Comstock Metals Ltd. is pleased to announce that it has commenced a summer exploration program at its 100% owned Preview SW gold project, located 40 km northeast of La Ronge, Saskatchewan.
This phase of work will include a minimum of 2000 metres of diamond drilling focussed initially on the Preview North zone and Preview SW deposit area. In addition, detailed ground magnetics, surface geochemical sampling and structural interpretation work are planned to assist in advancing other high-priority targets on the property to the drill stage.
In addition to Preview SW, the Company previously announced it is finalizing plans to carry out a multi-pronged exploration program at its QV gold project in Yukon, including up to 2,000 m of diamond drilling focussed on testing the along-strike potential to the west and east of the VG deposit following up on positive results from the 2016 Rotary Air Blast (RAB) drilling program (see June 19, 2017 News Release).
Drilling at Preview North will test for lateral and down-dip extensions to shear hosted veins/vein zones within the same major northeast-oriented structural trend that hosts the mineralization at the Preview SW deposit, approximately 2.6 km to the southwest. At Preview North, at least 5 parallel shear hosted veins/vein zones have been defined by the winter 2017 and earlier drilling programs, historical mining and exploration work, extending at least 200 m along strike down to 100 m below surface and remaining open along strike and to depth. Each of the 2017 holes drilled at Preview North encountered multiple intervals of gold mineralization associated with quartz-carbonate vein zones and variable sulphide content in sheared intermediate-mafic meta-volcanic rocks; highlights included 5.0 m1 averaging 10.33 g/t gold from 41.0 m down hole in PR17-166 (see May 8, 2017 News Release).
Drilling at the Preview SW deposit area will focus on: extending the eastern lodes further south on the southeastern flank of the deposit; extending the entire deposit south of current drilling; testing potential to extend high-grade zones to depth below the current resource-constraining pit shell2.
Comstock has again retained Apex Geoscience Ltd. to manage the drill program and Minotaur Drilling Inc. to provide drilling services.
Shares for Debt
The Company also announces that it proposes to issue an aggregate of 156,250 common shares in satisfaction of Cdn$25,000 of indebtedness. This indebtedness is owing to the optionor of the Company's QV Property for the 2017 advance royalty payments. The deemed issue price of the common shares for this indebtedness is $0.16 per share.
The Company is satisfying the foregoing indebtedness with common shares based on the terms of prior agreements that permit it to do so, and, in order to preserve its cash for use on its properties and for working capital. The shares will be issued upon acceptance by the TSX Venture Exchange. The common shares issued in satisfaction of the indebtedness will be subject to a four month hold period from the date of issuance.
1 True thickness is interpreted to be approximately 85% of drilled width
2 See this link for the Preview SW technical report
David A. Terry, Ph.D., P.Geo., a Qualified Person as defined by National Instrument 43-101, and an Officer and Director of Comstock, has reviewed and approved the scientific and technical disclosure in this news release.