Comstock Mining Inc

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Comstock Mining Inc
Wednesday, May 9, 2012

Comstock Mining Completes Phase One Drilling at Spring Valley

 

Significant mineralization in all 14 RC holes, including a combined 65.5 meters of 1.14 g/t gold and 3.77 g/t silver in hole SV12-05 and a 10.7 meter high-grade interval of 6.18 g/t gold and 8.57 g/t silver in hole SV12-11

 

Virginia City, NV (May 9, 2012) -- Comstock Mining Inc. (“Comstock Mining” or “the Company”) (NYSE Amex: LODE) announced the successful completion of the initial phase of drilling in its Spring Valley exploration target.  The Spring Valley drilling began on January 24, 2012, and was completed on March 22, 2012.  

As previously announced, the initial Spring Valley drilling was designed as a follow up of the Company’s successful 2009 Spring Valley discovery and to verify the continuity of the Dayton geological model southward, beyond State Route 341, into this predominantly unexplored area. Two drill rigs were used in this initial phase, completing14 reverse circulation (RC) holes, totaling 10,235 feet, and two core holes totaling 1,627 feet.

 

Spring Valley Initial Phase Hits Significant Mineralization on Every Hole

 

Assay results have been received for all of the RC drilling, showing that all 14 RC holes encountered intervals of significant mineralization (gold grades greater than 0.010 ounces per ton or silver grades greater than 0.100 ounces per ton, and length of at least ten feet). 

Of special interest is hole SV12-05, which encountered a total of 215 feet of significant mineralization in three zones: 90 feet grading 0.027 ounces of gold and 0.148 ounces of silver per ton, 30 feet grading 0.028 ounces of gold and 0.050 ounces of silver per ton, and 95 feet grading 0.041 ounces of gold and 0.093 ounces of silver per ton.  Also of note are hole SV12-07, with 180 feet of significant mineralization in seven zones, and hole SV12-11, which encountered 100 feet of significant mineralization in six zones, including 35 feet grading 0.181 ounces of gold and 0.250 ounces of silver per ton.

“Our initial drilling supports extending the geological model that we developed at the Dayton Resource Area,” said Larry Martin, Comstock Mining Vice President of Exploration and Mine Development.  “We are especially encouraged that one of our featured drill holes, in the northern-most drill fence, intersected multiple zones of significant mineralization targeted specifically from the knowledge derived from our 2011 geophysical survey.”

Significant Mineralized Intervals, Deeper, Silver Only Mineralization Persists

A sample from each five-foot interval in each drill hole has been sent for analysis to American Assay Labs, of Reno, Nevada, a certified independent laboratory.  Assay results have been received to date for all 14 of the RC holes in the program.  Many of the holes encountered the deeper, silver-only mineralization that was first noted in the results of the 2010-2011 Dayton drilling program.

 

Spring Valley Phase One RC Drill Results

Drill Hole

Interval

(ft)

Length

(ft)

Gold (oz/ton)

Silver

(oz/ton)

Length

(m)

Gold

(g/t)

Silver

(g/t)

SV12-01

20 - 30

10

0.030

0.134

3.05

1.01

4.57

 

470 - 480

10

-

0.248

3.05

-

8.48

 

525 - 590

65

-

0.158

19.81

-

5.40

 

685 - 695

10

-

0.142

3.05

-

4.85

 

 

 

 

 

 

 

 

SV12-02

10 - 20

10

0.028

0.067

3.05

0.94

2.29

 

40 - 60

20

0.012

0.106

6.10

0.39

3.61

 

105 - 140

35

0.018

0.145

10.67

0.62

4.96

 

550 - 570

20

-

0.104

6.10

-

3.54

 

580 - 600

20

-

0.120

6.10

-

4.12

 

625 - 660

35

-

0.158

10.67

-

5.40

 

 

 

 

 

 

 

 

SV12-03

65 - 75

10

-

0.234

3.05

-

8.01

 

330 - 345

15

0.026

0.213

4.57

0.89

7.28

 

455 - 470

15

0.015

0.014

4.57

0.51

0.48

 

590 - 610

20

0.024

0.074

6.10

0.80

2.52

 

 

 

 

 

 

 

 

SV12-04

205 - 215

10

0.014

0.294

3.05

0.48

10.07

 

320 - 335

15

0.034

0.279

4.57

1.16

9.55

 

 

 

 

 

 

 

 

SV12-05

135 - 225

90

0.027

0.148

27.43

0.91

5.06

INCLUDES

145 - 165

20

0.033

0.410

6.10

1.13

14.04

 

235 - 265

30

0.028

0.050

9.14

0.97

1.70

 

285 - 380

95

0.041

0.093

28.96

1.41

3.20

 

 

 

 

 

 

 

 

SV12-06

90 - 110

20

0.033

0.070

6.10

1.12

2.41

 

270 - 285

15

-

0.124

4.57

-

4.26

 

585 - 595

10

-

0.194

3.05

-

6.63

 

 

 

 

 

 

 

 

SV12-07

35 - 45

10

0.012

0.019

3.05

0.39

0.63

 

140 - 155

15

0.031

0.103

4.57

1.07

3.53

 

310 - 320

10

0.011

0.014

3.05

0.36

0.48

 

325 - 340

15

0.012

0.020

4.57

0.41

0.68

 

435 - 445

10

0.017

0.062

3.05

0.57

2.11

 

455 - 550

95

-

0.163

28.96

-

5.60

 

