18, 2001.  Mr.
Fred Brackebusch resigned as a Director of Trend Mining Company effective
March 16, 2001.

Because New Jersey Mining Company has no significant revenue source from
operations and has been unable to raise funds from investors due to the low
gold price, Mine Systems Design, Inc. has agreed, as of January 1, 1999, to
fulfill the requirements of mineral leases, pay maintenance costs including
property taxes, and to conduct environmental sampling required by permits.



                                   ITEM 13.

                      EXHIBITS AND REPORTS ON FORM 8-K

Exhibit 3.1    Articles of Incorporation - Filed as an exhibit to the
registrant's registration statement on Form 10-SB (Commission File No. 000-
28837) and incorporated by reference herein.

Exhibit 3.2    Bylaws - Filed as an exhibit to the registrant's registration
statement on Form 10-SB (Commission File No. 000-28837) and incorporated by
reference herein.

Exhibit 10.1   Lease Agreement with Gold Run Gulch Mining Company - Filed as
an exhibit to the registrant's registration statement on Form 10-SB
(Commission File No. 000-28837) and incorporated by reference herein.

Exhibit 10.2   Lease Agreement with William Zanetti - Filed as an exhibit to
the registrant's registration statement on Form 10-SB (Commission File No.
000-28837) and incorporated by reference herein.

Exhibit 10.3   Articles of Merger For Plainview Mining Company Inc. and New
Jersey Mining Co. - Filed as an exhibit to the registrant's registration
statement on Form 10-SB (Commission File No. 000-28837) and incorporated by
reference herein.

Exhibit 10.4  Lease Agreement with Mine Systems Desgign, Inc. - Filed as an
exhibit to the registrant's annual report on Form 10-KSB for the year ended
December 31, 2001.

No reports on Form 8-K have been filed by the Company.

SIGNATURES

In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on
the dates indicated.

                                      New Jersey Mining Company

Date: March 19, 2001                  By /s/  FRED W. BRACKEBUSCH
      -----------------               ---------------------------------
                                      Fred W. Brackebusch, President,
                                      Treasurer & Director


Date: March 19, 2001                  By /s/ GRANT A. BRACKEBUSCH
      ------------------              ---------------------------------
                                      Grant A. Brackebusch, Vice President
                                      & Director

<PAGE>
Exhibit 10.4

                                    Mining Lease
                           MINER'S SLOUGH AND TEDDY PARCEL


THIS MINING LEASE, dated as of 12 September, 2001, is between MINE SYSTEMS
DESIGN, INC. ("Lessor"), and NEW JERSEY MINING COMPANY ("Lessee").

  RECITALS

A.    Lessor owns certain real property, called Miner's Slough and The Teddy
Parcel, more particularly described in Exhibit A attached hereto and made a
part hereof.

B.    For the purpose of this Lease, the real property described in Exhibit
A, including only the mineral rights thereof, all mines, ores, metals,
mineral rights and minerals thereon and thereunder, all veins, lodes,
extralateral rights and mineral deposits now owned or hereafter acquired by
Lessor extending from or onto or contained in said claims, properties and
land; , thereon or thereunder, are herein called the "Leased Premises."

C.    Lessor and Lessee desire to enter into a mining lease covering the
Leased Premises.

     AGREEMENT

IN CONSIDERATION of the sum of $10.00 and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
and the promises and covenants contained herein, the parties agree as
follows:

1.    GRANT.  Lessor hereby grants, demises, leases and lets exclusively unto
Lessee, its successors or assigns, the Leased Premises, for the purpose of
exploring for, developing, mining (by any method including but not limited to
in situ leaching, open pit and strip mining), treating, extracting, milling,
storing, shipping, removing and marketing therefrom all minerals, both
metallic and nonmetallic, of every nature and kind, both known and unknown,
excepting only oil, gas and other liquid or gaseous hydrocarbons (herein
called "Leased Substances").

2.    TERM.  This Lease is granted for a term ending fifteen (15) years from
the date hereof and as long thereafter as Leased Substances are mined,
processed or marketed from the Leased Premises on a continuous basis or
unless sooner terminated under any of the provisions herein.  For this
purpose mining, processing or marketing operations shall be deemed continuous
so long as all of said operations continue for a minimum of 24 months out of
any 60-month period.

