Consolidation Of Properties In Comstock And Silver Mining Districts

VIRGINIA CITY, NV - Comstock Inc. reported the consolidation of its properties in the historic Comstock and Silver City mining districts, increasing the Company’s total owned, published mineral resources to include Measured and Indicated resources containing 605,000 ounces of gold and 5,880,000 ounces of silver, plus additional Inferred resources containing 297,000 ounces of gold and 2,572,000 ounces of silver.

Tonogold Resources Inc did not exercise their Option to Purchase the Company’s wholly-owned subsidiary, Comstock Mining LLC, owner of the Lucerne properties, prior to the Option’s expiration on December 31, 2022, releasing the Lucerne mineral properties back to Comstock. Additionally, Comstock terminated the Tonogold lease-option on the fully permitted processing facility and infrastructure in American Flat, and the mineral exploration lease on the Northern Targets, releasing these assets back to the Company.

The Company now owns or controls twelve square miles of patented mining claims, unpatented mining claims, and surface parcels, covering six and a half miles of strike length along the Comstock and Silver City lodes. The properties span from midway through Virginia City down to US 50 in the south.

“Reconstituting the entire district and consolidating millions and millions of ounces of precious metal resources, with two current SK-1300 technical reports, positions us with a tremendous asset platform and the ability to recognize this value for our shareholders,” said, Corrado De Gasperis, Executive Chairman and CEO. “We just doubled our SK-1300 compliant gold resources and tripled our silver resources, consolidating significant precious metal resources for our shareholders.”

The Dayton Consolidated Project (the “Dayton”) has long been known for high grade assays, with gold assays as high as 2.95 ounces per ton, and silver assays as high as 6.68 ounces per ton. Drilling by Comstock also encountered significant thicknesses of mineralization, including 135 feet averaging 0.218 ounces per ton Au and 0.685 ounces per ton Ag (hole D11-21), 145 feet averaging 0.056 ounces per ton Au and 0.352 ounces per ton Ag (hole D11-33), 50 feet averaging 0.030 ounces per ton Au and 1.072 ounces per ton Ag (hole D94-17).

The Company recently announced the publication of the initial technical report for the Dayton resource. The Dayton’s estimated mineral resource is constrained within an economic shell based on a gold price of $1,800 per ounce and reported at a cutoff grade of 0.007 ounce gold per ton. The estimate includes Measured and Indicated resources containing 293,000 ounces of gold and 2,120,000 ounces of silver, plus an additional Inferred resource containing 90,000 ounces of gold and 480,000 ounces of silver. The Dayton resource is located approximately two miles south of Virginia City, along State Route 342 and State Route 341. It includes the historic Dayton, Alhambra, Metropolitan, and Kossuth mines. Additional Comstock exploration areas located northwest, southwest, and south of the Dayton include Oest, Amazon Extension of Oest, and Spring Valley, respectively. Comstock plans to develop the Dayton resource systemically, through the deployment of more advanced mineral discovery technologies and a series of phased drilling programs and engineering studies. A first phase of drilling, recommended by Behre Dolbear, includes 70 RC holes totaling 31,500 feet that will, among other objectives, test for high grade mineralization and step out exploration into Spring Valley.

The Lucerne resource area is located just south of Virginia City, NV, and approximately one mile north of the Dayton, along State Route 342 and includes the historic Keystone, Justice, Lucerne, Hartford, and Woodville mines. The Woodville hosted the southern-most of the historic Comstock bonanzas. The Woodville also includes the Chute Zone discovered during the Company’s 2012 exploration drilling. “These two technical reports confirm the quality and growth potential of our mineral resources,” concluded De Gasperis, “and enable several potential strategic alternatives for unlocking this value."

The Gold Hill group of exploration targets represent longer-term, highly prospective exploration targets that include many historic mining operations, including the Overman, Con Imperial, and Yellow Jacket mines. These historic mines only targeted the highest-grade materials, leaving significant previously unmined tonnages that recent research has identified multiple drilling targets with significant potential.

The under-developed Occidental Lode runs parallel to the Comstock Lode. Historic underground mining was relatively shallow (350 ft) compared to Comstock Lode mines that were developed to depths of more than 3,000 feet. Reports from the Sutro Tunnel construction indicate the lode was intersected by the tunnel in 1872, at 1,361 feet below the surface, providing an indication of continuity at depth.