Comstock Mining Inc

Pure Comstock Silver Nevada Sesquicentennial Medallion This limited edition medallion commemorates Nevada’s Sesquicentennial and is the first substantial minting of Comstock Silver since the Carson City Mint closed in 1893.

NYSE MKT: LODE
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Comstock Mining Inc
Press Releases
Thursday, October 16, 2014

COMSTOCK MINING ANNOUNCES THIRD QUARTER 2014 RESULTS

Year-to-Date Gold and Silver Pours Up 15% and 33%, Respectively

 

Virginia City, NV (October 16, 2014) -- Comstock Mining Inc. (the “Company”) (NYSE MKT: LODE) today announced selected unaudited financial results for the quarter ended September 30, 2014. 

2014 Third Quarter Highlights

  • Expanded our Storey County Special Use Permit, significantly expanding mining and processing capability and establishing a tremendous foundation for future growth.
  • Record highest single month pour in September 2014, with 2,423 gold equivalent ounces.
  • Mining revenue from gold sales was $6.5 million for Q3 2014, versus $6.6 million for Q3 2013.
  • Gold and silver shipments totaled 4,997 ounces and 61,001 ounces, respectively, for Q3 2014.
  • Silver shipments increased 26% sequentially, from Q2 2014 to Q3 2014.
  • Weighted average gold grade was 0.026 ounces per ton and silver was over 0.564 ounces per ton.
  • Net loss for Q3 2014 was $1.0 million, or $0.02 loss per share, as compared to $4.5 million, or $0.09 loss per share for Q3 2013.  The $3.5 million improvement resulted primarily from lower costs.
  • Costs applicable to mining were $4.4 million for Q3 2014, as compared to $6.4 million for Q3 2013.  Specific cost reduction efforts resulted in the decrease of $2.0 million, including lower mining support costs, drilling and blasting and contracted maintenance.
  • Metallurgical yields improved to over 80%, from a previous average estimate of 76%.
  • Strip ratio improved to below 4.8:1 in Q3 2014, down from 6.7:1 in Q2 2014.
  • Operating expenses, excluding costs applicable to mining, totaled $3.8 million for Q3 2014, as compared to $4.9 million for Q3 2013.  The $1.1 million decrease is primarily the result of lower third party advisory expenses, including external relations, and lower compensation expense.
  • Debt was $9.1 million at September 30, 2014, a $2.2 million reduction during the third quarter.
  • Obtained agreement from Auramet International, LLC ("Auramet") to extend the facility from the current maturity of February 6, 2015, for an additional year, to February 5, 2016. 
  • Cash and cash equivalents were $9.3 million at September 30, 2014.

2014 Year-to-Date Highlights

  • Metal pours totaled 14,267 ounces of gold and 158,731 ounces of silver, year to date 2014, as compared to 12,429 ounces of gold and 119,237 ounces of silver during the same period in 2013, an increase of 15% for gold ounces and over 33% for silver ounces.
  • Mining revenue from the sales of gold increased by $1.0 million resulting from 1,838 higher gold ounces shipped year to date 2014, as compared to 2013, somewhat offset by a lower average gold price per ounce of $1,267.47 year to date 2014 as compared to $1,387.44 for year to date 2013.
  • Net loss for nine months ended September 30, 2014, was $8.3 million, or $0.14 loss per share, as compared to $15.8 million, or $0.33 loss per share, for the same 2013 period.  The decrease of over $7.5 million is primarily the result of $6.9 million in mining and administrative costs savings.
  • Costs applicable to mining decreased by $3.8 million, or 21%, resulted from lower mining support cost, drilling and blasting, contracted maintenance and lower overall inventory costs.
  • Operating expenses, excluding costs applicable to mining, decreased by $2.8 million, or approximately 35%, primarily the result of lower third party advisory expenses, including external relations, and lower compensation expense.
  • Cost reductions totaled $6.9 million year to date, when compared to 2013, positioning us to exceed our stated targets of over $6 million from mining and $3.5 million from administration.  
  • Net cash used in operating activities for the nine months ended September 30, 2014 was $2.6 million, versus $11.6 million in the comparable prior period, an improvement of $9 million, or 78%.
  • Net cash used in investing activities was $2.5 million for the nine months ended September 30, 2014, primarily from $1.9 million in land purchases and $0.8 million of bond deposits, offset by $0.2 million in proceeds from the sale of mining equipment. 

Comstock's Chief Executive Officer, Corrado De Gasperis commented, "We have achieved significant progress in our four focus areas so far this year: lowering our costs, strengthening our balance sheet, enhancing our mine plan and operations and expanding our land position. Cash cost of mining for the third quarter was approximately $832 per ounce despite challenging but improving strip ratios. We continue progressing toward our production cost target of $750 per ounce."

Production

During the third quarter of 2014, the Company poured 4,997 ounces of gold and 61,001 ounces of silver.  The Company mined approximately 1.1 million tons of material (mineralized material and waste) as it continued moving through higher stripping ratios. Total mineralized material delivered to the leach pad was over 191 thousand tons. September 2014 resulted in the Company’s highest rate of pouring to date this year, at 2,423 gold equivalent ounces.

During the first nine months of 2014, the Company poured 14,267 ounces of gold and 158,731 ounces of silver, as compared to 12,429 ounces of gold and 119,237 ounces of silver in the first nine months of 2013, an increase of 15% for gold ounces produced and over 33% for silver ounces produced when compared to the first nine months of 2013.

Gold and silver grades continued improving as compared to 2013, and the weighted average for the third quarter of 2014, was 0.026 ounces per ton gold and 0.564 ounces per ton silver as compared to a weighted average for the third quarter of 2013 of 0.025 ounces per ton gold and 0.449 ounces per ton silver. 

For the nine months ended 2014, the Company realized an average price of $1,267.47 price per ounce of gold and a $19.81 average sales price per ounce of silver.  The Company also realized an additional $18.50 per ounce of gold for gold call premiums received for the same 2014 period.  In comparison, commodity market prices in the first nine months of 2014 averaged $1,288.14 per ounce of gold and $19.95 per ounce of silver. 