3.    NET SMELTER RETURN ROYALTY [NSR].  Lessor hereby reserves and Lessee
shall pay as a production royalty 3% of the Net Smelter Return of all ores or
concentrates of Leased Substances mined and shipped from the Leased Premises
(the "NSR Royalty"), excepting that the NSR Royalty shall not exceed 10% of
the Net Proceeds, and except that the NSR Royalty shall not be less than 1%.

As used herein, "Net Smelter Return" means the amount paid by any smelter or
other ore purchaser for ores or concentrates sold less actual costs of
transportation and other costs in the course of handling, assumed by or
charged to Lessee (including freight, insurance and tax) in making shipments
from the Leased Premises or Lessee's mill to the smelter or other purchaser,
less all charges for refining, sampling, assaying, and penalties, less all
royalties or overriding royalties burdening the Leased Premises that exist on
the date of this Lease or are created by Lessor after the date hereof, and
less gross production, severance, general property and other taxes
attributable to production from the Leased Premises.

Net Proceeds shall be defined the same as defined in the law, as existing on
the date of this agreement, for County Mine Net Profits Tax less any Mine Net
Profits Tax.

The NSR Royalty shall be accounted for and paid monthly to Lessor within 30
days after the end of each calendar month within which the Leased Substances
are sold.  All payments shall be accompanied by a statement explaining the
manner in which payment was calculated.  No royalty shall be due or payable
on any Leased Substances stockpiled on the Leased Premises until the sale or
disposition thereof.  Within 90 days after receiving the above-described
statement of account, Lessor shall give notice of any objections to the
statement, for any reason, touching upon its accuracy or inaccuracy, by
mailing such objections to Lessee as provided in Section 24 below; and in
default thereof, any inaccuracies in such statement shall be deemed waived by
Lessor.

4.    TITLE TO LEASED PREMISES.  This Lease is executed and delivered
expressly without warranty of any nature whatsoever on the part of Lessor,
either expressed or implied, not even to the return of the consideration paid
herefor.  If Lessor owns less interest than the entire fee mineral estate,
the NSR Royalty to be paid Lessor may be reduced proportionately.

5.    INSPECTION OF PROPERTY.  Lessor, or its authorized agents or
representatives, shall have the right to enter in or upon the Leased Premises
during the regular business hours of Lessee for the purpose of inspection,
but shall enter at their own risk and shall not unreasonably interfere with
Lessee's operations.

6.    INSPECTION OF ACCOUNTS AND RECORDS.  Lessee shall keep accurate, clear
and legible books of accounts and records pertaining to its operations
hereunder, and Lessor shall have the right, either personally or through its
representatives, and at its expense, to examine and inspect the books and
records of Lessee pertaining to the exploration, mining, milling and shipping
operations of Lessee on the Leased Premises.  Any information acquired by
Lessor or its representatives from any such inspection shall be treated as
confidential.

7.    TECHNICAL DATA.  Lessee shall furnish Lessor, on an annual basis, with
copies of all technical data pertaining to its operations hereunder,
including but not limited to all geological, geophysical, geochemical,
mapping, drilling, sampling, assay, and other data or information pertaining
to Lessee's operations hereunder.  Such data shall be treated as
confidential.  Notwithstanding the foregoing, Lessee shall not be obligated
to disclose to Lessor any interpretive data or information.

8.    CONTROL OF MINING.  Lessor's sole right with respect to its NSR Royalty
shall be to receive the NSR Royalty for Leased Substances, if any, from the
Leased Premises.  Lessee shall have full discretion in the exploration,
development and operation of the Leased Premises and shall in no event be
obliged to explore for, develop, drill, mine, mill or concentrate Leased
Substances.

9.    LESSER INTEREST.  If Lessor owns less than the entire undivided
interest in the Leased Substances, or in any tract included in the Leased
Premises, then the NSR Royalty shall be due Lessor only in the proportion
that its interest bears to the whole undivided fee interest.  Any interest in
the Leased Premises and/or Leased Substances hereafter acquired by Lessor
shall be automatically subject to this Lease.  If any such acquisition
changes Lessor's interest in the Leased Premises or Leased Substances, an
appropriate adjustment will be made after Lessee receives written notice
thereof from Lessor.