560 - 585 (TD)

25

-

0.128

7.62

-

4.38

 

 

 

 

 

 

 

 

SV12-08

185 - 195

10

0.058

0.346

3.05

1.97

11.85

 

195 - 215

20

-

0.158

6.10

-

5.41

 

770 - 790

20

-

0.437

6.10

-

14.97

INCLUDES

770 - 780

10

-

0.762

3.05

-

26.08

 

 

 

 

 

 

 

 

SV12-09

170 - 180

10

0.091

1.369

3.05

3.12

46.87

 

190 - 200

10

-

0.129

3.05

-

4.40

 

225 - 235

10

0.018

0.080

3.05

0.62

2.72

 

270 - 295

25

0.035

0.126

7.62

1.21

4.31

 

420 - 445

25

0.011

0.074

7.62

0.38

2.53

 

 

 

 

 

 

 

 

SV12-10

170 - 185

15

0.025

0.337

4.57

0.86

11.54

 

230 - 240

10

-

0.212

3.05

-

7.26

 

 

 

 

 

 

 

 

SV12-11

70 - 80

10

-

0.139

3.05

-

4.74

 

115 - 150

35

0.181

0.250

10.67

6.18

8.57

INCLUDES

115 - 130

15

0.396

0.490

4.57

13.56

16.77

 

160 - 180

20

0.044

0.238

6.10

1.50

8.13

 

290 - 300

10

0.010

0.279

3.05

0.34

9.54

 

320 - 330

10

0.021

0.162

3.05

0.72

5.53

 

500 - 515

15

0.011

0.150

4.57

0.39

5.14

 

 

 

 

 

 

 

 

SV12-12

5 - 70

65

0.012

0.187

19.81

0.40

6.41

 

470 - 480

10

0.001

0.350

3.05

0.03

11.99

 

 

 

 

 

 

 

 

SV12-13

30 - 40

10

0.025

0.137

3.05

0.84

4.69

 

85 - 95

10

0.022

0.054

3.05

0.75

1.85

 

 

 

 

 

 

 

 

SV12-14

0 - 20

20

-

0.134

6.10

-

4.57

 

50 - 60

10

-

0.207

3.05

-

7.09

 

180 - 190

10

0.011

0.017

3.05

0.36

0.57

 

385 - 405

20

-

0.107

6.10

-

3.66

 

430 - 455

25

-

0.101

7.62

-

3.47

 

 

 

 

 

 

 

 

 

“We are not surprised at these excellent results.  Our structural assessment of the geology suggests a connection from Dayton, south into Spring Valley, and we are just beginning to prove these southerly extensions,” stated Mr. Corrado De Gasperis, Comstock Mining’s Chief Executive Officer.

Ongoing Drilling Programs

The Spring Valley drilling was the first phase of the Company’s 18-month 2012-2013, exploration program.  With completion of the Spring Valley phase one drilling, two reverse-circulation rigs and two core rigs moved to the Lucerne Resource Area.  Geotechnical and definition drilling in the Lucerne will provide information required to optimize and extend the life of the Lucerne mine, currently preparing for production startup.

The 2012-2013 drilling program will then continue with three significant objectives: 1) Step-out and infill drilling in the East-Side of the Lucerne Resource Area; 2) Infill drilling in the Dayton Resource Area; and 3) Exploration drilling on high priority targets, including further drilling in Spring Valley.

About Comstock Mining Inc.

Comstock Mining Inc. is a Nevada-based gold and silver mining company with extensive, contiguous property in the Comstock District.  The Company began acquiring properties in the Comstock District in 2003.  Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and brought the exploration project into test mining production.  The Company continues acquiring additional properties in the district, expanding its footprint and creating opportunities for exploration and mining.  The goal of its strategic plan is to deliver stockholder value by validating qualified resources (at least measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces in 2013, and commencing commercial mining and processing operations with annual production rates of 20,000 gold equivalent ounces.

Forward-Looking Statements

This press release and any related calls or discussions may contain forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements.  Forward-looking statements include statements about matters such as: future prices and sales of and demand for our products; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; operational and management restructuring activities (including implementation of methodologies and changes in the board of directors); future employment and contributions of personnel; tax and interest rates; capital expenditures and their impact on us; nature, timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, business process, rationalization, restructuring, investment, acquisition, consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales and other actions regarding debt or equity securities; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. 

The words "believe," "expect," "anticipate," "estimate," "project," "plan," "should," "intend," "may," "will," "would," "potential" and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our SEC filings and the following: the current global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources and reserves; operational or technical difficulties in connection with exploration or mining activities; contests over our title to properties; potential dilution to our stockholders from our recapitalization and balance sheet restructuring activities; potential inability to continue to comply with government regulations; adoption of or changes in legislation or regulations adversely affecting our businesses; business opportunities that may be presented to or pursued by us; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to unexpected equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, copper, diesel fuel, and electricity); changes in generally accepted accounting principles; geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues organically; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies and equipment raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities.  All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors.  We undertake no obligation to publicly update or revise any forward-looking statement.

 Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any securities.

 

Contact information for Comstock Mining Inc.:

P.O. Box 1118

Virginia City, NV 89440

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http://www.comstockmining.com

 

 

 

 

 

 

 

 

 

 

 

Kimberly Shipley

Doug McQuide

 

 

Manager of Investor Relations

Director of Public Relations

 

 

Tel (775) 847-0545

Tel (775) 847-7376

 

 

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