Operating Costs

During the third quarter, the Company continued reducing costs applicable to mining, targeting over $6 million in reductions for 2014, as compared to 2013, and an additional $3.5 million in administration and all other costs. The Company has already realized annual savings of approximately $4.1 million from reduced staffing in crushing, related maintenance, mining and administrative, drilling and blasting, and logistics cost reductions and another $2.8 million in savings from reductions in general and administrative costs.  The Company has planned additional cost reductions efforts associated with mining, general and administrative expenses and continues progressing toward a production cost target of $750 per ounce. The Company also plans continued debt reductions though the remainder of 2014, with the full payoff the revolving facility scheduled for February 2015.

Costs applicable to mining revenue decreased by $3.8 million for the nine months ended September 30, 2014, as compared to the same period in 2013.  The decrease resulted from lower mining, maintenance, material costs from less variation associated with mining start up activities, production scheduling and includes a 2013 $1 million write down in the value of our inventory caused by then declining gold prices, recorded at June 30, 2013.

General and administrative expenses, inclusive of professional and consulting fees, decreased by almost $2.8 million or approximately 35% during the nine months ended September 30, 2014 compared to the same period ended September 30, 2013. The decrease is primarily the result of lower third party legal and advisory expenses, including external relations, and lower stock-based compensation expense.

Exploration

The Company continues to evaluate high priority targets within the Lucerne Resource Area. Recent geologic evaluation has focused on the area immediately east of the current Lucerne pit, and this area is included in the Company’s upcoming drill program. Future targets include the Dayton Resource Area, Spring Valley, Occidental, Oest and the Northern Target areas.

The Lucerne Resource Area currently represents the Company’s largest detailed geological development. The Company plans on expanding its existing Lucerne mining operations eastward (the Eastside) and develop the mineralized system lying below and down-dip of the final Lucerne West Mine floor. We are evaluating several approaches, including expanded surface mining, underground mining and a combination of both surface and underground mine plan scenarios.

The Eastside of Lucerne straddles State Route 342, and encompasses a nearly half-mile long segment of the Gold Hill/Silver City extension of the Comstock Lode. The Eastside has an extensive amount of drilling, conducted over more than 25 years, representing over 740 drill holes with an aggregate length of more than 270,000 feet. Historic production from mines within the Eastside area (from the years 1860 to 1940) totals approximately 295,495 gold equivalent ounces from about 551,576 tons of material, or an average gold equivalent grade of 0.535 ounces per ton.  Most of this production came from underground workings.  These Eastside, near-surface, mineralized areas represent the Company’s most significant, ongoing development. The Chute Zone represents a secondary, deeper mineralized target that has been intersected in drill holes to depths of about 800 feet below the surface. In addition, the Eastside development also includes the evaluation of a significant amount of lower-grade tonnage from historical waste dumps from past surface and underground operations.

Although preparation for the Eastside evaluation has been years in the making with land acquisitions, drilling, and detailed geologic mapping, the Company commenced a significant, dedicated geological exercise, starting in May 2014, that included compiling, interpreting, and feasibility modeling for expanded surface mining and initial underground mine development. The effort started with the construction of detailed, 50-foot spaced geologic cross-sections covering the entire length of the Eastside (approximately 2,400 feet). The model incorporates all available data, including existing drill holes, historic underground mine maps, current western mine development and the Company’s detailed surface geologic maps. The sectional compilation resulted in several important findings. The work confirmed that the lode is comprised of a group of northwest trending, sub-parallel mineralized structures, rather than a simple vein system confined to single fault zone. These structural groups coalesce into a single 150-foot wide zone in the central part of the Eastside area.  The faults (structures) diverge to the north and south to create zones up to 600-foot wide. The Company also discovered dike-like masses of quartz porphyry that have intruded into the main lode and may have a direct relationship to the known mineralization

The Company is currently working on converting the sectional data into level plans between elevations of 4800’ and 5340’, spaced 20 feet apart vertically, and extending along the entire length of the Eastside. Level plans tend to both correct and synthesize the sectional data with respect to the distribution of rock units and major geologic structures. The Company is also working diligently to configure and integrate the underground mine workings into the level plans. This is particularly true of areas where ore was historically extracted (stopes), such that previously mined tonnages are accounted for and integrated into the model. Grade shells and grade models will be derived from the sectional data and an internal, phased reserve model will be made for this area

The Company is defining its next phase of exploration drilling that will now include a focused evaluation of the Eastside area from both a surface and underground potential. The infill drill program includes 35 Reverse Circulation (RC) holes totaling approximately 11,000 feet and 11 Core holes totaling approximately 5,000 feet.  The planned initial investment of approximately $1 million will allow for a possible expansion of surface mining along with a stronger definition of an underground mining opportunity. The subsequent phases of exploration drilling for the Lucerne Resource Area extend farther south and east and could consist of an additional 30,000 feet of RC drilling for an additional investment of $1 million. The initial drill program for the Eastside is scheduled to commence in October, 2014

The 2014-2015 drilling programs also include the Dayton Resource Area and Spring Valley. These areas are scheduled for approximately 80,000 feet of RC drilling and approximately 20,000 feet of core drilling at a total investment of approximately $4.9 million. 

Land and Mineral Right Purchases

The Company continues to increase its footprint in the Comstock District through strategic acquisitions. The Company considers the historic Comstock District central to its growth strategy and now owns or controls approximately 8,035 acres of mining claims and parcels in the Comstock and Silver City Districts. The acreage is comprised of approximately 1,944 acres of patented claims (private lands) and surface parcels (private lands) and approximately 6,091 acres of unpatented mining claims, which the Bureau of Land Management (“BLM”) administers. In addition to land holdings, the Company has secured options on over 1,300 more acres.

Corporate

The Company’s current capital resources include cash and cash equivalents and other working capital resources, cash generated through operations, and existing financing arrangements.

Total current assets were $11.9 million at September 30, 2014. Cash and cash equivalents on hand at September 30, 2014 totaled $9.3 million. Inventories, stockpiles, and mineralized material on leach pad totaled $1.5 million.

Net loss was $8.3 million for the nine months ended September 30, 2014 as compared to $15.8 million for the comparable period in 2013.  The decrease of over $7.5 million is primarily the result of $6.9 million in mining and administrative costs savings, primarily from costs savings in hauling, related equipment and maintenance, mining, consulting, and stock based compensation expense.

