Comstock Mining Receives Expanded Drilling Permits
Q: Are you still planning on beginning the next phase of exploratory drilling in January 2012 with the next 43-101 in September? If so, what areas will that program cover?
A: Thank you for your question. We do indeed plan on commencing our drilling in January. We are very pleased to announce that the Nevada Division of Environmental Protection (NDEP) has issued a Reclamation Permit (No. 0315) authorizing the Dayton Consolidated Exploration Project, effectively authorizing exploration drilling for our two major targets in Lyon County, both at the Dayton and Spring Valley Areas. The permit was web posted on December 20th, 2011 (http://ndep.nv.gov/docs_11/permit_0315_122011.pdf), and will become effective December 31st, 2011 following a ten day public appeal period. This permit authorizes the reclamation of exploration drilling in Lyon County, including the Phase III in-fill drilling program for the Dayton Resource Area and Phase I exploration of the Spring Valley Area.
Together with the Special Use Permit issued by Storey County in October of this year, the receipt of this latest permit fully authorizes Comstock Mining’s proposed 2012 Drilling Programs. As a condition of both permits, soil assessments will commence in January to determine the levels of Mercury in previously disturbed areas, around historic mill sites and tailings. The purpose of this program is to ascertain the actual levels of contamination and potentially remove exploration targets from the Carson River Mercury Superfund Site designation. The program will be conducted in compliance with the sampling and analysis plan approved by the Nevada Division of Environmental Protection’s Bureau of Corrective Actions. Initial testing should allow site-specific exploration operations to begin in late January or early February.
The 2012 Drilling program will focus on two main areas: 1.) Multiple Phase drilling in the East-Side of the Lucerne Resource Area; 2.) Complete Phase III in-fill drilling in the Dayton Resource Area. Both exploration programs will build upon the findings reported in our latest 43-101 Technical Report (September 30, 2011) reporting 1.27 M ounces of gold and 12.59 M ounces of silver in the Lucerne Area, and 238,000 ounces of gold and 1.77 M ounces of silver in the Dayton. Both programs will be designed to provide sufficiency to develop economic mine plans. In the Lucerne, that mine will likely expand the currently permitted boundaries of the starter mine going into production in 2012. In the Dayton, a second mine will be evaluated for potential parallel development.
Late 2012 plans also call for Phase I exploration drilling of the Spring Valley Area. This program will be designed to verify the continuity of the geologic model southward beyond State Route 341 into predominately unexplored land. We are encouraged by the findings of one drill hole (SV09-05) that intersected 0.157 ounce gold per ton from 40 to 85 feet of depth. The goal of the program will be to provide information accessing the potential of an additional Resource Area.
Based on these plans, we would anticipate needing an update to our current NI 43-101 in late 2012, likely in the fourth quarter.
Have a Happy and Safe New Year celebration. With our production and exploration objectives now set, 2012 is shaping up to be a fantastic year for Comstock Mining.
Corrado De Gasperis
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