Comstock Metals (CSL.V) is cleaning up its asset portfolio as the company was able to sell two non-core properties. The Old Cabin gold project in Ontario was sold for C$96,000 while the Fresnillio PLC (FRES.L) has purchased the Corona project in Mexico. Comstock received US$164,000 (approximately C$215,000) in cash for selling its 50% stake in the property. On top of that, Comstock retains a 0.5% Net Smelter Royalty at Corona. As Comstock wasn’t planning to do any real work on these properties, we agree with the company’s management team to take the C$300,000 cash inflow and to focus on the portfolio’s Tier 1 assets.
One of those Tier-1 assets is the Preview SW project in Canada’s Saskatchewan province, where Comstock has started a 1,000 meter drill program. This small drill program will test the down plunge extension to the shear-hosted vein zones on the northern zone of the project. The data gathered from previous exploration programs appears to indicate the potential existence of steeply plunging mineralized shoots. As it’s a relatively small drill program, we should see the assay results by the end of January.