Comstock Mining: Producing Gold, Generating Cash Flow

Comstock Mining (LODE) is one of the few junior gold miners that is in production and generating positive cash flow in a very turbulent and volatile marketplace.  The company is well capitalized to explore and expand the resource around the historic Comstock Lode.  In a recent technical report they announced the discovery of the "Chute Zone" which is similar  to the historical bonanza grades found by the old time miners over a 100 years ago.  This discovery is very exciting as it could really boost the growth of Comstock Mining, which has been producing gold now for about 8 months.  Comstock is comparing the Chute Zone to the Woodville Bonananza which was mined in the 1870's.  Having a strong management team, shareholder base and positive cash flow to explore the eastern slope of the Virginia Range near Reno, Nevada is very exciting.  Comstock Mining has expanded the resource to 2.7 million ounces of gold and close to 27 million ounces of silver.  Still, the company believes they are just scratching the surface of the potential in this historic mining district.  Current production and positive cash flow could internally fund exploration operations providing less dilution risk to current shareholders.  The company has recently stated a near term target of 20k ounces of gold and is looking to expand that over the next few years as additional deposits come online.  Finding a growing gold and silver producer that could internally fund resource growth, in a mining friendly jurisdiction, with quality management and strong shareholder support, with the potential to make bonanza style discoveries is not easy to find in today's market environment.

 

Disclosure: Author and interview own Comstock Mining and the company is a sponsor on my website.