Comstock Mining Commences 2012-2013 Exploration
Comstock Mining Inc. (NYSE: LODE) announced today that it has defined and launched its 2012-2013, exploration drilling program. The program is the Company's largest, most aggressive drilling program, significantly exceeding the magnitude of the successful 2011 drilling program. The program anticipates about 300,000 feet of reverse circulation and 13,000 feet of core drilling, and is scheduled to last approximately 18 months. Funding for the expanded drilling was provided by the Company's successful $17.25 million public stock offering earlier this month.
"Last year we validated 2.4 million ounces of gold and over 20 million ounces of silver," stated Corrado De Gasperis, the Company's Chief Executive Officer. "That was made possible by the most efficient drilling program in our history, with a discovery cost of just $6 per gold-equivalent resource ounce, a truly exceptional result. The 2012-2013 drilling will continue and accelerate that progress to meet our goal of validating Measured and Indicated resources containing over 3.25 million gold-equivalent ounces, as well as accelerate the parallel development of our next two proposed mines."
The program began on January 24, 2012 with limited Phase 1 drilling in Spring Valley, using one Reverse Circulation (RC) and one Core drilling rig. The Spring Valley program is designed to follow-up on the Company's successful 2009 drilling program and to verify the continuity of the Dayton geological model southward beyond State Route 341 into predominantly unexplored Spring Valley properties. The Core drilling anticipates two core holes with depths of 800 feet each. The first core hole, SVC12-01, initially twins the Company's previously-announced Spring Valley discovery hole, SV09-05, that intersected a 45 foot interval averaging 0.163 ounce per ton gold and 0.770 ounce per ton silver, from 40 to 85 feet of depth, and then continues to substantially greater depth. The second core hole, SVC12-02, is located approximately 110 feet to the south, angled to intersect a magnetic anomaly interpreted from the Company's 2011 ground magnetic survey in Spring Valley.
Following the initial drilling in Spring Valley, the Company will complete definition drilling in the Lucerne Starter mine area. The definition drilling in the Lucerne Starter mine area will provide required information to optimize and expand the Starter mine plan and extend its life. The Starter mine, on patented mining claims west of State Route 342, is permitted and scheduled to begin production in 2012.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.