Comstock Announces Complete Results Of East-side Drilling
VIRGINIA CITY, Nev., Nov. 7, 2012 /PRNewswire/ — Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE MKT: LODE) announced the results for the final ten holes in its initial step-out drilling program, in the East-side of the Company’s Lucerne Resource Area (the “Lucerne”). Assays for all 20 of the holes in this program have now been received with all of them encountering lengthy intervals of significant mineralization. Fourteen of the 20 holes encountered multiple intervals of significant mineralization totaling 150 feet or more, including 10 of the holes with contiguous mineralized intervals of 100 feet or more.
Highlights of the final ten holes include an assay of 1.589 ounces of gold and 6.500 ounces of silver per ton in hole E12-15, contained in a 60 foot interval averaging 0.187 ounces of gold and 2.961 ounces of silver per ton, and an assay of 6.200 ounces of silver per ton in hole E12-16, contained in a 20 foot interval averaging 0.176 ounces of gold and 2.383 ounces of silver per ton. Another highlight is hole E12-17, with total significant mineralization in multiple zones of 320 feet, including contiguous significant mineralization of 220 feet (825-1045′). The contiguous mineralization includes a 165-foot interval averaging 0.086 ounces of gold and 0.694 ounces of silver per ton.
These results are consistent with the previously announced results from the first 10 holes. Highlights of those holes included an assay of 1.693 ounces of gold per ton in hole E12-05, contained in a 20 foot interval averaging 0.621 ounces of gold and 1.408 ounces of silver per ton, and an assay of 6.000 ounces of silver per ton in hole E12-10, contained in a 75 foot interval averaging 0.111 ounces of gold and 1.382 ounces of silver per ton. Hole E12-05 was also notable for total significant mineralization in multiple zones of 370 feet, including contiguous mineralized intervals of 120 feet (0-120′), 90 feet (965-1055′), and 55 feet (1065-1120′).
“These higher grades and significant thicknesses in our East-side drilling continue to exceed expectation and generate incredible resource expansion opportunities,” stated Corrado De Gasperis, President and CEO of Comstock “We look forward to formally updating the results in our next NI 43-101 report in the fourth quarter.”
East-side 2012 Drilling
The Lucerne East-side drilling began July 24, 2012, with plans to drill reverse circulation (RC) holes from the top of Donovan Ridge, on the east side of State Route 342. These holes were designed to test the continuity and down-dip extension of the mineralization encountered in the 2010 and 2011 East-side drilling, with depths planned of up to 1,400 feet. The initial, positive results of the program encouraged the Company to extend the program to a total of 18 RC holes. Two additional holes were drilled to test the location for future water monitoring wells. The program concluded on October 7, 2012, with 20 East-side holes completed, totaling 21,310 feet of RC drilling. The north-south extent of the drilling covered over 1,400 feet of strike length.
Assay results have been received for the all 20 RC drill holes, showing that all holes encountered intervals of significant mineralization (gold grades greater than 0.010 ounces per ton or silver grades greater than 0.100 ounces per ton, and length of at least ten feet).
Additional highlights of the results from the final ten holes include hole E12-12, with a 25-foot interval averaging 0.142 ounces of gold and 0.457 ounces of silver per ton. Hole E12-13 encountered total significant mineralization of 230 feet in multiple zones, including contiguous significant mineralization of 100 feet (790-890′). Hole E12-14 includes a 45-foot interval averaging 0.087 ounces of gold and 0.355 ounces of silver per ton.
Hole E12-15 encountered total significant mineralization of 290 feet in multiple zones, including contiguous significant mineralization of 150 feet (750-900′). The contiguous mineralization includes a 60-foot interval averaging 0.187 ounces of gold and 2.961 ounces of silver per ton. Hole E12-16 includes a 20-foot interval averaging 0.176 ounces of gold and 2.383 ounces of silver per ton.
