COMSTOCK MINING POSTS FULL NI 43-101 TECHNICAL REPORT
LUCERNE M&I INCREASES 25%, WITH NEWLY DISCOVERED CHUTE ZONE
Q: When do you anticipate posting the full NI 43-101 Technical Report?
A: Thank you for the interest. We just made available today the full text of our fourth National Instrument 43-101 technical report (the "2013 Report") authored by Behre Dolbear & Company (USA), Inc. of Denver Colorado. The 2013 Report has been posted to our website at: http://www.comstockmining.com/properties/technical-reports
The Report declared a mineral resource estimate of Measured and Indicated Resources containing 1,824,000 ounces of gold and 17,100,000 ounces of silver, for a total of 2,150,000 gold equivalent ounces1, and an estimate of an Inferred Resource containing an additional 870,000 gold equivalent ounces. These estimates include the Chute Zone, recently identified in late 2012. The Report also includes an additional 200,000 gold equivalent ounces outside the modeled area, in the Historical Resource Category.
The technical advancements of this project, as detailed in this Report, are remarkable from both a quantitative and qualitative perspective, including exploration discoveries, positive metallurgical characteristics, refined geological interpretations, overall geologic model enhancements and significant progress on mining and processing. I was both satisfied and proud of our team when reading the 2013 report, including the following excerpts by Behre Dolbear:
“The author believes the Comstock Mine Project represents a well-explored, epithermal, precious metal deposit within a world-class mining district… The geology of the project area is well described and understood through vigorous surface mapping and drill hole logging. The density of geologic data is high, and the reliability is excellent, particularly in the various Lucerne Mine areas.” (page 9)
“Due to its bonanza grades and major production of gold and silver ores,…the world-class Comstock District is well represented in the geologic literature… Nonetheless, as CMI continues its detailed exploration mapping, close-spaced drilling, and initial mine production, new details have emerged that have significantly influenced the understanding of the local and regional geology.” (page 21)
“Where the northeast striking faults intersect the Silver City fault zone, mineralization thickens and grade increases.” (page 4)
“A significant discovery of higher-grade mineralization, termed by CMI geologists as the Chute zone, was discovered through the East Side drilling in 2012… This intersection zone hosts elevated grades of gold and silver that consistently average 0.095 ounces of gold per ton (3 g/t) over drill intercepts of 50 to 270 feet and has mapped dimensions of 100 to 150 feet by 100 feet by 450 feet.” (page 4)
“Based upon the structural controls of the newly discovered higher-grade Chute zone, CMI has recognized structural similarities in higher-grade zones at Dayton and other mineralized areas within the CMI property position. Expectations are high that further drilling at the appropriate azimuth will allow for important extensions to these higher-grade zones.” (page 49)
“Substantial resources have been identified to the south at the Dayton property and encouraging exploration results have been received at Spring Valley,…” (page 5)
“The current calculated metallurgical recoveries are approaching the predicted gold recovery and have exceeded the predicted silver recovery. The portion of the heap under leach for the longest, 80 days, has the recovery of gold estimated at 67% and the recovery of silver is estimated at 51%. Preliminary laboratory metallurgical test results provide CMI confidence that ultimate heap leach recoveries will meet or exceed the predicted 70% for gold and 45% for silver.” (p. 127)
“The author further verified that the average gold and silver grades summarized for the Lucerne resource table (0.030 ounce per ton and 0.286 ounce per ton, respectively) and CMI’s forecasts of future operating costs should result in a strong profit margin for the Lucerne Mine operations at current metal prices.” (page 8)
“Forecast operating costs were also compared with the very preliminary results from the first three months of actual operations, and are considered by the author to be in reasonable agreement.” (page 8)
Although the primary goal of the 2012 drill program was definition drilling for the mine plan, discovery of the East-side Chute Zone and the 25% increase of Measured and Indicated Resource in Lucerne from the Company’s previous NI 43-101 dated September 2011 (at a discovery cost of $13.15 per ounce) highlight the additional results.
This Report lifts our project into another category of achievement. When ranked against all the 1 million-plus gold deposits in the world, only 439 such deposits are identified in the world and only 189 of those are producing, putting us in an outstanding peer grouping.
See also NRH Research – 2012 Ranking Gold Mines & Deposits: http://nrh.co.il/s/research.asp
Best Regards from The Comstock,
Corrado De Gasperis
President and CEO
 Gold equivalent ounces were calculated using January 31, 2013 London PM prices of $1,664.75 per ounce of gold and $32.03 per ounce of silver, as published by kitco.com. This resulted in a ratio of 51.97 ounces of silver per equivalent ounce of gold, without taking into consideration the relative recoveries of gold and silver. The Company’s current estimates for heap leach recovery are 70% for gold and 45% for silver.
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.