VIRGINIA CITY, Nev., April 11, 2011 /PRNewswire/ -- Comstock Mining Inc. ("Comstock Mining" or "the Company") (OTCBB: LODE) announced the completion of Phase I drilling at the East-Side target in its Lucerne Resource Area. On April 6th, the final hole in this phase was completed. Assays have been returned from twelve reverse circulation (RC) holes, all showing significant mineralization, including hole E11-06 with two high grade gold assays (1.027 oz/ton; 35.17 g/t and 0.832 oz/ton; 28.49 g/t) separated by approximately 300 feet of depth and hole E11-12 with five feet of gold grading 1.04 oz/ton (35.62 g/t) in a 90 foot interval averaging 0.139 oz/ton (4.76 g/t). In addition, four of the holes reported significant intercepts containing silver grades in excess of one oz/ ton (34.25 g/t), including a five foot assay of silver grading 3.70 oz/ton (126.7 g/t).
The East-Side Phase I drilling campaign completed 27 RC holes totaling 19,774 feet (6,027 m). "The recent East-Side target results confirm our modeling efforts," says Larry Martin, the Company's Chief Geologist, "and is expanding the resource potential of the Project. We are planning additional drill campaigns to increase the density of drilling on the East-Side." Larry continued, "The current, widely-spaced drilling has not yet found the limits of the mineralization. Additional drill campaigns will define the mineralized envelope, but for now, each new hole that intercepts contiguous intervals of quartz veining adds to the exuberance of our team."
Please follow the hyperlink below to see the map of the East Side Phase I Drill Program. Included on the map are the sites of the 2010 holes.
The East-Side target is the Company's designation for the portion of the Lucerne Resource Area to the east of State Route 342. It includes the Succor, Hardluck, Friendship, Brown, and Niagra patents, acquired in 2010 from the estate of William M. Donovan Jr. From a geological perspective, both sides are believed to be part of a continuous structural zone that continues below the road. A series of northwest-trending, sub-parallel faults control the mineralization, which is further enhanced along the intersections with northeast-trending structures.
Initial Drill Results (E11-01 through E11-12)
Please follow the hyperlink to view the table reporting Drill Hole Intercepts
The Company has received assay results from the first twelve holes in the program. Significant mineralization (gold grade greater than 0.010 ounces per ton (0.34 g/t) or silver grades greater than 0.100 ounces per ton (3.42 g/t), and a length of at least ten feet (3.05 m)) occurred in all twelve of the newly reported holes. Hole E11-06 is particularly noteworthy for encountering two intervals of high grade gold: one at 565 feet with 5 feet of 1.027 oz/ton gold (35.17 g/t), contained in a longer, 85 foot interval averaging 0.151 oz/ton (5.17 g/t); and another at a depth of 875 feet with 5 feet of 0.832 oz/ton gold (28.49 g/t) and 3.700 oz/ton silver (126.71 g/t), in a longer, 190 foot interval averaging 0.085 oz/ton gold (2.91 g/t) and 1.044 oz/ton silver (35.75 g/t). Other intercepts with silver grades over 1 oz/ton include 25 feet in hole E11-01, 55 feet in hole E11-07, and three intercepts totaling 60 feet in hole E11-12.
Corrado De Gasperis, Comstock Mining's President and CEO, commented, "our recent assays of silver on the Dayton and now these findings on the East-Side quickly remind us why Nevada is called the Silver State: it was the historic silver mining of the Comstock that earned the nickname."
When combined with the seven holes drilled in 2010, the East-Side continues to demonstrate the pattern of mineralization predicted by the geological model. It is expected that the results from the remaining fifteen holes will continue this pattern. The results from the additional assays and a summary of the findings for the complete program will follow as soon as practically available.
Continued Drill Program
Immediately following completion of the East-Side, two drill rigs moved to the west side of State Route 342 for a drilling program to evaluate an extension of the planned Hartford/Lucerne starter pit to the north onto the Justice patent. In addition, a third rig will begin Phase II of the Dayton drill program. Since the results from Phase I drilling on the Dayton were so positive, this additional program is designed to complete additional intermediate drill fences in preparation for a more detailed in-fill drilling program scheduled for later in the year. Phase II will be a small, ten to twelve hole program that will take about four weeks to complete. Drilling priorities will then shift to delivering the final information required to enter production on the starter mine and prepare the heap leach facility.
"We are gearing up to begin production in 2011," De Gasperis concluded. "Although we will not lose sight of the exciting drilling in the Dayton, the East-Side and other targets, production is our focus and we look forward to commencing those activities. The additional Dayton phase will support future planning and a more substantive presentation of the resource in our next technical report."
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.