Virginia City, NV (April 10, 2014) — Comstock Mining Inc. (“Comstock Mining” or “the Company”) (NYSE MKT: LODE) announced an update today on its progress for 2014, mine operations, cost reductions and organization. The mine plan is yielding higher grades, particularly in March, where it averaged over .034 ounces of gold per ton delivered to the crusher.
For the first quarter of 2014, the Company poured over 4,500 ounces of gold and almost 50,000 ounces of silver, as compared to 2,261 ounces of gold and 15,599 ounces of silver in the first quarter of 2013, an increase of 100% for gold ounces produced and over 215% for silver ounces produced when compared to the comparable quarter in 2013. The Company mined approximately 950,000 tons of material (mineralized material and waste) as it continued transitioning into higher-grade segments of the mine plan while expeditiously moving through some higher stripping ratios. Total mineralized material delivered to the leach pad was over 205,000 tons and represented some of the highest gold and silver grades crushed to date. The weighted average for the quarter was .024 ounces per ton gold and .345 ounces per ton silver, with March 2014 averaging over .034 ounces of gold per ton and over .50 ounces of silver per ton.
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 annual savings of approximately $1 million from reduced staffing in crushing, related maintenance, mining and administrative cost reductions with further opportunities in drilling, blasting, logistics and administration. For example, the Company saved nearly 154,000-kilowatt hours per annum participating in NV Energy’s Sure Bet Incentive Program. Costs applicable to mining has been reduced over the past five quarters, with first quarter costs of sales, on a cost per ounce basis, at the lowest since inception, at slightly over $1,000 per ounce.
“Our production continues its ramp up, with higher-grade material now being delivered and gold and silver pours increasing every week for the past four weeks. Our 2014 goal remains the doubling 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,” stated Corrado De Gasperis, President and CEO of Comstock Mining Inc.
The Company also announced the appointment of Harold “Hal” Galbraith as Director of Mining effective March 24, 2014. Mr. Galbraith brings over 30 years of experience in open pit gold, silver and copper operations, as well as surface coal mining operations, maintenance systems, technical services and industrial engineering support. He has held a variety of positions including, but not limited to, Mine Manager, Sr. Production Engineer, Senior Mining Engineer, Senior Projects Engineer as well as Long and Short Range Mine Planner. Mr. Galbraith holds a Bachelor of Science in Mining Engineering from the Pennsylvania State University.
Mr. De Gasperis concluded: “We have not ever had better confidence and visibility with our forward mine plan. Sustained higher grades combined with lower strip ratios expected in the second half of this year, supports our overall 2014 business objectives. We are pleased to have Hal’s experience and cost focused management on our Comstock team.”
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
Corrado De Gasperis
President & CEO
Manager of Investor Relations
Tel (775) 847-4755
Tel (775) 847-0545