Comstock Mining - Dayton Drilling Finds Highest Grade Mineralization To Date

Results Include One Ounce-Plus Intercept in Hole D11-21

Mar 07, 2011, 09:00 ET from Comstock Mining Inc.

VIRGINIA CITY, Nev., March 7, 2011 /PRNewswire/ -- Comstock Mining Inc. ("Comstock Mining" or "the Company") (OTC Bulletin Board: LODE) announced the results for thirteen additional reverse circulation (RC) holes from the first phase of drilling at its Dayton Resource Area (the "Dayton"). The results include the highest-grade interval encountered to-date at the Dayton: 10 feet (3.05 m) grading 1.121 ounces per ton (38.39 g/tonne) gold and 2.279 ounces per ton (78.05 g/tonne) silver, contained in an interval of 135 feet (41.15 m) grading 0.218 ounces per ton (7.47 g/tonne) gold and 0.685 ounces per ton (23.46 g/tonne) silver.  Many of the holes also encountered the deeper, silver-only mineralization that was first encountered in D10-01, the first hole in phase one.  

(Photo:  http://photos.prnewswire.com/prnh/20110307/LA60013)

As previously announced, this phase of Dayton drilling was designed as a series of three east-west "drill fences", or rows of drill holes, spaced approximately 750 feet apart.  All of the holes on the southern fence and the first holes on the central fence were announced in the Company's February 28, 2011 press release.  The holes announced today include more holes on the central fence, all of the holes on the northern fence, and an additional three holes on an intermediate fence between the central and northern fences.

Significant Mineralized Intervals

Including the holes reported today, 32 of the 39 holes in the program have been reported.  All 32 holes encountered intervals of significant mineralization (gold grades greater than 0.010 ounces per ton or silver grades greater than 0.100 ounces per ton, and length of at least ten feet) with many of the holes encountering the deeper, silver-only mineralization that was first encountered in the first hole in phase one.  

Hole D11-21 includes the highest-grade mineralization encountered so far.  This hole includes a 10 foot (3.05 m) interval averaging 1.121 ounces per ton (38.39 g/tonne) of gold and 2.279 ounces per ton (78.05 g/tonne) silver, contained in an interval of 135 contiguous feet (41.15 m) averaging 0.218 ounces per ton (7.47 g/tonne) gold and 0.685 ounces per ton (23.46 g/tonne) silver.  The mineralized zone in vertical-hole D11-21 was confirmed by the results for angle-hole D11-25.  However, both holes terminated drilling prematurely due to adverse drilling conditions, both while still in the mineralization.

"The significant high-grade assays encountered in D11-21 confirm the presence of mineralization with enhanced grades within the broader mineralized zone," said Larry Martin, Comstock Mining Chief Geologist.  "Since these holes on our northern-most fence encountered adverse drilling conditions and bottomed in the zone, we consider the mineralization to be open laterally and at depth.  Our next drilling phase will include holes designed to test the true thickness and lateral extent of this zone."

Significant assay results and mineralized intervals from holes in the central, northern and intermediate fences are listed below.  

Dayton First Phase Drill Hole Intercepts

Drill Hole

Interval (ft)

Length (ft)

Gold (oz/ton)

Silver (oz/ton)

Length (m)

Gold (g/t)

Silver (g/t)

Middle Fence

D11-17

215-225'

10

0.023

0.027

3.05

0.79

0.92

230-240'

10

0.016

0.080

3.05

0.55

2.74

285-295'

10

0.012

0.040

3.05

0.41

1.37

320-340'

20

0.027

0.090

6.10

0.92

3.08

360-385'

25

0.039

0.041

7.62

1.34

1.40

415-435'

20

0.016

0.053

6.10

0.55

1.82

710-725'

15

-

0.142

4.57

-

4.86

790-800' (TD)

10

-

0.106

3.05

-

3.63

D11-18

15-30'

15

0.014

0.045

4.57

0.48

1.54

70-85'

15

0.011

0.041

4.57

0.38

1.40

90-100'

10

0.016

0.084

3.05

0.55

2.88

105-120'

15

0.016

0.037

4.57

0.55

1.27

125-155'

30

0.041

0.054

9.14

1.40

1.85

165-250'

