Comstock (LODE) 15 Aug 192019 Q2 Earnings call transcript

Good day, everyone, and welcome to the Comstock Mining Second Quarter Update Conference. Today’s call is being recorded.

At this time, I’d like to turn the call over to Corrado De Gasperis. Please go ahead.

Thank you, April, and good morning, everyone. the on Corrado is line. This XXXX Welcome conference quarter to our call. second quarter we review Form Touche. filed night report with our & quarterly Last customary second on our XX-Q, Deloitte including

for release with our likely next total and about additional three and just the press $X Tonogold weeks the a X.X four debt down released sales with to also précised We million. bringing plans paying closing to million the most debt announcing an of

night our last we amendment published that press was in That highlights included release. all came the late it through an also signed this second and that we morning in quarter

I’ll release summary from of on brief provide including morning, information our progress a strategic included press this our all in our of the initiatives.

today’s on a can of If release, you our at releases. news/press you copy don’t under www.comstockmining.com find a website have copy

me outlook the statements. call. that let constitute facts addition also on we statement may may remind are relating you in this forward-looking to matters statements historical Any that to Please not make forward-looking

SEC all filed same this The and to statements this company uncertainties the actual release. identify. risks that reports in And current other in and by are press cause subject previous subject forward-looking are risks the could that risks morning’s and results the during our expectations same differ. uncertainties to are made and These and detailed the are statements and materially call based to we can’t on

financial the with start highlights. first me Let

those and release associated down Tonogold formation depicted new in that and versus joint in XXXX, related the [now of that are the increase with XX%, costs despite realignment and months XXXX June especially the are strategic activities opportunities transaction, net Our opportunities all because ended June Mercury versus on the hampered] nicely activities, corporate this morning's our in above. months venture graphically total press period-over-period fund six six many we ended an

monthly costs, environmental activities being and quarterly direct lower driven completed reclamation and Tonogold and The the were higher by resulting the expenses by from strategic reimbursements despite benefits the legal accelerated lower realized

net this dedicating the financial remediation XXX% and that is associated starting and now efforts some us. were on our that of with the strategic slightly For Clean higher but Up We and G&A the in have mainly expenses, finally really reporting all and accounting reflected these did was reporting net ozone in QX this these our related of behind areas. quarter the the occurred quarter Tono, assessments fruits delayed and of initiatives cycle focus completely to over that activities see Mercury

and faster communications. work result and is better our governance website was including complete, getting importantly The was costly already and and most external internal enhanced dramatically for to improvements and track communications in especially going new forward, reporting in will back on external resulted with in continue

by hundreds said, we to QX see G&A on That net meaningful remember the will of of going again another in being reduction we’re half G&A lower in this savings. year is expenses of of a the in second overall, but in now expenses reduction the QX, in expenses meaningful dollars see thousands in context

results increased In quarter savings and from X, see the we'll June addition Tono transaction the of realizing first started to that effective we've impact mentioned so that QX. the full in

$X.X down week, We X.X-ish above today bringing million the signed the then continued to with will amendment Tono debt closing next month. under the X.X, number than bringing within with to net to paydown X.X six our just less bring to and below venture million debt the that this paying

non-refundable this we face payments and in this our I'll debt recorded valuation you'll year, million on million non-refundable the $X.X sale, stock that see balance was so specialist the X the at received say that cash reduction $X number let discuss Tono X million right a in of first the towards already in Q same but deposits just also almost Hence Lucerne more night. transaction me last that fully towards sheet valued far third-party that received year next, the sale. filed plus that million we've financially in

We will another and transaction the million will close the possibly now $X to in receive September. this deposits that in is in days cash certainly transaction tell the the few in stock also non-refundable value more to two in and almost end delays month. this most August, this and next in weeks, of you of going That despite the I'm almost certainly to XXX,XXX component but $XXX,XXX scheduled bring next stock by here the amendment, total as

We to close specifically have amendments structured deal. the the

X over annum, the reimbursed as earlier. cash as cash mentioned of closing following receive June I per another $X in X and next and being nine now plus receive in million months, at closing, will We over the in between we’re the of million a rate million still X

position do. any on seem and doesn't focusing just we and is and market, certainty with too I've close that closed. just the believe being Now important it high There's close reflect understand value much deal more now deliver we’re to and create to nothing -- taken our to are most will this clearly us that closing but going that the values that of can too it's people to our don't is because for marketing I the start because really low just

we’ve and already In stock. million X almost Tono, in received cash for summary,

X.X total which over gives more receive Lucerne entity will closing, more them half which owns million cash received the of of the million We is we the ownership Mine. X.X will the price, half initial deal We at total than have the -- than million in of XX closing. receive cash will in the restructured in that we that over so

more rest and commitments the so more close already especially they to every lined on the and up strongly. week, they're of with They've to they the Then breaking equity a up XXX%. payments basis XXXX and now earn got make getting to that gold

Tono very all for understand close to incredible in it’s of to incurring of We and move to for Tono by us. now without the shareholders now on The outside plus really that any excited enabled position very that debt, the to going big win a that's deal all our other close, initiatives. also is this amendment we’re transaction and a strategic

interest You because in see LLC, property. in transaction, we That our corporate entity only Comstock the realignment. as selling during Lucerne quarter owns finished was second the you the Mine the facilitated press can by certainly release Mining graph on the that was Tono done the that membership see in we’re and

Comstock processing the land. ultimately for require least Comstock repositioned assets Comstock Estate, XXX% The Tono that growth mine will entity represent which industrial our and holding we've associated that’s with and how other for XX.X% the Springs the entity that with of this our the which the They processing. are at Real now we’re leaching Silver wholly-owned permitted holds and closing. our clearly then all controlled Ranch by owns subsidiaries milling, also the Industrial, our platform with shows platform, sale. that and our and hotel representing infrastructure and crushing, graphic

positioned platform with launching in comes and that from [inaudible] that venture we've Clean for venture just Mercury Up. the processing this and joint Up that error not and will Comstock Mercury new Clean be Mercury using Comstock graphic. I

