CEO Blog - April 5, 2012
Thursday, April 05 2012 23:19

Q: How does Storey County’s proposal to revise its Mining Ordinance affect Comstock Mining?

A: Thank you for your question.  Storey County has been involved in a year-long review process of all of its zoning ordinances, primarily to accommodate technological advances and ensure sufficiency to current public needs. The county is working constructively with land and business owners in cooperation with residents to best achieve the county’s goals while respecting the rights and needs of all parties involved in the process. Preserving the historic significance of the Comstock District is vital and fully consistent with Comstock Mining’s position. The revised Mining Ordinance, in its current draft version, both protects mining rights and includes a provision to establish a boundary preserving the core of the historic district. Inside this boundary, underground mining will be strongly encouraged, but surface mining will be restricted. Most of our mineral targets within this area have long been considered underground targets. As a result, the ordinance does not negatively impact current plans and objectives. In fact, the ordinance specifically allows surface mining outside the proposed boundary, including our Lucerne Resource Area, where surface mining is scheduled to commence in just a few months.

Other conditions in the proposed mining ordinance encourage but regulate mining operations, generally in accordance with existing Nevada and Federal regulations. Where the ordinance strengthens these regulations, our operation is already compliant, as they are consistent with our own commitments to operate safely and responsibly in the historically rich Comstock District.

The county is still doing its diligence and the proposed changes are not yet adopted or in effect. We are closely engaged with the county on this issue and expect a productive outcome with positive implications for the Company and the community.

Kindest regards,

Corrado De Gasperis

President & CEO