Comstock Mining Inc

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Press Releases
Tuesday, October 31, 2017

Comstock Mining Announces Third Quarter 2017 Results;
Announces Strategic Joint Venture, Debt Reductions, Lower Costs and Reverse Stock Split

Virginia City, NV (October 31, 2017) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today reported selected unaudited financial results for the fiscal quarter ended September 30, 2017, and business updates.

Third Quarter 2017 Selected Strategic and Operational Highlights 

  1. Completed Strategic Joint Venture Option Agreement to immediately accelerate Lucerne’s assessment, drilling, engineering and development, while dramatically reducing annual costs.
  2. Received the 2017 Nevada Excellence in Mine Reclamation Award for most excellent mine reclamation.
  3. Reduced spending in every major category, achieving record low operating expenses.
  4. Projected lower operating spend rate of less than $3.6 million per annum, before the estimated annual cost benefits from the Joint Venture Option Agreement of an additional $1.25 million.
  5. Reduced long-term debt by over $1 Million from the sale of various, small non-mining properties.
  6. Completed federally funded column testing of Dayton mineralized materials, through Cycladex Inc., a strategic investee, for, faster, cheaper, safer leaching solutions, yielding 82-85% gold.
  7. Established a strategic collaboration with and funded by Itronics Inc. (ITRO), to assess reclamation cost reductions, increased leach-pad extraction potential, and the metallurgy of our mineralized materials.
  8. Acquired 30 unpatented lode claims with 472 contiguous acres, increasing our lands to over 9,284 acres.
  9. Celebrated the Nevada Department of Transportation’s USA Parkway Grand Opening Celebration, directly benefiting Comstock’s Certified Industrial Site and water rights located on the US 50 highway corridor.
  10. Reduced our senior secured debenture to $9.9 million, with ongoing plans to sell non-mining assets valued at approximately $14 million targeted to eliminate the remainder of our debt.
  11. Announced an agreement to sell 80% of the Daney Ranch to Daney Enterprises Inc., for $3.52 million cash, subject to certain closing conditions, valuing the property above plan, at $4.4 million.
  12. Cash and cash equivalents at September 30, 2017, were $2.3 million.

Corrado De Gasperis, Executive Chairman and CEO of the Company stated, “Our third quarter was focused and productive as we progressed various strategic initiatives, especially the Joint Venture Option Agreement with Tonogold Resources, and consummated land and water sales at high values, and reduced debt.”   

Selected Financial Highlights – Nine Months Ended September 30, 2017

  1. Operating expenses reached a record low of $3.8 million, excluding depreciation and amortization, for the nine months ended September 30, 2017, a 51% reduction as compared to the 2016 period of $7.8 million.  
  2. General and administrative expenses achieved a record low of $2.2 million for the nine months ended September 30, 2017, a 20% reduction as compared to the 2016 period of $2.7 million, driven by lower payroll and administrative expenses, in line with targeted cost reductions.
  3. Real Estate operating costs achieved a record low for the nine months ended September 30, 2017, a 66% reduction compared to the 2016 period, with both positive cash flows and profits for this segment.
  4. Mine claims costs reached a record low of $0.7 million for the nine months ended September 30, 2017, a 20% reduction compared to the 2016 period, despite growing our land position.
  5. Environmental and reclamation expenses achieved a record low of $0.7 million for the nine months ended September 30, 2017, a 35% reduction as compared to the 2016 period of $1.0 million, despite higher costs associated with unusual precipitation and related water management activities.
  6. Exploration and mine development expenses were $0.8 million for the nine months ended September 30, 2017, as compared to the 2016 period of $4.0 million, primarily from the completion of the Lucerne underground drift developments in early 2016.
  7. Net loss was $8.2 million, or a loss of $0.04 per share for the nine months ended September 30, 2017, as compared to a net loss of $9.1 million, or a loss of $0.05 per share, for the comparable 2016 period.
  8. Net cash used in operations was $5.1 million for the nine months ended September 30, 2017, primarily for operating expenses, interest expenses and the reduction of accounts payable.
  9. Net cash provided by financing activities, was $6.4 million, primarily from debt and equity issuances.
  10. Total debt at September 30, 2017, was $10.3 million, with all but $0.6 million being long-term debt.

Mr. De Gasperis added, “Our focus on cost reductions puts us at all-time lows while our Joint Venture Option Agreement with Tonogold should accelerate mine development while further reducing costs. We also began closing planned non-mining asset sales that paid down debt.  We look forward to paying down the rest of that debt in the next nine-to-twelve months.” 

Strategic Joint Venture Option Agreement
Lucerne Mine Project – Accelerated Development
During 2016, the Company focused on exploration and development of certain properties within the Lucerne resource area (the “Lucerne Property”), primarily underground core drilling, underground drift (tunnel) development, and underground sampling into the Quartz Porphyry (PQ) and Succor geological targets.  Future drill programs were being developed with a phased approach to extend the PQ mineralization and scope the Succor and Woodville targets but the Company suspended those plans due to the higher than expected complexity of the underground development effort and the uncertainty about the total capital required for delivering a commercially viable mine plan.   Ultimately, the Company decided to assess, evaluate and pursue partners willing and able to commit the additional mining expertise and capital resources required to explore and develop a commercially viable Lucerne-based mine plan.

On October 3, 2017, the Company entered into an Option Agreement (the “Option Agreement”) with Tonogold Resources, Inc. (“Tonogold”). Under the terms of the Option Agreement, Tonogold will have the right to participate in certain activities, including but not limited to, engineering, development, drilling and test-work, towards completing a technical and economic feasibility assessment on certain properties within the Lucerne Property and if all obligations and prerequisites are satisfied and subject to compliance with the Option Agreement, Comstock and Tonogold may effect a joint venture for the future development and mining of mineral resources on the Lucerne Property.

Under the terms of the Option Agreement, Tonogold can earn a 51% interest in the Company’s presently wholly-owned subsidiary, Comstock Mining LLC, which owns the Lucerne Property, by making capital expenditures on the Lucerne Property of $20 million no later than 42 months following signing of the Option Agreement and direct cash payments of $2.2 million to the Company within six months of such signing. The initial cash payment of $0.2 million was paid by Tonogold to the Company at the time that the Option Agreement went into effect. If Tonogold elects to proceed with the project, Tonogold would have to make another payment of $2 million within the six-month period following the date that the Option Agreement was signed.

If Tonogold does not elect to extend the option beyond the initial six months, it will be required to make a further payment to the Company equal to $1 million less Tonogold’s actual expenditures on the Lucerne Property during such initial six-month period. In addition, Tonogold is granted the option to purchase 51% of certain equipment and property located at the Company’s American Flat property for a purchase price of $25 million.
Tonogold announced that it was fully funded through the first phase of the Agreement.