For the remainder of 2014, the Company plans on spending approximately $1.0 million in capital expenditures, primarily for heap leach processing capacity. The Company also plans to pay down an additional $3.3 million in debt obligations, including $2.5 million on the Revolving Credit Facility.  

Recent developments

On October 7, 2014, the Company received a renewal of the Water Pollution Control Permit from the State of Nevada Division of Environmental Protection. The permit authorizes, effective October 22, the construction, operation, and closure of our approved heap leaching facilities in Storey County.

On October 9, 2014, the Company obtained agreement to extend the Company’s $5 million revolving credit facility one year, whereby Auramet agreed to extend the facility from the current maturity of February 6, 2015, to February 5, 2016. 

On October 15, 2014, honoring Nevada’s Sesquicentennial, a celebration of 150 years of statehood, Comstock Mining announced a minted, limited-edition medallion struck from one troy ounce of pure (.9999) Comstock silver.  This is the first time since the U.S. Mint in Carson City closed in 1893, that pure Comstock silver has been minted as a substantial authentic medallion, representing a rare opportunity to own a genuine piece of the Comstock Lode. It is mined safely and responsibly from the famed Comstock under the highest environmental standards. Each medallion is an expression of the deep heritage of the great Comstock Lode, famous for its enormous wealth, hastening statehood for Nevada in 1864 and shaping mining practices worldwide for over six decades.

Outlook

Under our current mine plan, we anticipate doubling the rate of ounces produced when compared to 2013, for both gold and silver, targeting an annual production rate of 40,000 gold equivalent ounces. These increases come with lower costs applicable to mining due to focused cost reduction efforts, as well as lower non-mining operating expenses. Once stabilized at the 40,000 ounce per annum run rate, the operating expenses per ounce mined will be significantly lower.  The Company expects cash costs per ounce of gold mined of less than $750 and an all in sustaining cash cost of $1,050. The Company updated its financial analysis for the Lucerne Mine and anticipates annual operating expenses, including all mining and processing costs, of less than $24 million per annum, a more than a $7 million reduction over prior year 2013. The Company has also identified $3.5 million of cost reductions in all other non-mining activities, including general and administrative.

Mr. De Gasperis concluded, "Our fourth quarter mine plan is significantly enhanced, with continued good grades, lower strip ratios, lower variation and lower costs. We expect to be cash positive from operations and after capital expenditures in the fourth quarter, our most important measurement. The recent geological expansions and modeling into the east side of Lucerne coupled with the recent permit expansions over that area, position the Company extremely well for continued growth in 2015."

Conference Call

As previously announced, the Company will host a conference call on October 16, 2014 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report the Third Quarter 2014 results, business update and outlook.

The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:

U.S. / Canada Toll free: 1-866-253-4737
International Toll: 416-849-4292

The audio will be available, usually within 24 hours of the call, and for 30 days thereafter, at http://www.comstockmining.com/investors/investor-library

 

About Comstock Mining Inc.
Comstock Mining Inc. is a producing, 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, development and mining.  The near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow the commercial development of our operations through coordinated, district wide plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock.  Forward-looking statements include statements about matters such as: 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); capital expenditures and their impact on us; productivity, business process, rationalization, 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,” "target," “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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.
http://www.comstockmining.com

 

 

 

 

 

 

 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Kimberly Shipley
Manager of Investor Relations
Tel (775) 847-0545
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Wednesday, October 15, 2014

Comstock Mining Mints Pure (.9999) Comstock Silver Medallion

Virginia City, NV (October 15, 2014) -- Comstock Mining Inc. (NYSE MKT: LODE) announced today that it has designed and minted an artfully crafted, limited-edition medallion struck from one troy ounce of pure (.9999) Comstock silver. This specially designed silver medallion honors Nevada's Sesquicentennial, celebrating 150 years of statehood! This is the first time since the U.S. Mint in Carson City closed in 1893 that pure Comstock silver is being minted in such a substantial, authentic medallion.  The silver was mined safely and responsibly, with the highest environmental standards, directly from the historic Comstock District. Each medallion is an expression of the deep heritage of the great Comstock Lode, famous for generating enormous wealth, facilitating statehood for Nevada in 1864, and shaping mining practices worldwide for over six decades.

The medallion features Gold Hill, Nevada in the early 1870s, including the world-renowned Crown Point Trestle. The medallion’s reverse captures Gold Hill’s Upper Yellow Jacket Hoist and Ore Chute, recently restored by the Comstock Foundation for History & Culture. Each medallion will be minted from one troy ounce of pure (.9999) silver. Ron Oden, a Lake Tahoe based artist and graphic designer, developed the images for the medallion. “Ron has captured remarkable features and the beauty and bustle of the Comstock Lode, at its height, providing Nevada with an inspiring design for this historic and uniquely precious, silver medallion,” stated Corrado De Gasperis, CEO of Comstock Mining.

This commemorative is being offered for $100.50 each and include free shipping in the United States. Volume discounts are available for purchases of 5 and 10 or more.  This medallion can be purchased now on the Company website, www.comstockmining.com/products with shipping available before Nevada Day (October 31st).

“We are proud to offer this artistic rendition of our national legacy and the Silver State’s great mining heritage, as the Company looks proudly to the future while honoring and celebrating Nevada’s significant past.  We are working in partnership with the Comstock Foundation for History & Culture, to save the fragile structures of the National Historic Landmark District, with a portion of the proceeds from each sale going directly to preservation and restorations on the National Landmark,” continued Mr. De Gasperis, CEO of Comstock Mining.

About Comstock Mining Inc.
Comstock Mining Inc. is a producing, 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 near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow production through the commercial development and expansions of both the Lucerne and Dayton Mine plans.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock Mining Inc.  Forward-looking statements include statements about matters such as the minting, production and sale of commemorative medallions and prints, availability of commemorative medallions and prints, potential money raised and donations to be made in the future. The words “anticipate,” “plan,” “may,” “will,” 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K.  Occurrence of such events or circumstances could have a material adverse effect on our business and financial condition. We undertake no obligation to publicly update or revise any forward-looking statement. Neither this press release nor any related calls or discussions constitute an offer to sell or the solicitation of an offer to buy any securities.

