Attached files
| file | filename |
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| 8-K - Comstock Mining Inc. | v193169_8-k.htm |
EX.
99.1
COMSTOCK
MINING ACQUIRES KEY MINERAL LEASES ON SOUTHERN EXTENT OF COMSTOCK
TREND
Virginia City, NV (August 10, 2010) -- Comstock Mining
Inc. (“Comstock Mining” or the Company”)(OTCBB: LODE) announced today
that it has entered into a Mineral
Exploration and Mining Lease Agreement (“Agreement”) with New Daney Company,
Inc., and now controls seven key unpatented lode claims situated in Spring
Valley, at the extreme southern end of the Comstock trend. In Spring
Valley, the main group of mineralized structures have laid mostly concealed
beneath a layer of pediment gravels. These additional Spring Valley claims are
adjacent to the Company’s Dondero property, where the Company’s 2009,
exploration drilling discovered significant mineralization beneath the
gravel.
“The acquisition of these rights expands our control of the most southerly part of the
Comstock, beyond our recent Dayton properties acquisition, to encompass
an additional, contiguous and relatively unexplored, mile-long segment of the
Silver City Branch of the Comstock Lode,” stated Corrado DeGasperis, Comstock
Mining's Chief Executive Officer.
In April 2009, the Company announced
the results from six drill holes in Spring Valley (SV09-01 through SV09-06) on
the Dondero property (see table below), and suggested that additional
exploration work was planned for the area to better define the mineral
potential. The significant mineral intercepts from those holes are
republished below for convenience.
|
Hole
Id
|
From
(feet)
|
To
(feet)
|
Length
(feet)
|
Gold
(ounces
per Ton)
|
Silver
(ounces
per Ton)
|
|
SV09-01
|
270
|
280
|
10'
|
.023
|
.111
|
|
SV09-02
|
5
|
30
|
25'
|
.013
|
.141
|
|
105
|
125
|
20'
|
.028
|
.034
|
|
|
SV09-03
|
125
|
135
|
10'
|
.016
|
.048
|
|
SV09-04
|
35
|
40
|
5'
|
.058
|
.140
|
|
405
|
420
|
15'
|
.031
|
.091
|
|
|
SV09-05
|
40
|
70
|
30'
|
.209
|
.992
|
|
70
|
160
|
90’
|
.015
|
.217
|
|
|
350
|
425
|
75'
|
.016
|
.124
|
|
|
465
|
490
|
25'
|
.014
|
.108
|
|
|
SV09-06
|
235
|
290
|
55’
|
.022
|
.287
|
|
275
|
290
|
15’
|
.026
|
.192
|
The Agreement included the acquisition
of a wealth of data from previous exploration in Spring Valley. It
includes data from approximately 60 reverse circulation (RC) holes drilled in
Spring Valley during the 1980’s, as well as seven core holes that were drilled
in 1997 and 2000. Comstock Mining is currently incorporating and
evaluating the results into their planning for further
exploration. Some of the significant mineral intercepts from two of
the earlier core holes are published below.
|
Hole
Id
|
From
(feet)
|
To
(feet)
|
Length
(feet)
|
Gold
(ounces
per Ton)
|
Silver
(ounces
per Ton)
|
|
M00-1
|
163
|
172.5
|
9.5
|
0.780
|
2.430
|
|
(includes)
|
165
|
167
|
2.0
|
2.952
|
9.385
|
|
SVC-1
|
14
|
19
|
5.0
|
0.180
|
0.598
|
“We have
been working toward the acquisition of these Spring Valley claims since 2009,
when we realized that the mineralization model we had created for the Lucerne
resource area also fit the mineralization in this area,” stated Larry Martin,
Comstock Mining’s Chief Geologist. “Ongoing geological
assessments indicate that the Silver City Branch extends southward through our
Dayton property, into Spring Valley, and through our Dondero and these new
claims,” Mr. Martin continued. “Recent geological and geophysical
work, in conjunction with our broader interpretations of the Comstock, have
demonstrated that the mineralized intercepts in holes SV09-04, 05, and 06 were
contained within the extension of the Silver City fault zone; the remaining
three holes encountered mineralization along one or more intersecting
structures. The historic holes that we acquired also appear to be
drilled on structures that projected to cross the Silver City fault
zone. That makes the intersection of these structures a very exciting
target for future drilling,” concluded Mr. Martin.
About
Comstock Mining Inc.
Comstock Mining Inc. is a North
American precious metals mining company, focused in Nevada, with extensive, contiguous property
in the Comstock Lode District. The Company began acquiring properties in
the Comstock in 2003. Since then, the Company has consolidated a
significant portion of the Comstock Lode District, amassed the single largest
known repository of historical and current geological data on the Comstock Lode
region, secured permits, built an infrastructure and brought the exploration
project into test mining production. We continue acquiring additional
properties in the district, expanding our footprint and creating opportunities
for exploration and mining. The goal of our 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 by
early 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,” and
“inferred resources,” which are calculated in accordance with the Canadian
National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy
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.
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;
recapitalization and balance sheet restructuring activities (including
debt-for-equity exchanges, land transactions, capital raising and other
activities); 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 and timing of restructuring charges
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 downturn and capital
market weakness; 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; our ability to cure
defaults under our current indebtedness; our substantial indebtedness and the
impact such indebtedness may have on us; the possibility that our operating
performance and operating prospects, and capital market conditions will limit
our ability to timely meet our debt service obligations, comply with debt
covenants, obtain necessary financing or refinancing or restructure indebtedness
or our debt service obligations on acceptable terms or at all; 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 in response to the recent capital markets and economic
crises; 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.
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Contact
information for Comstock Mining Inc.:
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P.O.
Box 1118
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Virginia
City, NV 89440
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Tel
775.847.5272 Fax 775.847.4762
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http://www.comstockmining.com
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