Hole E12-18 encountered total significant mineralization of 285 feet in multiple zones, including a 20-foot interval averaging 0.097 ounces of gold and 0.460 ounces of silver per ton. Hole E12-20 encountered total significant mineralization of 250 feet in multiple zones.
Significant Mineralized Intervals
A sample from each five-foot interval in each drill hole has been sent for analysis to American Assay Labs, of Reno, Nevada, a certified independent laboratory. Assay results have been received for all 20 RC holes in the program. Those assay results were used to identify significant mineralized intervals in each hole.
East-Side Drill Hole Intercepts
Drill Hole Interval (ft) Length Gold Silver Length Gold Silver
(ft) (oz/ton) (oz/ton) (m) (g/t) (g/t)
E12-01 235-245 10 0.046 0.325 3.05 1.56 11.11
430-440 10 0.036 0.270 3.05 1.23 9.23
755-785 30 0.017 0.403 9.14 0.58 13.78
805-820 15 0.023 0.150 4.57 0.79 5.14
E12-02 260-325 65 0.029 0.660 19.81 0.99 22.59
INCLUDES 260-280 20 0.054 1.676 6.10 1.83 57.40
375-385 10 0.030 0.102 3.05 1.03 3.48
410-430 20 0.273 0.264 6.10 9.34 9.05
INCLUDES 410-420 10 0.506 0.439 3.05 17.31 15.03
510-550 40 0.031 0.105 12.19 1.07 3.60
675-715 40 - 0.354 12.19 - 12.11
715-750 35 0.019 1.088 10.67 0.67 37.26
INCLUDES 715-735 20 0.027 1.491 6.10 0.92 51.07
750-765 15 - 0.324 4.57 - 11.10
765-780 15 0.021 0.325 4.57 0.73 11.14
780-810 30 0.009 0.191 9.14 0.30 6.54
820-830 10 0.007 0.267 3.05 0.22 9.14
E12-03 10-20 10 0.015 0.037 3.05 0.50 1.25
45-80 35 0.059 0.572 10.67 2.02 19.60
INCLUDES 70-80 10 0.087 1.492 3.05 2.96 51.10
780-845 65 0.038 0.599 19.81 1.29 20.52
INCLUDES 815-825 10 0.141 2.058 3.05 4.81 70.46
855-885 30 0.013 0.275 9.14 0.43 9.42
1035-1050 15 0.044 0.404 4.57 1.50 13.84
E12-04 5-25 20 0.047 0.077 6.10 1.59 2.63
35-50 15 0.016 0.157 4.57 0.55 5.39
75-100 25 0.075 0.573 7.62 2.55 19.62
120-130 10 - 0.107 3.05 - 3.66
545-565 20 0.076 0.063 6.10 2.60 2.15
565-580 15 - 0.121 4.57 - 4.14
600-610 10 - 0.135 3.05 - 4.61
610-620 10 0.032 0.397 3.05 1.10 13.58
660-720 60 0.017 0.617 18.29 0.57 21.12
INCLUDES 695-705 10 0.029 1.460 3.05 0.99 50.00
720-730 10 - 0.379 3.05 - 12.96
730-805 75 0.018 0.400 22.86 0.60 13.70
INCLUDES 740-760 20 0.032 1.030 6.10 1.08 35.27
860-870 10 0.011 0.100 3.05 0.36 3.42
900-910 10 0.012 0.091 3.05 0.41 3.10
E12-05 0-120 120 0.050 0.267 36.58 1.71 9.16
INCLUDES 40-65 25 0.147 0.265 7.62 5.03 9.07
INCLUDES 65-85 20 VOID 6.10
420-430 10 0.083 0.105 3.05 2.83 3.60
515-540 25 0.053 0.072 7.62 1.83 2.47
865-880 15 0.013 0.186 4.57 0.46 6.38
895-905 10 0.023 0.090 3.05 0.77 3.08
930-950 20 0.621 1.408 6.10 21.26 48.22
INCLUDES 930-940 10 1.016 2.589 3.05 34.78 88.66
965-1010 45 0.096 0.273 13.72 3.28 9.33
INCLUDES 970-980 10 0.370 0.473 3.05 12.65 16.18
1010-1025 15 - 0.279 4.57 - 9.55
1025-1040 15 0.024 0.157 4.57 0.83 5.37
1040-1055 15 - 0.187 4.57 - 6.39
1065-1080 15 - 0.134 4.57 - 4.60
1080-1100 20 0.025 0.213 6.10 0.85 7.29
1100-1120 20 - 0.123 6.10 - 4.20
1130-1145 15 - 0.221 4.57 - 7.57
