Location

VANCOUVER, BRITISH COLUMBIA, May 08, 2012 (MARKETWIRE via COMTEX) — Comstock Metals Ltd. (the Company) is pleased to announce the discovery of porphyry-style gold mineralization from its core drilling programme at the Corona Project (“Corona”) in the Uruachic-Ocampo District of western Chihuahua, Mexico. The Uruachic-Ocampo District is host to several multi million-ounce gold/silver deposits, including Fresnillo PLC’s Orisyvo Deposit with a reported resource of 9.2 Million ounces (M Oz) of gold. At Corona, porphyry-style gold mineralization has been identified, and remains open to the north, east and at depth. The most recent eight drill holes completed by Comstock intersected favourable geology and strong alteration east and southeast of the Northeast Zone, stepping-out up to 350 m from holes drilled in 2002-2003. A new zone of porphyry-style gold mineralization was intersected beneath the previously reported vuggy silica lithocap (see CSL news release dated April 2, 2012 for results of holes CO-12-60 to 62). Individual assays and core photos are posted on the website at http://comstock-metals.com/projects/corona_gold_silver/ .


Highlights:


Bulk-Tonnage-Gold-Target Drilling:

— New Porphyry-style gold mineralization intersected in a drill-hole CO-
12-67. The mineralization is open at depth and the lithocap which led to
its discovery has been traced on surface for over 800 metres Five drill
holes (CO-12-64 to CO-12-66) were drilled in the periphery of the new
zone intersected gold mineralization, and all five of them ended in the
mineralization.


High-Grade Gold/Silver Target Drilling (Esperanza High grade gold silver vein)

— The Company is compiling data on the last hole drilled under a narrow,
high-priority zone, the Esperanza vein.


Northeast High grade gold zone:

— Drillhole CO-12-60 intercepted 5.89 g/t Au over 3.5 metres including
21.9 g/t gold over 0.5 metres and the zone remains open along strike.
—————————————————————————-
From-to Interval Gold
Hole number (metres) (metres) (grams/tonne)
—————————————————————————-
CO-12-63 147.0 – 148.5 1.5 0.36
and 150.54 – 151.2 0.66 0.17
—————————————————————————-
CO-12-64 94 – 96 6.0 0.17
and 206.5 – 207.5 1.0 2.34
—————————————————————————-
CO-12-65 216.5 – 217.5 1.0 0.25
—————————————————————————-
C0-12-66 66 – 70 4.0 0.22
187 – 193.5 6.5 0.27
—————————————————————————-
C0-12-67 121.5 – 156 34.5 0.36
—————————————————————————-
CO-12-68 150 – 165 15.0 0.15
190 – 192 2.0 0.51
—————————————————————————-
CO-12-69 75 – 78 3.0 0.43
—————————————————————————-
CO-12-70 76 – 87 11.0 0.51
—————————————————————————-


Mineralized intersections reported are for core lengths where gold grades are 0.1 g/t and higher over a minimum 1 metre length. Maximum gold grade is 4.57 g/t. Silver grades are not reported but are of potential economic interest, ranging from 0.5g/t to 15 g/t Ag. The attitude of mineralized intervals varies and reported mineralized intersections may not represent true widths. A drill hole plan map is available at http://comstock-metals.com/_resources/corona/drill_hole_May_8_2012.pdf .

———————————————————————–
—–
Hole Number Azimuth/Dip Length (m) Comments
—————————————————————————-
CO-12-63 205 degrees 198 Step-out 80 m down-dip of hole #62.
/60 degrees Zone faulted out. Potential remains
very good in this direction.
—————————————————————————-
CO-12-64 250 degrees 219 Step-out 425 m east of #63 and 180 m
/50 degrees from previous hole. Tests area between
lithocap and possible extension of NE
Zone. Hole intersected encouraging
grades and alteration, particularly at
depth.
—————————————————————————-
CO-12-65 250 degrees 225 Step-out hole 360 m northeast of #63
/60 degrees testing small segment of area between
lithocap and NE Zone. Strong
alteration, locally favourable grades
encountered. Ended in mineralization.
—————————————————————————-
C0-12-66 250 degrees 222 Drilled from same collar as #64,
/85 degrees testing area beneath lithocap. Strong
alteration, marginal mineralization
encountered. Ended in mineralization.
—————————————————————————-
C0-12-67 070 degrees 156 Step-out hole situated 240 m from #63,
/60 degrees drilled back towards holes #64 & 66
testing deeper on the flank of
lithocap. Strong alteration, long
interval of strong gold/silver
enrichment encountered. Ended in
mineralization.
—————————————————————————-
CO-12-68 210 degrees 195 Step-out 600 m ESE of #63 and 220 m
/65 degrees south of #64/66 collar testing easterly
extension of NE Zone. Ended in strong
alteration and mineralization.
—————————————————————————-
CO-12-69 220 degrees 114 Short hole drilled 50 m south of #68.
/60 degrees Encountered zone of alteration and
mineralization before being stopped in
intrusive.
—————————————————————————-
CO-12-70 210 degrees 184 Step-out hole 430 m SE of #63 and 100 m
/65 degrees SW of #68. Tests eastern extension of
NE Zone. Encountered zone of alteration
and mineralization before being stopped
in intrusive.
—————————————————————————-


Drilling during February and March 2012 was focused on the “Northeast Zone” and its eastern 800 m long potential extension to the “VG Zone”. Here mineralization is focused along the contact between the Upper Volcanic (predominately rhyolite) and Lower Volcanic Groups (mostly andesite plus sedimentary rocks), extending up into the overlying rhyolite units as patchy zones of highly fractured and leached volcanic rock with vuggy silica and alunite alteration (a “lithocap”). Beneath the contact, the underlying “andesite” is highly fractured, brecciated and often well-mineralized. Drilling indicates that the “andesite” appears to grade into intrusive granodiorite porphyry that is strongly sericite-altered and cut by numerous thin units of hydrothermal breccia. Drilling beneath the lithocap and to the south indicates that this intrusive body forms a “cupola” or dome of highly fractured and brecciated porphyry that may extend well beyond the areas of current or historic drilling. Most of the intervals reported here are in weathered, oxidized material.


“We are very pleased with the discovery of porphyry style gold mineralization in drill hole CO-12-67 and the high-grade gold zones at the Northeast Zone we have intersected to date,” commented the Company’s President & CEO, Rasool Mohammad. “Given the strong similarity in the geologic setting at the 9.2 million ounce Orisyvo Deposit and Comstock’s Corona Project, we feel there is excellent potential to discover a world class gold deposit at Corona.”


Analyzed samples consisting of split drill core were analyzed by ALS Chemex Laboratories in Chihuahua, by gravimetric fire assay methods on 50 g pulp samples. Comstock Metals has an industry standard QA/QC program consisting of inserting standards, blanks and duplicates into the sample stream to monitor the reliability of assays.


The technical information in this release has been reviewed by J. Blackwell (P.Geo.), a Qualified Person as defined by National Instrument 43-101.


About Comstock Metals Ltd.


In addition to the Corona project, Comstock also has option agreements covering 10,374 hectares 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.


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.

Contacts:
Comstock Metals Ltd.
Rasool Mohammad, B.Sc. (Mining)
President & CEO
604-639-4533

Comstock Metals Ltd.
Larry Johnson
CFO
604-639-4533

www.comstock-metals.com        

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