Comstock Metals acquires 75% interest in Seafield Explorations

7 August 2012 (Last Updated August 7th, 2012 18:30)

Canada-based Comstock Metals has purchased a 75% interest in Seafield Explorations, as part of joint venture with Volcanic Minerals for the exploration and development of the Walhalla Property.

Yukon gold and silver mining

Canada-based Comstock Metals has purchased a 75% interest in Seafield Explorations, as part of joint venture with Volcanic Minerals for the exploration and development of the Walhalla Property.

Located in Yukon's White Gold district in Canada, the Walhalla Property consists of 1,988 quartz claims, covering approximately 41,800 hectares

According to the terms of the acquisition, Comstock will pay $300,000 in vendor-incurred cash costs and 500,000 Comstock common shares for the property.

Additionally, around 500,000 common shares of the company will be released following the determination of a 500,000oz gold resource, compliant with NI 43-101 on the Walhalla Property.

"Around 500,000 common shares of the company will be released following the determination of a 500,000oz gold resource, compliant with NI 43-101 on the Walhalla Property."

The deal will take effect after the conditional execution of the joint venture agreement with Volcanic Minerals and the receipt of all regulatory approvals and approval of the TSX Venture Exchange.

Comstock has plans to continue to explore drill targets through ridge-and-spur, grid soil sampling and mechanical trenching programs.

The company will target white gold and similar deposits located to the southwest and Comstock's recent discoveries located northwest to the property, identified from earlier explorations.

Comstock is currently preparing for diamond drilling with trenching, mapping and sampling on the discovery zone, and has commenced digging of offset and in-fill trenches.


Image: Comstock is preparing to drill at the Walhalla Property, located in Yukon's White Gold district in Canada. Photo: courtesy of Janothird.