The Option Agreement calls for a Technical Committee composed of three Tonogold participants and two Comstock participants to oversee all of the engineering, development, drilling and test-work activities, and others, towards completing a technical and economic feasibility assessment.  The Technical Committee is scheduled to review the first phase of the drilling program during the first full week of November 2017.

Mr. DeGasperis continued: “We have been impressed by the commitment, diligence and frankly, passion, exhibited by Mark Ashley and the Tonogold team. We believe the success of Lucerne depends on this type of technical diligence, development and competencies that Mark and his team have demonstrated over the past year-plus. We have the right partner with the right capital support to maximize the value of Lucerne.” 

Long-term Debt Reduction
The Company has reduced long-term debt by more than $1 Million with proceeds from the sale of 54 acre-feet of water rights, and the sale of various, smaller non-mining properties in Gold Hill and Silver City, Nevada and its recently announced joint venture with Tonogold. The Company’s Senior Secured Debenture has now been reduced to $9.9 million. The Company still has plans to sell non-mining assets valued at approximately $14 million targeted to eliminate the remainder of its debt.

Dayton Resource Area
During the third quarter, the Company completed a study of lands open to mineral entry near the Company's southern Dayton Resource and Spring Valley exploration target. Thirty lode claims were located, perfected and filed with Lyon County and the Bureau of Land Management.  The recently staked lode claims were positioned to control lands hosting favorable geology and provide an additional contiguous corridor to our northern land holdings located west of State Route 341.  The block of new claims adds 472 net acres to the Company's already significant land position in the historic Comstock District. Exploration efforts will now be expanded and include the new, adjacent claims. (See Figure 1)

NewLandPosition2017

Figure 1 - illustrates the Company's existing and new land position.

Daney Canyon Ranch
The Company has an agreement to sell 80% of the Daney Ranch to Daney Enterprises Inc., for $3.52 million cash, subject to certain closing conditions, including financing, that values the property above plan, at $4.4 million.
The Daney Canyon Ranch is a 225-acre ranch located in Dayton, Nevada. It features more than 8000 square feet of living space between the Spanish style main home, 2 guest homes and a ranchers cabin.  The Company expects the sale to close by the end of the first quarter, 2018, reporting period.

Outlook
Our goal is to deliver up to $500 million of accretive share value (over $2 per share) by 2020, by acquiring, joint venturing, exploring and developing resources and reserves capable of sustaining production of more than 100,000 gold-equivalent ounces per annum. Our past efforts, especially during the past 18 months, have positioned us for this success. These production targets include both the Lucerne and Dayton Mine plans, with both surface and underground development opportunities.

Total operating expenses (excluding depreciation, amortization, and depletion expense) for the last quarter of 2017 are expected to be less than $1.0 million, with a sustainable, annual run rate of $3.6 million. The Tonogold agreement, if the second phase is exercised, has the potential for reducing these annual operating expenses (excluding depreciation, amortization, and depletion expense) of $3.6 million, in 2018, by an additional $1.25 million.  Interest expense is expected to be approximately $1.3 million for 2018. The Company expects to continue operating with approximately 10 employees, including expert land, permitting, geology, engineering and metallurgical professionals.

The Company plans to sell non-mining related lands, buildings and water rights, for expected net cash proceeds of approximately $14 million, including the Daney Ranch, during the next twelve months. These proceeds will first be used to eliminate debt obligations due under the Debenture and then to fund certain exploration activities in the Dayton Resource area, all while strengthening the financial position of the Company.

The Company has also commenced and plans on continuing metallurgical testing on Dayton mineralized materials, using both cyanide and non-cyanide alternative solutions to experiment on achieving the highest, most cost efficient processing for the Dayton feasibility assessment.  The Company will also commence Reverse Circulation (RC) drilling at the Dayton mine sufficient to finalize the parameters of a mine plan and commence the permitting for the Dayton mine. Infill drilling is expected to significantly expand the reserve potential for the Dayton mine plans. The Company has developed grade shells with higher average grades and believes the Dayton to have economically feasible potential and plans on developing those mine plans toward full feasibility during late 2017 and early 2018, with production plans following those efforts within the next two years.

The Company will report the results of the Lucerne exploration and development programs, in conjunction with Tonogold, and independently for Dayton exploration and development programs, as they become available.

Corporate
The Company enhanced its liquidity with a long-term, strategic refinancing during the first quarter and more efficient access to equity capital during the second and third quarters. The longer-term debt and additional equity allows the Company to participate in the dramatic economic boom currently surging throughout northern Nevada and provide an effective bridge prior to any land sales or completed ventures. Cash and cash equivalents at September 30, 2017, were $2.3 million. 

1-for-5 Reverse Stock Split and Adjustment of Authorized Shares
The Company and the New York Stock Exchange (NYSE) have approved and will effect a reverse split of its common stock, $0.000666 par value (“Common Stock”), at a ratio of 1-for-5 (the “Reverse Split”), effective November 9, 2017.  The Common Stock will begin trading on a split-adjusted basis when the market opens on November 10, 2017. The Reverse Split will result in each outstanding five pre-split shares of Common Stock automatically combining into one new share of Common Stock without any action on the part of the stockholders.  The total number of outstanding common shares will be reduced from approximately 226 million to approximately 45 million shares. The Company’s authorized number of shares of Common Stock of the Company will also be proportionately decreased from 3,950,000,000 to 790,000,000 shares. No fractional shares will be issued as a result of the Reverse Split as any fractional shares resulting from the Reverse Split will be rounded up to the nearest whole share.

The Board of Directors of the Company approved the action in accordance with Nevada law (NRS Section 78.207).   The NYSE approved the 1-for-5 reverse stock split on October 27, 2017.  No additional Company or stockholder approval is required because both the number of authorized shares of Common Stock and the number of outstanding shares of Common Stock are proportionally reduced as a result of the Reverse Split, and the Reverse Split does not adversely affect any other class of stock of the Company and the Company will not pay money or issue scrip to stockholders who would otherwise be entitled to receive a fractional share as a result of the Reverse Split.  The NYSE and the Company's transfer agent, Corporate Stock Transfer, will provide instructions to stockholders regarding the process for exchanging certificated shares. The Common Stock will continue to trade on the NYSE American under the trading symbol "LODE" but will trade under the new CUSIP number 205750201.
 
Mr. De Gasperis concluded, "The split satisfies the NYSE American minimum share price requirement. We consider this a mechanical change that does not impact our strategy, business plans, liquidity, operations or the intrinsic value of the shares.  Our focus is on growing that value with an outstanding investor and share base."