 

Contact information for Comstock Mining Inc.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.
http://www.comstockmining.com

 

 

 

 

 

 

 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Kimberly Shipley
Manager of Investor Relations
Tel (775) 847-0545
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Thursday, October 9, 2014

Comstock Mining Announces Notice of Full Third Quarter 2014 Results and Business Update Conference Call

Virginia City, NV (October 9, 2014) -- Comstock Mining Inc. (“Comstock Mining” or “the Company”) (NYSE MKT: LODE) will host a conference call on Thursday, October 16, 2014 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report full Third Quarter 2014 results and provide a business update.

The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:

United States/Canada Toll free: 1-866-253-4737

International Toll: 416-849-4292

The audio will be available, usually within 24 hours of the call, and for 30 days thereafter, at http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.
Comstock Mining Inc. is a producing, 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 near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow production through the commercial development and expansions of both the Lucerne and Dayton Mine plans.

 

Contact information for Comstock Mining Inc.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.
http://www.comstockmining.com

 

 

 

 

 

 

 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Kimberly Shipley
Manager of Investor Relations
Tel (775) 847-0545
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

 
Thursday, October 2, 2014

Comstock Mining Announces Record September Gold Pours, Third Quarter Highlights

Virginia City, NV (October 2, 2014) -- Comstock Mining Inc. (the “Company” or “CMI” or “we”) (NYSE MKT: LODE) today announced selected production highlights and unaudited financial results for the quarter ended September 30, 2014. 

2014 Third Quarter Flash Highlights

  • Record highest pours for a single month of September 2014, with gold equivalent of 2,423 ounces.
  • Mining revenue from the sale of gold for the current quarter was $6.5 million.
  • Gold and silver shipments totaled 4,997 ounces and 61,001 ounces, respectively, in the third quarter, with silver representing a 26% increase from the prior quarter. 
  • Weighted average gold grade was 0.026 ounces per ton and silver grade was over 0.550.
  • Metallurgical yields improved to 80%, from a previous average estimate of 76%.
  • Strip ratio improved to below 4.8:1, down from 6.7:1 last quarter and trending positive.
  • Cost reductions, when comparing 2014 to 2013 year to date, totaled $7.5 million.   
  • Reduced our debt balance during the quarter by $2.2 million.
  • Cash and cash equivalents were $9.25 million at September 30, 2014.
  • Expanded land holdings in Lyon and Storey County by over 435 acres, bringing the land position to almost 8,000 acres, and securing options on over 1,300 more.
  • Expanded and amended our landmark, Storey County Special Use Permit to expand mining and processing capability. This permit represents one of the most significant and collaborative permit approvals in the Company's history and lays a tremendous foundation for future growth.
  • Honored with a 2013 first place safety award from the Nevada Mining Association, joining Newmont and Barrick as the only other medium-sized category winners.
  • Welcomed Tesla to the Storey County family, a remarkable place to live and work.

Comstock’s Chief Executive Officer, Corrado De Gasperis commented, “We have generated our second straight quarter of positive cash from operations and achieved significant progress in our four focus areas so far this year: lowering our costs, strengthening our balance sheet, enhancing our mine plan and operations and expanding our land position.  Cash cost of mining for the third quarter was approximately $832 per ounce despite challenging but improving strip ratios. We continue progressing toward our production cost target of $750 per ounce for 2014.”

Production

During the third quarter of 2014, the Company poured 4,997 ounces of gold and 61,001 ounces of silver.  The Company mined approximately 1.1 million tons of material (mineralized material and waste).  Total mineralized material delivered to the leach pad was over 191 thousand tons, an over 55% increase in material delivered to the crusher from the previous quarter.  Our key operating measures are trending positively, as shown below:

Exploration and Development

Our geological and engineering teams have advanced our understanding of the Lucerne geology significantly in the last six months.  A tremendous amount of pre-drilling development, including detailed geological cross section and level plans for the substantial majority of the first phase of the East side expansion, resulted in expanded resource targets. Our teams have identified additional mineralized materials on and near the surface throughout certain prior mine workings including the historic Woodville Bonanza area. When finalized, these activities will lower the cost and increase the effectiveness of our upcoming drilling program in Lucerne. We are planning a technical press release with further geological details later this month coincident with the commencement of the drilling program.
 
Mr. De Gasperis concluded, “Our fourth quarter mine plan is significantly enhanced, with continued good grades, lower strip ratios, lower variation and lower costs.  We expect to be cash positive from operations and after capital expenditures in the fourth quarter, our most important measurement.  The recent geological expansions and modeling into the East-side of Lucerne coupled with the recent permit expansions over that area, position the Company extremely well for continued growth in 2015.”

Conference Call

The Company will host a brief conference call on October 7, 2014 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to provide a business update.
The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:
North American Toll Free: 1-866-253-4737
Canada Local / International: 416-849-4292
The audio will be available, usually within 24 hours of the call, and for 30 days thereafter, at http://www.comstockmining.com/investors/investor-library

 

About Comstock Mining Inc.

Comstock Mining Inc. is a producing, 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, development and mining.  The near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow the commercial development of our operations through coordinated, district wide plans that are economically feasible and socially responsible.

 

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock.  Forward-looking statements include statements about matters such as: 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); capital expenditures and their impact on us; productivity, business process, rationalization, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.
http://www.comstockmining.com

 

 

 

 

 

 

 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
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Kimberly Shipley
Manager of Investor Relations
Tel (775) 847-0545
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Thursday, September 18, 2014

Comstock Mining to Present at the Singular Research Ninth Annual Best of the Uncovereds Investment Conference 2014

Virginia City, NV (September 18, 2014) -- Comstock Mining Inc. (NYSE MKT: LODE), a producing, Nevada-based gold and silver mining company with extensive, contiguous property in the historic, world-class Comstock District, today announced that Corrado De Gasperis, President and CEO, will present at the Singular Research Ninth Annual Best of the Uncovereds Investment Conference.  The conference is September 22, 2014, at the Luxe Hotel in Los Angeles, California.

Mr. De Gasperis will provide a Company update during the live presentation, including the recently announced landmark permit expansions, and participate in one-on-one meetings.  Institutional investors that wish to request a meeting with Comstock Mining should send an email request to Bill Jones at This e-mail address is being protected from spambots. You need JavaScript enabled to view it. or call (267) 987-2082.  The presentation will take place on Monday, September 22, 2014 at 1:00 p.m. Eastern Time.  A live audio webcast of the presentation will be available at: http://wsw.com/webcast/sr3/lode

About Comstock Mining Inc.

