VIRGINIA CITY, Nev., April 09, 2018 (GLOBE NEWSWIRE) -- Comstock Mining Inc. (the “Company”) (NYSE American:LODE), a Nevada-based, gold and silver mining company, announced today that Tonogold Resources, Inc. (“Tonogold”) has successfully completed the first phase of the Option Agreement signed on October 3, 2017, having invested approximately $1 million during the past six months toward the evaluation and assessment of the Lucerne Mine Project’s resource and preliminary economic feasibility and also having paid the Company an additional $2 million for the right to extend the option. The Option Agreement established a series of requirements, including technical and financial analysis, along with additional funding milestones for Tonogold to earn a share of the Company’s Lucerne Mine Project.
The first milestone
granted Tonogold six
months to conduct an
initial review of
the project.
During this period,
Tonogold invested
approximately $1
million in project
costs, including a
due-diligence
assessment of the
Lucerne Resource. Tonogold
commissioned Mine
Development
Associates of Reno,
NV (“MDA”), to
independently assess
and begin modelling
a portion of the
Lucerne resource
area. This work is
in preparation for
the intermediate
objective of an NI
43-101 resource
report and then
towards a
feasibility study.
In order to maintain
and progress the
option to earn-in,
Tonogold will now
continue investing
toward a cumulative
$7 million for
Lucerne by October
3, 2019, and a
cumulative $20
million by April 3,
2021, and must
produce a technical
and economic
feasibility
assessment for
mining the Lucerne
resource.
Under the Agreement,
when Tonogold
completes the $20
million investment,
and other related
prerequisites,
Tonogold and
Comstock would then
affect a joint
venture for the
future mining of the
Lucerne mineral
resource. In
addition to the $2.2
million already
received by the
Company from
Tonogold, the
investments also
include at least
$1.2 million in
annual subsidies for
the Company.
Mr. Corrado De Gasperis, Executive Chairman and CEO of the Company said, “We are pleased with the geological analysis and advancement, to date, on the Lucerne resource and the diligence of our mining partner and their advisors. The next phase should accelerate the evaluation, drilling and development activities, while continuing to lower our annual costs by approximately 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 suggests more than 1,000 feet of mineralized strike in the Succor zone, trending east from 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.
Tonogold is a U.S.-based mining company that is focused on advanced exploration properties in Nevada and Mexico. Tonogold’s team of 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, “This venture has diligently focused on developing a sustainably profitable mine. We feel the full potential of Lucerne depends on this type of technical collaboration, with the right partner and capital to enable it. Ultimately, Tonogold plans to invest over $20 million for 51% of the Lucerne Mine. Their methodical, technically diligent and credible advancement through the first phase, meeting all commitments and milestones, speaks for itself.”
The Company’s debenture obligation requires that we use 70% of these proceeds for debt reduction. The Company has now reduced long-term debt by a total of $1.6 million in April, lowering the debenture principal balance to $7.9 million. The Company also had cash and cash equivalents of $2.0 million at March 31, 2018, excluding any additional net proceeds received from the option payment that was not used to pay down debt.
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 Announces New Director and Retirement; Establishes Mining Advisory Committee
VIRGINIA CITY, Nev.,
Feb. 15, 2018 (GLOBE
NEWSWIRE) -- Comstock
Mining Inc. (the
“Company”) (NYSE
American:LODE), a
Nevada-based, gold and
silver mining company,
announced today the
election of Leo M.
Drozdoff, 52, to its
Board of Directors and
the retirement of Robert
A. Reseigh, after 9
years of service, from
its Board of Directors.
Mr. Reseigh will remain
involved with the
Company as a member of a
newly established Mining
Advisory Committee, to
assist in all aspects of
technical mining and
mine development, along
with Mr. Drozdoff and
Mr. Dan Kappes.
Corrado De Gasperis, Executive Chairman of the Board said, “Bob was instrumental in almost every aspect of building the Company, its asset base and management team. He is one of the most genuine, direct, transparent, hardest working and caring directors that I have ever worked with and I was truly saddened when he indicated he was ready for retirement. I was equally thrilled when he agreed to stay on in an advisory role, working with us on technical matters, as we grow our assets and resources into a bigger, more meaningful company.”
The Company also welcomes Mr. Drozdoff to the Board with an extensive resume in Nevada’s mining industry, including but not limited to engineering, legislation, environmental regulation, economic development and historical preservation. He most recently served as the Director of the Nevada Department of Conservation and Natural Resources from 2010 to 2016, and was a Cabinet member reporting to two Nevada Governors, including our current Governor, the Hon. Brian Sandoval, where Mr. Drozdoff oversaw 900 state employees responsible for Mining, Environmental Protection, Water Resources, Forestry, State Parks, State Lands and the State of Nevada’s Historic Preservation Office. Mr. Drozdoff also served as lead Administrator of Nevada’s Division of Environmental Protection for over six years, and prior to that appointment, as Bureau Chief over both Mining and Water Control, two of the most critical Nevada mining regulatory bureaus. He also chaired the Nevada Public Employee Benefits Program Board, overseeing the benefits of over 30,000 public employees, retirees and their families.
Mr. De Gasperis added, “We are honored to welcome Leo Drozdoff to the Comstock team. His knowledge of Nevada mining from almost every perspective, engineering, environmental, historical preservation, legislative and permitting is second to none, and will be especially valuable to us as we embark on developing and commercializing new technologies into the industry.”
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.
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.
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.
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