Conference Call
The Company will host a conference call today, October 31, 2017, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time.  The live call will include a moderated Q&A, after the prepared comments by the Company.  The dial-in telephone numbers for the live audio are as follows:

Toll Free: (1-877-876-9173; participant passcode: 186632)
Direct: (1-785-424-1670; participant passcode: 186632)

The audio will be available, usually within 24 hours of the call, on the Company website:
http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. 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 completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; reverse splits, forward splits, dividends, offerings, sales and other actions regarding debt or equity securities; maintaining stock exchange listing requirements; redemption or pay down of the debenture; 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 the Debenture or any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
External Relations
Tel (775) 847-5272 x151
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Tuesday, October 24, 2017

Comstock Mining Announces Notice of Third Quarter 2017 Results
and Business Update Conference Call

Virginia City, NV (October 24, 2017) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) will host a conference call on Tuesday, October 31, 2017 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report  Third Quarter 2017 results and provide a business update. The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:

Toll Free: (1-877-876-9173; participant passcode: 186632)
Direct: (1-785-424-1670; participant passcode: 186632)
The audio will be available, usually within 24 hours of the call, on the Company website:
http://www.comstockmining.com/investors/investor-library

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. 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 completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; 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; including a redemption of the debenture, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 the Debenture or any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Wednesday, October 11, 2017

Comstock Mining Reduces Long-Term Debt by Almost $1 Million
Progresses Planned Non-Mining Asset Sales

Virginia City, NV (October 11, 2017) Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE American: LODE) announced today it has reduced long-term debt by almost $1 Million with proceeds from the sale of 54 acre-feet of water rights, and the sale of various, smaller non-mining properties in Gold Hill and Silver City, Nevada and its recently announced joint venture with Tonogold Resources, Inc.

Mr. Corrado De Gasperis, Executive Chairman and CEO of Comstock said, “We are pleased to report the completion of several planned sales of non-mining parcels and water rights and commence paying down long-term debt, immediately reducing costs and strengthening our balance sheet.”  

The most valuable of the remaining properties is the Company’s 98-acre Comstock Industrial Site located adjacent to the Silver Springs Airport in close proximity to where the recently opened Infinity Highway connects U.S. 50 and Silver Springs to the Tahoe Reno Industrial (TRI) Center. The operators of the Silver Springs Airport recently received approval from the Lyon County Board of Commissioners on an extension of its lease including an expansion of the airport infrastructure. The Silver Springs Airport serves as the airport for business executives and private jets, such as the Falcon 900 EX below, visiting the TRI Center last week—which contains more than 150 global businesses.   

2017 10 11 00.33.04
SILVER SPRINGS AIRPORT—A Falcon 900 EX rests on the tarmac of the Silver Springs
Airport near the 98-acre Comstock Industrial Site available for purchase and development.

Mr. De Gasperis concluded, “We continue to see amazing growth in the counties surrounding the Tahoe-Reno Industrial Center, especially in Storey and Lyon counties. We expected the new connecting state route to facilitate and accelerate our proposed land sales and now it has begun.”

The Company’s Senior Secured Debenture has now been reduced to $9.9 million. The Company still has plans to sell non-mining assets valued at approximately $14 million targeted to eliminate the remainder of its debt. The Company also had approximately $2.3 million in cash at September 30, 2017.

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. 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 completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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; profitability; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; production of feasibility studies, technical reports or other findings related to estimated mineralization; 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 (by the Company or other parties) and their impact on us; nature and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, sustainability, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales, equity dilution, and other actions regarding debt or equity securities; including a redemption of the debenture, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Director of External Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Thursday, October 5, 2017

Comstock Mining Announces Strategic Mining Joint Venture
Tonogold Plans $20 million Investment for Lucerne Mine Development

Virginia City, NV (October 5, 2017) Comstock Mining Inc. (the “Company” or “Comstock”) (NYSE American: LODE) announced today that it has entered into an Option Agreement (the “Agreement’) for a mining joint venture on the permitted, Lucerne Mine Project (the “Lucerne”), with Tonogold Resources, Inc. (“Tonogold”) (OTCMKTS: TNGL).

Strategic Option and Joint Venture Highlights 

  • Accelerates drilling and development activities of $1 million in the first six months;
  • Provides potentially $2.2 million to Comstock; $0.2 million immediately and another $2 million within 6-months, in the event that Tonogold elects to extend the option;
  • Subsidizes approximately $1.2 million in annual operating expenses of the Company;
  • Invests $20 million in engineering, drilling, development and test-work towards completing a technical and economic feasibility assessment and re-commencing production in Lucerne;
    • Requires $7 million of investment in the first 18 months;
    • Requires $13 million in the second 18 months, or $20 million cumulatively over 3 years;
    • Establishes a technical oversight committee of mining professionals for these activities;
  • Enables an “earn-in” of 51% of the Lucerne properties when all prerequisites are completed; and 
  • Grants a second option to acquire 51% of the Lucerne Mine infrastructure, including the American Flat property, plant and equipment for an additional $25 million.


Under the Agreement, when Tonogold completes its $20 million investment, and other related prerequisites, for the evaluation and mine development for Lucerne’s economic feasibility and mine production plans, Tonogold and Comstock would then effect a joint venture for the future mining of mineral resources on the Lucerne. The Agreement also provides up to $2.2 million in direct funding for Comstock and approximately $1.2 million per annum in subsidized costs.

By electing to enter the second phase of the arrangement, in addition to paying Comstock $2 million, Tonogold is required to spend a total of $7 million during the next 18-month period in order to enter the third phase.  In the third and final phase of the earn-in period, Tonogold is required to invest an additional $13 million (cumulative investments of $20 million) with the goal of completing an assessment that includes a commercially viable mine plan, mine economics and production schedules. 

When all obligations are met, Tonogold will have earned a 51% interest in the entity that owns the Lucerne mine properties. In addition, Tonogold is granted an option under the Agreement to acquire 51% of the Lucerne Mine infrastructure, including the American Flat property, plant and equipment, for an additional $25 million. If Tonogold does not elect to extend the option beyond the initial 6-months, it will be required to make a further payment to Comstock equal to $1 million less actual costs incurred on the Lucerne Properties during the initial 6-month period.

Mr. Corrado De Gasperis, Executive Chairman and CEO of the Company said, “We have been extremely diligent in establishing our first collaborative agreement with a strategic mining partner with strong technical expertise and well-aligned incentives to advance Lucerne back into production. The agreement immediately accelerates the evaluation, drilling and development activities, without share dilution, while lowering our annual costs by over one-third.” 