Mercury high So a based going systems. for It’s we Mercury generating high-value, technology-based last remediation globally and remediation after deployment of oral industries global oriented these Up business and clean the month venture precious this for launched realignment we announced venture. other metal the Mercury and that on Mercury cash joint Clean manufacture activities with

decades because Mercury. and exceptional, in has It’s manufacturing oral large-scale especially has been CEO for their Paul Clift of Technology these and industries strong and of of especially systems remediation been the four advocate the around mining Clean

that these within processes, the all mechanical, through the integrated new from solution oxidation over and hydro, that So organic XX% in the electrochemical Mercury of these remediating above these a spirals, have samples already work proprietary effectiveness he’s of and shown and soils. Mercury new centrifuges, these reactor created

are we've these centrifuges, we’re here be objective patents, spiral for highly to what Mercury going get for Comstock eradicating That’s four including containments. structured XX.X%. our chemical designs our installation the these and And precise applied and all to to reactor piloting on and

orals of the and on the in most decades plan XXXX, world here and So sophisticated that of in as one with mercury enroll box in executing together we those expertise sit expertise putting today, XXXX, expertise over four all technical Comstock remediation with mining seal plan we to XXXX.

largest As remediation one essentially in we were together the issues of pertains significant we in to put most highest going mining, industry the today. today to the with competency global what mining mercury

little surprise. the the and surprisingly, nations which years accord to and industrial of Not mercury the up Minamata two around eradication Just of are UN signed lot a the ago, world. committed in industrial mining signed the applications XXX

on We've both system on and we revenue very-very closely And generating been the remained we're getting the already Comstock from live see some approached projects. results to up running, on very-very U.S. starting both Nevada and it. and international this ground, the regulators. domestic with working But real focused

based both for a we EPA analysis plan we Nevada have preferred this why market. I place moving the know are new protocol plan. and into U.S. a sampling in sampling think long-term address and you already of approved remediation That's

Flat. contained of schedule our will the Oral as has pads shortly. finalizing already double on-site be and manufactured at for up here spirals first set those rest the delivery equipment American The the we're line on initial unit very fully will it

or system fully fourth setup material material not in we be this the sooner stockpile quarter, year. now hopefully can will until here third full quarter where movement we're quarter in The processing much but for of planning later the fourth early for

highest already project we the believe record, in said, to track Both excited that we're proven a an There out the it we be this show to is ready about. and for We go I established in arena. everybody. literally have more and technology opportunity as standard could

non-mining as resource. Let well with areas, sales, me just wrap our as more up two the

now, mountain. down is development project. Tahoe way much just which acre On to we ripping construction continues boom in Right million and to vehicles And the adjacent Google their community a than affirmably, Reno has more announce continue in the to region it, the significantly non-mining literally multi-$XX the predicted. in of X,XXX a a Center that's fleet Industrial sales,

$XX done some It's being follow. yet, done. for for selling have more but some Company. and closer industrial manifest out let continuing Springs. properties have the to More It's importantly, is and closer all agreements and out. laid do our these USA the Silver more but will Silver way million. will get the Springs currently are us to cash, enhancing it and of we now everyone projects infirmly value And in will That parkway to for the over not way future close we'll real that enhancements knows, the center migrate news we're properties destiny the it's sort also retain are as a The

We're dialogue direct even moving quickening. to Silver Springs, property our and potential tenants is with adjacent in in which some now into

endure So better the realized, And the value call equation liquidity, debt monetizing impacts the solidify. Tonogold know we assets, delays enhance on these above. this to to reduction it monetizing than anyone is of and but plans, continues phone from the not in and all and Lucerne continues the with non-mining it predictability that frustration assets, pain how monetizing been and I speed,

the occur that line on this this we're doing this, on all and year. But will we're I have focused to what it's every say day, of front

month Next and that. month, after month after the the

seeing really-really these efforts So all progress. we're

The profit brings means operation. more continuing to brings lowers for door. a in in to layer but in the our million future in just immediately $X bring It future the does It expenses from positive cash, $X mean? million, starting million future assets carry value, that in it retain Lucerne it plus $XX stock. the and non-mining us positions plus What for another

explosive explosive for But global we're items growth, one a excited. right growth. now the mean, of us. most brings Mercury really few it's I it's that exciting

kill completed additional data, my will Larry for and I resource is if The old his that. did Martin, Company of all data I framework modeling. me specifically, of data day the new and have now Chief forget review new advancing because resource date Geologist can't Lastly, interpretations the updating technical has assessment. and our around which data, we and the the provides data, and detailed resource. revised that the structural The the staff has

is being into data all new detailed now, interpretation. that of put a structural and compiled So

Resource. we drilling of for pulling So for ruling us very-very exceptional targets timing that recently is that updated new since Dayton favorable us, so for existing our we've zoning and just been won been in quiet busy of has very but together It inside also identified the especially Nevada the resource. us a technical all very the we've courts most foundation an the on for list gives extensive good, outside,

we only pleased we and position So grow forward. could be asset to not that move that but to not really more with

is at X,XXX, finally is silver Gold moving.

we positioned these get them for and working to its we're thing there. the of us completed. as almost on get we know All transactions It's have We that now, only completed. we're

that, April, please. me questions, turn to with just So let stop and

[Operator of Instructions] Brigham you. David Brigham And Thank hear Investments. we'll first from

