2014

Comstock Mining Provides Update Mine Yields Higher Grades, Progress on Cost Reductions

VIRGINIA CITY, Nev., April 10, 2014 /PRNewswire/ -- 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, development 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 40,000 gold equivalent ounces and significantly grow the commercial development of our operations through coordinated, district wide plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock.  Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, business process, rationalization, 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 discussed in Item 1A, "Risk Factors" of our annual report on Form 10-K and the following: 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 the conversion of securities that are convertible into or exercisable for shares of our common stock; 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 maintain the listing of 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.:

PO Box 1118

Virginia City, NV  89440



questions@comstockmining.com



http://www.comstockmining.com





Corrado De Gasperis


Kimberly Shipley

President & CEO


Manager of Investor Relations

Tel (775) 847-4755


Tel (775) 847-0545

degasperis@comstockmining.com

 


shipley@comstockmining.com

 

 

SOURCE Comstock Mining Inc.



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