The evaluation program is currently directed at producing a robust resource model for Lucerne as well as assessing a series of geological targets in the Silver City Branch of the Comstock Lode, including the Succor vein systems, the historic Woodville Bonanza system and the PQ target. These initial targets represent the core of a broader geological corridor. Previous surface drilling in the area suggest more than 1,000 feet of mineralized strike in the Succor zone, lying generally adjacent to and below the Lucerne Cut, with good potential to yield high-grade gold and silver. The 1,000-foot plus Succor Vein Target has an average true width of 15 feet and an average dip of 65 degrees. The structure has reported historic mining grades of approximately 0.54 ounces per ton of “recovered” gold per ton and is open to the east and at depth, along the entire structure. The nearby Woodville Bonanza structure includes the same supporting historical mappings with reported historic mining grades of 0.749 ounces of gold per ton.  The Woodville has significant current drill data including 116 intercepts of at least 10 feet, grading over 0.22 ounces per ton gold and 1.59 ounces per ton silver.

Mr. Mark Ashley, CEO of Tonogold commented, “Comstock Mining has done an excellent job consolidating an historic, world-class mining district and then entitling it for productive development.   We see an opportunity to develop a significant, profitable and sustainable operation within the next three years.”

Tonogold is a U.S.-based mining company that is focused on advanced exploration properties in Nevada and Mexico. Tonogold’s team of proven and successful mining executives and investors are working to build a portfolio of mineral properties that will give its investors a leveraged exposure to gold, silver and other minerals and metals allowing them to benefit from its exploration, mining and financial expertise.

Mr. De Gasperis, concluded, “We understand the Lucerne resource much better since mining and processing over the past 5 years, including excellent metallurgical yields.  This venture will focus on developing a sustainably profitable mine from a smaller, higher-grade resource than previously targeted. We feel the potential of Lucerne depends on this type of technical collaboration, with the right partner and capital to enable it.  Ultimately, plans to invest almost $50 million for 51% speak for themselves.”

The Company will host a conference call on Thursday, October 5, 2017 at 8:00 a.m. Pacific Time/ 11:00 a.m. Eastern Time to discuss the details of this joint venture. The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:          

North American Toll Free: 866-253-4737; Conference ID: 2970069

International: +1 416-849-2693; Conference ID: 2970069

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. 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 completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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; profitability; future industry market conditions; future changes in our exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; production of feasibility studies, technical reports or other findings related to estimated mineralization; 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 (by the Company or other parties) and their impact on us; nature and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, sustainability, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; offerings, sales, equity dilution, and other actions regarding debt or equity securities; including a redemption of the debenture, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Investor Relations
Tel (775) 847-5272 x151
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Tuesday, September 12, 2017

Comstock Mining Acquires 30 New Lode Mining Claims

Virginia City, NV (September 12, 2017) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced today that the Company has added 472 acres of claims contiguous to its claims in the Dayton /Spring Valley Areas by acquiring 30 unpatented Lode claims, including lands that were previously held by Kona Gold, in the southern part of the Comstock District.

Corrado De Gasperis, Executive Chairman and CEO of the Company stated, “The efficient locating, staking and filing on the new claims expand an already impressive land position in a historic world-class mineral district. We now control well over 10 square-miles with our land position.”

The annual maintenance fees are administered by the Bureau of Land Management and include the Company’s 2,266 acres of private, patented claims as well as 6,345 acres of unpatented claims including lode claims and combined equals 8,611 of total acres. With the addition of the 30 new claims comprising 472 acres, the Company now controls 6,817 acres of unpatented claims and 9,083 total acres.  The filing fees associated with the newly acquired claims was $12,277.00, which included paying for last year’s and 2017-2018 intent to hold fees to the BLM.

The Company has expansive mining claims with exploration, development and operating permits throughout a historic world-class district featuring a production ready platform.  The Company’s existing and newly expanded land position in the Comstock District is illustrated in the map below.

9 12 17
COMSTOCK MINING, INC. LAND MAP—Depicted in blue are Comstock Mining’s existing claims with additional new claims displayed in bright green.

About Comstock Mining Inc.
Comstock Mining Inc. is a producing, Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining, including concurrent and accelerated reclamations, soil sampling, voluntary air monitoring, cultural asset protection and historical restorations.  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 completed its first phase of production.  The Company continues acquiring additional properties in the district, expanding its footprint and creating opportunities for further exploration, development and mining.  The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by validating qualified resources and reserves (proven and probable) from our first two resource areas, Lucerne and Dayton, and significantly grow the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; 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; including a redemption of the debenture, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 the Debenture or any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Investor Relations
Tel (775) 847-5272 x151
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Monday, September 11, 2017

Comstock Mining Receives Nevada Excellence in Mine Reclamation Award
Recognized for Excellent Mine Mitigation and Historical Mine Features

Virginia City, NV (September 11, 2017) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) received on Saturday, September 9, 2017, the Nevada Excellence in Mine Reclamation Award. The Company received the recognition for Excellence in Mine Reclamation for the Rebuilding of State Route 342 and Reclamation of Historic Mine Features. This included capping of a hazardous, historic mine shaft, the realignment of a major state route away from that mine shaft, safe removal of hazardous materials for legacy mining and the reclamation and beautification of historic mine features and historic mining landscapes.

Corrado De Gasperis, Executive Chairman and CEO of the Company stated, “Comstock Mining led a cooperative, multi-agency partnership that resulted in a safe, practical realignment of State Route 342, that enabled mining, commerce and beautification all in one effective project.”

This award was presented for excellence in reclamation at the annual Nevada Mining Association Convention, along with only two other recipients for the highest level of environmental excellence, Newmont and Kinross.  All awards were the result of unanimous decisions by the Awards Committee. Members of the committee included representatives from the Bureau of Land Management, Nevada Division of Minerals, Nevada Division of Environmental Protection, Nevada Department of Wildlife and the U.S. Forest Service.

Picture1a
REVIEWING THE REBUILDING OF STATE ROUTE 342 AND RECLAMATION OF
HISTORIC MINE FEATURES—Near the site of Nevada State Route 342, Corrado De Gasperis
Executive Chairman and CEO of Comstock Mining (third from left), points out all of the work 

involved during the successful reclamation of an historic mining area to several members of the
Nevada Excellence in Mine Reclamation Award Committee.

The Excellence in Mine Reclamation Awards recognizes some of the most progressive Nevada miners, elevating the standards of excellence in mine reclamations and restorations.  Interest in these awards encourages innovation in reclamation techniques, raises industry standards, and results in better plans of operation and reclamation, while increasing the public’s awareness of these sustaining activities. 

Mr. De Gasperis, added, “We congratulate Newmont and Kinross, along with our whole extended team, for leading Nevada mining with the highest level of environmental and social responsibility! This is our second Reclamation Excellence recognition in the past three years, so for us, this is a true testament to the sustained leadership, innovation and commitment enabled by our ‘Comstock Responsible’ culture.”

Picture2
NEVADA EXCELLENCE IN MINE RECLAMATION AWARD FOR ABANDONED MINE LANDS
HAZARD MITIGATION—Comstock Mining received its second Nevada reclamation award in three
years. From left to right Tim George, Senior Mine Engineer; Zach Spencer, Director of External Relations;
Larry Martin, Director of Exploration and Scott Jolcover, Director of Business Development.

