Woodland Hills, California, November 17th 2020. TONOGOLD RESOURCES, INC. (OTC: TNGL) (“Tonogold” or the “Company”) advises the following.
1. ASSAY RESULTS
On October 6th 2020, Tonogold announced that it had completed its first drill hole on the historically significant Comstock Lode (Hole TC-001D) and we had at that time, anticipated that assay results would be available toward the end of October. However, due to the severe backlog experienced by our independent laboratory – ALS, (the result of extraordinary increase in activity in the region and COVID restrictions), we have recently been advised by ALS that assays are expected to be available toward the end of November. Tonogold is considering options in order to mitigate these delays in the future without compromising quality control.
2. DRILLING UPDATE
In terms of site activity since our October announcement, Tonogold is pleased to advise as follows:
RC RIG. The RC rig which arrived on site in early October following a major refurbishment has encountered a few operating problems which the contractor has been quick to deal with. Tonogold expects a second RC rig to arrive on site in early December.
TC-001
Hole TC-001 was drilled using the RC rig which arrived on site early October. The hole was collared at -51 degrees but flattened over the length of the hole, averaging -41 degrees. The hole intersected several quartz vein zones that are interpreted to represent the Silver City and Comstock Lode mineralized structures as shown in the cross section below, providing further confirmation and validation of the interpreted geological model developed by our technical consultants, Mine Development Associates. TC-001 was stopped prior to it reaching the footwall of the mineralized structure due to high water flows encountered at the bottom of the hole.
TC-002
The RC rig is currently drilling hole TC-002 from the same drill pad location at -90 degrees (vertical hole) designed to intersect the Comstock Lode structure around 1,220 feet (370 meters) down hole. At the time of writing the hole is at 735 feet (224 meters).
CORE RIG
The core rig is currently drilling TC-002D at a planned inclination of-67 degrees, designed to intersect the Comstock Lode mineralized structure just below the Sutro tunnel around 1,845 feet (~560 meters) down hole. The hole is currently at 1,620 feet (~490 meters) after encountering a number of fault zones higher in the hole. Advancing the hole through these zones was difficult and time consuming due to the presence of strongly fractured rock and intervals of clay. At the current depth of the hole, ground conditions have improved and normal advancement of the hole is expected.
GENERAL GROUND CONDITIONS
The ground conditions at Comstock are known to be highly broken and fractured making drilling conditions challenging. However, it should be understood that the geologic events that caused these difficult ground issues were also responsible for the emplacement of the precious metals resulting in the Comstock Lode being regarded as one of the richest gold/silver deposits in the world.
The initial months of this “Proof of Concept” drill program will provide important and valuable learning experience for the drill team ensuring improved productivity in time.
Image 3: Longitudinal Section of the Main Comstock Lode showing actual and planned drill holes of Tonogold’s “Proof of Concept” program.
3. OTHER MATTERS
ANNUAL MEETING OF SHAREHOLDERS. The Company has resolved that an Annual Meeting of Shareholders will be convened on Monday December 21st 2020 at 10am Pacific Time. Due to the COVID- 19 pandemic, the meeting will be held entirely “virtual” – no one can actually attend in person. Further details will be advised to shareholders in due course.
Forward-Looking Statements
This press release and any related calls or discussions may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Comstock and Tonogold. Forward-looking statements are statements that are not historical facts. All statements, other than statements of historical facts, are forwardlooking statements. Forward-looking statements include statements about matters such as: capital raising activities and negotiations; market conditions; future changes in exploration activities, production capacity and operations; future exploration, production, operating and overhead costs; production of feasibility studies, technical reports or other findings related to estimated mineralization; operational and management restructuring activities; capital expenditures (by Comstock, Tonogold or other parties) and their impact; investments, acquisitions, joint ventures, strategic alliances, business combinations, asset sales; consulting, operational, tax, financial and capital projects and initiatives; contingencies; environmental compliance and changes in the regulatory environment; 2 offerings, sales, equity dilution, and other actions regarding debt or equity securities; including a redemption of the debenture, and future working capital, costs, revenues, business opportunities, debt levels, cash flows, margins, earnings and growth. The words “believe,” “expect,” “anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,” “would,” “potential” and similar expressions identify forward-looking statements, but are not the exclusive means of doing so. These statements are based on assumptions and assessments made by the management of Comstock and Tonogold in light of their experience and their perception of historical and current trends, current conditions, possible future developments and other factors they believe to be appropriate. Forward-looking statements are not guaranteeing, representations or warranties and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward-looking statements. Some of those risks and uncertainties include the risk factors discussed in Item 1A, “Risk Factors” of the annual report on Form 10-K of Comstock. Occurrence of such events or circumstances could have a material adverse effect on the business, financial condition, results of operations or cash flows or the market price of Comstock and Tonogold’s securities. All subsequent written and oral forward-looking statements by or attributable to Comstock, Tonogold or persons acting on their behalf are expressly qualified in their entirety by these factors. Neither Comstock nor Tonogold undertake any obligation to publicly update or revise any forward-looking statement. Neither this press release nor any related calls or discussions constitutes an offer to sell or the solicitation of an offer to buy any other securities or Tonogold.
Contact Information for Tonogold
Mark Ashley
President and CEO
M: +1 310 409 6504
E: mjashley3@gmail.com