Comstock Mining Cures BLM Notice
VIRGINIA CITY, Nev., June 8, 2012 /PRNewswire/ — Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE Amex: LODE) announced it has taken the necessary actions to cure the alleged infractions just received from the Carson City District Field Office of the Bureau of Land Management (BLM). These alleged infractions prompted the May 21st Notice requiring the Company to cease using certain lands deemed public by the BLM. Comstock maintains that the allegations in the Notice are not supported by the facts and has presented over 100 pages of evidence to the BLM supporting this position. However, the Company felt it prudent to cure the alleged infractions immediately before pursuing other actions to resolve the disputed land-ownership claims and right of way issues in a manner that optimizes logistics and mining operations and minimizes disruptions. By addressing the alleged infractions, the Notice is closed and no longer in force.
The immediate actions taken to cure the Notice included removing certain signage and obstructions from LOT 51 (despite still contending it is the Company’s own private land with a record of private ownership dating to 1869, a position affirmed by Storey County); removing certain signage and obstructions from other designated public lands (despite still contending the validity of the existing right-of-way); posting a reclamation bond for $35,868, while awaiting final resolutions; and initiating a field work authorization for a cultural review. The Company will file an exclusive use ROW application for the haul road portion of the ROW.
Comstock also confirmed, with Storey County, the validity and availability of alternative routes, affirming that the Company’s mining activity WILL NOT be interrupted during the period of time required to achieve the final solution.
In addition to cooperating with the BLM Local Field Office and submitting the requested paperwork, Comstock is proceeding with a number of additional actions supported by the preponderance of evidence proving its position, including the immediate filing of a Class 1 Color of Title application for Lot 51 and filing an assignment application for the existing Haul Road ROW.
During these parallel actions, Comstock remains compliant with all BLM regulations and will continue to mine using a combination of the Company’s 50-ton haul trucks and 20-ton semi-trucks.
“We are pleased with the direct collaboration and recent responsiveness of the BLM and to have cured the Notice so quickly,” stated Corrado De Gasperis, President and CEO of Comstock Mining. “While disappointed at some of their inflexibility in light of the facts, we are also encouraged by the ability to continue all our mining activity, and look forward to reaching a more optimal solution in the near future. Our construction activities and production plans remain on schedule.”
About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based gold and silver mining company with extensive, contiguous property in the Comstock District. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and brought the exploration project into test mining production. The Company continues acquiring additional properties in the district, expanding its footprint and creating opportunities for exploration and mining. The goal of its strategic plan is to deliver stockholder value by validating qualified resources (at least measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations with annual production rates of 20,000 gold equivalent ounces.
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Contact information for Comstock Mining Inc.: P.O. Box 1118 Virginia City, NV 89440 firstname.lastname@example.org http://www.comstockmining.com Doug McQuide Kimberly Shipley Director of External Relations Investor Relations Tel (775) 847-7376 Tel (775) 847-0545 email@example.com firstname.lastname@example.org
SOURCE Comstock Mining Inc.