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Dixie Comstock
The Dixie Comstock Mine (“Dixie Comstock” or the “Project”) is a past small-scale producer of gold, located in Churchill County, Nevada, 160 kms East of Reno abutting the eastern flank of the Stillwater Range in Dixie Valley. Dixie Comstock is a low-sulfidation, epithermal gold system localized along a moderately east-dipping range-front normal fault. Multiple episodes of gold bearing fluids have produced a 100m thick, shallowly dipping to the East, zone of mineralization that exhibits high-grade structurally controlled zones as well as an overall lower grade stockwork forming a rather consistent halo of mineralization. The Project consists of 44 unpatented mining claims covering 725 acres (293.5 hectares).
To view the presentation on the Dixie Comstock project click on the following link: Dixie Comstock Presentation
Gold was discovered at Dixie Comstock in 1935 with the majority of the historic development and mining taking place in the intervening years through to 1942 when mining activities were halted by an order issued by the War Production Board requiring all non-essential gold mines to cease production. Through this period four mining levels, vertical shafts, and 200-foot decline were developed and a flotation circuit mill with a cyanide plant constructed. Cumulative production was reported as having 17,880 tons of ore mined at a 0.8 ounces per ton (“opt”) Au equivalent grade with recoveries of 4,182 ounces of Au and 6,737 ounces of Ag.
Sporadic activity occurred between 1952 and 1975 culminating in the select mining and shipping of 86 tons of material grading 2.3 opt Au to the ASARCO smelter that produced 172 ounces of Au equating to recoveries of 87%. At the end of this period, all production occurred within 100 feet of surface.
From 1982 through to 1991 various operators completed 64,563 feet of drilling, consisting of 179 reverse circulation, core, and rotary drill holes, with an average spacing of 50-70 feet. Drilling has delineated a well mineralized zone trending 300m NNE, approximately 100m thick, that has been traced for 200m down dip (Figure 2). The mineralization remains open down dip to the East (Figure 3).
Table 1: Highlighted Drill Hole Composites (Sample cutoff at >0.25 g/t Au)
Following the 1990 drill program, Mine Development Associates Inc. (“MDA”) of Reno, Nevada, was retained to review and model the data with the objective of generating a mineral resource estimate and mine model. In March 1991, MDA produced a technical report titled “Geologic & Mineable Reserve Study on the Dixie Comstock Property, Churchill County, Nevada, USA” (the “1991 MDA Study”) in which the following was estimated:
* These estimates are considered historical in accordance with NI 43-101. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves, and the issuer is not treating the historical estimates as current mineral resources or mineral reserves. The issuer cautions the reader and directs the reader below regarding important disclosure regarding the historical estimates.
The open pit mine model was designed using a 50° overall slope angle for the main Gabbro host rock unit and a 45° overall slope angle for Hot Springs and the Alluvium. The pit was designed with 20-foot benches and a catch bench every 40 feet. A cutoff grade of 0.010 opt was used to obtain mineable reserves. A life-of-mine schedule was generated at a mining rate of 90,000 tons of ore and 285,000 tons of waste per month translating to a mine life of 28 months.
One of the primary factors underlining the reason that the commissioning of the Dixie Comstock Mine did not proceed was due to the presence of a Wilderness Survey Area (“WSA”) partially overlying the Project, constraining development and negatively impacting the economics. The WSA has been subsequently released, in Dec. 2022, completely removing the barrier and opening the greater area to mining and development.
There has been no attempt to develop the Dixie Comstock Mine since 1991 (over 30 years) and the Project provides an excellent opportunity waiting to be realized.
Scott Frostad, P.Geo., is the non-independent Qualified Person (as defined in NI 43-101) who reviewed and approved the content and scientific and technical information herein.
