SOURCE: Comstock Mining Inc.

Comstock Mining Inc.

March 08, 2016 08:01 ET

Comstock Mining Announces Best Intercepts and Widths To-Date

Lucerne Underground Intercepts 0.429 opt Au (14.72 g/t) 1.217 opt Ag (41.73 g/t) Over 37 ft (11.2m)

VIRGINIA CITY, NV--(Marketwired - March 08, 2016) -  Comstock Mining Inc. (the "Company") (NYSE MKT: LODE) is pleased to announce today, some of the highest grade and thickest gold and silver core intercepts, to date, from the higher-grade mineralization hosted in the Quartz Porphyry mass ("PQ Target"). These results represent the completion of the first phase of underground exploration and illustrate an increase in mineralization thickness, grade quality, and continuity as exploration has continued north in this highly-mineralized corridor. 

These intercepts are currently being modeled to provide grade shells that will contribute to an underground mine plan for the broader Lucerne mineralized resource (Figure 1).

Corrado De Gasperis, President & CEO, commented: "Initially, drilling from bays 1 & 2 of the PQ Target produced exceptional grades mainly defined by thin widths but as we continue to drill north of the Succor vein, we have continuously identified higher-grade intercepts of thicker widths, consistent with our expectations and strongly supporting continued northerly exploration. We have defined a second phase of efficient drilling, enabled by our new underground drifts, extending north for evaluation of the PQ and Woodville targets and east for the Succor target."

In September 2015, the Company began construction of the Harris Portal and Drift on the floor of the Lucerne Mine with two objectives. First, the Harris Drift provides a central platform within Lucerne's broader geological corridor to conduct an underground drilling and exploration program, targeting a three quarter mile long mineralized corridor that includes the PQ target, Woodville, Succor/Holman and high-grade Chute zone systems. Second, the Harris Drift could also potentially serve as a central haulage level depending on the overall drill results and resultant mine plans.

The initial phase included approximately 12,400 feet of diamond core drilling that is in the form of 'fans' that comprise a group of holes having different dips (between -50 and +40 degrees from horizontal). Each drill bay has two or three fans of drill holes extending into the primary target. The core locations and orientations were specifically designed to infill and expand the areas of known, higher-grade mineralization identified from previous surface drilling programs.

The core holes from the first four drill bays were designed to evaluate the southern lobes of the quartz porphyry, and the extent of the fractured and veined environment lying beyond and to the south. The initial drill bays also included a group of holes that targeted and penetrated the Succor structural intersection. In general, the initial southerly oriented drill holes intersected more narrow (2 to 10 feet thick) zones of higher-grade mineralization. The subsequent intercepts continue to illustrate an increase in mineralization thickness, grade quality, and continuity as exploration continues north in this highly mineralized corridor. The intercepts also tend to lie along the margins of a second, previously un-described intrusive mass of material that is proving more consistent higher-grade results.

The following significant drill intercepts are selected highlights from drill bay 6 only. Additional Lucerne drilling highlights from drill bay 6, totaling 25 intercepts, including those summarized below, can be found in the latter part of this release (Table 1).

Drill Bay Six Highlights

  • LUGC15-032: 0.429 opt Au (14.72 g/t) and 1.217 opt Ag (41.73 g/t) over 37 ft. (11.3 m).
    • Includes 1.116 opt Au (38.26 g/t) and 2.496 opt Ag (85.55 g/t) over 7 ft. (2.1 m).
    • Includes 0.668 opt Au (22.88 g/t) and 1.141 opt Ag (39.13 g/t) over 8 ft. (2.4 m).
  • LUGC16-043: 0.384 opt Au (13.17 g/t) and 0.858 opt Ag (29.41 g/t) over 20 ft. (6.0 m).
    • Includes 0.473 opt Au (16.22 g/t) and 0.865 opt Ag (29.65 g/t) over 15 ft. (4.5 m).
  • LUGC16-047: 0.894 opt Au (30.65 g/t) and 0.280 opt Ag (9.60 g/t) over 3 ft. (0.9 m)
  • LUGC16-048: 0.321 opt Au (10.99 g/t) and 11.55 opt Ag (395.95 g/t) over 5 ft. (1.5 m)
    • Includes 0.404 opt Au (13.85 g/t) and 17.700 opt Ag (606.79 g/t) over 2.5 ft. (0.8 m)
  • LUGC16-048: 0.346 opt Au (11.85 g/t) and 0.737 opt Ag (25.28 g/t) over 17.5 ft. (5.3 m).
    • Includes 0.352 opt Au (12.07 g/t) and 0.623 opt Ag (21.34 g/t) over 10 ft. (3.0 m).
    • Includes 0.640 opt Au (21.94 g/t) and 0.666 opt Ag (22.81 g/t) over 2.5 ft. (0.8 m).
  • LUGC16-049: 0.716 opt Au (24.56 g/t) and 1.003 opt Ag (34.4 g/t) over 10 ft. (3.0 m).

Mr. De Gasperis continued: "These intercepts reflect the higher grade epithermal mineralization the Comstock is known for and, not coincidently are being targeted by us in the historic Succor and Woodville systems. Historical production grades from the Succor and Woodville mines averaged over 0.650 and 0.900 opt Au, respectively."

