Sep 3 2020
Comstock Mining Inc., a Nevada-based, gold and silver mining company, reports that it has signed a contract to lease and sell the Daney Ranch property, which is one of its three main non-mining assets situated close to Dayton in Nevada.
This detailed aerial view shows the survey areas of Comstock Mining’s Dayton Consolidated and Spring Valley exploration targets in Lyon County, Nevada, and the Daney Ranch, that was recently contracted for sale. Image Credit: Comstock Mining Inc.
The company will execute this operation for a purchase rate of at least $2.7 million.
Comstock Mining signed a contract with the owner of a recognized exploration and mine development drilling services firm, to lease the property for $9,000 every month, for up to two years, and the assumption of all repairs, upgrades, and maintenance as the responsibility of the lessor.
In case the transaction ends within 24 months, the lease payments will be credited to the purchase rate. If the transaction does not close within the specified period, the lease payments will be increased to $10,000 for a third year, and previous payments will no longer apply to the purchase cost of $2.7 million.
We now have all three major non-mining assets under contract with contracted sales prices totaling nearly $14 million. This transaction validates our assessment of the land values, while providing monthly cash income, reducing monthly expenses and freeing maintenance resources as we ramp up MCU.
Mr Corrado De Gasperis, Executive Chairman and CEO, Comstock Mining Inc.
Mr De Gasperis continued, “We have also created a truly strategic and local drilling partner for us, enhancing the liquidity, speed and likelihood of both closing this favorable transaction, and commencing exploration and development drilling on our Dayton Resource.”
Located in Dayton, Nevada, the Daney Ranch is a 225-acre property bordering the historic Daney patent of Comstock Mining, at the southern end of the company’s neighboring mineralized trend stretching three miles. The mineralized trend begins at the Dayton resource region, close to Silver City, and down through the southern tip of the Spring Valley exploration targets.
Comstock Mining had recently declared its plans to perform airborne geophysical surveys of its 100% owned Dayton resource region and the neighboring Spring Valley exploration targets.
Geotech plans to initiate its proprietary Versatile Time-Domain Electromagnetic (VTEM) geophysical system by week 2 of September and to deliver 3D interpreted outcomes by mid-October 2020.
These results will allow Comstock Mining to significantly increase its interpretation of the Dayton resource region and the potential of the Spring Valley resource, together with its other exploration targets located in Lyon County.
The technical staff of Comstock Mining is collecting a comprehensive structural interpretation of the Dayton resource region that is offering the basis for a fully new resource model. The comprehensive structural interpretation is resulting in a list of extremely promising drill targets to further delineate and extend the mineral resource.
On the basis of the prospective discoveries of this latest interpretive study, Comstock Mining has decided to finish a property-wide geophysical program, and depending on the outcomes, it will confirm the targets for a forthcoming scheduled drill program.
Earlier in 2020, Comstock Mining exercised its option and bought seven unpatented lode mining claims located in Spring Valley, for a total of $100,000. This move improved the company’s land position in this area.
The previous drilling results of the Dayton resource region combined with the present, in-depth geological interpretation will help calibrate the geophysical data and offer interpretation for Comstock Mining’s other exploration targets located in Lyon County.
These exploration targets include the Spring Valley, the Montezuma Ridge, the Amazon, Oest, and Daney mine regions, and the Gold Canyon placer regions.
The Spring Valley and Dayton and Spring Valley targets of Comstock Mining are situated in Lyon County, Nevada, about six miles south of Virginia City, and immediately south and west of Silver City in Nevada. These targets comprise the historic Alhambra, Kossuth, Dayton, Daney, Dondero, and Gennessee mineral patents, collectively representing Comstock Mining’s leading development and exploration target.
The Spring Valley mineralized structures are largely hidden under a layer of sediment gravels and also under the volcanic host rocks and the structural controls of the mineralization for the Dayton resource region known to continue south into the Spring Valley area.
Comstock Mining has planned to develop the Dayton resource region to complete feasibility, aiming towards a mine plan that is set for production. Under this plan, the current resource estimate for the Dayton resource area will be extended and continued southerly into the Spring Valley area.
The plan will also include incremental expansion programs comprising exploration and definition drilling of targets detected by the previous traditional RC and diamond core drill programs. These two targets will be refined and better prioritized on the basis of these latest IP and resistivity geophysical survey outcomes.
The strategic relationship with a locally positioned drilling services company, and the efficiencies and liquidity benefits associated with these partnerships, strongly support advancing these geological developments toward the publication of our first S-K 1300 compliant, technical report for the Dayton resource area and Spring Valley exploration targets.
Mr Corrado De Gasperis, Executive Chairman and CEO, Comstock Mining Inc.
“The new technical report will not only provide a new resource estimate, but a phased drilling plan for further defining and expanding the resource for sustainable, profitable mining,” Mr De Gasperis concluded.