Virginia City, NV (November, 11 2014) — Comstock Mining Inc. (the “Company”) (NYSE MKT: LODE) today announced progress on major permit modifications and enhancements, including the issuance of an expanded Class 1 Air Quality Operating Permit to Construct (OPTC) and Water Pollution Control Permit (WPCP) from the Nevada Division of Environmental Protection (NDEP) and the commencement of the public notice period for a draft Environmental Assessment (EA) by the Bureau of Land Management (BLM) to amend Right-of-Way (ROW) grant NVN 091237.
The Company submitted an application to revise its existing OPTC, AP1041-2761, allowing for longer operating hours and increased throughput. The revisions allow the Company to increase the maximum allowable throughput of gold bearing material to 7,300,000 tons per 12-month rolling period and increase the hours of operation to 20 hour per day from the current limit of 12. NDEP Bureau of Air Pollution Control issued the revised permit November 6, 2014.
The Company also received a five-year renewal of its WPCP, NEV2000109, from the NDEP Bureau of Mining Regulation and Reclamation. The permit, effective October 22, 2014, authorizes construction, operation, and closure of the approved heap leaching facilities in Storey County. Additionally, the permit allows for the construction of an additional cell to the existing heap leach facility. The Company currently has eight active cells and anticipates construction of an additional cell in 2015.
The Company has submitted an application to amend ROW grant NVN 091237, submitted to the BLM’s Sierra Front Field Office along with a draft Plan of Development. The ROW amendment would provide an expanded roadway that can accommodate oversized haul trucks, and allow the Company to deliver material from the mine to the processing facility, both located on private land. To evaluate this proposal, the BLM has prepared the American Flat Road/Lucerne Access Right-of-Way Draft EA. The BLM recently announced that it is accepting public comments on the Draft EA from November 10th through December 9, 2014.
The Company is currently mining in the Lucerne Mine that includes, among others, the Lucerne and Billie the Kid mining patents. Mined material is currently hauled, on a non-exclusive-use road, to the heap-leach processing facility under an existing right-of-way that was just recently extended to December 31, 2017.
The Company’s Chief Executive Officer, Corrado De Gasperis commented, “We have achieved significant progress in expanding our land, geology and mine operations, while continuously expanding our production permits, for both current and future operations. Our air quality permit modifications, among other things, significantly expands the hours of operation for crushing and allows for simultaneous operation of our retort and furnace and at increased throughput rates. The solid progress on our ROW application will ultimately allow for the most productive and efficient haul routes from our mines.”
To comply with the National Historic Preservation Act, the BLM and consulting parties are preparing a Memorandum of Agreement (MOA) to resolve the potential adverse effects to historic properties. A separate public workshop on the MOA will be held in January 2015.
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.
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: anticipated construction; increases to the maximum allowable throughput of gold bearing material; expansion of the hours of operation for the Company’s crushing facility from 12 hours per day to 20 hours per day; simultaneously operation of the Company’s retort and furnace at increased flow rates; and future productivity and efficiency of haul routes..
The words “allows,” “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.:
Corrado De Gasperis