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:
http://www.comstockmining.com/dayton-resource-area
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:
http://www.comstockmining.com/dayton-resource-area
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:
http://www.comstockmining.com/dayton-resource-area
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.
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.
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Contact
information for Comstock Mining Inc.:
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P.O. Box
1118
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Virginia
City, NV 89440
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Tel (775)
847-4755
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Fax (800)
750-5740
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info@comstockmining.com
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www.comstockmining.com
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SOURCE Comstock Mining Inc.