SOURCE: Comstock Metals Ltd.

Comstock Metals Ltd.

July 12, 2016 08:30 ET

Comstock Commences Exploration on QV Property, Yukon

VANCOUVER, BC--(Marketwired - July 12, 2016) - Comstock Metals Ltd. (TSX VENTURE: CSL)("Comstock" or the "Company") is pleased to announce that it has commenced the 2016 exploration program on its flagship 16,335 hectare QV gold project in the prolific White Gold district of the Yukon Territory. The work will be carried out in phases and will include surface exploration, geophysics, and drilling. Ground Truth Exploration Inc. have been contracted to carry out the Phase I and II programs on the QV Property.

The Phase I program, which has just started, will include high resolution DC IP-Resistivity (IP) surveys, GT Probe bedrock interface sampling, soil geochemical surveys, and bedrock geological mapping and prospecting. This work will be primarily focused on three priority target areas, the VG, Stewart, and Shadow zones, all of which have large areal extents and prospective geological, structural, geochemical and geophysical characteristics. Additional work will continue to assess the remainder of the large property package.

Results from the Phase I program will be integrated with previous work on the QV property and interpreted to refine the targets for rotary air blast (RAB) drilling, and potentially diamond drilling, in phases II and III. Phase II RAB drilling is scheduled to commence in early August; holes are planned at each of the VG, Stewart and Shadow zones.

Target Descriptions:

VG Zone: The VG Zone is located 11 km north of Kinross's Golden Saddle deposit on the southern part of the QV Property. The VG Zone has similar geology and style of mineralization to the Golden Saddle deposit. Gold mineralization at the VG Zone is hosted by quartz ±carbonate veins, stockwork and breccia along west-southwest trending, gently north-northwest dipping shears. To date, the Company has completed 3,400 metres of drilling in 17 drill holes which formed the basis for a maiden Inferred mineral resource totalling 4.4 million tonnes grading 1.65 grams/tonne (g/t) gold containing 230,000 ounces of gold at a 0.5 g/t gold cut-off (July 8, 2014 News Release). The drill program delineated an open-ended 250°/20-30°N trending, near surface tabular body of gold mineralization with a strike extent of 325 m, traced up to 275 m down dip from surface, and averaging 35-40 m true thickness. The gold-in-soil anomaly over the VG Zone consists of a 2 km long (with a 500m gap through a hornblende gneiss unit) and up to 400 m wide >10 ppb gold anomaly with a maximum value of 1277 ppb gold. The VG Deposit remains open in all directions and is proximal to other untested sub-parallel structures.

Stewart Zone: The Stewart Zone is located 5 km north of the VG Zone and comprises a 1.5 km long gold-in-soil anomaly, with a maximum value of 274.1 ppb gold. The anomaly area is associated with a magnetic low, along the southern margin of an intrusion of probable Jurassic age.

Shadow Zone: The Shadow Zone is 12 km north-northwest of the VG zone and is defined by a 2.7 km long northwest trending gold-in-soil anomaly and a 1.3 km east-northeast trending gold-in-soil anomaly corresponding to mapped fault zones. The maximum gold-in-soil value on the Shadow grid was 514 ppb gold. Trenching results have included 0.33 g/t gold over 85 m from the north end of QVTR12-27, including 0.9 g/t gold over 10 m, open to the north, west and east (December 11, 2012 News Release)

About Comstock Metals Ltd.

Comstock Metals Ltd. is a mineral exploration company. Its flagship 16,335 hectare QV Property is located in the White Gold district of the Yukon Territory, approximately 70 kilometres south of Dawson City and 44 kilometres northeast of the Coffee project of Kaminak Gold Corporation, which is being acquired by Goldcorp Inc. in a deal valued at C$520 million. To date, the Company has completed 3,400 metres of drilling in 17 drill holes which formed the basis for a maiden Inferred mineral resource totalling 4.4 million tonnes grading 1.65 g/t gold containing 230,000 ounces of gold at a 0.5 g/t gold cut-off (See Comstock July 8, 2014 News Release). The VG Deposit remains open in all directions and is proximal to other untested sub-parallel structures. The VG Zone has similar geology and style of mineralization to Kinross's Golden Saddle deposit, located 11 kilometres to the south. Additional promising targets exist on the QV Project, with potential for the discovery of significant intrusion related and/or orogenic gold mineralization. The infrastructure associated with the development of the Coffee project, including upgrading and completion of the mine access road, will benefit all projects in the district, including the QV Property.

Comstock has entered into entered into a letter of intent in respect of a proposed purchase by Comstock of Select Sands' Preview SW gold project located in the La Ronge district of Saskatchewan and Select Sands' early-stage Old Cabin property in Ontario for 20 million common shares in the capital of Comstock (see May 16, 2016 News Release).

Comstock also owns early stage uranium claims in the Patterson Lake area of Saskatchewan and has recently optioned out its Corona property in Mexico (see January 28, 2016 News Release).

David A. Terry, Ph.D., P.Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure in this news release.

Forward Looking Statements

This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Such statements include statements regarding the anticipated approval of the shares for debt arrangement by the TSX Venture Exchange. Information and statements which are not purely historical fact are forward-looking statements. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

For more information about Comstock Metals Ltd., please go to www.comstock-metals.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this Release.

Contact Information

  • David A Terry, Ph.D., P.Geo.
    President, CEO and Director
    COMSTOCK METALS LTD.
    Phone: (604) 639-4533
    Email: info@comstock-metals.com