The Company has been operating in the Comstock District since 2003. Through cooperative partnerships, the Company coordinated and collaborated with communities in both Storey and Lyon Counties, the Nevada Division of Environmental Protection, the Bureau of Corrective Actions; the Nevada Department of Transportation (NDOT); the State Historic Preservation Office; McGinley & Associates; Debra Lemke; RCI; and the U.S. Army Corps of Engineers. Cooperative partnerships coupled with relationships built over time on trust are extremely important when a large project must be undertaken, permitted and completed in a timely fashion to benefit the public.

Picture3
NEVADA STATE ROUTE 342 LOOKING NORTHWEST

Picture4
NEVADA STATE ROUTE 342 LOOKING SOUTHEAST

Following a weekend of heavy precipitation, cracks in SR 342 were detected and NDOT temporarily closed it on February 8, 2015. In early March, 2015 NDOT announced that this section of SR 342 would remain closed until a temporary by-pass could be built by Comstock Mining that would be opened to the public in June of 2015 and that the mining company had stepped forward to fund and build the entire project with oversight provided by NDOT and Storey County. SR 342 was re-opened to the public ahead of schedule in early December of 2015, with final acceptance by NDOT and Storey County in May of 2017.

Picture5
NEW CULVERTS AND GUARDRAILS WERE INSTALLED ON STATE ROUTE 342

Working cooperatively with state and federal agencies, Comstock Mining’s reclamation project remediated legacy mine dumps that contained imported elemental mercury. In fact, Comstock Mining recovered 1,000 pounds of this imported elemental mercury from pre-1904 mine tailings and captured it for proper disposal. Funded by Comstock Mining, this $3 million reclamation project included the rebuilding and realignment of SR 342 and it reduced costs to the state and local municipalities, and thus, taxpayers. It also provided a safer and more efficient passage for mining operations.  It features a scenic rock-lined waterway and enhances the quality of life for residents throughout the northern Nevada region by providing a safe route to and from Virginia City and offers tourists an easy route to visit our historic region and its many businesses.

Picture6
GOLD CANYON CREEK NOW FLOWS ALONG A SCENIC ROCK-LINED WATERWAY

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. 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 completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; 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; including a redemption of the debenture, 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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 the Debenture or any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Investor Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Tuesday, August 29, 2017

USA Parkway Completed Ahead of Schedule;
Comstock Secures Valuable Sale of Water Rights

Virginia City, NV (August 29, 2017) - Comstock Mining Inc. (“Comstock” or the “Company”) (NYSE American: LODE) announced today, that the Nevada Department of Transportation (NDOT) celebrated the completion of the new Infinity Highway (formerly USA Parkway) yesterday—three months ahead of schedule. NDOT has completed the $75.9 million project and a large multi-lane roundabout at the intersection of the Infinity Highway and U.S. Route 50; in the immediate vicinity of the Company’s certified, shovel-ready, 98-acre Comstock Industrial Site and senior water rights in Silver Springs, Nevada.

82917Picture1bINFINITY HIGHWAY/U.S. 50 ROUNDABOUT—Computer-generated rendering of the roundabout where the Infinity Highway meets US Route 50. The view is looking south, with Silver Springs and the Comstock Industrial Site toward the left and Carson City to the right. (Image provided by the Nevada Department of Transportation)

The Company also announced today that it has escrowed the sale of 54 acre-feet of water rights in two transactions that generated over $550,000. The transaction is expected to close in the first week of September and the funds will immediately be used to pay down long-term debt, consistent with the Company’s original plan. The Company still has over 203 acre-feet of water rights available for use in this development area.

Corrado De Gasperis, President & CEO of Comstock Mining Inc. said, “The sale of water rights at $15,000 per acre-foot, value the water rights at over $3.5 million, more than the purchase price of the land and water and mark these properties at a much higher market value than originally anticipated for the entire industrial complex.   We see the early opening of the Infinity Highway as a catalyst for both the speed and value of the properties we are monetizing.”

82917Picture2b
INFINITY HIGHWAY—Corrado De Gasperis President & CEO of Comstock Mining, Inc. (l.) and Scott Jolcover Director of
Business Development for Comstock Mining, Inc.(r.) with the newly unveiled sign designating State Route 439 as the 
Infinity Highway during NDOT’s  celebration for the new highway connecting I-80 with US Route 50.

The Company’s 98-acre Comstock Industrial Site is strategically located between the Silver Springs Airport and the re-zoned Downtown Silver Springs parcels and the recently completed Infinity Highway. The property is ideally situated with excellent logistics in immediate proximity to where the Infinity Highway (State Route 439) connects with U.S. Route 50 from Interstate 80, through the TRI Center, also known as the largest industrial park in the world

.82917Picture3

Local officials also announced four new transactions resulting in over 5,000 acres of additional purchases in progress, including multiple high-tech companies, accelerating the development in the TRI Center, especially southward towards our properties.  The Company plans to monetize certain non-mining related lands, buildings and water rights, including this Certified Site, for expected net cash proceeds of more than $14 million during the next 12 months.

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. 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 completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; 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; including a redemption of the debenture, and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth and redemption of the Debenture.

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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 the Debenture or any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Investor Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Tuesday, August 1, 2017

Comstock Mining Announces Second Quarter 2017 Results Advances Dayton Feasibility and Multiple Strategic Ventures

Virginia City, NV (August 1, 2017) Comstock Mining Inc. (the “Company”) (NYSE American: LODE) today reported selected unaudited financial results for the fiscal quarter ended June 30, 2017, and provided business updates.

Second Quarter 2017 Selected Strategic and Operational Highlights 

  1. Conducted column testing of Dayton mineralized materials, with federally funded research grants through Cycladex Inc., a strategic investee, for, faster, cheaper, safer leaching solutions, yielding 82-85% gold.
  2. Advanced strategic discussions associated with accelerating the development of our Lucerne Mine project, towards assessing economic feasibility, establishing proven and probable reserves and production plans.
  3. Established a joint collaboration with a strategic partner and began metallurgical testing on Lucerne mineralized material from the existing leach pad to assess additional silver yield extraction potential.
  4. Renewed all 6,345 acres of Unpatented Lode Claims controlled by the Company.
  5. Completed State Route 342 Alignment and Nominated for 2017 Nevada Reclamation Excellence Award.
  6. Nevada Announced over $125 Million in Infrastructure Investments, including USA Parkway’s Grand Opening Celebration on August 28, 2017, directly benefiting Comstock’s Certified Industrial Site.
  7. Nevada Announced that Apple Inc. will invest an additional $1 billion in northern Nevada, doubling the size of its existing data center near the Tahoe Reno Industrial (TRI) Center.
  8. Tesla announced expansion plans for its $6 billion Giga factory investment in the (TRI) Center to also include Model 3 powertrain production in addition to existing planned battery cells and battery packs.
  9. Accelerated activities associated with monetization of non-mining lands for 2017, including our site certified, shovel ready industrial land and water rights in the immediate vicinity of the Tahoe Reno Industrial (TRI) Center, where the new USA Parkway intersects with Highway 50 via a new roundabout.

