Comstock Releases Mineral Resource Estimate of the VG Zone at QV Project, Yukon Territory
July 08 2014 - 11:04AM
Marketwired Canada
Comstock Metals Ltd. (TSX VENTURE:CSL) ("Comstock" or "the Company") is pleased
to announce a National Instrument ("NI") 43-101 compliant Inferred Mineral
Resource of 230,000 ounces of gold (4.4 million tonnes at a grade of 1.65
grams/tonne (g/t) gold) at a 0.5 grams/tonne gold cut-off grade (COG), at the VG
zone, on its QV Project, White Gold district, Yukon Territory. The independent
resource estimate was prepared by Lions Gate Geological Consulting Inc. (LGGC)
and has an effective date of June 30, 2014.
The VG Zone remains open along strike and down dip. In addition, other promising
targets exist on the QV Project with potential for the discovery of
intrusion-related and/or orogenic gold mineralization. Evaluation of other
targets on the QV Project is scheduled to commence this summer. "It is exciting
how quickly we have progressed from the discovery of visible gold to a 230,000
ounce gold resource at the VG Zone, completely open along strike and down dip,"
states Rasool Mohammad, Comstock President & CEO. "And we have additional
significant targets to test within the QV project area."
The estimated tonnes, grade, and contained ounces are tabulated below:
VG zone Inferred Mineral Resource Estimate Reported using a 0.5 g/t gold
cut-off grade
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Deposit Category Tonnes Gold Grade (g/t) Contained Gold (ounces)
----------------------------------------------------------------------------
VG Inferred 4,390,000 1.65 230,000
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Notes to accompany Mineral Resource table
1. The Qualified Person responsible for the estimate is Ali Shahkar,
P.Eng., of LGGC.
2. The assumed mining method is open pit mining.
3. Reported Mineral Resources are constrained by an open pit shell using a
gold price of US$1300/ounce, mining cost of US$2/tonne, process and
general administration cost of US$20/tonne, and a gold recovery of 94%
(based on the neighbouring Golden Saddle deposit).
4. Mineral Resources are reported as undiluted.
Mineral Resource Estimate Methodology
From the 17 diamond drill holes (DDH) completed in 2012 and 2013, 16 (3,278 m)
were used to construct the model for the VG Zone. The model is comprised of 3
sub-parallel, geology-guided grade shells (at a nominal cut-off grade of 0.4 g/t
gold). Assays within these zones were capped to a threshold of 7 g/t and
composited into 2-meter lengths for estimation into the block model. A 20 meter
(Easting), 20 meter (Northing) and 10 meter (Vertical) block model was
constructed using commercially-available software (GEMS(R)). Grades for the
blocks were estimated with Inverse Distance Squared (ID2) method using the
modelled zones as hard boundaries. Density values for the model were assigned
based on the average value from 63 density determinations carried out by
Comstock using weight in air/weight in water method.
All reported mineral Resources for the VG Zone are classified in the Inferred
Mineral Resources category. To limit the reported estimate to material
considered potentially minable by open pit mining, a resource constraining pit
shell was constructed using a gold price of US$1300/ounce for gold, and cost and
recovery assumptions used in previous NI 43-101 Technical Reports for the Golden
Saddle deposit (10 km to the south), which has very similar geology to the VG
Zone. Only the portions of the modeled zones at VG that fall within this pit are
reported here as Mineral Resources at a COG of 0.5 g/t gold.
To demonstrate the relatively low sensitivity of the Inferred Mineral Resource
estimate to changes in cut-off grade (COG), tabulations at various COGs are
listed below with the base case at a cut-off grade of 0.5 g/t gold highlighted.
VG Zone Inferred Mineral Resource Estimate at a 0.5 g/t Gold cut-off grade
----------------------------------------------------------------------------
Cut-off Grade Gold (g/t) Tonnes Gold Grade (g/t) Contained Gold (Ounces)
----------------------------------------------------------------------------
0.3 4,480,000 1.62 230,000
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0.4 4,420,000 1.64 230,000
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0.5 4,390,000 1.65 230,000
----------------------------------------------------------------------------
0.6 4,340,000 1.66 230,000
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0.8 3,970,000 1.75 220,000
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1.0 3,520,000 1.86 210,000
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1.2 2,990,000 1.99 190,000
----------------------------------------------------------------------------
1.5 2,210,000 2.22 160,000
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2.0 1,130,000 2.72 100,000
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The Resource Estimate was prepared in accordance with CIMM Standards for the
Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines and
will be supported by a Technical Report conforming to NI 43-101 Standards of
Disclosure for Mineral Projects. Shareholders are advised that Mineral Resources
are not Mineral Reserves and do not have demonstrated economic viability. There
is no certainty that all or any part of the estimated Mineral Resources will be
converted into Mineral Reserves. The estimate of Mineral Resources may be
materially affected by environmental, permitting, legal, title, taxation,
sociopolitical, marketing, or other relevant issues.