10.    INDEMNITY.  Lessee shall assume all liability in connection with its
operations on the Leased Premises and shall hold Lessor harmless from any and
all liability which may arise out of Lessee's development and operation of
the Leased Premises.  Lessee shall use its best efforts to ensure that the
work performed by Lessee hereunder shall be in compliance with applicable
environmental, safety and health requirements of federal, state and local
governments.  Upon the termination of this Lease, Lessee shall return the
Leased Premises to Lessor free and clear of liens for labor done or work
performed upon the Leased Premises or materials furnished to it for the
exploration, development or operation thereof under the Lease, but Lessee
shall have the right to dispute or contest the validity of such liens.
Lessee's liability under this Section shall terminate upon termination of
this Lease except for obligations incurred before the date of termination.

11.    CROSS-MINING; OPERATIONS ON OTHER LANDS.  Lessee shall have the right
to use any roads, tunnels, shafts, pits, inclines and workings upon the
Leased Premises for the purpose of transporting Leased Substances, water,
slurries and waste materials from adjoining or nearby properties.  For the
purpose of enabling Lessee to conduct, to Lessee's best advantage and with
greater economy and convenience, the mining, removal, handling and
disposition of Leased Substances from the Leased Premises, and minerals from
other lands in which Lessee or affiliated parties may be conducting mining
operations, the operations of Lessee and the operations on such other lands
may be conducted upon the Leased Premises and upon such other lands as a
single mining operation, to the same extent as if all such properties
constituted a single tract of land.  Leased Substances from the Leased
Premises may be commingled with ores and minerals from such other lands,
provided that nothing herein shall relieve Lessee from its obligation for
payment of the NSR Royalty.  In the event of and prior to such commingling,
Lessee shall weigh, sample and assay the Leased Substances mined from the
Leased Premises before they are commingled so as to allow allocation of the
resulting concentrate to the respective properties from which derived.  All
such weighing, sampling, assaying and allocation shall be performed in
accordance with good mining practices prevailing at the time.  Lessee shall
have the right to use so much of the subsurface of the Leased Premises as is
required for ingress and egress, conducting exploration and mining
operations, stockpiling of Leased Substances and disposing of wastes both on
the Leased Premises and on lands upon which Lessee or affiliated parties may
be conducting mining operations; Lessee shall also have the right to use so
much of such  subsurface of the Leased Premises as may be required for
utility lines, roads, drillsites, or facilities required in its exploration,
development mining and milling activities.  Lessee shall have the right to
use, develop and store water on the Leased Premises for use in its
development, mining and milling activities.  Further, Lessee may use the
Leased Premises for the mining, removal, treatment and transportation of
minerals and materials from adjoining or nearby property, or for any mining
or milling purpose connected therewith.  Mining operations on adjacent
properties shall be deemed mining operations on the Leased Premises for the
purposes of Section 2 hereof.

12.    TREATMENT; TAILINGS.  Lessee shall have the right, but shall not be
required, to beneficiate, concentrate, smelt, refine, leach and otherwise
treat, in any manner, either wholly or in part at a plant or plants on the
Leased Premises or on other lands, any Leased Substances or other materials
mined or produced from the Leased Premises and from other lands.  Such
treatment shall be conducted in a careful and workmanlike manner.  The
tailings, mine backfill and residue from such treatment shall be deemed waste
and may be deposited on the Leased Premises or on other lands.  Lessor shall
have no right, title or interest in any such tailings or residue remaining on
the Leased Premises for a period of one year after the date on which this
Lease has expired, or has been terminated by Lessee as to all of the Leased
Premises.  Any tailings, mine backfill or residue remaining after said date
shall be deemed abandoned by Lessee and thereupon shall become the property
of Lessor.

13.    FORCE MAJEURE.  Lessee shall not be liable or in default under any
provisions of this Lease for failure to perform any of its obligations
hereunder during periods in which performance is prevented by any cause
reasonably beyond Lessee's control, which causes hereinafter are called
"force majeure."  For the purposes of this Lease, the term "force majeure"
shall include, but not be limited to, fires, floods, windstorms and other
damage from the elements; strikes, war, insurrection, mob violence and riots;
unavailability of materials, labor and transportation; lack of a reasonable
market for Leased Substances mined from the Leased Premises; unavailability
of smelting or refining facilities; interference, action, legislation or
regulation by governmental or military authority, including a requirement by
such authority that an environmental impact statement, plan of operation or
similar statement or document be prepared or approved; litigation; and acts
of God or acts of the public enemy.  The duration of this Lease and of the
time for completion of performance by Lessee of its rights and obligations
hereunder shall be extended for a period equal to the period of disability as
a result of the event of force majeure, provided Lessee gives Lessor written
notice of the existence of the event of force majeure.  All periods of force
majeure shall be deemed to begin at the time Lessee stops performance
hereunder by reason of force majeure.  Notwithstanding the foregoing, the
parties understand that an event of force majeure shall not excuse any
obligation to make a payment of money required by this Lease.