85

0.024

0.050

25.91

0.82

1.71

270-285'

15

0.013

0.158

4.57

0.45

5.41

300-315'

15

0.018

0.124

4.57

0.62

4.25

D11-20

0-30'

30

0.027

0.232

9.14

0.92

7.95

40-120'

80

0.023

0.134

24.38

0.79

4.59

135-175'

40

0.027

0.081

12.19

0.92

2.77

185-210'

25

-

0.114

7.62

-

3.90

210-225'

15

0.031

0.083

4.57

1.06

2.84

235-265'

30

0.044

0.161

9.14

1.51

5.51

D11-24

20-30'

10

-

0.106

3.05

-

3.63

40-55'

15

0.011

0.107

4.57

0.38

3.66

90-100'

10

0.016

0.081

3.05

0.55

2.77

180-235'

55

0.029

0.093

16.76

0.99

3.18

255-295'

40

0.053

0.126

12.19

1.82

4.32

INCLUDES

265-275'

10

0.133

0.319

3.05

4.55

10.92

360-400'

40

0.043

0.087

12.19

1.47

2.98

INCLUDES

365-370'

10

0.131

0.188

3.05

4.49

6.44

410-425'

15

0.016

0.034

4.57

0.55

1.16

North Fence

D11-21

95-105'

10

0.060

0.286

3.05

2.05

9.79

265-400' (TD)

135

0.218

0.685

41.15

7.47

23.46

INCLUDES

265-275'

10

1.121

2.279

3.05

38.39

78.05

D11-22

440-475'

35

-

0.331

10.67

-

11.34

D11-23

145-155'

10

0.094

0.262

3.05

3.22

8.97

155-165'

10

-

0.277

3.05

-

9.49

190-225'

35

0.034

0.192

10.67

1.16

6.58

235-260'

25

0.032

0.113

7.62

1.10

3.87

330-340'

10

-

0.128

3.05

-

4.38

365-385'

20

-

0.115

6.10

-

3.94

D11-25

345-380' (TD)

35

0.117

0.513

10.67

4.01

17.57

D11-26

70-80'

10

0.023

0.218

3.05

0.79

7.47

80-100'

20

-

0.101

6.10

-

3.46

105-135'

30

0.056

0.202

9.14

1.92

6.92

160-170'

10

0.028

0.075

3.05

0.96

2.57

200-210'

10

-

0.205

3.05

-

7.02

D11-27

50-65'

15

0.014

0.087

4.57

0.48

2.98

120-135'

15

-

0.229

4.57

-

7.84

Middle-North Intermediate Fence

D11-28

0-165'

165

0.021

0.131

50.29

0.72

4.49

225-235'

10

-

0.131

3.05

-

4.49

D11-29

285-320'

35

-

0.184

10.67

-

6.30

330-340'

10

0.018

0.024

3.05

0.62

0.82

355-375'

20

0.028

0.178

6.10

0.96

6.10

390-415'

25

0.013

0.116

7.62

0.45

3.97

425-475'

50

-

0.140

15.24

-

4.79

475-485'

10

0.111

0.128

3.05

3.80

4.38

505-515'

10

0.025

0.145

3.05

0.86

4.97

D11-31

0-85'

85

0.015

0.211

25.91

0.51

7.23

85-105'

20

-

0.229

6.10

-

7.84

"The results represent the strongest evidence-to-date for bonanza-grade gold and silver zones at the Dayton," stated Mr. Corrado De Gasperis, Comstock Mining Chief Executive Officer. "It is exciting to watch the accelerated development of Dayton as it advances toward our goal of contributing a much larger resource, including the additional, silver-only discoveries that we encountered in our very first hole and continue to encounter."

Ongoing Drilling Programs

The Company's drilling program is continuing with two RC rigs drilling the promising East-side exploration target in the Lucerne Resource Area.  The focus will remain on this area while the Company's geological team completes its planning for the second phase of Dayton drilling.

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 by 2013, and commencing commercial mining and processing operations in 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," "inferred resources," and "historical resources" which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum 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; 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 loses 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

Tel (775) 847-4755

Fax (800) 750-5740

info@comstockmining.com

www.comstockmining.com

SOURCE Comstock Mining Inc.



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