Question: Can you provide a production update and give some details on the remaining construction that needs to be completed?
Answer: Thank you for your question.
Construction activity has been non-stop since February, and the Company expects to begin mining once the construction phase is completed. In anticipation of full production during the summer, the Company paid its first 2012, estimated Nevada Net Proceeds Tax in the amount of $154,492 to the state’s Department of Taxation. It is estimated that Storey County will receive about half this amount. This payment represents the first substantial Net Proceeds Tax paid to the county.
Since the last production update on March 28, 2012 we have completed and filled, from our existing water wells, the one million gallon process and fire suppression water reservoir. This reservoir will supply our commercial water and fire safety needs. The concrete pad for the addition to the Merrill Crowe processing facility has been poured and the old equipment has been removed from the prior facility. The new, expanded Merrill Crowe equipment is ready for shipment once the liner is completed. The heap leach pad expansion is nearly complete. The addition of cells four and five will bring the total capacity to four million tons. The fuel island for the mobile equipment is being constructed and the earthwork to prepare the crusher pad is in progress.
Comstock Mining Team, May 2012 (Photo by Jim Gill)
Over 10 full-time mining positions have been added in the past two weeks. These and other recent hires bring the total number of mining employees working in Storey County to over 50. Of the new employees, eight are heavy equipment and haul truck drivers. These experienced miners will operate Comstock’s 50-ton haul trucks (pictured in the group photo) between the Lucerne mine in lower Gold Hill and the process area located in American Flat. The route is completely contained on Comstock’s haul road and does not cross State Route 342.
An estimated 20 additional jobs will be filled primarily for processing operations, including crushing, blasting, Merrill Crowe, metallurgical processes, maintenance and security.
Remaining scheduled tasks include installation of the backup generator, completion of the soil sampling program, updating the septic system, pre-stripping of the Hartford pit, construction of the St. Louis ramp for ore haulage from the Hartford, and rehab of the pit roads and berms, receiving the new metallurgical lab and procuring fuel, lubricants and spare parts, stockpile 20,000 tons of ore, assemble the crushing facility, crush and stack ore on newly constructed pads four and five. The new cells will be utilized exclusively until they attain the height of cells one, two and three. Then all five cells will be placed into production. Once material is stacked, we will commence processing with an expectation of pouring Doré within sixty days of stacking the first material.
We are posting video updates on the March to Production section of our website: http://www.comstockmining.com/march-to-production
Corrado De Gasperis
Statements contained in this blog, which are not historical facts, including statements about plans, goals and expectations regarding businesses and opportunities, new or existing business strategies, capital resources and future financial results are "forward looking" as contemplated by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, changes in government regulation, generally accepted accounting principles, taxation, competition, general economic conditions and geopolitical conditions. Accordingly, actual results may differ materially from those projected or implied in the forward-looking statements.