Can date you're you conclusion in is my have read mind, I reinstall of you still this to going that think some tunnel assets correct? - clarify resources, County Storey the you to, you that transaction, referred mining your can is clear that? I

it up. Let me clear

XX,XXX we square total and land public that XXX%. acres. transaction private land selling acres of mile almost literally own position. The Tono foremost, a of just XX and under control First have is and/or those we X,XXX It's XX,XXX

amount have still we one. yes, unequivocally, number of land position, So tremendous

into selling of Lucerne Tono processing to to addition an American the entering option the Flat in two, the facility. mine, lease are them we Number use

our still testing, plus that's where million mine But Lucerne. leaves It's platform revenue we're dollar of to per asset. - a up million technology doing in primitive that and ton, $X piloting Tonogold's clean from with So plan this production. the per annum $XX brings all us trials,

continued that, revenue. get $X.XX million of a annum and And to million we per $XX until then per $X after ton up

for assets great a So permitted a they Tonogold, and we the to It's have posture expedient mining in a for our posture us/ production great still have platform. it's path because

retain X.X% also a We royalty.

exciting and being including of developing remaining Occidental royalty. us Virginia those the That's have shareholders. which between development for because value they are exploration leasing properties not which our to Gold progress, Hill. into Tona and will on north and them start for this have Lode County to of these Now, us the City for claims we been think us the Tono is in expediently, Storey a able drill and already invest and mineral create are plans X% Lucerne, very

technical Lucerne, we is X Lucerne, way City the the of in referred ounces continuous of last day gold south of for And to million strike it is resource Dayton. report everything all below XX and Valley to strike equivalent almost over Spring that miles of another you Everything to which has south retain as think to target Highway if want then our which $X.X way -- mineral area. Carson our in that

value assets substantially intensive Lucerne. mining we’re all all purposes our for So retaining of we realizing are for

future keeping and targets from all our Lucerne retaining value value northern are of in target. the the We southern

While take the retaining confusing so or helpful the platform clarifying. to to these market was hopefully new clean technologies clarifying that

a so that's you're company. Yeah helpful, still mining

going crushing firm have you You're for leaching plans be but to any and don’t and someday that? drilling

let’s Yeah through right. three the list plans the of so firmest go

our real production and into us, foremost first Lucerne of stream So enables the forward a and Tonogold revenue for great utilization existing moving platform.

exploring start creating they which targets value Secondly, the is northern for us.

properties material the and is started the then most Dayton not from will but we there resource for remove moving Mercury the pilot ability our to start American Flat proved we developing absolute and processing is fourthly what mercury the the and trap silver. on mercury just and to which goal gold the immediately maybe and priority Thirdly, drilling and Comstock

so When world we has is you with we removing staggering that mercury be in one illegal in look you're which going killing Comstock. amount here believe its fundamentally been of the countries the the And States. one birds in and will be mercury mining feasible very on cleaning mercury that around United two silver shot in the that know gold up trapped stone, to and

earlier. since certain little I think XXXX by I’m So maybe

soil still Nigeria it you using in It's it very deposits. polluting, wouldn't Turkey, you name grade believe contaminating them with gets and mercury mercury of are high mean all mercury because very, Ghana Nicaragua the leave. horrific when doesn't World I dying nations But Third people they're over its its elemental into

then bothering it people sense anybody buried And security it’s in not but dirt way false that a so some into get the of its and it’s works biosystem. the

very way not going only And the believe a opportunity it profitably. do but very, it’s doing only is that ultimately clean it's incredible get it done. -- to to quite profitably So we up,

we're excited very about So it.

the matter? the estate industrial thing, estate -- more One real real

Yeah.

end do happen year Is to something the the you there of think? going -- before

Yeah be towards Nevada. ago. We’ve activity watching migrate so estate about real direct child let artery with watching Park and Spring half grow. into specific USA USA before the been connects right. we've sort been me Parkway a in was Silver going year that's and development it everything the and Northern Spring built Silver orphan an on of was

state Highway four which the Silver to As expanding is major we here it XX is lanes making all is highway. today along Spring sit and a

used and you two, the center alongside sitting could the now Spring traffic of imagine. ever more than crossroads it’s four-lane with be America Silver in logistics to loneliest So road more in

when, So it’s I this properties but not is is secret. if a love these not a

to have we once value structure accelerating almost in we talking in And we’re retain transactions. like trying week we’re a done we’re be the future where dreams next that’s or to can with and I'm those directly going although more them So Then to involved more way and so. sell and about in will I done that.

I've opinion in over not Because Valley. of mean New some but a never birth I And the country those witnessing million zones, Connecticut, Pennsylvania. seen have in so, retain the activity, I coming York, the have transaction economic I seen before I Silicon Tennessee, value like we enterprise but I expect almost plus Massachusetts, lived all seen we’re in second $XX in $XX from million what’s can worked my happening future. here

just know I that maybe about It’s the that’s I a much I it’s but I -- thinking thinking I can't wasn’t industrial chair these that Amazon. companies. a you than about about technology say thinking standing the and I and off longer name of yesterday And because thinking every fall recent name, wasn’t was was here -- heard my established company coming more Google, the is some about

just coming So it's everybody unbelievable. is here

we’ve Spring And acres the right the alongside downtown. choice And XX in locked alongside the literally that three is in obviously XXX of right the center is I properties the Silver Comstock lost the acres airport in mentioned. intersection has just

we’re almost that property pieces consolidating They’re two the Now community isn’t at strategically helping just looking we’re of fund situated working those critical. them. were and whole wonderfully the with

we like it's thing sound don't come are the all it I ground helping a together. complete unrelated make everyday on

thing, opportunity look enhancement is the guidelines lot investment that a the around zone it. believe is new all of from capital will come the it and a regulations So I there powerful been uncertainty and terms can't the how of is in -- around clarified. that’s

