Comstock Mining Acquires Key Comstock Property Licenses

http://www.comstockmining.com/news/press-releases/84-mon-aug-2-2010

The Dayton property has been the largest historical gold producer in the south end of the Comstock Lode and in Lyon County as a whole.

Comstock Mining Inc., recently acquired, in two separate exploration licenses in July, definitive options to purchase patented and unpatented mining claims and patented town site lots totaling over 100 acres, in the Devils Gate and Chinatown Mining District, Lyon County, Nevada. The properties contain significant historical resources and rank as one of the Company’s top exploration and potential mine production targets, second only to the Company’s Lucerne Resource Area.  These coordinated property acquisitions expanded the Company’s control to include almost four miles of the Silver City Branch of the Comstock Lode.

Previous drilling during the late 1970’s and early 1990’s outlined a drill-indicated resource of 2.5 million tons, grading 0.05 ounces per ton gold and 0.33 ounces per ton silver. The identified resource is near surface and a strong probability exists of expanding the resource with deeper drilling. The drilling on the property to date includes 251 holes totaling 29,500 feet.

The historical drilling, mineral and mine planning data and analysis retrieved on these properties adds to our already unprecedented library of historical and current data and accelerates the Company’s ability to analyze and develop the full potential of The Comstock Lode.

Mineralization on the property is mainly represented by the Dayton Lode, a sub-part of the Silver City branch of the Comstock Lode, a major system of fault-controlled epithermal veining.  The Silver City branch extends for a distance of about five miles through Gold Hill, Silver City, the Dayton property, and into Spring Valley.  In addition to areas lying immediately below the current levels of drilling, there are also other portions of the lode on the property that are not yet fully explored.

Review of the historic drill data and geologic mapping of a recently reopened underground cross cut confirms our geologic team’s interpretation of the Silver City fault zone that was developed in the Lucerne resource area to the north.  This area will be one of the Company’s primary exploration targets over the next several years.