Comstock Mining Inc. is a producing, 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, development and mining.  The near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow the commercial development of our operations through coordinated, district wide plans that are economically feasible and socially responsible.

Forward-Looking Statements

This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock.  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 and production capacity and operations.  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. 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, including those risks and uncertainties include the risk factors discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 constitute an offer to sell or the solicitation of an offer to buy any securities.

 

Contact information for Comstock Mining Inc.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

 

http://www.comstockmining.com

 

 

 

 

Corrado De Gasperis

 

Kimberly Shipley

President & CEO

 

Manager of Investor Relations

Tel (775) 847-4755

 

Tel (775) 847-0545

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

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Thursday, September 4, 2014

Comstock Mining to Present at the 2014 Precious Metals Summit Colorado

Virginia City, NV (September 4, 2014) -- Comstock Mining Inc. (“Comstock Mining” or “the Company”) (NYSE MKT: LODE), a producing, Nevada-based gold and silver mining company with extensive, contiguous property in the historic, world-class Comstock District, today announced that Corrado De Gasperis, President and CEO, will present at the 2014 Precious Metals Summit Colorado.  The conference is September 10-12, 2014, at the Park Hyatt in Beaver Creek.

Mr. De Gasperis will provide a Company update during the live presentation, including the recently announced landmark permit expansions, and participate in one-on-one meetings with registered conference investors.  Registration is by invitation only to qualified investors, portfolio managers, and private wealth and family office managers. If you would like to register to attend, please click here and complete the form.

The presentation will take place on Thursday, September 11, 2014 at 11:15 a.m. Eastern Time.  A live audio webcast of the presentation will be available at:
http://www.gowebcasting.com/conferences/2014/09/10/precious-metals-summit/day/2

About Comstock Mining Inc.
Comstock Mining Inc. is a producing, 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, development and mining.  The near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow the commercial development of our operations through coordinated, district wide plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock.  Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, business process, rationalization, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K and the following: 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 the conversion of securities that are convertible into or exercisable for shares of our common stock; 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 maintain the listing of 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 constitute an offer to sell or the solicitation of an offer to buy any securities.

 

Contact information for Comstock Mining Inc.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

 

http://www.comstockmining.com

 

 

 

 

Corrado De Gasperis

 

Kimberly Shipley

President & CEO

 

Manager of Investor Relations

Tel (775) 847-4755

 

Tel (775) 847-0545

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

 
Wednesday, September 3, 2014

Comstock Mining Receives Landmark Permit Expansion

Virginia City, NV (September 3, 2014) -- Comstock Mining Inc. (“Comstock Mining” or “the Company”) (NYSE MKT: LODE) announced today that it received unanimous approval from the Storey County Board of Commissioners to expand mining and processing capability through an application to amend and expand the Company’s existing Special Use Permit No. 2000-222-A-3.  The full board was present and all voted to approve Comstock Mining’s application.  This permit represents one of the most significant and collaborative permit approvals in the Company’s history and lays a tremendous foundation for future growth.

Comstock Mining applied for amendments to significantly modify and expand permitted and allowable uses throughout its entire Lucerne Resource Area, containing the Company's largest, classified gold and silver resources and its recently expanded American Flat processing area. The amendment applies to both surface and underground mining; processing and milling; mine definition; exploration; development and other ancillary uses. Some of the more salient features are highlighted below.

Permit Expansion Highlights

  • Expands the overall permitted boundary to over 1,200 acres (from 180 acres), allowing for substantial expansion of mining and processing operations, including the East-side of Lucerne.
  • Expands the permitted private property boundary to approximately 400 acres (from 78 acres) for processing to the south and west of the existing processing facility in American Flat, consistent with recent strategic acquisitions of adjacent private lands.
  • Allows for ongoing mine definition and exploration for the assessment of mineral deposits, including their location, extent, depth, and grade, for the subsequent phasing of the active mine.
  • Allows for the re-alignment of State Route 342, enabling access to significant resources both under and just east of the current alignment.
  • Establishes new and best practices for environmentally responsible mining, including concurrent land reclamation, restoration and preservation of one of the most historically significant and progressive mining districts in Nevada.
  • Supports the ongoing development of the county’s significant mineral resources without impeding the growth of the tourism-based economy of the Comstock Lode.

Comstock's Chief Executive Officer, Corrado De Gasperis commented, “This permit is not only unprecedented in our Company’s history but is also an outstanding example of a true public-private partnership, focused on creating and sustaining a diverse Nevadan economy.  Storey County has played a pivotal role in supporting responsible, sustainable, streamlined and profitable economic development by listening to, understanding and meeting the needs of the entire community.”

The Company has invested significant efforts in the exploration and development of gold and silver resources in the Lucerne Resource Area.  This permit, coupled with additional drilling and geological interpretation and development, will lead to expanded resources and mine plans, including both at-surface, from west to east, and newly developing underground opportunities, including near the historic Woodville patents and the more recently discovered Chute Zone.

Mr. DeGasperis continued: “Our development of Lucerne has been very efficient, especially in terms of the low rate of investment per ounce discovered to date.  Our geological and engineering teams are now developing significant, new geological interpretation and resource expansion on the east-side of the Lucerne Area, with remarkable extensions of the geology.  We can now invest, with even greater confidence, in the drilling and development of the plans for expanding eastward.”  

Additionally, the Company announced that Corrado De Gasperis, President and CEO, will present at the 16th Annual Rodman & Renshaw Global Investment Conference, sponsored by H.C. Wainwright & Co., LLC.  The conference is September 8-10, 2014, at the New York Palace Hotel.

Mr. De Gasperis will provide a Company update during the live presentation, including the landmark permit expansions, and participate in one-on-one meetings with registered conference investors.  If you are an investor, and would like to attend the Company’s presentation, please click on the following link (www.rodm.com) to register for the Rodman & Renshaw conference.  Once your registration is confirmed, you will be prompted to log into the conference website to request a one-on-one meeting with the Company.

The presentation will take place on Tuesday, September 9, 2014 10:00 a.m. Eastern Time in the Louis Salon located on the fourth floor.  A live audio webcast of the presentation will be available at http://wsw.com/webcast/rrshq24/lode and will subsequently be available on the company's investor relations website at http://www.comstockmining.com/investors/investor-library.