Corrado De Gasperis, Executive Chairman and CEO of the Company stated, “Our second quarter was very productive as we signed one new strategic agreement and advanced three others.   These ventures are designed to enhance liquidity, accelerate mining activities, strengthen and grow our land position and reduce costs, all with the goal of delivering $500 million of accretive share value in the next 2-3 years.”   

Selected Financial Highlights – Six Months Ended June 30, 2017

  1. General and administrative expenses reached a record low of $1.6 million  for the six months ended June 30, 2017, a 21% reduction as compared to the 2016 period of $2.0 million, driven by lower payroll and administrative expenses, despite higher costs associated with transaction and mineral title diligence.
  2. Real Estate operating costs maintained a record low for the six months ended June 30, 2017, a 79% reduction compared to the 2016 period, and a positive year to date cash flow and profit for this segment.
  3. Mine claims costs reached a record low of $0.5 million for the six months ended June 30, 2017, an 11% reduction compared to the 2016 period, despite growing and further entitling the land position.
  4. Environmental and reclamation expenses reached a record low of $0.5 million for the six months ended June 30, 2017, a 29% reduction as compared to the 2016 period of $0.7 million, despite higher costs associated with unusual precipitation and related enhanced water management activities.
  5. Exploration and mine development expenses were $0.5 million for the six months ended June 30, 2017, as compared to the 2016 period of $3.4 million, in part from subsidizing certain mine development costs through partners and the completion of the underground drift developments in 2016.
  6. Net loss was $5.7 million, or a loss of $0.03 per share for the six months ended June 30, 2017, as compared to a net loss of $6.9 million, or a loss of $0.04 per share, for the comparable 2016 period.
  7. Net cash used in operations was $3.6 million for the six months ended June 30, 2017, primarily for operating expenses, interest expenses and other net uses for working capital.
  8. Net cash provided by financing activities, was $4.6 million, primarily from equity and debt issuances.
  9. Total long-term debt at June 30, 2017, was $11.4 million, with all but $0.6 million being long term, the positive result from the Company’s first quarter refinancing.
  10. Cash and cash equivalents at June 30, 2017, were $1.0 million.  The Company anticipates maintaining a cash balance of at least $1.0 million throughout 2017.

Mr. De Gasperis added, “Our cost performance in the first half of this year puts us at all time lows, and we are focused on even lower costs. Our refinancing extended maturities until 2021 and with NDOT completing USA Parkway early, we are looking forward to completing our land sales and eliminating this debt within the next twelve months. These foundational improvements combined with our progressing strategic ventures to accelerate mining activities, have enhanced the interest in our Company and dramatically improved our share liquidity.”

Strategic Ventures

Lucerne Mine Project – Accelerated Development
During the second quarter, the Company advanced strategic discussions associated with accelerating the development of our Lucerne Mine project, including a re-scoping assessment that includes assessing economic feasibility, establishing proven and probable reserves and production plans. The Company, in conjunction with the potential partner, has assessed alternative mine plans, including the feasibility of expanding the surface mine operation, establishing proven and probable reserves and designing a mine plan for production and expects to provide an update on this progress during the current quarter.

Silver Extraction Enhanced Feasibility Project
During the second quarter, the Company entered into a joint collaboration agreement to test an alternative extraction technology, with multiple objectives.  First, the company has provided leached material from the existing Lucerne leach pad for reprocessing and analysis to determine if additional silver extraction of existing material is economically feasible.  Additionally, the Company has delivered new mineralized material from the Dayton Resource area, for processing and analysis on both gold and silver yields.  These materials are being processed and tested in the Reno, Nevada area, at both independent metallurgical labs and further within our joint collaboration.  The Company expects to provide an update on these process tests during the current quarter.

Cycladex Inc.
During the second quarter, our technical staff conducted column tests, in direct collaboration with Cycladex Inc., (“Cycladex”) a strategic investee, of both cyanide and non-cyanide solutions. The teams established four, full metallurgical column tests, two cyanide and two non-cyanide, running parallel, that supports and advances the feasibility study for establishing proven and probable reserves at the Dayton. The samples were crushed, agglomerated and loaded into four ten-foot columns for leach simulation.   These simulations were conducted on-site, in the Company’s metallurgical labs, and are coordinated through, and funded by U.S. National Science Foundation grants.

The Cyanide columns leached exceptionally high and fast for gold with cyanide, higher than prior tests and expectations. The Company’s expectations for the cyanide columns started high, at about 80%, so the 82-85% result in just 25 days was higher and faster than expected.  Cycladex yields exceeded expectations for both gold and silver and tracked exceptionally well against the cyanide parallel columns. Although still in the early stages, the Company is pleased with the Cycladex yields and speed and looks forward to assessing the specific consumption and cost efficiency in the next few phases.  The next phase of consumption and cost testing is scheduled for completion in late September 2017.

Other Strategic Ventures

The Company has also progressed discussions in two other joint venture opportunities, including agreement in principle on one of them. These ventures are designed to enhance our mining interests, improve feasibility and accelerate mine planning activities toward full economic feasibility.  We will update on these activities, as completed, during the third quarter and the remainder of 2017. 

Dayton and Spring Valley Drilling Target Areas

The Company is working to advance the Dayton Resource area to full feasibility, with a production ready mine plan within the next two years. The new targets are based on the Company's updated analysis of previous geophysical studies with current interpretations of the geology (see Figure 1).

These ground magnetic geophysical surveys identified a linear anomalous corridor, defined by a series of relative magnetic lows. Limited drilling has already identified several mineralized zones. Additionally, a wide zone (up to 500 feet wide) beginning at the Dayton resource and continuing southerly, all the way down to the Daney mineralized patent can be traced by following the north/south trending vein swarms (see again, Figure 3).  The veins depicted by distinct traces colored red.   The increased occurrences and density of the combined structures has been indicative in the Dayton resource to host the higher grades and larger volumes of economic mineralization.  This will be part of the exploration model and has generated a multiple drill target environment.

The Dayton exploration program is designed to target the projected trend of known mineralization southerly.  The magnetic geophysical survey has been studied and a structural interpretation was developed  that illustrates multiple cross cutting structures (colored green) that are oblique to the southerly projected vein trend (colored red).  Though rare, due to alluvial cover, the outcropping quartz veins and outcropping crosscutting structures had definitive diagnostic magnetic signatures. Similar structures have been identified in the Dayton resource area and were found to be important components for the development of economic grades of mineralization.  In the Dayton resource area, geologic observations made on the surface and in accessible underground workings have identified the north/south and the crosscutting structures to carry gold and silver values with different silver to gold ratios. Comparisons of selected sample geochemistry, the north/south veins commonly have higher silver to gold ratios.