And here that announce it’s what We were for XX were for if perfectly situated I demand because the happening at if they we coming with two looking just Nevada they else that up nobody in for years. meaningful builder's Northern could next nobody mean a the were of we’re yesterday announced forum coming investments. in years else here couldn’t hours keep four here.

its we're what looking that's remarkable. So at

going So it’s sell sell, benefits immediately a us. the that way to to in land going

I think everyone understands are our net operating assets. hidden losses

So from maximum double the are it’s these win. if we retain protected benefit so tax get going and but can some forward then value gains we federal a

exciting? was That

two closed. nothing doing Having can't time on you transaction that. reason people respect my it, else. and time see disconnected that XXX% Yeah look blunt And that don't we’re you about them. said to something credibility of time that. why but at opinion our too right your strong of get spend our equity if spend from just than XXX% in for totally is closing much market there's to We you absolutely it’s cap I spending One if want be other the want

get these base communicating investors. outside to lower is wasn’t existing been there still haven't Meaning to been up we until of not strongly a in gold ago path So to in or an of marketing strongly deals we line. part were haven't clear absolutely investors the because months was the out few equation going finish it and our new

to the Now to finish absolute line. an have we clear path get

robust. to transaction the amending is on ensure gold hard very and over work X,XXX that and We

to feel wait took everybody till a the it, to I on can't our this get about September So now tell point. story I fixing get out ground great but it about lot to of

but understand is market we So share not price right. it's ridiculous higher,

these moving it So will discussion. to force has transactions get the

Frankson from we’ll Carl Next hear [ph].

Hi Carl.

I you release whatnot to can wanted of the hi, story stones. talk so Corrado covered -- about the most the silver and things

dilution, million quick the XX So issue wouldn't questions during couple why but said more you call just and quarter last did a remember who we I need them? bought shares, you any another

can in upfront hoping I these get So in X now, said million transactions That’s get finishes. closed, million XX conversation million the said, to there get land and finally sales. hope million I maybe we're Tono if I I from now. X get so Tono we get more we from think the recently in when We XX from

bridge point. And we've we’re to that not been desperately, impatiently to trying

there. almost We’re

and So some is to bring on to and for that new money although to one answer business. investment activities, money half new in of shares going these us the those land bridge going the MCU to deposits of have to was was of capital some were that

X.X I’m very fully in at half were MCU So of shares that million investment. those least the for regard happy

over worth MCU the of that a we’re value of six If X going with going value restricted you that touched over can't -- get that million stock months be stock, factor recall, and time be investment was XX. the of XXX,XXX to if for

then wouldn’t So out, between the the value months that. gets you it's exit words, lose I doubled tripled know and mean, other in now if six doesn't that what we factor it or for rolled like

this to only and until transactions these of to seditious So we we're was there. be closed that. to and judicious a to continue these be very capital X.X point million million X.X going to strategic get transactions for us to source really with for trying investment. it’s was bridging close getting we're getting but

astute our to to we’re to in and do stable. don't very about less very our try issue We’re concern absolutely the that. always like shares There's risk. of posture. no going been liquidity it. very We We've diligent, There’s regarding no

because coming pay Tono grown our use gone. far most right two avoid closed, these almost don't news, get news, from transactions Until until to are debt Good that money the cash all delusion gone. to these Bad is debt. the that’s is in has down so completely debt been the directly we to

there. almost we’re almost we’re there, So

quickly, you then answered mentioned far. I question lot as And my a of just so

Going be forward previous… pony Dayton? Dayton, company, And is gold Dayton, is other being that are I a million developed mining just could it, from are it ounces now that one-trick mentioned a is after projects X.X the is we we’re think that or was it there number two, you at

XXXXX

your or Yes, how you purposes, years seven for how that? always a ago XXXXX within five, six, you and I fraction evaluate valuation do -- take know something own you much

So your answer -- the question. do first me first it to so best let way

Spring that’s just mercury the that and going Dayton gold silver we all the is silver be premature to going we probably Dayton far. Spring market if be unequivocally. and mining Valley, by In to to to we’re so a have MCU and is big, it want advantage. and Valley, have where an them and be me we and mining technology The with huge and So you have experience were we in ask gold of business and company biggest

mining become company. become service a In gold American we Lucerne, In we a company. Flat, royalty

don't I whole nobody like right -- We’re providing not it. the way processing likes to is to work use --

and the me I us. then Revenue which royalty. answer. the paying And use the in tonne will on addition expand northern targets, to but your that Tono they’re answered Because in question, facility to per let operating absolutely be

on a automatically gets pull sort same that additional remaining any conversation minor acquired Tono in do to subjected very now to If claims tuck-in and gave Comstock of they them in last the right on nice are we the the right adjacent the claims because one to royalty in that. and those our with way

better is depleting see our depleting reserves are strategic mining and replenishment replacement, depletion and level are This net global highest resources depleting reserves from our maybe and is of industry a in growing. growing, resources know not the thinking are perspective, you So we are said, mode. not the

reclamation and no old and pads, What any that paid old to. [inaudible] attention is growing pads is leach has old one paling Mercury

is market. we And so re-process, re-mine, to technology the growth think have to

Now our we on the on we’re of development, wait not regulating corner, got got royalties no others and assets, and we’ve covered, in turn cash. we've full October, I developments own this to debt, ourselves, expiration mining others so be we've spectrum talking got can't once

a we’re not strong on sheet but profile. We’re dilution this or front our end balance in of is the growth

And sitting those assets of to operating cash returns we’re little a net on mountain loss maximize endeavors. from the

think So that’s have back more be know see I we're be picture. couldn't hard point returns with get it getting have this years I to of but to you who is it the stuck people Three -- they and going persistent proud they're the to to now meaningful.

