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VIRGINIA CITY, Nev., Sept. 02, 2020 (GLOBE NEWSWIRE) — Comstock Mining Inc. (the “Company”) (NYSE American: LODE) announced that it has contracted to lease and sell one of its three major non-mining assets, the Daney Ranch property, located near Dayton, Nevada, for a purchase price of at least $2.7 million. The Company entered into an agreement with the owner of an established exploration and mine development drilling services company, to lease the facility for $9,000 per month, for up to 24 months, and the assumption of all maintenance, upgrades and repairs as the responsibility of the lessor. If the transaction closes within two years, the lease payments are creditable to the purchase price. If not, the lease payments increase to $10,000 for a third year, and prior payments no longer apply to the $2.7 million purchase price.
Mr. Corrado De Gasperis, Executive Chairman and CEO stated, “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. 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.”The Daney Ranch is a 225-acre ranch in Dayton, NV, bordering the Company’s historic Daney patent, at the southern end of the Company’s three-mile contiguous mineralized trend starting at the Dayton resource area, near Silver City, down through the southern tip of the Spring Valley exploration targets.The Company recently announced its plans to conduct airborne geophysical surveys of its wholly owned Dayton resource area and adjacent Spring Valley exploration targets. Geotech expects to begin flying its proprietary Versatile Time-Domain Electromagnetic (“VTEM”) geophysical system later next week and plans to deliver three-dimensional interpreted results by mid-October. The results will greatly increase the Company’s understanding of the Dayton resource area and Spring Valley resource expansion potential, along with the Company’s other exploration targets in Lyon County.Image 1 accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/27c1943c-ffe0-46d8-ad9a-ced9422845bd The Company’s technical staff is compiling a detailed structural interpretation of the Dayton resource area that is providing the framework for a completely new resource model. The detailed interpretation is leading to a list of highly prospective drill targets to further define and expand the mineral resource. Based on the promising findings of this recent interpretive work, the Company made the decision to complete a property-wide geophysical program and based on the results, finalize the targets for an upcoming planned drill program. Earlier this year, the Company enhanced its land position in Spring Valley by exercising its option and purchasing seven unpatented lode mining claims in Spring Valley, for a total of $100,000.The results of previous drilling at the Dayton resource area and the current, detailed geological interpretation will enable the geophysical data to be calibrated with and provide interpretation for the Company’s other exploration targets in Lyon County, including the Oest, Amazon, and Daney mine areas, and Montezuma Ridge, the Spring Valley and Gold Canyon placer areas.The Company’s Dayton and Spring Valley targets are located in Lyon County, Nevada, approximately six miles south of Virginia City, and just west and south of Silver City, NV, and include the historic Dayton, Kossuth, Alhambra, Gennessee, Dondero, and Daney mineral patents, together representing the Company’s top exploration and development target. The Spring Valley mineralized structures lie mostly concealed beneath a veneer of sediment gravels and the volcanic host rocks and the structural controls of the mineralization for the Dayton resource area that are known to continue south into Spring Valley.The Company plans to advance the Dayton resource area to full feasibility, towards a production ready mine plan. The plan includes expanding the current resource estimate for the Dayton and continuing southerly into Spring Valley, with incremental expansion programs that include exploration and definition drilling of targets identified by the prior conventional, RC and diamond core drill programs, that will be both refined and better prioritized based on these new IP and resistivity geophysical survey results.Mr. De Gasperis concluded, “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. 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.”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 that is currently commercializing environment-enhancing, precious-metal-based technologies, products and processes for precious metal recovery. 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 Company’s goal is to grow per-share value by commercializing environment-enhancing, precious-metal-based products and processes that generate predictable cash flow (throughput) and increase the long-term enterprise value of our northern Nevada based platform.