The Company also recently completed metallurgical column tests on mineralized material from the Dayton Resource Area that contribute to the advancement of a full feasibility assessment for the mine, updating prior metallurgical test work and the technical resource report published in January 2013. During the second quarter of 2017, the Company conducted column tests of both cyanide and non-cyanide solutions. They established four, full metallurgical column tests, two cyanide and two non-cyanide, running parallel, that supports and advances the feasibility study for establishing proven and probable reserves at the Dayton. The samples were crushed, agglomerated and loaded into four ten-foot columns for leach simulation.   These simulations were conducted on-site, in the Company’s metallurgical labs, and are coordinated through Cycladex Inc., (“Cycladex”) a strategic investee, and funded by U.S. National Science Foundation grants.

The Cyanide columns yielded between 82-85% gold in just 25 days.  The Company has already designed and established new column tests for the primary purpose of assessing the specific consumption of the new materials and material cost for processing.  This is important for assessing ultimate economic feasibility of these solutions.  These simulations will also be conducted on-site, in the Company’s metallurgical labs, and are still funded by U.S. National Science Foundation research grants.  These updated metallurgical testing compliment extensive metallurgical testing results for Dayton that were previously published in 2011. 


Figure 1 - Dayton and Spring Valley Magnetic Geophysics
In house Dayton engineering and mine planning have now resulted in profiling various economic pit shells with multiple cutoff grade scenarios. We also performed due diligence, assisted by SRK Consulting.  The due diligence resulted in confirmation of the scoping level mine plans and agreement on the conceptual processing layout.

Costs and Outlook
Total operating expenses for the second half of 2017 are expected to be $2.1 million, including exploration and mine development, mine claims, environmental and reclamation, and general and administrative costs but excluding depreciation and amortization. Interest expense is expected to be approximately $1.3 million. The Company expects to continue operating with approximately 10 employees, including expert land, permitting, geology, engineering and metallurgical professionals.
Operating expenses for the full year 2017, in part due to higher expenses associated with restructuring and refinancing activities and environmental mitigation activities associated with inclement weather, both of which are now substantially complete, are anticipated to be $4.5 million. Operating expenses are anticipated to be $3.6 million for the full year 2018, consistent with the now-current run rate.

Northern Nevada Economic Development and Non-mining lands
The Company plans to sell non-mining related lands, buildings and water rights, for expected net cash proceeds of more than $14 million during the next twelve months resulting in net profit of more than $8 million. These proceeds will be free of income taxes and they will first be used to eliminate debt obligations due under the Debenture (including principal, accrued interest, and make whole amounts), and to fund certain exploration activities in Dayton, all while strengthening the financial position of the Company.  During the past six months, the Company highlights the following northern Nevada developments:

  • Nevada Announced over $125 Million in Infrastructure Investments, including USA Parkway’s S79 million Grand Opening Celebration on August 28, 2017, benefiting our Certified Industrial Site;
  • Completion of the $8 plus million roundabout for connecting USA Parkway with Highway 50; in immediate proximity of the Company’s property.
  • Apple Inc. announced its anticipated investment of an additional $1 billion in northern Nevada, doubling the size of its existing data center near the TRI Center;
  • Tesla announced that it will expand its $6 billion Giga factory investment in the TRI Center to also include Model 3 powertrain production with already planned battery cells and battery packs;
  • Google announced that it has invested in the second largest parcel in the Tahoe-Reno Industrial (TRI) Center Nevada;
  • Switch announced the opening of the largest, most advanced colocation Data Center in the world, known as The Citadel Campus, designed for up to 7.2 million square feet of data center space; and
  • Storey County has issued over 400 new business licenses through July 2017.

The recent announcement  by the Nevada Department of Transportation, that the USA Parkway will celebrate its ribbon cutting on August 28, 2017, and be fully open for business on September 8, 2017, months ahead of schedule, represents the single largest catalyst for the value of the Company’s properties along Highway 50, and has already increased interest and activity in purchasing industrial lands in Silver Springs, Nevada, where the Company’s Industrial Site and water rights are located and residential properties along the entire Highway 50 corridor, where the 225 acres, Daney Ranch is located.  These milestones have increased the interest and activities in and around these properties.

Corporate and Outlook

The Company enhanced its liquidity with a long-term, strategic refinancing during the first quarter and more efficient access to equity capital during the second quarter. The longer-term debt and equity allows the Company to participate in the dramatic economic boom currently surging throughout northern Nevada and provide an effective bridge prior to any land sales or completed ventures.  Cash and cash equivalents at June 30, 2017, were $1.0 million.  The Company plans on maintaining a cash balance of at least $1.0 million, prior to the non-mining land sales or the benefits from the strategic ventures.

 

Conference Call

The Company will host a conference call today, August 1, 2017, at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time.  The live call will include a moderated Q&A, after the prepared comments by the Company.  The dial-in telephone numbers for the live audio are as follows:

North American Toll Free: 866-253-4737; confirmation code 8660971
International: +1 416-849-2693; confirmation code 8660971

The audio will be available, usually within 24 hours of the call, on the Company website:
http://www.comstockmining.com/investors/investor-library

 

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. 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 completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; 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; including a redemption of the debenture, and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth and redemption of the Debenture.

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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 the Debenture or any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Investor Relations
Tel (775) 847-5272 x151
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Thursday, July 20, 2017

Comstock Mining Announces Notice of Second Quarter 2017
Results and Business Update Conference Call

Virginia City, NV (July 20, 2017) Comstock Mining Inc. (the “Company”) (NYSE MKT: LODE) will host a conference call on Tuesday, August 1, 2017 at 8:00 a.m. Pacific Time/11:00 a.m. Eastern Time to report  Second Quarter 2017 results and provide a business update. The live call will include a moderated Q&A, after the prepared remarks.  The dial-in telephone numbers for the live audio are as follows:

North American Toll Free: 866-253-4737; confirmation code 8660971
International: +1 416-849-2693; confirmation code 8660971
The audio will be available, usually within 24 hours of the call, on the Company website:
http://www.comstockmining.com/investors/investor-library

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; 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; including a redemption of the debenture, and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth and redemption of the Debenture.