right. to So we’re not promote, trying be very pedantic. to We try

soon from pretty when to it'll done deliver bombarded. gets away you us. to But going I this know Mercury and mean, it it. get trying be recognized by anyone, do thing just Get We’re it. we’re

like of wasn't with years We’re work destroying doing to on his deal that's you going Paul we and our it River we’re international communities where all it ago bombarded nine we’re our is [ph] was for fund up bombarded landscapes, was do because he destroying Mercury set stewardship. this super mean, he our if and it to How Carson be bombarded I know clients. by he eight, being started

found supporting You really we X have Francisco, San at wouldn’t in he remediation District take platform know, EPA States lead Mercury didn't a if our with in United the us. it, creating the

him going long. by have here. to unique coming to partnership not we so take It’s us, a going It’s not And very to long. take

on, four, think you more. mentioned had this mentioned you had those protection I along and five launch, the or filed or is patent Just six, on for you

but Not normally fact spirals. three Four, pieces the you are way are a as and that Ferrari, amazing on I in so got matters centrifuges turbochargers the four, equipment. by designs these mining three elegant, okay the equipment the beautiful. then in centrifuges mean, is are so pieces, are the like

and sort ever are everybody. but so things industry mean, get patenteed. XX% everybody filter has getting he's get is usually like them I spirals, designs to Mercury. the XX.X% and those XX%, that being was There anything of XX% refined it, they are and in turn Paul we seen

helix that’s Superfund. because credibility double a part confidential which know and you still trade this but there's whole that but experience it. -- There’s so we’re a organic then to it’s important cleaned Mercury to the patent The up it’s us, file is chemical a and secret, free having of of thinking fourth solution,

but of when that think many for we for occurring and and million which for The we to the pound community. moved cracked very half-full, flask the stepped Comstock don't ore. the X tonnes from people it this We had fix Mercury in know I low we okay. road natural mine storage, XXX Mercury was years, three

moved opinion dump XXX,XXX in that the built of mine the got in over alongside and of tonnes our and on waterway, been underneath we road, never a fill We the loose mercury. XXXX pounds road should've

we leaching hauling, got about The million. material, of gold from all in we The the the that road pounds sorting of us much. $X of We us went XX $X cost pounds. million don't road. one-tenth out cost was of We X,XXX silver mining it. and talk crap rebuilt $X processing, there million. that out, So excavation, to this And then the

we're But, right. mercury what reclamation good, know plaques remediation, the We've we're did do what lucky it. I global we position thing here, categories. visitors on to that what and do the prove thought wall right, because not I you and some was Bing-bing-bing, all opportunity you better in didn't do. because right about know got environmental why it, Ass That's a mercury. #X removal? you I than do So come to three us, saw do about to man, kick in I But Carl. it know all do about all when huge ask that but

What I mean, can I just… say, it

holy It's like hard for no we a to lot it then And give contracts. be started people can of to shit. us going announcing are until believe, credit one

we'll Next Hicks hear [ph]. from Rick

very think it's the going have detrimental costs put products arsenic, the on effect the long technology to buying continue? how your give you and extraction financing, benefit could to seems what it as detail symmetry one, The shareholders on to of it you the number common stock. a Because those and much other your then, in stock such

now facility. it, half. for We've million. $X.X used of have the We we prospectus right filed a so $X.X million So about

only that. well agreement through more million. counter have to was filed The one an place know with million. we very it's than for We investor. in counterparties that that we to is for known up And But $X $X.X equity forward capacity party put solely

we place our at investors, what designed a term XX% to the they're view say would discretion. current do. That's not intermediate I necessarily not then structure it And investors. they're at the discount is to longer-term

with So out we if million have without expandable search up to That's for foremost little a it to in is investors. bridge us actually of to discount. The to but just we're need fees. a we put and go a fee the bit them why to at liquidity paid perspective, it We raise would we agreement don't a $X them. place additional then us, allows is to capital on stable facility upfront, XX% X% based such

the simple. the it. in but people It's think I it an there's really ATM similar of So aspects the know of it's context that's not same. to and arrangement. very-very They're

it gives it's believe the safer, we so stability. needed us And

we we if didn't us. been lot behind the stability able negotiate of to a have Frankly, transactions wouldn't that we did that have

it so nutshell. in a And that's

to of try of as minimize We these now do between we to rest that September-October. will the see and getting things the relevant We what timeframe done.

the particular designed in system get in On mercury mercury particular the reactor out. is the to reactor the the mercury with all mercury, with

the efficacy we take gold elements and for committed the retort over like, and the second that to before process, that it as Honestly relevant mercury a pouring it let's certainly being mercury have in those copper of our refining through even full last or case, of, So step know silver. and would some is one in get the the three example, we arsenic, industrial say, getting lead our we arsenic, lead, getting site.

was the generation know tested this equipment until the and of It's and a test I that. tested I'd don't new designed say, the some used right. series But has the the equipment. of in gets efficacy. others. substantial we with But process the internationally, incredible to for get run last But first results, probably been with I won't all I'm And let's have already amount follow-up used sure sure know to of it through and on mercury Nicaragua

enhanced So engineering and enhanced next it finish this design, positive it we're here line. is the taking going last equipment of generation to to take