About Comstock Mining Inc.
Comstock Mining Inc. is a producing, 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, development and mining.  The near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow the commercial development of our operations through coordinated, district wide plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock.  Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, business process, rationalization, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K and the following: 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 the conversion of securities that are convertible into or exercisable for shares of our common stock; 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 maintain the listing of 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 constitute an offer to sell or the solicitation of an offer to buy any securities.

 

Contact information for Comstock Mining Inc.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

 

http://www.comstockmining.com

 

 

 

 

Corrado De Gasperis

 

Kimberly Shipley

President & CEO

 

Manager of Investor Relations

Tel (775) 847-4755

 

Tel (775) 847-0545

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

 
Tuesday, July 22, 2014

Comstock Mining Announces Second Quarter 2014 Results

Virginia City, NV (July 22, 2014) -- Comstock Mining Inc. (the “Company” or “CMI” or “we”) (NYSE MKT: LODE) today announced selected unaudited financial results for the quarter ended June 30, 2014.

2014 Second Quarter Highlights

  • Nevada Mining Association’s 2014 Safety Awards Honors Comstock Mining with a first place Safety Award.  Barrick and Newmont were the only other winners in the medium-sized category.
  • Mining revenue from the sale of gold for the current quarter was $6.0 million.
  • Gold and silver shipments totaled 4,645 ounces and 48,621 ounces, respectively, in the current quarter, with silver netting $1.0 million in by-product credits.
  • Weighted average gold grade was 0.034 ounces per ton and silver gold grade was 0.546.
  • Net loss for Q2 2014 was $3.4 million, as compared to $5.5 million for Q2 2013. 
    The $2.1 million decrease in net loss primarily resulted from a $2.9 million decrease of costs applicable to mining and operating expenses, offset by lower revenue of $0.8 million resulting primarily from a lower average price of gold.
  • Costs applicable to mining were $5.5 million for Q2 2014, as compared to $8.2 million for Q2 2013.
    The decrease of $2.7 million from Q2 2013 to Q2 2014, resulted from lower mining, maintenance and material costs from specific cost reduction actions and stabilized operations since last years start up, more reliable production scheduling and a slightly lower production rate.
  • Metallurgical yields improved to 76%, from a previous average estimate of 74%.
  • Operating expenses, excluding costs applicable to mining, totaled $3.8 million for Q2 2014, as compared to $4.4 million for Q2 2013.  The decrease is primarily the result of lower third party legal and advisory expenses, including external relations, and lower stock-based compensation expense.
  • Cost reductions, when comparing 2014 to 2013, totaled $3.3 million, with a run rate for the second quarter achieving a higher rate and approaching our stated annual targets of over $6 million from mining and $3.5 million from administration.  
  • Cash and cash equivalents were $12.2 million at June 30, 2014.


2014 Year-to-Date Highlights

  • For the six months ended June 30, 2014, the Company poured 9,152 ounces of gold and 97,979 ounces of silver, as compared to 7,182 ounces of gold and 58,591 ounces of silver during the same period in 2013, an increase of over 27% for gold ounces and over 67% for silver ounces.
  • Net cash used in operating activities was $2.3 million for the six months ended June 30, 2014, as compared to a use of $8.4 million for the six months ended June 30, 2013, an improvement of $5.1 million.  Operating activities during the second quarter, including working capital, provided a positive cash increase.
  • Net cash used in investing activities was $1.9 million for the six months ended June 30, 2014, primarily as the result of $1.5 million purchase of land and mining vehicles, and bond increases of $0.6 million, offset by $0.2 million of proceeds from the sale of equipment previously used in our mining activities. 
  • Net cash provided by financing activities for the six months ended June 30, 2014, was $14.0 million, comprised of net proceeds of $11 million from sale of securities and proceeds of  $4.6 million from the revolving credit facility (the “Revolving Credit Facility”) with Auramet International, LLC, partially off-set by the pay-down of our long-term debt obligations of approximately $1.5 million.

Comstock’s Chief Executive Officer, Corrado De Gasperis commented, “We achieved significant progress in four focus areas so far this year: lowering our costs, strengthening our balance sheet, enhancing our mine plan and operations, including grades and scheduling, and expanding our land position.  Cash cost of mining for the second quarter was below $900 per ounce despite challenging strip ratios so far this year, boding very well for the second half.”

Production
During the second quarter of 2014, the Company poured 4,645 ounces of gold and 48,621 ounces of silver, averaging over 423 gold equivalent ounces poured per week.  The Company mined approximately 944 thousand tons of material (mineralized material and waste) as it continued persistently moving through higher stripping ratios.  Total mineralized material delivered to the leach pad was over 122 thousand tons and represented some of the highest gold and silver grades crushed to date. 

Gold and silver grades continued improving and the weighted average for the second quarter of 2014, was 0.034 ounces per ton gold and 0.546 ounces per ton silver as compared to a weighted average for the second quarter of 2013 of 0.017 ounces per ton gold and 0.284 ounces per ton silver.  April 2014, represented our best month to date, with an average of 0.049 ounces of gold per ton and almost 0.749 ounces of silver per ton.

During the first six months of 2014, the Company poured 9,152 ounces of gold and 97,979 ounces of silver, as compared to 7,182 ounces of gold and 58,591 ounces of silver in the first half of 2013, an increase of over 27% for gold ounces produced and over 67% for silver ounces produced when compared to the first six months of 2013.

Throughout the first six months of 2014, the Company realized an average price of $1,269.35 price per ounce of gold and a $20.25 average sales price per ounce of silver.  In comparison, commodity market prices in the first six months of 2014, averaged $1,291.25 per ounce of gold and $20.05 per ounce of silver.

Operating Costs
During the first six months of 2014, actual Lucerne Mine costs applicable to mining revenue were approximately $12.2 million, $10.2 million net of silver credits as compared to $13.5 million, $12.1 million net of silver credits, during the first six months of 2013.  Costs applicable to mining revenue include mining and processing labor, maintenance, drilling and blasting, and assaying costs, among others.  Costs applicable to mining revenue for the first six months of 2014 and 2013, also include $2.6 million of depreciation and $1.5 million of depreciation, respectively.