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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 the Debenture or any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Investor Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Tuesday, July 18, 2017

Comstock Mining Metallurgical Yield Testing Exceeds Expectations
Both Cycladex and Cyanide Yield Higher and Faster Metal Returns

Virginia City, NV (July 18, 2017) Comstock Mining Inc. (the “Company”) (NYSE MKT: LODE) reported today that recent metallurgical column tests on mineralized material from the Dayton Resource Area (the “Dayton”) have exceeded already high yield expectations and contribute to the advancement of a full feasibility assessment for the mine, updating prior metallurgical test work and the technical resource report published in January 2013.    

Over the past several months, the technical staff has been conducting column tests of both cyanide and non-cyanide solutions. They established four, full metallurgical column tests, two cyanide and two non-cyanide, running parallel, that supports and advances the feasibility study for establishing proven and probable reserves at the Dayton. The samples were crushed, agglomerated and loaded into four ten-foot columns for leach simulation.   These simulations were conducted on-site, in the Company’s metallurgical labs, and are coordinated through Cycladex Inc., (“Cycladex”) a strategic investee, and funded by U.S. National Science Foundation grants.

The Cyanide columns leached exceptionally high and fast for gold, higher than prior tests and expectations.

CN Gold

Corrado De Gasperis, Executive Chairman and CEO of the Company stated, “Our expectations for the cyanide columns started high, at about 80%, so the 82-85% result in just 25 days was exceptional and much faster than any previous test.  Cycladex yields exceeded expectations for both gold and silver and tracked exceptionally well against the cyanide parallel columns. Although still in the early stages, we are pleased with the Cycladex yields and speed and look forward to assessing the specific consumption and cost efficiency in the next few phases.”

Cycladex Silver

Mr. De Gasperis, continued, “Perhaps the most surprisingly positive outcome was that the Cycladex exceeded cyanide in these first tests for yields on silver, where we had very low starting expectations. We stopped that test at 67 days with nearly a 50% yield, far better than expected for silver.”

The technical staff has already designed and established new column tests for the primary purpose of assessing the specific consumption of the new materials and material cost for processing.  This is important for assessing ultimate economic feasibility of these solutions.  These simulations will also be conducted on-site, in the Company’s metallurgical labs, and are still funded by U.S. National Science Foundation research grants.
           
This updated metallurgical testing compliments extensive metallurgical testing for Dayton completed and published in 2011.  The Company is advancing the Dayton Resource Area to full feasibility, with expectations for a production ready mine plan within the next two years.

In-house Dayton engineering and mine planning have resulted in profiling various economic pit shells with multiple cutoff grade scenarios.  Multiple layout plans for the mine and corresponding processing facilities have been conceptually developed and located on lands 100% privately held by the Company, thus simplifying and shortening the critical permitting chain. We performed due diligence assisted by SRK Consulting that resulted in confirmation of the scoping level mine plans and the associated feasibility assessments.

The Company is also in the final stages of two joint ventures that can enhance liquidity, accelerate mining activities and enhance and validate the value of our mineral resources and properties.  We expect to announce these ventures as soon as they are completed, likely during the second quarter reporting process. 

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. 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 completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; 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; including a redemption of the debenture, and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth and redemption of the Debenture.

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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 the Debenture or any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Investor Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
Monday, June 26, 2017

Comstock Mining Announces Early Payment on Debt Service;
Updates Strategic Plan and Strategic Activities

Virginia City, NV (June 26, 2017) Comstock Mining Inc. (the “Company”) (NYSE MKT: LODE) today announced it made its regularly scheduled interest payment to GF Comstock 2 LP under its Debenture one week early. The interest payment is due on July 1, 2017, but was paid on June 23, 2017.    

Corrado De Gasperis, Executive Chairman and CEO of the Company said, “We completed this strategic refinancing earlier this year so that we could extend maturities, strengthen and simplify our balance sheet and provide improved liquidity, facilitating us to monetize our non-mining properties optimally and payoff the debt. Our costs have never been lower and our liquidity remains excellent.”    

The Company plans to pay off the Debenture from the monetization of its non-mining properties positioned on Highway 50, in conjunction with the completion of Nevada’s new State Route 439 (aka, USA Parkway), connecting Interstate 80 right through the Tahoe Reno Industrial Center to its roundabout intersection with U.S. 50, in almost immediate proximity to the Company’s industrial site property.

AVAILABLE NOW FOR PURCHASE & DEVELOPMENT
98-acre site certified, shovel ready industrial property strategically located in direct vicinity of the world renowned Tahoe Reno Industrial Center as well as key U.S. highway transportation routes and adjacent to the airport in Silver Springs, Nevada.
During an update to Storey County Commissioners on Tuesday, June 20, 2017, the Nevada Department of Transportation’s (NDOT) deputy director, Bill Hoffman reported that the USA Parkway is scheduled for completion this September, three months ahead of the original schedule. Mr. Hoffman also acknowledged Comstock Mining for its successful completion of the re-alignment of State Route 342 and the recent release of its remaining $65,000 surety bond by Storey County.

Mr. De Gasperis added, “We are looking forward to NDOT’s ribbon cutting later this year as the new USA Parkway connects with U.S. 50 and creates additional economic opportunities and access for our communities.  U.S. 50 also connects with the SR 342 realignment that represented an extraordinary public-private cooperation between us and the local, State and Federal governments, who, all together, made this unprecedented, regionally impacting achievement possible.”

The Company is also in the final stages of finalizing two joint ventures that will enhance liquidity, accelerate mining activities and enhance and validate the value of our mineral resources and properties.  We expect to announce these ventures as soon as they are completed, and certainly during the second quarter reporting process, if not sooner.  

About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the Comstock District and is an emerging leader in sustainable, responsible mining. 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 completed its first phase of production. The Company continues evaluating and acquiring properties inside and outside the district expanding its footprint and exploring all of our existing and prospective opportunities for further exploration, development and mining. The near term goal of our business plan is to maximize intrinsic stockholder value realized, per share, by continuing to acquire mineralized and potentially mineralized properties, exploring, developing and validating qualified resources and reserves (proven and probable) that enable the commercial development of our operations through extended, long-lived mine plans that are economically feasible and socially responsible.

Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock. Forward-looking statements are statements that are not historical facts.  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 and timing and accounting for restructuring charges, gains or losses on debt extinguishment,  derivative liabilities and the impact thereof; productivity, production slowdowns, suspension or termination, business process, rationalization and other operational initiatives; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; 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; including a redemption of the debenture, and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth and redemption of the Debenture.

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 discussed in Item 1A, “Risk Factors” of our annual report on Form 10-K. 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 the Debenture or any other securities of the Company.

 

Comstock Mining Inc.
1200 American Flat Road
PO Box 1118
Virginia City, NV  89440

 
 

http://www.comstockmining.com

 
 

Corrado De Gasperis
President & CEO
Tel (775) 847-4755
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 

Zach Spencer
Investor Relations
Tel (775) 847-5272 x151
This e-mail address is being protected from spambots. You need JavaScript enabled to view it.

 
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