VIRGINIA CITY, Nev., March 28, 2011 /PRNewswire/ -- Comstock Mining Inc. ("Comstock Mining" or "the Company") (OTC Bulletin Board: LODE) announced continued, significant mineralization results from eight of the remaining nine reverse circulation (RC) holes drilled during the first phase of drilling at its Dayton Resource Area (the "Dayton"). When combined with the prior thirty-three RC holes from this program, fully forty-one of forty-two holes have identified continued, significant mineralization throughout the Dayton drill fences. This has created a rapidly expanding picture of the Dayton's mineralized envelope.
Please access the map of our drill fences and holes via following hyperlink:
The map identifies the originally designed North, Middle and South Fences. A fence is a row of holes, these spaced approximately 750 feet apart. An additional middle-north intermediate fence, a south-middle intermediate fence and south-south intermediate fence completed this phase of the program. Comstock Mining's property line has been superimposed to delineate the scope of exploration.
Results announced previously by the Company included the highest-grade interval encountered to-date at the Dayton: 10 feet (3.05 m) grading 1.121 ounces per ton of gold (38.39 g/tonne) and 2.279 ounces per ton of silver (78.05 g/tonne), contained in an interval of 135 feet (41.15 m) grading 0.218 ounces per ton of gold (7.47 g/tonne) and 0.685 ounces per ton of silver (23.46 g/tonne). Many of the holes also encountered the deeper, silver-only mineralization that was first encountered in D10-01, the first hole in Phase I.
New Results (Holes D11-30, 32 – 39)
Significant mineralization (that is, gold and silver grades greater than 0.010 ounces per ton and 0.100 ounces per ton, respectively and a length of at least ten feet) occurred in eight of the nine newly reported holes. Hole D11-33 included a 145-foot (44.20 m) interval averaging 0.056 oz/ton (1.92 g/tonne) gold and 0.352 oz per ton (12.05 g/tonne) of silver including a 15 foot (4.57 m) interval averaging 0.185 oz per ton (6.33 g/tonne) gold and 0.712 oz per ton (24.38 g/tonne) silver. Hole D11-30 was the only hole that did not contain significant mineralization and was located at the far-east end of the middle fence near the road and the property border. This result was anticipated and further confirmed the geologic model.
Please access the full drill results via following hyperlink:
Summary of Phase I Drilling Program
"The success of this phase of drilling on the Dayton cannot be overstated," said Larry Martin, Comstock Mining's Chief Geologist. "Certainly we found significant mineralization throughout. But more importantly, we identified multiple sub-parallel faults that conformed to the predicted pattern of our geological model. The model predicted and drilling confirmed multiple faults that when intersected by northeastern trends produce high-grade intercepts. This allows us to design the next phase of Dayton drilling with an increased confidence toward identifying the lateral extent, depth, and expansion of its mineral potential."
Please access the three cross sections presenting the geological model and the underground pattern from the first Phase of Dayton drilling:
Drilling in Phase I of the Dayton Resource totaled 19,476 feet (5,936 m) in forty-two RC holes.
Planning for the second phase of drilling is currently underway and will consist of traditional in-fill patterns useful for creation of a mine plan. Future core drilling will also confirm assay data and test metallurgical compatibility and geological structure.
Mr. De Gasperis stated, "We could not be more encouraged by the high rate of productivity from our Dayton drilling and the pervasive nature of the gold and silver resource we are validating throughout this resource area, including the high grades. We are nearly complete in planning the next phases of Dayton drilling that will most certainly progress us toward a second mine on the Comstock."
With completion of Phase I of the Dayton Resource Area drilling, two RC rigs have previously moved to the Lucerne Resource Area where a drill program is currently delineating the Company's promising East-side exploration target. The focus will remain on this area while the Company's geological team completes its planning for the second phase of Dayton drilling.
Mr. De Gasperis concluded, "We anticipate initial positive results from the East side based on our knowledge of this part of the Comstock structure in our geological model. We will report these results, when meaningful, during April once sufficient assays and interpretations are completed."
About Comstock Mining Inc.
Comstock Mining is a Nevada-based gold and silver mining company with extensive, contiguous property in the Comstock District. The goal of its strategic plan is to deliver stockholder value by validating qualified resources (at least measure 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.
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.
SOURCE Comstock Mining Inc.