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Comstock Metals Announces Discovery of Visible Gold from the 2012 Trenching Program on the QV Property, White Gold District, Yukon


June 25, 2012

Highlights

  • Five grains of visible gold (VG) discovered
  • Visible gold hosted in two 075 degree trending quartz veins
  • The gold-bearing quartz veins are near the contact between metamorphosed granite (orthogneiss) and a metasedimentary unit (the same package of rocks that underlies the White Gold Deposit of Kinross Gold Corporation)
  • One gold-bearing vein exposed for approximately 100 m in length
  • Several stages of quartz injection with later stockwork veining cutting quartz veining and silicified wallrock with minor brecciation
  • Malachite, chrysocolla and chalcocite were also encountered over 15m in a trench, along trend of a 161.9 ppb gold soil-anomaly.

June 25, 2012, Vancouver, BC – Comstock Metals Ltd. (TSX-V:CSL) (the "Company") is pleased to announce the discovery of visible gold and to provide an update on the progress of its 2012 program on the QV property in the White Gold district, Yukon Territory. Approximately 50% of the 2012 trenching program has been completed on the property, consisting of 550 m in 6 trenches, on the QV Grid in the southern project area with 123 rock samples collected. An additional 941 grid soil samples have also been collected to define the limits of soil anomalies from 2011, and approximately 95 infill soils were collected from the VG zone.

Please click on the following two links to view the trench plan map and the visible gold:
http://comstock-metals.com/_resources/white_gold/trench_location.jpg
http://comstock-metals.com/_resources/white_gold/visible_gold.jpg

Please click on the following link to learn about the White Gold QV Project: http://www.comstock-metals.com/projects/white_gold_north/

A 40 micron grain of visible gold along the margins of a 4 millimeter (mm) grain of oxidized pyrite was initially discovered during trench layout by Qualified Person, Jean Pautler, P.Geo. The gold is hosted by an apparent 075 degree trending, possibly 1.5 m or more wide, quartz vein near the contact between metamorphosed granite (orthogneiss) and a metasedimentary unit (the same package of rocks that underlies the White Gold Deposit of Kinross Gold Corporation). There is a strong correlation at the White Gold Deposit and Kaminak’s Coffee Project between pyrite and gold. The visible gold-bearing pyrite vein at QV has been intermittently exposed by initial limited hand trenching over a distance of 100 m. The hillside was too steep for mechanized trenching, but a planned trench over a gold soil anomaly, with 395.6 and 138.9 ppb Au exposed four significant subparallel quartz veins stockwork mineralization, and silicification. Additional visible gold was found in one of the veins, 25 m above the initial visible gold-bearing vein during a brief trench examination, with two 25 micron grains and two 10 to 15 micron grains observed. Several stages of quartz injection are evident with later stockwork veining cutting quartz veining and silicified wallrock. Minor brecciation is also evident. Vein widths are difficult to determine due to rubbly exposure with blocks up to 1m in width. Although five grains of visible gold have been noted in samples, assays from these samples are pending and readers should be cautioned that any predictions of gold grade based on the presence of visible gold can be unreliable.

Jean Pautler, P.Geo, an independent geologist, discovered the visible gold, confirmed it by microscopic analysis, and reviewed the technical information in this News Release.

Malachite, chrysocolla and chalcocite were also encountered over 15m in Trench QVTR12-5, along trend of a 161.9 ppb gold soil anomaly.

The QV Project has potential to host mineralization similar to that at the White Gold deposit, 15 km to the south, based on the presence of visible gold in quartz veins, association with cubic pyrite, significant gold and similar pathfinder element soil anomalies, the extension of the same lithological package of rocks, and a prominent structure and airborne magnetic high (closely associated with mineralization in the Golden Saddle zone at the White Gold deposit) extending northerly from the White property across the QV property. The QV Project is also partially underlain by Jurassic-aged intrusive rocks, which host gold mineralization in the district (Pautler, 2001).

About Comstock Metals Ltd.

Comstock has optioned 494 claims covering 10,374 hectares (25,634 acres) within the prolific White Gold District in the Yukon Territory about 70 kilometres south of Dawson City. The claims were optioned from Shawn Ryan, a Yukon-based prospector responsible for the discovery of two of the prominent gold discoveries in the White Gold district: Kinross Gold’s 1.5 million ounce Golden-Saddle deposit and Kaminak Gold’s Coffee projects. The Company has completed two soil-sampling programs on the Yukon property with encouraging results.

The Company is also earning a 75% interest on the Corona project by an option agreement from Golden Goliath Resources (GNG). Comstock’s Corona Gold-Silver project is located in the prolific Uruachic Mining camp in Chihuahua, Mexico, and the Company completed a drill program in the spring of 2012. The drill program discovered two new zones of gold and silver mineralization. Please visit the Company’s website for the details. Previous reverse circulation drilling identified both bulk tonnage and high-grade vein type gold/silver targets, some of which the Company plans to diamond-drill.

For the Corona Gold Silver Project details please visit the following link:
http://www.comstock-metals.com/projects/corona_gold_silver/

To learn more please visit the Company’s website at: www.comstock-metals.com

For further information, contact Rasool Mohammad or Larry Johnson at 604-639-4533.

COMSTOCK METALS LTD.
Rasool Mohammad, B.Sc. (Mining)
President & CEO
Phone: 604–639-4533
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.

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