1145-1155 10 0.017 0.127 3.05 0.57 4.35
E12-06 120-135 15 0.019 0.283 4.57 0.64 9.69
710-735 25 0.017 0.372 7.62 0.58 12.75
790-805 15 - 0.124 4.57 - 4.24
805-840 35 0.091 0.897 10.67 3.10 30.73
INCLUDES 810-820 10 0.213 1.605 3.05 7.28 54.95
E12-07 505-610 105 0.027 0.279 32.00 0.93 9.56
685-705 20 0.011 0.091 6.10 0.37 3.13
735-780 45 - 0.443 13.72 - 15.18
780-800 20 0.012 0.419 6.10 0.42 14.35
800-820 20 - 0.365 6.10 - 12.48
820-830 10 0.015 0.600 3.05 0.50 20.53
830-845 15 - 0.706 4.57 - 24.17
845-875 30 0.021 0.293 9.14 0.73 10.02
E12-08 10-20 10 - 0.273 3.05 - 9.35
20-40 20 0.049 0.152 6.10 1.66 5.21
65-90 25 0.016 0.086 7.62 0.55 2.93
105-135 30 0.028 0.056 9.14 0.94 1.92
675-695 20 0.027 0.071 6.10 0.93 2.43
970-980 10 0.011 0.059 3.05 0.38 2.00
1025-1070 45 0.038 0.450 13.72 1.30 15.40
1070-1085 15 - 0.199 4.57 - 6.80
1095-1120 25 - 0.222 7.62 - 7.61
1130-1200 70 - 0.126 21.34 - 4.32
E12-09 335-380 45 0.142 1.165 13.72 4.87 39.90
INCLUDES 345-370 25 0.205 1.391 7.62 7.03 47.65
730-745 15 0.015 0.505 4.57 0.51 17.31
745-795 50 - 0.212 15.24 - 7.27
795-830 35 0.041 1.014 10.67 1.39 34.71
E12-10 305-320 15 0.046 0.376 4.57 1.59 12.87
325-340 15 0.016 0.168 4.57 0.54 5.76
555-565 10 0.031 0.485 3.05 1.04 16.61
745-765 20 0.093 0.066 6.10 3.19 2.27
805-820 15 0.038 0.258 4.57 1.30 8.82
830-905 75 0.111 1.382 22.86 3.79 47.34
INCLUDES 830-845 15 0.242 3.750 4.57 8.28 128.41
INCLUDES 875-900 25 0.160 1.441 7.62 5.47 49.36
905-915 10 - 0.144 3.05 - 4.91
E12-11 560-590 30 0.012 0.312 9.14 0.39 10.67
590-610 20 0.027 0.085 6.10 0.91 2.92
645-655 10 - 0.318 3.05 - 10.89
655-710 55 0.024 0.560 16.76 0.83 19.18
755-770 15 - 0.234 4.57 - 8.00
E12-12 260-285 25 0.142 0.457 7.62 4.88 15.64
INCLUDES 265-275 10 0.236 0.795 3.05 8.08 27.21
505-515 10 0.021 0.075 3.05 0.72 2.57
715-725 10 - 0.180 3.05 - 6.15
735-750 15 - 0.249 4.57 - 8.53
775-810 35 0.022 0.561 10.67 0.76 19.22
INCLUDES 795-805 10 0.057 1.378 3.05 1.95 47.19
920-940 20 - 0.623 6.10 - 21.33
E12-13 125-145 20 0.025 0.565 6.10 0.84 19.35
160-175 15 - 0.251 4.57 - 8.58
320-335 15 0.014 0.069 4.57 0.49 2.37
530-545 15 0.033 0.193 4.57 1.12 6.62
570-590 20 0.023 0.239 6.10 0.80 8.19
635-655 20 - 0.127 6.10 - 4.34
755-770 15 - 0.162 4.57 - 5.54
770-780 10 0.017 0.198 3.05 0.58 6.76
790-835 45 0.014 0.261 13.72 0.47 8.95
835-855 20 - 0.285 6.10 - 9.77
855-890 35 0.012 0.520 10.67 0.40 17.82
E12-14 0-35 35 0.035 0.480 10.67 1.21 16.44
45-80 35 0.044 0.205 10.67 1.49 7.01
95-140 45 0.087 0.355 13.72 2.97 12.17
140-150 10 - 0.148 3.05 - 5.05
150-160 10 0.026 0.469 3.05 0.87 16.06
160-170 10 - 0.137 3.05 - 4.67
170-180 10 0.090 6.350 3.05 3.08 217.47
180-195 15 - 0.156 4.57 - 5.35
235-245 10 - 0.167 3.05 - 5.70
E12-15 0-15 15 0.018 0.320 4.57 0.61 10.96
145-175 30 0.010 0.105 9.14 0.35 3.58
185-200 15 0.018 0.026 4.57 0.63 0.88
645-680 35 - 0.159 10.67 - 5.44
680-715 35 0.022 0.180 10.67 0.75 6.17
750-760 10 0.012 0.245 3.05 0.39 8.39
760-810 50 - 0.282 15.24 - 9.64
810-870 60 0.187 2.961 18.29 6.42 101.40
