Comstock Mining: Increasing Gold and Silver Production In Nevada

Comstock Mining (LODE) was just approved for a modification which will help the company expand their heap leach pads and reach their production goals of 40,000 ounces of gold annually.  The company should increase the rate of production, which should drive down average costs.  The company also recently announced that for the three months ending September 30th, they shipped a record amount of gold and silver and are on track to deliver 20,000 ounces of gold for 2013.  Comstock Mining (LODE) has moved from a mine explorer into a low cost gold and silver producer in a supportive and friendly mining jurisdiction. The geologic potential of this deposit is huge as management and the geologists believe they are only scratching the surface.  Comstock should be in a position to generate free cash flow to expand resource growth in 2014.  That is when I think it could really make waves in the mining community as many do not understand how big an operation this could eventually become except some key institutional holders such as Gabelli, Century Management, Solus and U.S. Global Investors.  This move to 40k ounces per year for Comstock may be just the beginning as production could increase exponentially over the next 2-4 years as the price of gold and silver continue their secular upward trends.  With the addition of the Dayton Mine the company could move up to producing 150k ounces at some of the lowest costs in the industry.  Amazingly, the price is still near lows, but may not be for too long. 

Disclosure: Jeb Handwerger Owns Comstock Mining Shares and the company is a sponsor on http://goldstocktrades.com