Comstock Mining says report shows increase in gold-equivalent ounces

Comstock Mining Inc., the Storey and Lyon County gold and silver miner based in Virginia City, says a technical report for 2013 shows increased potential for recovery of precious metals.The report, written by Behre Dolbear & Co. of Denver, declared that a mineral-resource estimate for the Comstock Mine Project in the area amounts to 2.15 million gold-equivalent ounces.The report showed measured and indicated resources contained more than 1.8 million ounces of gold and 17.1 million ounces of silver, resulting in the gold-equivalent estimate based on gold and silver prices in London at the end of January.Those prices were $1,665.75 an ounce for gold and $32.03 an ounce for silver, which results in ratio of 51.97 ounces of silver per equivalent ounce of gold but without taking into account relative recoveries of each.Comstock Mining estimates heap leach recovery of 70 percent for gold and 45 percent for silver.The report also showed an “inferred resource” of an additional 870,000 gold-equivalent ounces.The Lucerne resource area increased by 25 percent. And there was a newly discovered zone called the Chute Zone.“Discovery of the east-side Chute Zone and the better-than-expected increase of measured and indicated resource in Lucerne is tremendously rewarding for our team,” said Corrado De Gasperis, Comstock chief executive officer.He said the overall 3.2 million gold-equivalent ounces identified in the report is on just a fraction of the company’s land position, sparking confidence among Comstock executives regarding the future. Comstock Mining is traded on the New York Stock Exchange under the market symbol LODE.