CEO Blog - July 23, 2012
Monday, July 23 2012 21:14
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Question: Do you have an update on production - are we stacking ore yet?

Answer: Thank you for your question.  We are making straight and steady progress on our March to Production.  July has been an incredibly active month. Early in the month, we announced that we completed the expansion of our Heap Leach from three cells to five, published a video on the expanded Merrill Crowe processing facility, initiated the commissioning of the new Crusher and posted a $4.67 million surety bond.  We have also hired most of the staff required for processing, leaving just 8 remaining positions that we are actively filling.  We will begin commissioning the Merrill Crowe facility shortly.  The commissioning will finish the first week of August and we will commence hauling the ore. Once the ore is at American Flat we will begin crushing and stacking the ore for processing.

We also recently conducted our first Lucerne Mine production shot, one of the tasks scheduled on our March to Production project plan.  We have partnered with Cal-Nevada Precision Blasting, Carson City Nevada, and worked in tandem with Storey County and our own Safety, Security, and Operational teams to ensure a well-executed and targeted fragmentation of material in the Lucerne Mine. With all teams synchronized, 57 charges were spaced inside the target zone and were detonated at 11:00am.  

On July 18, 2012, the State Route (SR-342) was temporarily closed for about 10 minutes, until cleared by our experts at Cal-Nevada. The operation was executed as planned, safely and professionally.   We have included some photos of the event; see below.


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Square area with berm around it is the target zone


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Fragmentation and loosening of material and lateral out flow


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Close up of target area cleared for re-entry by Cal-Nevada, confirming all 57 holes detonated


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Seismograph testing any movement


As a side note, we experienced some rain Sunday night on the Comstock.  I was still at the office when I saw this double rainbow. All in all, it’s pretty amazing on the Comstock.

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Photo taken from American Flat, by me with an iPhone, Sunday, July 22, 2012.


Kindest regards,

Corrado De Gasperis

President and CEO