Virginia City, NV (November 8, 2010) — Comstock Mining Inc. (“Comstock Mining” or “the Company”)(OTCBB: LODE) announced today that it has begun a new drilling program at its Comstock Mine Project, under the direction of Mr. Larry Martin, Comstock Mining’s Chief Geologist. The program includes over 100,000 feet of reverse circulation (RC) drilling, and has a planned duration of about seven months. It includes development drilling in the Lucerne and Dayton Resource Areas, exploration drilling on certain high priority targets within the Company’s extensive Comstock district land holdings, and condemnation drilling in the areas designated for possible heap leach pad expansion.
The drilling has begun with two RC drill rigs and crews from DeLong Construction, Inc., of Winnemucca, Nevada (DeLong). DeLong was a drilling supplier in the Company’s 2007-2009 and Spring 2010 drilling programs. A third drill rig and crew is scheduled to join the program in mid-November, and will be supplied by Orbit Garant Drilling of Winnemucca, Nevada, also a supplier in the 2007-2009 drilling program.
“Our experienced team has built a tremendous, working geological model that better-explains the mineralization along the Silver City fault zone,” stated Mr. Martin. “That knowledge directs very efficient drilling, and provides multiple, high priority targets in our search for bonanza-grade mineralization.”
Development drilling is designed to provide information for a detailed mine plan, an important pre-requisite for the Company’s planned feasibility study and production. Development drilling in the Lucerne Resource Area is focused on Hartford Hill, the primary location for the Lucerne starter pit.
The Dayton Resource Area includes a significant near-surface mineral resource, which was first reported by the Company in the August 2010, Behre Dolbear NI 43-101 technical report. Development drilling in the Dayton Resource Area is planned to further validate and expand these encouraging results based on previous shallow drilling, and to provide the information for a detailed mine plan in this area. Additional exploration drilling in the Dayton Resource Area is planned to expand the resource with deeper drilling, including depths to 1200 feet, to test the down-dip continuity of the mineralization.
This drilling program also includes several high priority exploration targets. The first is the east target, identified in the August Behre Dolbear report with the recommendation, “Drilling to the northeast of the Lucerne pit (East target) has encountered very encouraging assay results. Exploration drilling should continue with expectations of expanding resources along the northeast striking structures.” The program also includes other, high priority exploration targets.
Mr. Corrado DeGasperis, Comstock Mining Chief Executive Officer, stated, “This drilling program is designed to advance the Company’s strategic plan. Our plan calls for a return to mine production in 2011, and validation of mineral resources and reserves of at least 3.25 million gold equivalent ounces by 2013.”
Comstock Mining has contracted American Assay Laboratories (AAL), of Reno, Nevada to assay the samples taken during the reverse circulation drilling. AAL is an independent, certified commercial laboratory that is well regarded in the mining industry. The resulting gold and silver assay values will be used to update the Company’s three-dimensional model of the mineralization for the project.
About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based gold and silver mining company with extensive, contiguous property in the Comstock District. The Company began acquiring properties in the Comstock District in 2003. Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and brought the exploration project into test mining production. The Company continues acquiring additional properties in the district, expanding its footprint and creating opportunities for exploration and mining. The goal of its strategic plan is to deliver stockholder value by validating qualified resources (at least measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations in 2011, with annual production rates of 20,000 gold equivalent ounces.
Cautionary Note to U.S. Investors
This press release uses the terms “measured resources,” “indicated resources,” “inferred resources,” and “historical resources” which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification system. The United States Securities and Exchange Commission (the “SEC”) does not recognize these terms and the SEC guidelines (Industry Guide 7) provide that such terms shall not be included in a registrant’s filings with the SEC (unless required to be disclosed by foreign or state law). The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC’s website at http://www.sec.gov.
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 loses 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|