14.    FIRST RIGHT OF REFUSAL.  If, at any time during the term of this
Lease, Lessor shall, in response to a bona fide offer to purchase all or part
of its interest in the Leased Premises from a third party, desire to sell or
otherwise dispose of such interest, it shall notify Lessee in writing of the
party to whom it desires to sell such interest and the price at which and the
terms upon which it desires to sell the same, and Lessee shall, within 30
days of receipt of the notice, notify Lessor in writing whether it wishes to
purchase such interest at the price and on the terms set forth in the notice.
If Lessee elects to purchase such interest, Lessor shall be bound to convey,
assign, or otherwise transfer such interest to Lessee promptly thereafter at
such price and on such terms.  If Lessee elects not to purchase such interest
or fails to give notice of its intention within the 30-day period, Lessor
shall be free to convey, assign, or otherwise transfer such interest to the
third party at a price not less than stated in the notice or on more
favorable terms than those stated in the notice.  Any conveyance by Lessor to
a third party shall be subject to the terms of this Lease.  If Lessor shall
not have so disposed of such interest to said third party within 90 days
after receipt of notice that Lessee elects not to exercise its right of first
refusal or after expiration of that party's 30-day period within which to
give notice, the provisions of this Section shall again apply to the
disposition by Lessor of any such interest.

15.    ASSIGNMENT.  Subject to the provisions of Section 14 above, the rights
of either party hereunder may be assigned in whole or in part and the
provisions hereof shall extend to their successors and assigns, but no change
or division in ownership of the Leased Premises or NSR Royalty, however
accomplished, shall operate to enlarge the obligations or diminish the rights
of either party under this Lease and neither Lessee nor its successors or
assigns shall ever be required to make payments or to render reports or
notices to more than one party.  In the event Lessor's interest in the Leased
Premises is now or hereafter owned by more than one party, Lessee may
withhold further payments until all such owners have designated a single
party to act for all of them hereunder in all respects, including but not
limited to the giving and receiving of all notices and the receipt of all
payments and reports.  No such change or division in the ownership of the
Leased Premises or NSR Royalty shall be binding upon Lessee for any purpose
until such person acquiring any interest has further furnished Lessee with
the instrument or instruments, or certified copies thereof, constituting his
claim of title from the original Lessor.  Lessee shall have the right to
subcontract with others for the performance of exploration, development and
mining work hereunder, subject to all of the terms of this Lease, but no such
subcontract shall relieve Lessee of its obligations to Lessor hereunder.

16.    TERMINATION OF LEASE.

16.1  By Lessor.  If Lessee fails to keep and perform all of the terms and
conditions of this Lease on its part to be kept and performed, then Lessor
may notify Lessee of the default in writing specifying the default.  If
within ten days after Lessee's receipt of such notice, in case of default
arising through failure to account for royalties, or to make the monthly or
annual payments herein mentioned, and within 30 days in the case of any other
default, Lessee shall make such royalty or other payments, or commence and
diligently thereafter proceed to correct such other default, this Lease shall
continue in good standing.  However, upon failure of Lessee to make such
royalty or other payment within ten days or to commence within 30 days to
cure any other default and diligently thereafter proceed to correct the same,
Lessor may then, by written notice or demand, forthwith terminate this Lease
and fully repossess itself of the Leased Premises, and without prejudice to
any other rights which might otherwise accrue to Lessor for the violation of
the terms hereof.  After such default and termination of this Lease, Lessee
shall have no further rights in or right to the possession of the Leased
Premises or any part thereof, except for the purpose of accomplishing the
removal of its machinery and equipment as set forth below in Section 17.
16.2  By Lessee.  Lessee may terminate this Lease in whole or in part at any
time and from time to time upon written notice delivered to Lessor which
termination shall take effect upon any future date set forth in the notice,
or, if no date is specified, upon the date of delivery of the notice with
respect to that part of the Leased Premises specified in the notice.  Upon
such termination, all right, title and interest of Lessee under this Lease as
to that portion of the Leased Premises specified in the notice shall
terminate, and Lessee shall not be required to make any further payments, or
to perform any further obligations hereunder as to said portion of the Leased
Premises, except payments or obligations which then have accrued under the
express provisions of this Lease and which have not been paid or performed.