Next Melas MKH we'll hear Management. of George from

next a hurdles and XX on timeline over way? sort mercury along a the back basic to of Just the months the the give very try processing,

great Yes, a months XX timeframe. is

here night June the here putting signed just in-depth Comstock, the last city meeting He's on of right with on at afternoon They're We started the it. manufacturing because complete. two he's we touches So agreement we're met X:XX. and finishing this in Carson now spirals. some end Paul for hours

very we're this. live on So

is make permitted tweaks with platform. The meeting confirm, double-lined in-depth a our modifications The just we of we're on beauty to might or any fully with existing it controlled system. that

them to et some maybe demonstrate to make some prospect in entail. though would We're changes future permitting So also with the mobile tweaks. cetera. we'll need We'll on engineering units what going design

on we're And then by The delivered this thing but about it and on on how landed to so only system as schedule be full December. site. site immediate, not does we prove thinking is rollout

sliver. if mercury, start so schedule, through extracting the some we mercury, basing And XXX% material - system, the refining consider the to capturing gold, would it, getting think may in processing prudent of operating getting system getting means That that January. or it of that it, specifics be running

it we're choice, mine if it But from of December. moving to start the and material spots, start intend, was November, we already October, planning areas to those December. for identifying site we've probably next up my identified doing been to planning month, we've I in September, the advance mean, but -

is landed, through. testing equipment start the once that that and So we can we of stockpiles have piloting material

ramp XX hour, tonnes to would per but I from January. XX to going per from running you tonnes you per up August, X to hour X ultimately know, series January January months, tonnes tonnes X October hour. to January say, a have ups full the would from September, to of Then per hour to

when that we tonne of you sufficient But XX as sophistical on And that's experience, operation with hour, get in considered Because equipment representation. per scale. to Paul's if pilot scalable. his have his a -- knowledge to prove you then prove

the right prove important with us to that efficacy every EPAs So us in of for solution is understand want. per truly aspect an Because we the of and the hour, step other see and of words, it, that XX regulators up it there way. if we tonnes is the to anywhere if the U.S. Nevada stamp then the are that go

along certain from effective XX meaning somewhere all getting its the silver the and we're a meaning Now, that continuum, our mercury economically extracting that gold for that mercury. tons effective when run rate

system construction scoping commence a We an at which optimal per will XXX Comstock were size on the preliminarily for hour. tons

assumptions tons are it one XXX And many yet low that low have we preliminary one very, too XXX literally lot. I the would and but and for variable. because very it run monthly technically very in mobile, tons tons they our models is still a a So doing grade somewhat two cash less say some they're the hour yields. what very, is then with at We can't systems per hour. system, XXX generates per both mobile portable to one okay, up

grades And these know way, we to in if of those it if already operate equipment $X,XXX can the we does And parameters the a very, one like like But we at conservatively efficacy, look use at we know that preexist what we was by parameters. this certain approach operate if those this thing it tailings. that very cost general know gold. the

what this So potentially. we’re very about has excited

range, how X at X, areas We're around X, contaminated in world great the per have ton. XX Comstock ton and per well grams this like of that but to bad the grams looking very X has that we we know

is So truly about and the feasible. it prerequisite about equation no concern to and this it, there have to be doesn't the -- profitability able mercury has all we but no of talking economically and to get it shame it to be there's and and without is work clean

so what that's we're on. And focused

you So I see December. real answer October, your question movement think that will to November,

Year. the pictures in right equipment operation it’s see will You of New small real you'll not see

and be everyone with will I our wouldn’t as communicating uncertain. you is We regulators no are wouldn’t know understand results as long why be I occurring communicating the with there guess as we

and lot subpoenaed California solution. more countries their And has by some and I part and with to around got think people we're desperately world. a the California I the speculative of going the who this be compared Nevada major think of visited is need issues this, to than

information us. the think have I helpful. out we’re going XX of So a next that to lot to months Is flowing

to helpful, a just that you to collateral cost basically XX that to is that very to it’s going follow-up improve bit more months maybe next over Yeah tons little to a the per on XX hour? much XX as roughly how guys just try or up

installment payments have XXX,XXX And the course up So mentioned already you, for okay. over done I get get for first six that million installment is in pilot to restricted which to payments very answer specific the running. to these equipments all we Carl then so months stock phase of $X started and we've the so that about XXX,XXX put we committed with and forward we’ve the far

preference three I strongly liquidation very, effective precise equipment. XXX% we enhancement is that it’s failure valid protected very make here. want if valuable in is mercury a ways. very and and right. What testing This have total to point mining a we're the We One, equipment

to work didn't question it me but consider if So which have we possibility. not a like to really the is

Then our we get and back e from XXX% the the money liquidation equipment. the

investment. return it it if us and choice and to of it does We have keep work even our we or have to liquidated ourselves, use the an acceleration a

the get XX% have instead the So then recaptured XX-XX right X XXX for the we ton unit. okay. a And million refusal until capital is we arrange of of sharing to first

works XX-ton unit that ton can unit fully and XXX arranged the be we The financing. if finance will only equipment with

for right entity that protected arrange. XX-XX. the of accelerated that have For business and get every us to we for and clean we venture new of would X million right of financing up million the back X equipment LLC mercury We XX% and of the that first

XX% directly any activity generates get way, we in cash different So in business that flow. a to say

suspect And make the of a this accounts because then okay to through MCU our going level. means of consolidated XX% XX% XX.X% get I that and that we other are subsidiary - so as

venture. place I on which MCU would MCU most go of profit the and say wants we Board likely members is of like they we we a if say that, would don't into no. the yes prefer this to to could XX-XX do said crazy having be for get still Americans XX% where but Board Now if right, And

it's transaction technology we’re that high really we do differently, well low in and every a really, their a really investment, everybody. social different if structured experiential Although relatively value to the to bring and table a a be bit positioned really, with for capital jurisdiction could little here

take will lot it absorb thanks to Okay some that a time Corrado. all but

is it's protective. there but complexity mean really little forth be set I to

Great okay.

Okay.

you. Thank

Thank you, George.

