CEO Blog - May 24, 2011
Tuesday, May 24 2011 03:49
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Today we announced results from the remaining assays from Phase I drilling at the East-Side target in the Lucerne Resource Area. The pattern of significant mineralization identified in the first twelve holes continued in all fifteen new holes, including the highest gold assay yet reported by Comstock Mining: 3.562 oz/ton gold (121.99 g/t) and 5.200 oz/ton silver (178.08 g/t) measured over a five foot section, found within a 30 foot intercept averaging 1.257 oz/ton gold (43.05 g/t) and 2.114 oz/ton silver (72.40 g/t), in hole E11-24. The East-Side Phase I drilling campaign consisted of 27 reverse circulation (RC) holes totaling 19,774 feet (6,027 m) of drilling.

Historically, the East-Side target was consolidated by the Donovan family, including the Succor and Silver Hills shafts. The family leased some of the claims on the East-Side that were worked up until World War II and produced an estimated $1 million worth of ore (non-inflation adjusted dollars) processed at the Donovan Mill in Silver City. The Donovan Mill operated until 1967.

“Mike Donovan said the Succor and Silver Hills shaft area was always of great interest to him,” commented Larry Martin, the Company’s Chief Geologist. “It was a special area to him; one he believed had never truly been explored. I am sure he would see these results as the first real step in achieving the potential of these claims.”

Highlights from the current assay results include:

  • 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 of the holes. Hole E11-24 is a highlight because of the assay reporting 3.562 oz/ton gold (121.99 g/t), but the context of that five-foot assay is equally noteworthy. It is found in a 100 foot (30.48 m) intercept averaging 0.309 oz/ton gold (10.58 g/t) and 0.911 oz/ton silver (31.20 g/t). Immediately surrounding it is a 30 foot (9.14 m) intercept averaging 1.257 oz/ton gold (43.05 g/t). The void that is mentioned in the table indicates a narrow stope cutting through this section, mined by the old-timers.

  • Hole E11-24 also includes a second intercept of 145 feet (44.20 m) averaging 0.069 oz/ton gold (2.36 g/t) and 0.549 oz/ton silver (18.80 g/t).

  • Hole E11-19 has an intercept of 130 feet (39.62 m) averaging 0.047 oz/ton gold (1.61 g/t) and 0.418 oz/ton silver (14.32 g/t) at the bottom of the hole.  The true thickness of this mineralized zone remains unknown until a deeper hole can be drilled.  Looking over all the newly reported holes, there are 11 intercepts of silver greater than 1.00 oz/ton (34.25 g/t).

The East-Side target continues to exceed expectations with every hole demonstrating strong mineralization and indicating an expanding resource.  In addition to reporting the highest gold assay discovered to date on the property, the results also identify consistently high levels of silver throughout the area.  These results validate our initial assumptions that the East-Side target is ideal for a subsequent expansion of the starter mine.

Our on-going drilling will refine the Company’s understanding of the mineralization envelope and facilitate detailed planning of this expansion.”

 

East-Side_Phase_I_-_blog

 

The drilling-to-date has not yet identified an eastern boundary for the mineralized zone. Historically, the East-Side target was consolidated by a Donovan family, including the Succor and Silver Hills shafts. The family leased some of the claims on the East-Side that were worked up until World War II and produced an estimated $1 million worth of ore (non-inflation adjusted dollars) processed at the Donovan Mill in Silver City. The Donovan Mill operated until 1967.

When combined with the seven holes drilled in 2010, results from the East-Side target are beginning to confirm the potential of these claims identified in the August 2010 Behre Dolbear technical report and by the previous owner of the patented claims, the late Michael Donovan.

Continued Drill Program

Drilling programs remain in full gear with four rigs in position in two resource areas. At the Dayton, a core rig just completed drilling a twinned hole for metallurgical tests and recently moved to the Justice patent. RC rigs are currently drilling at the Dayton and on the Justice claim in the Lucerne Resource Area, and another has just begun Phase II drilling on the East-Side target. Drilling priorities continue to be the completion of programs required for the starter pit’s final mine plan, but additional drilling programs will continue to collect data for inclusion in the Company’s next technical report.

To see the intercept table or to read more on this topic, see the Press Release.

Kindest regards,

Corrado De Gasperis
President and CEO