VIRGINIA CITY, Nev., Oct. 1, 2012 /PRNewswire/ -- Comstock Mining Inc. (the "Company" or "Comstock") (NYSE MKT: LODE) announced that it commenced smelting its Merrill Crowe precipitate on Friday, September 28th and continued through the weekend, pouring six Dore bars totaling 3,743 ounces of gold and silver. The pour successfully concludes the Company's "March to Production" project and establishes the Company's first revenue stream. The Dore was sold in September for over $700,000, representing a gold price of $1,777.25 per ounce and a silver price of $34.61 per ounce, with one bar to be held in reserve to produce commemoratives celebrating the event. www.comstockmining.com/commemoratives
"With the successful completion of the first pours, mining has responsibly returned to the Comstock, one of the largest and most historic mining and industrial centers in the world during the mid-19th century," said Corrado DeGasperis, President and CEO of Comstock Mining. "This historic achievement comes from the extraordinary effort of our entire Nevada team and represents our first revenue from mining this year. We appreciate the support of the community and all of our stakeholders."
Assays of the pour show that the Dore is composed of 8.5% gold and 88.2 % silver. The first series of pours generated over 329 ounces of gold and 3,414 ounces of silver.
The pouring of metal completes the on-site production process. The entire on-site process – mining, hauling, crushing, stacking, leaching, processing, filtering, drying, and pouring – will be optimized using statistical process control and a throughput-based measurement system, developed by the Company. Further refining for final gold and silver bullion is completed at a contracted refinery.
"Having met the operational objectives we set since the beginning of the year, we are now turning our attention to maximizing and sustaining the throughput of our Lucerne Mine," added Mr. DeGasperis. "We are currently operating at a rate of approximately 1 million dry tons per annum. This should result in an annualized production rate of approximately 20,000 gold equivalent ounces per year and stabilized cash flow. Once stable, we intend to further increase production levels during 2013."
The Company also announced that a limited, numbered edition of one-troy-ounce commemoratives will be minted from the historic First Pour's Dore. These bars will be sold on a first come, first serve basis and represent certified Comstock gold and silver. Each commemorative one-ounce bar will contain a silver-to-gold ratio of about 10 to 1. To view this amazing commemorative and obtain information for ordering, please go to: www.comstockmining.com/commemoratives
About Comstock Mining Inc.
Comstock Mining Inc. is a Nevada-based gold and silver mining company with extensive, contiguous property in the Comstock District. 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. The Company continues acquiring additional properties in the district, expanding its footprint and creating opportunities for further exploration and mining. The goal of its strategic plan is to deliver stockholder value by validating qualified resources (at least measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces in 2013, and commencing commercial mining and processing operations with annual production rates of 20,000 gold equivalent ounces.
This press release and any related calls or discussions may contain forward-looking statements. 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, timing and accounting for restructuring charges, gains or losses on debt extinguishment, derivative liabilities and the impact thereof; productivity, business process, rationalization, restructuring, investment, acquisition, 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; 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 set forth in our SEC filings and the following: the current global economic and capital market uncertainties; the speculative nature of gold or mineral exploration, including risks of diminishing quantities or grades of qualified resources and reserves; operational or technical difficulties in connection with exploration or mining activities; contests over our title to properties; potential dilution to our stockholders from our recapitalization and balance sheet restructuring activities; potential inability to continue to comply with government regulations; adoption of or changes in legislation or regulations adversely affecting our businesses; business opportunities that may be presented to or pursued by us; changes in the United States or other monetary or fiscal policies or regulations; interruptions in our production capabilities due to unexpected equipment failures; fluctuation of prices for gold or certain other commodities (such as silver, copper, diesel fuel, and electricity); changes in generally accepted accounting principles; geopolitical events; potential inability to implement our business strategies; potential inability to grow revenues organically; potential inability to attract and retain key personnel; interruptions in delivery of critical supplies and equipment raw materials due to credit or other limitations imposed by vendors; assertion of claims, lawsuits and proceedings against us; potential inability to maintain an effective system of internal controls over financial reporting; potential inability or failure to timely file periodic reports with the SEC; potential inability to list our securities on any securities exchange or market; and work stoppages or other labor difficulties. 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 any securities.
Contact information for Comstock Mining Inc.:
P.O. Box 1118
Virginia City, NV 89440
Director of External Relations
Manager of Investor Relations
Tel (775) 847-7376
Tel (775) 847-0545
SOURCE Comstock Mining Inc.