[inaudible] Jeff

Hi Jeff.

discussion a I of Corrado have expanded your for questions. couple

thrilled was it summary concept? the First, with Would that selected you events because let's read you for if June to $XXX subsequent bullet point stock you're on that executive may. implies I here start a last expand the that share. XXth we preferred it, under able your highlights The have I sell to to

$X,XXX,XXX so there. the to net shares $XXX,XXX precise Yeah Rick preferred stock. associated preferred to was what I stock do of fee $X clarification. related million we points to preferred sold with couple The to is cash XXX,XXX comment. stock earlier had and We it explained We didn’t just for that but in the X for addition of decided fee just do in needed stock want million worth potentially $X,XXX,XXX to so X,XXX the convertible to future we

never when we things did saw was you if higher today. actually and these stock would and selling diluted. we if be here prefer at have we and and to less out low a notion finish to could convert that as it much that on the know values We much much here to values these be the in month didn’t much, the there line if So dilution preferred it be do a get wouldn't line. is closer at finish idea the we We stock place ourselves

I the am sure it So and but it's not that’s common but least but common not at so I turning point. converts preferred underlying two question, your answered

you can with I and that Corrado it? What in run am on focusing take dilution,

is It first the range so price price XX somewhere to hope am possibility It that much converts dilution, ceiling stock highest know middle. somewhere million ultimately price. you per the of probably most a of convert there floor our stock higher is per would of floor I a of share and so a that won’t of $X.XX shares to in sorry, or the Obviously, there Yes, X convert most minimize from a range a shares. that share. at million lowest likely ultimately the and -- timber with $X.XXX

So we will the done. won't solution be know what of effect that until ultimate we’re

a is floor there on Although it.

So the how It’s we will stable we counterparty as closing asset so deal said I having plays is the matters of key and kinds a as we known with to thing things. bridge the stop closing capital thought things that we these do to to do what we and it continue sales to way the Tono a in is could needed earlier, here faster, possible the only but know bring out. safer to try a you ourselves was see it so thought -- we it was

for you'd probably buyer Well, agree king, with $XXX still but is stock? clear purchase that a a not share, is cash I'm how the preferred

value wanted our the see. a stock a rate know instrument it $XXXX to any yes, more for convert it it’s to share at real so the will of of set purchased and stated in opinion liquid which a value underlying sits stock. be can the in common we they So to. We that instruments, preferred my to -- I The technically price that you left guess

So converted, when this create is common this shares? does

Yes, to trying say. that's what I am

And dilutive? shares common would be those

Yes

Very well.

working you Next with still Are question. Itronics?

Yes.

concept here. Mercury you very Itronics and with processes glad many takes additive, completely different similar Mercury plaster whereas complementary using very Mercury am tailings actually completely because know, tailings, And doing going to be to not technology it’s because takes point so the we’re and ways asked technology. important be the I you and in that's It's overlapping, and so point, but in technology what that mining example, the question important the parallels

together like solution leached The We reprocess Dr. of not It’s flexibility plaster and tailings formerly think that differently. got our cleans number mercury not bit plaster, or a hard one call the is soils, -- objectives the up could whereas equipment our processes least of of so is Mercury mining joy is is from material, collaboration it we system. plaster, more there. rock, But some that to comes Whitney at contaminated little those it tailings. people lot it to with could them we've restricted that

into their their the with cyanide pads grow as materials of reclamation exceptional their know their for know, an the Mercury silver frankly, similar mine wide complex. strategy on the to half just those grow, the silver in liabilities it discussion gold fits quite efficacy and model and as as not of ore, us the is reprocessed but right exciting gets leached deplete to leach you pads Formerly and that you in the trapped silver detoxifies tailings be is so and mercy the reprocessing only it opportunity the

kind that sustain operation. of and material on organic contaminated captures that the precious makes profit takes the metals to and It to them

a forward in temporarily, little robust. deal extra and these the So moving but he because Dr. of getting are done we’re one bringing this, is do is is list. our -- It Mercury the to Whitney now number on moved ahead that really we’re help things and

pole of for get is better Whitney MCU back forged I ways, I many a discussion the of working the it’s the similar I agreement in or back into things template loose and for mean Dr. and perfect and Mercury Itronics. with to with personal Itronics lack can't we a word, wait way position into up that -- think

list pursue high think win-win. and we’re that in about list high it’s our its a only So we his to on going we’re

it’s work out. confident So we’re highly going to that

Dr. understand that Itronics? to I Whitney an are of hoping reach you May agreement with

hope, XXX%. my is that XXX%

Very mercury well is move the material currently would the that for where that you residing? extraction

a you been of Comstock Environmental where hydrological some all were showed Department of the we mills And by any were. prior to have basically that all mercury the profile mills all residual know can interesting the Nevada Protection have mills of would some mercury XXXX/XXXX not the how historic old amalgamators. maps show those on it we So but used

sort six down then residual towards been would Carson less miles, the ultimately How cannon that have seven of float river. miles and material

primarily that left River, but sort the down to was more literally it’s it’s in of behind. it's there it Jeff So it everywhere Carson used Virginia mill that the City where from than waterways a

And of the so there's a a broken map that almost look like heart of that. floor

of In right you goes a context South it is there Lucerne Route to City XXX I stream that is that follows And know sort from us waterways. Northwest Route because from American to XXX North stream the Virginia say follows there Southeast. then through State right goes Flat literally to would a State

deep foot down eight XXX bedrock. literally City like it's right to all So Virginia State half a or or anywhere seven or a to to foot deep XX let’s way so Route the between say six

begin the for first material you out to would Where digging process extraction? mercury

picture into the under and to from Hill Lucerne if well right Virginia Gold road Heaven's some Frank Gate, would that know the So there continue the down Valley. where consolidated City. you the down Butler into we we rebuilt through you up Dayton area waterway And and Grizzly Hill North mine mill of then just the Spring by by as there

property you'll they are our old tailing doves of Comstock. where see right its recognizable some them the right on and But on

normal of X, know, testing X would flat just curve Some feet down mercury of it's residual. exceeding where them X, never you showed

do the to intend You processing on Flat? American

permitted purpose. way full for already get blind up containment on there with its be because running to that the double that’s a permitted fastest to and Have footprint yeah

