2014

Comstock Mining Receives Favorable Action From BLM Haulage to Shift off State Route 342

VIRGINIA CITY, Nev., Feb. 21, 2013 /PRNewswire/ -- Comstock Mining Inc. (the "Company" or "Comstock") (NYSE MKT: LODE) announced that the United States Department of the Interior - Bureau of Land Management (BLM) has made a determination to allow the Company to move forward with a Class 1 Color-of-Title Act claim ("CoT claim") with respect to Lot 51, a 25-acre parcel in Gold Hill, Nevada.  As part of this process, the BLM is allowing for the Company's limited interim use of the existing haul road segment that crosses Lot 51, providing a more efficient connection to a previously granted, non-exclusive Right-of-Way ("RoW") for access to its processing facility in American Flat.

In its CoT claim, the Company successfully demonstrated its good faith belief that it has held title to this parcel for over 20 years, made valuable improvements in the form of constructed mining haul roads and provided explicit documentation of purported title conveyance. Permanent resolution of the claim will occur when the Company purchases a patent for the parcel. The BLM will require a plat survey from the Chief Cadastral Surveyor for the State of Nevada, an appraisal of Lot 51, public notices and payment of the purchase price before this patent is issued.

"This is a strong, positive example of a private-public partnership working diligently and effectively for the entire community at large," stated Corrado De Gasperis, President and CEO of Comstock. "We are relieved to remove our trucks from the State Route and make better use of the existing haul road. I want to personally thank Storey County, the Nevada Department of Transportation and the BLM for their commitment to doing this right.  Comstock Mining remains committed to the current Environmental Assessment process."

In order to comply with the guidelines in the currently authorized RoW grant, the Company will use different, highway-rated vehicles. The vehicles will travel a shorter distance while carrying a larger load, thus decreasing overall traffic on American Flat Road, while also reducing haul truck traffic on the State Route. These vehicles will also un-block the mine area from logistical constraints imposed by the previously used vehicles, increase throughput by increasing the haul per trip and reduce costs significantly by reducing the number of trips, and most importantly, minimize disruption to the community caused by the use of the State Route.

The CoT claim does not conflict with nor negate the need for the Company to continue with its current Environmental Assessment process. Late in the fourth quarter of 2012, the Company and the BLM entered into a Memorandum of Understanding (MOU) to expedite the remainder of the permitting process for the exclusive-use Right of Way. In January, the BLM launched public scoping, a process for determining the scope of potential public issues. The relevant public meetings have already been completed. Once granted, this Right of Way will further increase the efficiencies of hauling by allowing the Company to widen the existing haul road, better accommodate residential and visitor traffic, and cross certain small sections of federal land not currently used by Comstock Mining.

Mr. DeGasperis concluded: "Allowing our claim represents a breakthrough that enables more expedient use of Lot 51 and significant hauling efficiencies. We look forward to a continued, productive partnership with the BLM and our community."

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 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 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 and commencing commercial mining and processing operations with annual production rates of 20,000 gold equivalent ounces.

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; 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.:

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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