INCLUDES 820-870 50 0.237 3.607 15.24 8.13 123.51
870-900 30 - 0.142 9.14 - 4.86
935-945 10 0.011 0.395 3.05 0.38 13.53
E12-16 0-25 25 0.020 0.676 7.62 0.70 23.15
25-40 15 - 0.202 4.57 - 6.93
50-60 10 - 0.198 3.05 - 6.78
60-70 10 0.030 0.314 3.05 1.01 10.75
135-145 10 0.021 0.098 3.05 0.72 3.36
145-155 10 - 0.165 3.05 - 5.63
200-225 25 - 0.198 7.62 - 6.79
360-380 20 0.176 2.383 6.10 6.03 81.59
INCLUDES 365-375 10 0.298 4.060 3.05 10.19 139.02
380-390 10 - 0.118 3.05 - 4.02
415-435 20 - 0.716 6.10 - 24.51
E12-17 45-75 30 0.023 0.108 9.14 0.79 3.70
90-100 10 0.012 0.079 3.05 0.39 2.69
190-225 35 0.047 0.121 10.67 1.61 4.15
310-325 15 0.095 0.188 4.57 3.26 6.43
785-795 10 0.030 0.170 3.05 1.01 5.80
825-990 165 0.086 0.694 50.29 2.93 23.78
INCLUDES 830-855 25 0.271 1.144 7.62 9.29 39.16
INCLUDES 940-955 15 0.064 1.735 4.57 2.20 59.42
990-1045 55 - 0.181 16.76 - 6.20
E12-18 50-60 10 - 0.420 3.05 - 14.37
60-85 25 0.016 0.203 7.62 0.56 6.95
100-110 10 0.050 0.144 3.05 1.71 4.91
120-160 40 0.015 0.058 12.19 0.50 2.00
625-645 20 0.015 0.233 6.10 0.50 7.96
660-685 25 0.028 0.061 7.62 0.95 2.08
815-835 20 0.097 0.460 6.10 3.30 15.75
955-1015 60 0.091 0.340 18.29 3.13 11.65
1115-1150 35 - 0.132 10.67 - 4.52
1185-1200 15 0.044 0.386 4.57 1.52 13.21
1200-1210 10 - 0.145 3.05 - 4.95
1225-1240 15 0.019 0.051 4.57 0.64 1.75
E12-19 840-895 55 0.023 0.213 16.76 0.78 7.29
895-955 60 - 0.209 18.29 - 7.14
E12-20 205-215 10 0.015 0.040 3.05 0.51 1.35
635-655 20 - 0.178 6.10 - 6.10
680-710 30 0.033 0.654 9.14 1.12 22.40
740-755 15 0.018 0.418 4.57 0.62 14.32
755-775 20 - 0.181 6.10 - 6.21
775-785 10 0.030 0.521 3.05 1.03 17.83
785-805 20 - 0.419 6.10 - 14.33
INCLUDES 795-800 5 0.179 1.356 1.52 6.13 46.44
820-830 10 0.015 0.410 3.05 0.50 14.04
830-850 20 - 0.248 6.10 - 8.49
850-880 30 0.026 0.239 9.14 0.90 8.19
895-960 65 - 0.224 19.81 - 7.66
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Ongoing Drilling Programs
The previously completed Spring Valley exploration drilling, the Lucerne West-side development drilling and the initial East-side step-out drilling were the first phases of the Company’s 2012-2013 exploration program. Further phases will include infill drilling in the Dayton Resource Area, to support a mine plan and permitting activities for a second mine; infill drilling in the East-side of the Lucerne Resource Area, to support a mine plan and permitting activities for an expansion of the existing Lucerne Mine; and ultimately, Exploration drilling on high-priority targets outside the Lucerne and Dayton Resource Areas.
“The remaining East-side of Lucerne and Dayton infill drill programs will develop and expand mine plans for both Lucerne and Dayton and provide the precise engineering and economic plans for implementing our production growth plans in 2013 and beyond,” stated Corrado De Gasperis, President and CEO of Comstock.