During the second quarter, the Company continued reducing costs applicable to mining, targeting over $6 million in reductions for 2014, as compared to 2013, and an additional $3.5 million in administration and all other costs.  The Company has already realized annual savings of approximately $3.3 million from reduced staffing in crushing, related maintenance, mining and administrative, drilling and blasting, logistics and administration cost reductions, with second quarter run rates well exceeding these achieved levels.  Costs applicable to mining have been reduced over the past six quarters, with second quarter costs of sales, on a cash cost per ounce basis, at the lowest since inception, at slightly under $840 per ounce.

2014 Production Outlook
Through the end of 2013, the Company began transitioning into production at higher rates and grades with lower sustainable costs.  The recently acquired permit now allows processing rates of up to 4 million tons of mineralized material to be placed on the leach pad per annum, and the Company’s 2014 business plan calls for processing at the rate of 40,000 gold equivalent ounces.  Two additional cells were constructed in late 2013 and stacking on these cells commenced during the fourth quarter of 2013.  The Company is also fully permitted to add an additional cell when needed.
           
Under our current mine plan, we anticipate doubling the rate of ounces produced when compared to 2013, for both gold and silver, targeting a production rate of 40,000 gold equivalent ounces in the latter half of 2014.  These increases come with lower costs applicable to mining due to focused cost reduction efforts, as well as lower non-mining operating expenses.  Once stabilized at the 40,000 ounce per annum run rate, the operating expenses per ounce mined will be significantly lower.  The Company expects cash costs per ounce of gold mined of less than $750 per ounce.  The Company updated its financial analysis for the Lucerne Mine and anticipates annual operating expenses, including all mining and processing costs, of less than $25 million per annum, a more than a $6 million reduction over prior year 2013.  The Company has also identified $3.5 million of cost reductions in all other non-mining activities, including general, administrative and environmental areas.

Exploration and Development
The Company continues to evaluate high priority targets, including in the nearer term, the East Side of the Lucerne and Dayton Resource Areas and also the Spring Valley Target Area.  Future programs would include the Occidental, Oest and the Northern Target areas.

The proposed evaluation of the East Side Target areas includes continuing infill drilling, metallurgical testing and geotechnical analysis to confirm the mineral potential and expand the mine plan on the East Side of State Route 342.  In addition, the Company is designing a new phase of exploration drilling to include its highest-potential targets, including scoping studies of the Chute Zone in the Lucerne Resource area and plans for expanded exploration and development drilling in the Dayton Resource area that will allow for proper mineral assessment and mine plan development.  The drill program is currently being expanded with approximately 100,000 feet of reverse circulation and 20,000 feet of core drilling, for both Lucerne and Dayton, planned at an investment of approximately $7 million.

The Company completed a successful phase of exploration drilling in Spring Valley in 2012.  The drilling in the northern portion of Spring Valley was partially predicated to confirm buried mineralization by drilling specific magnetic geophysical anomalies that had similar magnetic signatures as defined by mineralized drill holes, drilled prior to the geophysical surface survey.  The drill program is currently being expanded to test the full extent of the geophysical target with approximately 35,000 feet of reverse circulation and 5,000 feet of core drilling planned at an investment of approximately $2 million.

The total 2014-2015, drilling programs, including Lucerne, Dayton and Spring Valley would represent approximately 135,000 feet of reverse circulation drilling, and approximately 25,000 feet of core drilling at a total investment of approximately $9 million.  The drilling would be planned to start in the latter half of 2014.

Corporate
The Company had total current assets of $15.5 million at June 30, 2014.  Cash and cash equivalents on hand at June 30, 2014 totaled $12.2 million.  Inventories, stockpiles, and mineralized material on leach pad totaled $1.1 million.  

For the six months ended June 30, 2014, the Company incurred an operating loss of $6.5 million, used $2.3 million of cash in operations, and used $1.5 million for debt repayments.  The Company continues its efforts to increase production, reduce costs and working capital needs, improve efficiencies, and maximize funds available for working capital.

In May 2014, the Company raised $11.9 million in gross proceeds (approximately $11 million, net of issuance costs) through an underwritten public offering of 7,475,000 shares of our common stock at a price of $1.59 per share.

During 2013, the Company's first full year of production, it was limited, by permit, to up to 1 million tons of stacked and processed mineralized material.  In late November 2013, the Company modified the permit, increasing the limit to up to 4 million tons per annum, and accordingly, the Company's current business plans reflect increased production, reduced costs and improved efficiencies, and generating prospective, positive cash flows.  The Company continues reducing costs applicable to mining, targeting over $6 million in reductions for 2014, as compared to 2013.  The Company has already realized annualized savings of approximately $3.3 million from reduced staffing in crushing, related maintenance, mining and administrative, drilling and blasting, logistics and administration cost reductions.  The Company's 2014 goal remains doubling the rate of year over year production ounces and increasing cash flow, while reducing costs and achieving a cash cost applicable to mining of less than $750 per ounce.

For the remainder of 2014, the Company plans on spending up to $3.0 million in capital expenditures, primarily infrastructure and development needs for the expansion of the Lucerne Mine and related heap leach processing capacity.  The Company also plans to pay down an additional $5.3 million in debt obligations, including $3.9 million on the Revolving Credit Facility.  

Land Enhancements and Zoning
During the second quarter, the Storey County Board of Commissioners unanimously approved important zoning changes on certain mining claims and other properties located in the Lucerne Resource Area, enabling a more comprehensive mine plan and completing a critical prerequisite for proceeding with a request for an expanded Special Use Permit.  These rezoned properties are situated in the Lucerne Resource Area, that includes the historic Justice and Keystone mining claims and near the Historic Woodville Bonanza.  Earlier this year, the Lyon County Board of Commissioners unanimously approved break-through zoning changes on certain Company mining claims and other properties located in the Dayton Resource Area.  These claims represent the Company's second largest, classified gold and silver resource and include the historic Marble, Alhambra and Kossuth lode patented mining claims. 

All the zoning in the Company’s resource areas are now zoned consistently with the Company’s goals and objectives. These zoning changes position the Company for immediate permit expansion in the Lucerne Resource Area and intermediate planning for similar permitting opportunities in the Dayton Resource Area.