 
Table 1
Drill Bay Hole From
(ft.)
To
(ft.)
Interval (ft.) Au
opt
Ag
opt
From
(m)
To
(m)
Interval (m) Au
g/t
Ag 
g/t
AuEq
Oz.
6 LUGC15-029 62.0 63.0 1.0 1.598 16.200 18.9 19.0 0.3 54.78 555.37 1.806
                         
6 LUGC15-032 233.0 237.5 4.5 0.102 1.896 71.0 72.4 1.4 3.50 65.00 0.126
  LUGC15-032 247.0 253.0 6.0 0.173 2.909 75.3 77.1 1.8 5.93 99.72 0.210
  Includes 250.5 253.0 2.5 0.299 3.600 76.4 77.1 0.8 10.25 123.41 0.345
  LUGC15-032 263.0 300.0 37.0 0.429 1.217 80.2 91.4 11.3 14.72 41.73 0.445
  Includes 263.0 270.0 7.0 1.116 2.496 80.2 82.3 2.1 38.26 85.55 1.148
  Includes 286.0 294.0 8.0 0.668 1.141 87.2 89.6 2.4 22.88 39.13 0.682
                         
6 LUGC15-039 170.5 185.0 14.5 0.092 1.835 52.0 56.4 4.4 3.16 62.92 0.116
  LUGC15-039 212.0 216.5 4.5 0.100 0.359 64.6 65.8 1.4 3.43 12.29 0.105
  LUGC15-039 224.0 248.0 24.0 0.184 0.500 68.3 75.6 7.3 6.29 17.14 0.190
  Includes 234.0 237.0 3.0 0.414 0.671 71.3 72.2 0.9 14.19 23.00 0.423
                         
6 LUGC16-043 156.0 163.5 7.5 0.157 0.488 47.5 49.7 2.3 5.38 16.72 0.163
  LUGC16-043 175.0 188.0 13.0 0.323 0.700 53.3 57.3 4.0 11.08 24.01 0.332
  Includes 181.0 188.0 7.0 0.506 0.668 55.2 57.3 2.1 17.35 22.89 0.515
  LUGC16-043 198.0 218.0 20.0 0.384 0.858 60.4 66.4 6.1 13.17 29.41 0.395
  Includes 198.0 213.0 15.0 0.473 0.865 60.4 64.9 4.6 16.22 29.65 0.484
                         
6 LUGC16-045 61.0 66.0 5.0 0.091 0.309 18.6 20.1 1.5 3.12 10.59 0.095
  LUGC16-045 145.0 149.0 4.0 0.126 0.887 44.2 45.4 1.2 4.32 30.39 0.137
                         
6 LUGC16-047 92.0 95.0 3.0 0.894 0.280 28.0 29.0 0.9 30.65 9.60 0.898
  LUGC16-047 203.0 223.5 20.5 0.149 0.604 61.9 68.1 6.2 5.11 20.71 0.157
  LUGC16-047 241.5 245.5 4.0 0.332 0.793 73.9 74.8 1.2 11.38 27.19 0.342
  LUGC16-047 248.0 249.0 1.0 0.290 0.805 75.6 75.9 0.3 9.94 27.60 0.300
  LUGC16-047 251.0 252.0 1.0 0.248 1.138 76.5 76.8 0.3 8.50 39.01 0.263
  LUGC16-047 305.0 318.5 13.5 0.160 0.314 93.0 97.1 4.1 5.49 10.77 0.164
  Includes 305.0 309.0 4.0 0.267 0.394 93.0 94.2 1.2 9.15 13.51 0.272
                         
6 LUGC16-048 96.5 101.5 5.0 0.321 11.550 29.4 30.9 1.5 10.99 395.95 0.469
  Includes 96.5 99.0 2.5 0.404 17.700 29.4 30.2 0.8 13.85 606.79 0.631
  LUGC16-048 149.5 167.0 17.5 0.346 0.737 45.6 50.9 5.3 11.85 25.28 0.355
  Includes 149.5 159.5 10.0 0.352 0.623 45.6 48.6 3.0 12.07 21.34 0.360
  Includes 164.5 167.0 2.5 0.640 0.666 50.1 50.9 0.8 21.94 22.81 0.649
  LUGC16-048 176.0 181.0 5.0 0.169 0.788 53.6 55.2 1.5 5.79 27.01 0.179
  LUGC16-048 280.0 286.0 6.0 0.126 1.015 85.3 87.2 1.8 4.32 34.78 0.139
                         
6 LUGC16-049 134.0 135.0 1.0 0.266 10.200 40.8 41.1 0.3 9.12 349.67 0.397
  LUGC16-049 177.5 183.0 5.5 0.236 0.515 54.1 55.8 1.7 8.09 17.66 0.243
  LUGC16-049 185.0 195.0 10.0 0.716 1.003 56.4 59.4 3.0 24.56 34.40 0.729
                         
                         

Reported values are from American Assay Labs (AAL) and Inspectorate American Corporation (Inspectorate) in Reno, NV
AAL and Inspectorate lab methods include standard fire assay with ICP finish and gravimetric finish per each labs internal protocols. Gold Equivalent ratio based on gold to silver price ratio of 78:1 Ag:Au.

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 commenced production in 2012. 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.

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