Comstock Mining Posts $4.7 Million Bond Remains On Schedule For Safely Commencing Production
VIRGINIA CITY, Nev., July 18, 2012 /PRNewswire/ -- Comstock Mining Inc. (the "Company" or "Comstock") (NYSE Amex: LODE) announced that its reclamation surety bond has been accepted and processed by the State of Nevada's Bureau of Mining Regulation Reclamation (BMRR). The $4.67 million surety bond increases the Company's previous cash bond by almost $3 million and is inclusive of the expanded process facility and increased production plan of the current mine plan.
Comstock's bond covers the recent expansion of the heap from three cells to five and a proposed height of 105 feet, the larger Merrill-Crowe facility, the crusher and increased permitted disturbance of 33.9 acres primarily for waste rock and exploration. The bond insures for the estimated costs required to safely reclaim the natural environment to the regulatory standards established by the State of Nevada's Division of Environmental Protection with the purposes of ensuring public safety, protecting the waters of the state, and providing for post mining land use. In addition to these requirements, the Company has also committed to additional reclamation and restoration in the Virginia City National Historic Landmark designed to create a post-mining landscape respectfully reminiscent of the pre-mining state. This demonstrates the Company's strong commitment to protecting, preserving, restoring and enhancing the territory. This will not only increase the post-mining values associated with these properties, but they also facilitate more, community-led investment in historic preservation, tourism and the quality of the uniquely Nevadan, Historic Comstock Mining District.
"We consider the required bonding, the largest to date on the Comstock, a significant investment into the long-term development of the territory, but it is only one step towards creating a truly sustainable, diverse, network economy beneficial to the entire community," stated Corrado De Gasperis, Comstock's President and CEO. "These highly rated, Treasury listed sureties represent another example of industry-leading partners who are engaging the Comstock."
The Company engaged with Lexon Surety Group ("Lexon"), a leading, U.S. provider of Surety Bonds. Lexon issues over 45,000 bonds a year to clients in 49 states, Washington D.C., the Northern Mariana Islands, and Guam. The Lexon bond was provided through Smith Manus, of Louisville, KY, the Lexon Program Manager for Mining. These two leading surety bond organizations represent clients in industries such as mining, construction, oil & gas and others. Lexon maintains an A.M Best rating of A- (Excellent – Stable).
Lexon CEO & President David E. Campbell commented, "Comstock's strong management and balance sheet, existing gold and silver resources and its exceptional, environmentally sensitive business plans, demonstrate the type of strategic partner that we target."
The BMRR issued permit #0196 for the Reclamation Surety Determination for the Lucerne Mine Project. In addition to bonding the entire operation, receipt of this permit allows the Company to add solution to the heap that initiates the gold and silver recovery process once the Merrill Crowe facility is commissioned.
Comstock can begin mining operations and plans on hauling ore before the end of July. After crushing and stacking this ore to sufficient quantity, the Company will then commence leaching and recovering the contained precious metals through the Merrill Crowe zinc precipitation process.
"We remain on track for our first pour this summer," stated Mr. De Gasperis. "We are currently hiring our remaining processing staff for the Merrill Crowe, raising our employment to over 100 people."
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 in 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
SOURCE Comstock Mining Inc.
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