Comstock’s Chief Executive Officer, Corrado De Gasperis concluded, “Our second half mine plan is significantly enhanced, with continued good grades, lower strip ratios and significantly lower costs.   The recent zone changes in the district reflect tremendous local support for our responsible efforts and have positioned us for further growth in 2015.”

Conference Call
As previously announced, the Company will host a conference call on July 22, 2014 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report the Second Quarter 2014 results, business update and outlook.

The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:

North American Toll Free: 1-866-253-4737
Canada Local / International: 416-849-4292

The audio will be available, usually within 24 hours of the call, and for 30 days thereafter, at http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.
Comstock Mining Inc. is a producing, 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, development and mining.  The near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow the commercial development of our operations through coordinated, district wide plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock.  Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, business process, rationalization, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K and the following: 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 the conversion of securities that are convertible into or exercisable for shares of our common stock; 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 maintain the listing of 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 constitute an offer to sell or the solicitation of an offer to buy any securities.

 

Contact information for Comstock Mining Inc.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

 

http://www.comstockmining.com

 

 

 

 

Corrado De Gasperis

 

Kimberly Shipley

President & CEO

 

Manager of Investor Relations

Tel (775) 847-4755

 

Tel (775) 847-0545

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

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Tuesday, July 15, 2014

Comstock Mining Announces Notice of Second Quarter 2014 Results and
Business Update Conference Call

Virginia City, NV (July 15, 2014) -- Comstock Mining Inc. (“Comstock Mining” or “the Company”) (NYSE MKT: LODE) will host a conference call on Tuesday, July 22, 2014 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report Second Quarter 2014 results and provide a business update.

The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:

North American Toll Free: 1-866-253-4737
Canada Local / International: 416-849-4292

The audio will be available, usually within 24 hours of the call, and for 30 days thereafter, at http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.
Comstock Mining Inc. is a producing, 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, development and mining.  The near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow the commercial development of our operations through coordinated, district wide plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock.  Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, business process, rationalization, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K and the following: 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 the conversion of securities that are convertible into or exercisable for shares of our common stock; 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 maintain the listing of 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 constitute an offer to sell or the solicitation of an offer to buy any securities.

 

Contact information for Comstock Mining Inc.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

 

http://www.comstockmining.com

 

 

 

 

Corrado De Gasperis

 

Kimberly Shipley

President & CEO

 

Manager of Investor Relations

Tel (775) 847-4755

 

Tel (775) 847-0545

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Wednesday, July 2, 2014

Comstock Mining Receives Unanimous Approvals for Lucerne Zoning Changes

 

Virginia City, NV (July 2, 2014) -- Comstock Mining Inc. (the “Company”) (NYSE MKT: LODE) announced today that the Storey County Board of Commissioners unanimously approved important zoning changes on certain mining claims and other properties located in the Lucerne Resource Area, enabling a more comprehensive mine plan and completing a critical prerequisite for proceeding with a request for an expanded Special Use Permit.

“During the first six months of 2014, we’ve increased the intrinsic value of our company and the Comstock communities by positioning and preparing our land for more productive uses.   Our collaborations with these communities are centered on well-planned projects that promote responsible development, accelerated reclamation and unprecedented preservation activities in this historic, world class gold and silver mining district. These achievements are the results of a true public-private collaborations, working to achieve our common objectives,” stated Corrado De Gasperis, President and CEO of Comstock Mining Inc. 

These rezoned properties are situated in the Lucerne Resource Area, that includes the historic Justice and Keystone mining claims and near the Historic Woodville Bonanza.  The Lucerne Resource Area is the Company's largest, classified gold and silver resource area.   Earlier this year, the Lyon County Board of Commissioners unanimously approved break-through zoning changes on certain Company mining claims and other properties located in the Dayton Resource Area.  These claims represent the Company's second largest, classified gold and silver resource and include the historic Marble, Alhambra and Kossuth lode patented mining claims.  All the zoning in the Company’s resource areas are now zoned consistently with the Company’s goals and objectives.

About Comstock Mining Inc.
Comstock Mining Inc. is a producing, 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, development and mining.  The near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 40,000 gold equivalent ounces and significantly grow the commercial development of our operations through coordinated, district wide plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock.  Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, business process, rationalization, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K and the following: 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 the conversion of securities that are convertible into or exercisable for shares of our common stock; 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 maintain the listing of 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 constitute an offer to sell or the solicitation of an offer to buy any securities.

 

Contact information for Comstock Mining Inc.:
PO Box 1118
Virginia City, NV  89440

 

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

 

http://www.comstockmining.com

 

 

 

 

Corrado De Gasperis

 

Kimberly Shipley

President & CEO

 

Manager of Investor Relations

Tel (775) 847-4755

 

Tel (775) 847-0545

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Wednesday, May 14, 2014

Comstock Mining Completes $11.9 Million Public Offering


Virginia City, NV (May 14, 2014) - Comstock Mining Inc. (the “Company”) (NYSE MKT: LODE) announced today the successful completion of its previously announced public offering of 6.5 million shares of its common stock. The Company also announced that the underwriters exercised their over-allotment option to purchase an additional 975,000 shares.

The net proceeds to the Company from the offering and the over-allotment will be approximately $11 million, after deducting underwriting discounts, commissions and estimated offering expenses. The Company intends to use the net proceeds from the offering for production expansion, exploration and development drilling and general corporate purposes.

H.C. Wainwright & Co., LLC and National Securities Corporation, a wholly owned subsidiary of National Holdings, Inc. (NHLD), acted as Joint Book-Running Managers for the offering.

 

About Comstock Mining Inc.

Comstock Mining Inc. is a producing, 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 near term goal of our business plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (proven and probable) of at least 3,250,000 gold equivalent ounces from our first two resource areas, Lucerne and Dayton, achieve initial commercial mining and processing operations in the Lucerne Mine with annual production rates of approximately 20,000 gold equivalent ounces and significantly grow production through the commercial development and expansions of both the Lucerne and Dayton Mine plans.

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

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

http://www.comstockmining.com

Corrado De Gasperis

Kimberly Shipley

President & CEO

Manager of Investor Relations

Tel (775) 847-4755

Tel (775) 847-0545

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

  This e-mail address is being protected from spambots. You need JavaScript enabled to view it.
 
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