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 commenced production in 2012. The Company continues acquiring additional properties in the district, expanding its footprint and creating opportunities for further 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 in 2013, and commencing commercial mining and processing operations with annual production rates of 20,000 gold equivalent ounces.
Forward-Looking Statements
This press release and any related calls or discussions may contain forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements. Forward-looking statements include statements about matters such as: future prices and sales of and demand for our products; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; operational and management restructuring activities (including implementation of methodologies and changes in the board of directors); future employment and contributions of personnel; tax and interest rates; capital expenditures and their impact on us; nature, timing and accounting for restructuring charges, gains or losses on debt extinguishment, derivative liabilities and the impact thereof; productivity, business process, rationalization, restructuring, investment, acquisition, consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales and other actions regarding debt or equity securities; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.
The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our SEC filings and the following: the current global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources and reserves; operational or technical difficulties in connection with exploration or mining activities; contests over our title to properties; potential dilution to our stockholders from our recapitalization and balance sheet restructuring activities; potential inability to continue to comply with government regulations; adoption of or changes in legislation or regulations adversely affecting our businesses; business opportunities that may be presented to or pursued by us; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to unexpected equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, copper, diesel fuel, and electricity); changes in generally accepted accounting principles; geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues organically; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies and equipment raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities. All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. We undertake no obligation to publicly update or revise any forward-looking statement.
Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any securities.
Contact information for Comstock Mining Inc.:
P.O. Box 1118
Virginia City, NV 89440
questions@comstockmining.com
http://www.comstockmining.com
Facebook: http://www.facebook.com/ComstockMiningInc
Twitter: http://twitter.com/comstockmining
Doug McQuide Kimberly Shipley
Director of External Relations Manager of Investor Relations
Tel (775) 847-7376 Tel (775) 847-0545
mcquide@comstockmining.com shipley@comstockmining.com
SOURCE Comstock Mining Inc.
