Comstock Metals Ltd.

TSX VENTURE : CSL


Comstock Metals Ltd.

November 26, 2012 09:30 ET

Comstock's VG Zone Expands With New Drill Results

Highlights:

-- QV12-006 intersected 1.46 grams/tonne gold (g/t Au) over 62.00 metres (m), including 3.76 g/t Au over 14.93 m

-- QV12-008 intersected 2.03 g/t Au over 30.45 m

-- Widths and grades defined in the 2012 drill programme are consistent with the strong silicification, brecciation, and pyrite content found in the White Gold camp

-- VG Zone discovery is remarkably similar geology to Kinross Gold's Golden Saddle Deposit, located 10 Kilometres South of the VG Zone

-- More zones of similar geochemical and geophysical signatures to those of the VG zone have been found on the property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 26, 2012) - Comstock Metals Ltd. (TSX VENTURE:CSL) (the "Company") is pleased to announce results from drill holes QV12-005 to -008, recently completed on the VG Zone at its QV Project in the White Gold District, south of Dawson City, Yukon. In September of 2012, the Company completed eight drill holes at the VG Zone targeting gold mineralization discovered in trenches completed earlier in the summer. Results from the first four drill holes completed on the VG Zone (QV 12-001 to -004), intersected broad zones of gold mineralization down dip of the trenches (see previously announced drill results in the Company's October 10 (http://www.comstock-metals.com/news/index.php?&content_id=79) and October 22, 2012 (http://comstock-metals.com/news/2012/index.php?&content_id=80) News Releases). The most recent drill results extend the zone both down-dip and to the west.

Hole Number From - to...
(metres)
Core Length
(metres)
Gold
(grams/tonne)
QV12-008
including
89.50 - 119.95
94.00 - 100.00
30.45
6.0
2.03
3.84
QV12-007
including
68.20 - 77.50
68.20 - 72.00
9.3
3.8
1.44
2.92
QV12-006
including
73.80 - 135.8
101.50 - 116.43
62.00
14.93
1.46
3.76
QV12-005 20.73 - 25.50 4.77 0.61
QV12-004
including
and
including
43.75 - 133.6
43.75 - 47.1
72 - 117.5
75.1 - 88.0
89.85
3.35
45.5
12.9
2.34
9.98
3.04
4.89
QV12-003
including
and
including
9.0 - 57.0
9.0 - 13.1
23.5 - 30.0
27.0 - 29.0
48.0
4.1
6.5
2.0
1.11
2.44
3.04
5.33
QV12-002
including
including
and
and
18.0 - 74.4
21.0 - 36.2
27.0 - 30.0
45.0 - 50.1
73.6 - 74.4
56.4
15.2
3.0
5.1
0.8
1.28
2.75
4.92
2.30
3.15
QV12-001
including
and
20.0 - 102.0
26.0 - 31.9
55.0 - 58.1
82.0
5.9
3.1
1.02
6.07
2.33
Note: QV12-001 to QV12-004 results are previously released.

Drill holes QV12-006 and -008 were collared from the same drill pad approximately 100 m west of the collar of holes QV12-001, -002, and -004 and were drilled southeasterly at -65° and -90°, respectively. Drill hole QV12-007 was collared about 50 m to the northeast of QV12-003, and QV12-005 was collared 100 m west of QV12-003 on the western side of a northwesterly-oriented valley. A drill collar map and updated cross section are available at: http://www.comstock-metals.com/projects/yukon/qv_project/.

These new results show that strong mineralization is wide open to the north and west of the area that was drilled in 2012. Mineralization is weaker in holes QV12-005 and -007 but trenches on this side of the target returned excellent results; it is expected that additional drilling in this direction will re-establish the zone. The widths and grade defined in the 2012 drill program are consistent with the strong silicification, brecciation, and pyrite content noted by geologists familiar with the White Gold Camp.

The VG Zone is a new discovery in the White Gold District, just 10 kilometres from Kinross's Golden Saddle Deposit. The geology of the VG Zone discovery is remarkably similar to Golden Saddle with the exception that mineralization dips at a shallow angle (30°) beneath a low-rising hill. All eight holes at the VG Zone intersected thick zones of quartz-sericite-carbonate altered gneiss and feldspar porphyry dykes with quartz vein stockworks, breccias, disseminated and vein controlled pyrite, and visible gold.

"We are extremely encouraged by the progress we have made this year. We are looking forward to follow-up on our discovery zone (the VG zone) through drilling in the 2013. The company has sufficient funds for the exploration program next year," commented the Company President & CEO, Rasool Mohammad. "The knowledge we acquired from exploring the VG Zone has enabled us to identify/discover new zones of gold mineralization. The results of the rest of the exploration programme will be made public shortly."

The 2012 drilling programme at the VG Zone consisted of eight core holes totalling 1,334 metres. The drill programme was designed to test gold mineralization found in trenches. The trenches completed to date have targeted a large area defined by high contrast gold and pathfinder element soil anomalies coincident with quartz vein float containing grains of visible gold. Concurrent with the recent drilling programme, field crews completed considerably more trenching and soil sampling on other targets at QV. It is expected that additional targets for further follow-up will result from this work. Results of this large programme are still being received, compiled, and reviewed by field staff. Detailed maps of the property and exploration results as well as photographs may be found on the Company's website at: www.comstock-metals.com.

The 2012 drilling programme is supervised by Jodie Gibson, P.Geo., Consultant for Comstock Metals Ltd.; and Gordon Davidson, P.Geo., Director, Comstock Metals. Both are Qualified Persons as defined by NI 43-101. Drill core was cut in half using a diamond saw, with one half placed in sealed bags and delivered to Acme Analytical Laboratories Ltd. in Whitehorse, Yukon. All samples were fire assayed, and the Company used an industry standard QA/QC programme consisting of standards and blanks inserted into the sample stream to ensure assay accuracy and repeatability. The technical information in this Release has been reviewed by both Mr. Davidson and Mr. Gibson.

About Comstock Metals Ltd.

Comstock Metals' flagship project is the QV Property in the Yukon Territory, which covers 14,180 hectares (35,000 acres) within the prolific White Gold District in the Yukon Territory, about 70 kilometres south of Dawson City. Kinross Gold's Golden Saddle deposit is 10 km to the southeast, and Kaminak Gold's Coffee projects are about 40 km to the south.

Comstock's Corona Gold-Silver Property is located in the prolific Sierra Madre Occidental in Chihuahua, Mexico. The Company completed a drill programme in the spring of 2012, which discovered two new zones of gold and silver mineralization.

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

FORWARD-LOOKING INFORMATION

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. 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 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.

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.

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