Comstock Mining Inc

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Comstock Mining Inc
Tue, Jan 25, 2011


Virginia City, NV (January 25, 2011) -- Comstock Mining Inc. (“Comstock Mining” or “the Company”)(OTCBB: LODE) announced today that it has completed the acquisition of the Metropolitan Lode Patented mining claim and the Peach and Wedge unpatented lode mining claims (“the Property”) from Ida Consolidated Mines, Inc. (“Ida Consolidated”), under the terms of an option granted on July 21, 2010.  As announced in an August 2, 2010 press release, the purchase price for the property was $100,000.  Ida Consolidated will retain a 2% Net Smelter Return (“NSR”) royalty on all gold and silver production from the Property.

The Metropolitan patented claim and the Wedge unpatented claim are strategically located between the Kossuth Lode and Alhambra Lode patented claims, in the Company’s Dayton Resource Area.   Last December 2010, hole D10-01 was drilled just east of the Metropolitan and Wedge claims.  As announced on January 18, 2011, this first reverse circulation (“RC”) hole drilled by the Company in the area, encountered 590 feet of mineralization.


Comstock Mining, Inc. Dayton Resource Area

The Company previously secured the rights to the Dayton Resource Area through a series of transactions, which included the results from 252 previously drilled holes.  The Company used that data to estimate a mineral resource that was validated in the August 2010 technical report authored by Behre Dolbear.  Substantially all of that resource was within 230 feet of the surface, due to the shallow depths of the previous drilling.  Deeper holes in the current drilling program have been planned to confirm the geologic model, and extend the resource to significantly greater depths.

Corrado DeGasperis, Comstock Mining's Chief Executive Officer stated, “Closing this transaction and securing the properties for aggressive exploration and infill drilling is consistent with our stated objective of consolidating the Comstock, validating qualified resources of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations in 2011.  Encountering 590 feet of mineralization on the first hole where we had previously only identified the mineralized resource within 230 feet of the surface is quite exciting.”  Mr. De Gasperis continued, “With our Hartford infill drilling completed and mine planning underway for the Lucerne Area, our drilling activities over the next few months are primarily focused in the Dayton Resource Area.”

About Comstock Mining Inc.

Comstock Mining Inc. is a well capitalized, Nevada-based gold and silver mining company with extensive, contiguous property in the Comstock District.  The Company began acquiring properties in the Comstock District in 2003.  Since then, the Company has consolidated a significant portion of the Comstock District, amassed the single largest known repository of historical and current geological data on the Comstock region, secured permits, built an infrastructure and brought the exploration project into test mining production.  The Company continues acquiring additional properties in the district, expanding its footprint and creating opportunities for exploration and mining.  The goal of its strategic plan is to deliver stockholder value by validating qualified resources (at least measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations in 2011, with annual production rates of 20,000 gold equivalent ounces. At December 31, 2010, the company had cash, cash equivalents and investments of $30 million.

Cautionary Note to U.S. Investors

This press release uses the term resource in the context of “measured resources,” “indicated resources,” “inferred resources,” and “historical resources” which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification system.  The United States Securities and Exchange Commission (the “SEC”) does not recognize these terms and the SEC guidelines (Industry Guide 7) provide that such terms shall not be included in a registrant’s filings with the SEC (unless required to be disclosed by foreign or state law).  The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility.  It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category.  U.S. investors are cautioned not to assume that any part or all of a measured, indicated or inferred resource exists or is economically or legally mineable. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at

Forward-Looking Statements

This press release and any related calls or discussions may contain forward-looking statements. All statements, other than statements of historical facts, are forward-looking statements.  Forward-looking statements include statements about matters such as: future prices and sales of and demand for our products; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; operational and management restructuring activities (including implementation of methodologies and changes in the board of directors); future employment and contributions of personnel; tax and interest rates; capital expenditures and their impact on us; nature, timing and accounting for restructuring charges, gains or loses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, business process, rationalization, restructuring, investment, acquisition, consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales and other actions regarding debt or equity securities; and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth.

The words "believe," "expect," "anticipate," "estimate," "project," "plan," "should," "intend," "may," "will," "would," "potential" and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. These statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees, representations or warranties and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors set forth in our SEC filings and the following: the current global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources and reserves; operational or technical difficulties in connection with exploration or mining activities; contests over our title to properties; potential dilution to our stockholders from our recapitalization and balance sheet restructuring activities; potential inability to continue to comply with government regulations; adoption of or changes in legislation or regulations adversely affecting our businesses; business opportunities that may be presented to or pursued by us; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to unexpected equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, copper, diesel fuel, and electricity); changes in generally accepted accounting principles; geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues organically; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies and equipment raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; and work stoppages or other labor difficulties. Occurrence of such events or circumstances could have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our securities.  All subsequent written and oral forward-looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors.  We undertake no obligation to publicly update or revise any forward-looking statement.

Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any securities.

Contact information for Comstock Mining Inc.:

P.O. Box 1118

Virginia City, NV 89440

Tel (775) 847-4755

Fax (800) 750-5740

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