Virginia City, NV (June 8, 2012) — Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE Amex: LODE) announced it has taken the necessary actions to cure the alleged infractions just received from the Carson City District Field Office of the Bureau of Land Management (BLM). These alleged infractions prompted the May 21st Notice requiring the Company to cease using certain lands deemed public by the BLM. Comstock maintains that the allegations in the Notice are not supported by the facts and has presented over 100 pages of evidence to the BLM supporting this position. However, the Company felt it prudent to cure the alleged infractions immediately before pursuing other actions to resolve the disputed land-ownership claims and right of way issues in a manner that optimizes logistics and mining operations and minimizes disruptions. By addressing the alleged infractions, the Notice is closed and no longer in force.
The immediate actions taken to cure the Notice included removing certain signage and obstructions from LOT 51 (despite still contending it is the Company’s own private land with a record of private ownership dating to 1869, a position affirmed by Storey County); removing certain signage and obstructions from other designated public lands (despite still contending the validity of the existing right-of-way); posting a reclamation bond for $35,868, while awaiting final resolutions; and initiating a field work authorization for a cultural review. The Company will file an exclusive use ROW application for the haul road portion of the ROW.
Comstock also confirmed, with Storey County, the validity and availability of alternative routes, affirming that the Company’s mining activity WILL NOT be interrupted during the period of time required to achieve the final solution.
In addition to cooperating with the BLM Local Field Office and submitting the requested paperwork, Comstock is proceeding with a number of additional actions supported by the preponderance of evidence proving its position, including the immediate filing of a Class 1 Color of Title application for Lot 51 and filing an assignment application for the existing Haul Road ROW.
During these parallel actions, Comstock remains compliant with all BLM regulations and will continue to mine using a combination of the Company’s 50-ton haul trucks and 20-ton semi-trucks.
“We are pleased with the direct collaboration and recent responsiveness of the BLM and to have cured the Notice so quickly,” stated Corrado De Gasperis, President and CEO of Comstock Mining. “While disappointed at some of their inflexibility in light of the facts, we are also encouraged by the ability to continue all our mining activity, and look forward to reaching a more optimal solution in the near future. Our construction activities and production plans remain on schedule.”
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 with annual production rates of 20,000 gold equivalent ounces.
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
Director of External Relations
Tel (775) 847-7376
Tel (775) 847-0545