17.    REMOVAL OF EQUIPMENT.  Lessee shall have the right, at any time within
one year after the termination or expiration of this Lease, to remove all
property, fixtures, structures, machinery or equipment erected or placed by
Lessee on or in the Leased Premises.  Lessor shall have the right to require
Lessee to remove any or all such property, fixtures, structures, machinery or
equipment within one year after the termination or expiration hereof.

18.    RECORDING OF SHORT-FORM NOTICE.  The parties hereby agree to execute a
short-form counterpart of this Lease contemporaneous herewith for the sole
purpose of recordation in the real property records sufficient to give record
notice, pursuant to the laws of the state where the Leased Premises are
located of the existence of this Lease.  This Lease shall not be recorded
without the written consent of Lessee.

19.    NOTICES.  Any notice required or permitted to be given hereunder shall
be in writing and shall be delivered in person or sent by registered or
certified mail, return receipt requested.  Notices so mailed shall be deemed
effective on the third business day after mailing.  Until change of address
is communicated, all notices shall be addressed to:

Lessor:   Mine Systems Design, Inc.
Box 1019
Kellogg, Idaho  83873


Lessee:   New Jersey Mining Company
P. O. Box 1019
Kellogg, Idaho  83837

20.    GENERAL.

20.1  Modification.  The parties hereto by mutual written agreement may, at
any time and from time to time, amend this Lease and any of the terms hereof.

20.2  Further Documents.  The parties hereto further agree to execute all
such further documents and do all such further things as may be necessary to
give full effect to these presents.

20.3  Entire Agreement.  This is the entire agreement between the parties and
no modification shall be effective unless in writing and executed by the
parties hereto.

20.4  Law.  The terms and provisions of this Lease shall be interpreted in
accordance with the laws of the state where the Leased Premises are located.
IN WITNESS WHEREOF, this instrument is executed as of the date above written.

LESSOR:                                    LESSEE:

MINE SYSTEMS DESIGN, INC.          NEW JERSEY MINING COMPANY


By: /s/ Fred W. Brackebusch        By: /s/ Grant A. Brackebusch
    -------------------------          --------------------------
Title: President                   Title: Vice President
      -----------------------             -----------------------



STATE OF IDAHO     )
                   ) ss.
COUNTY OF SHOSHONE )

On this 12th day of September, 2001, before me, the undersigned, a Notary
Public in and for the State of Idaho, personally appeared Fred W.
Brackebusch, known to me and to me known to be the President of NEW JERSEY
MINING COMPANY, a corporation whose name is subscribed to the foregoing
instrument and acknowledged to me that said officer executed the same.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal
the day in this certificate first above written.


/s/ Linda K. Wombolt
-----------------------------------
Notary Public for the State of Idaho
Residing at: Wardner
My commission expires: 11/05/06


STATE OF IDAHO     )
                   ) ss.
COUNTY OF SHOSHONE )

On this 12th day of September, 2001, before me, the undersigned, a Notary
Public in and for the State of Idaho, personally appeared Grant A.
Brackebusch, known to me and to me known to be the Vice-President of MINE
SYSTEMS DESIGN, INC., a corporation whose name is subscribed to the foregoing
instrument and acknowledged to me that said individual executed the same.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal
the day in this certificate first above written.


/s/ Linda K. Wombolt
-----------------------------------
Notary Public for the State of Idaho
Residing at: Wardner
My commission expires: 11/05/06

EXHIBIT A
TO MINING LEASE

Description of the Leased Premises covered by Mining Lease between Mine
Systems Design, Inc. (Lessor), and New Jersey Mining Company (Lessee), dated
September 12, 2001, covering real property located in Shoshone County, Idaho,
to wit:

a.  Mineral rights only to the SW 1/4 of the SW 1/4, SE 1/4 of the SW 1/4 and
the SW 1/4 of the SE 1/4 of Section 3, Township 48 N, Range 3 E, BM; except
for excluded portions according to the Instrument 397744 dated 20 March 2001.
The parcel is about 67 acres and is known as Miner=s Slough.

b.  Mineral rights only to that parcel transferred to Mine Systems Design,
Inc. by Shoshone County by Instrument No. 399410 on 31 July 2001, located in
the SE 1/4 of the SE 1/4 of section 4, Township 48 N, Range 3 E, BM, and
formerly owned by Teddy Mining Company, consisting of about 1.3 acres.