The Mineral Resource estimate was prepared for Comstock by LGGC based in
Sechelt, BC. The assignment was undertaken by Ali Shahkar, P.Eng., a Qualified
Person ("QP") as defined under National Instrument NI 43-101 Standards of
Disclosure for Mineral Projects.
Mr. Shahkar has consented to applicable disclosure contained herein regarding
the Mineral Resource estimate and is independent of Comstock Metals Ltd.
Quality Assurance/Quality Control (QA/QC)
Analytical work was carried out by Acme Analytical Laboratories Ltd. (Acme),
Vancouver, British Columbia, with check assays completed on approximately 10% of
all drill core by ALS Minerals, Vancouver, British Columbia; both labs are IS0
9001:2008 accredited and ISO 17025 accredited for precious and base metal
assays. All drill core samples were analyzed for gold by 30 g fire assay, in
addition to 46 element ICP in 2012 and 36 element ICP in 2013. A portion of the
mineralized core for hole QV12-001 was submitted for check assay by metallic
screen, indicating good reproducibility. The Company has a Quality
Assurance/Quality Control (QA/QC) program in place which includes inclusion of
certified reference materials, blanks, field and preparation duplicates for its
drilling program. The QA/QC program has been reviewed and approved by Jean
Pautler, P.Geo.
The technical information in this Release has been reviewed by G. Davidson
(P.Geo.), a Qualified Person as defined by National Instrument 43-101. Mr.
Davidson is a Director of the Company.
About Comstock Metals Ltd.
Comstock's flagship project is the QV Property in the Yukon Territory, which
covers 16,335 hectares (40,364 acres) within the White Gold district in the
Yukon Territory, about 70 kilometres south of Dawson City. Kinross Gold's Golden
Saddle deposit is 10 km to the south, and Kaminak Gold's Coffee Project is about
40 km to the south.
Comstock's Corona Gold-Silver Property is located in the prolific Sierra Madre
Occidental in Chihuahua, Mexico. The Company completed a drill program in the
spring of 2012, which discovered two new zones of gold and silver
mineralization.
For more information about Comstock Metals Ltd., please go to
www.comstock-metals.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this Release.
FORWARD-LOOKING INFORMATION
This News Release includes forward-looking information and statements, which may
include, but are not limited to, information and statements regarding or
inferring the future business, operations, financial performance, prospects and
other plans, intentions, expectations, estimates, and beliefs of the Company.
Information and statements which are not purely historical fact are
forward-looking statements. Forward-looking information and statements involve
and are subject to assumptions and known and unknown risks, uncertainties, and
other factors which may cause actual events, results, performance, or
achievements of the Company to be materially different from future events,
results, performance, and achievements expressed or implied by forward-looking
information and statements herein. Although the Company believes that any
forward-looking information and statements herein are reasonable, in light of
the use of assumptions and the significant risks and uncertainties inherent in
such information and statements, there can be no assurance that any such
forward-looking information and statements will prove to be accurate, and
accordingly readers are advised to rely on their own evaluation of such risks
and uncertainties and should not place undue reliance upon such forward-looking
information and statements. Any forward-looking information and statements
herein are made as of the date hereof, and the Company assumes no obligation and
disclaims any intention to update or revise any forward-looking information and
statements herein, or to update the reasons that actual events or results could
or do differ from those projected in any forward-looking information and
statements herein, whether as a result of new information, future events or
results, or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Comstock Metals Ltd.
Rasool Mohammad, B.Sc. (Mining)
(604) 639-4533
Comstock Metals Ltd.
Larry Johnson, B.Sc. (Geology)
Chief Financial Officer
(604) 639-4533
info@comstock-metals.com
www.comstock-metals.com
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