Projects - Spring Valley Area

Comstock Mining Acquires Key Mineral Leases on Southern Extent of Comstock Trend

http://www.comstockmining.com/news/press-releases/88-tue-aug-10-2010

Comstock’s Spring Valley Resource Area is south of Silver City, where at least three mineralized gault zones are exposed by road cuts.  We believe the three mineralized fault zones are likely the southern extension of the Gold Canyon, Billy the Kid and Silver City faults and are immediately south of our Patented claims in the Dayton Resource Area.  Preliminary magnetic surveys in the Spring Valley area suggest that mineralized structures exist as reflected by magnetic anomalies. Our initial drill results in the Spring Valley areas were very successful.

springvalley_claims

In April 2009, the Company announced the results from six drill holes in Spring Valley (SV09-01 through SV09-06) on the Dondero property (see table below), and suggested that additional exploration work was planned for the area to better define the mineral potential.  The significant mineral intercepts from those holes are republished below for convenience.

  

Hole Id

From (feet)

To (feet)

Length (feet)

Gold (ounces per Ton)

Silver (ounces per Ton)

SV09-01

270

280

10'

.023

.111

SV09-02

5

30

25'

.013

.141

 

105

125

20'

.028

.034

SV09-03

125

135

10'

.016

.048

SV09-04

35

40

5'

.058

.140

 

405

420

15'

.031

.091

SV09-05

40

70

30'

.209

.992

 

70

160

90'

.015

.217

 

350

425

75'

.016

.124

 

465

490

25'

.014

.108

SV09-06

235

290

55'

.022

.287

 

275

290

15'

.026

.192

 

On August 10, 2010, the Company announced that it had entered into a Mineral Exploration and Mining Lease Agreement ("Agreement") with New Daney Company, Inc., and now controls seven key unpatented lode claims situated in Spring Valley, at the extreme southern end of the Comstock trend.  In Spring Valley, the main group of mineralized structures have laid mostly concealed beneath a layer of pediment gravels. These additional Spring Valley claims are adjacent to the Company's Dondero property, where the Company's 2009, exploration drilling discovered significant mineralization beneath the gravel.

The Agreement included the acquisition of a wealth of data from previous exploration in Spring Valley.  It includes data from approximately 60 reverse circulation (RC) holes drilled in Spring Valley during the 1980's, as well as seven core holes that were drilled in 1997 and 2000.  Comstock Mining is currently incorporating and evaluating the results into their planning for further exploration.  Some of the significant mineral intercepts from two of the earlier core holes are published below.

Hole Id

From (feet)

To (feet)

Length (feet)

Gold (ounces per Ton)

Silver (ounces per Ton)

M00-1

163

172.5

9.5

0.780

2.430

(includes)

165

167

2.0

2.952

9.385

SVC-1

14

19

5.0

0.180

0.598

 

The Company had been working toward the acquisition of these Spring Valley claims since 2009, when it realized that the mineralization model that had been created for the Lucerne Resource Area also fit the mineralization of this area.   Ongoing geological assessments indicate that the Silver City Branch extends southward through the Company’s Dayton Resource Area, into Spring Valley, and through the Company’s Dondero and now, New Daney claims.  Recent geological and geophysical work, in conjunction with the broader interpretations of the Comstock, have demonstrated that the mineralized intercepts in holes SV09-04, 05, and 06 were contained within the extension of the Silver City fault zone; the remaining three holes encountered mineralization along one or more intersecting structures.

DiscoveryHoleSpringValley

The historic holes that were acquired also appear to be drilled on structures that projected to cross the Silver City fault zone, making the intersection of these structures a very exciting target for the Company’s future drilling.

CMI_SpringValley