Would currently is American source you the Flat? its physically where from to it move material

mining small dump trucks, trucks, not scaled In but. meaning small

roadway? the Along

To some yeah. degree

You would use XXX? highway

we where depends of we have sure wouldn’t that are we right have it the protocols. to to well make at have as permissions Yeah we some picturing that in do I all am it

full do on and haul, We remediate, though extract, defined you have the the already cover how transport protocol materials. and fully

when we that the and in and is and we built road protocol known it if the but use did. is we the XXXX you're that had road moving fix we government XXXX been commonly been So way those already with fully have protocol never defined that that’s to the able would all

people when lucky we good So prepared it but the than was some opportunity say better were here.

highway remember How transfer are to and that Silver your been for Silver gentlemen you really because and a would you've ladies and through of transiting I you. to the grant City? done not County I at I must City able County time, material be and you understanding and be not be with work Lyon permitting XXX most to long They've City happy. Silver quiet Story expect

depends material where it the right. So is,

So there's - scenarios. I would on be scenarios of can we somewhere But of a a think also where the dozen think of dozen beyond I right. off road, can I of think We're the talking We're I about of to trucks. about talking have X,XXX's haul change we're And not But right. I about the not material. guess road. caterpillar could metal, visual. tonnes talking not yellow

transport. profile of a different completely it's So

need - of top off So head. uses some specific road. the road, some of may know I it don't of it can't will my [inaudible] be I of on fully

what's do we with but don't any So and modify issues I define And going it, proper we're allowed. see as to frankly. only what's it, it,

by cleaning up the mercury. trucks - talking all And about the time, talking about not activity. all there and We're I - of that's we're sorts of street legal wheelers, through XX mean, trucks. drive we're drive

happening Can is to you properties Gold your of what in any expand on hill?

Yes.

properties, properties? So mean you mining the the do mineral

estate real properties. the Negative,

Yes.

crown Hill wonderfully just is us. the any profitable one central is and running for not It the So in very sales. still is of it's the sale. conversation the It It now non-mining is jewel really Gold of material right hotel. really for asset

So low one. motivation have a we that push to

Paul properties relative look be maybe be be to there Again, soon. $XX will out the and Cliff and this But going back there. day host would all we're Whitney these very Springs will ranch. in annual which we'll be there, year, down, the million this it's figure be will the if stride. week And it the the and We're doing latter small to that XXst. be will announce at going Tona on you Dr. continue I meeting October when there. full And total to things Silver

it. really I'm looking forward So to

also I'd Daney I like like to meeting. would you happening what's about that ask Ranch. an with invitation the to

The listed for Ranch is still sale.

now but we've have think agreement specific the a in probably with has intended a financing. We use for arranged an like it's don't that conversation I right that so are yet, specific We pretty prospect party what exceptional best and far. the had it has looks

So in commercial motivation/interest we on hotel. the and to Springs. No the We're have agreements sell industrial the Ranch. on Silver in land discussions

interest to Any points. it's are think positive. hotel, way, that's not especially our the we're we because motivated competing really solicit cash the I of We're those them. those but not getting properties only one love

or additional with any create zone, opportunity the opportunity this time? to fixed at the expansion opportunities respect zones are opportunities Does Comstock for this basically mining,

opportunities reason It parallel so all discussed in we are. Storey every and on for it opportunity we've so No, counties does it working far. are create us. the hasn't been highest But of the for priority

getting guys we is Google City the blockchain is City. number and But one. is Industrial of zone, squarely in the everybody. with haven't lost and Virginia of those most Center Virginia the obviously the hotel, attention So sight all and that guys as

two, we Number will with the say to on closely. are very-very working I almost want formation. 'intimately', opportunity

revolving say part can guidelines because engaged into a real It of some starts making we And we and intimately confusion had are few I structuring. the like miss with in threw regulations. think I happen. fully it

like knowledge. things to do We based on

what more best took were. the solid alignment now. to time and the a structures figure total on us out little to be There seems it that So with bit partners

- pretty confidently. to I and forward certain say into going those moving it's getting terms capital So in could not funds, we're yet, we're but of

going of could economically, both add and happening feel course, an retain not of like just a kicker because the be The a a interest the going to we agreement we're And in X%. be Northern are in what's we meaningful We're having interested to Nevada X% directively, value. more lot but We'd intimate is current we that has interest. on selling. most on also properties here

I I a Comstock value. I as of lot could feel could value, Company think a add personally add

that. And the XX%, be sowing. maybe XX%, opportunity, percentage, like than But so than - higher XX% X%, a pretty really-really-really it's or lower assets it that something be could will create smaller maybe we're just lot but it XX%, big not could

heading with where that's have So soon We'll here. we're it it. known

For me, Tono is taking a lot calories. of

they've good at a we're think been there. not yet, end I getting calories we're little the frustrating to it's productive. but And so

commitments deal is the we I did, we side they've if lot their way earlier to I getting Tono every we mentioned commitments book week, new the a note. close why because of close to it. themselves. traction modified getting They're don't That's got it. as enough know a in want

think real move and I they're that's something and interest and because to they're but they're it's interest positively going more think getting I too. traction for putting good just their together getting We're more investors forward

So on opportunity be, will the very think, going conversation discussions, be positive. more Jeff. to of cycle I it's zone of And forefront in next the

in required potential, controlled had articles I have is State you several time the you've with think, the Tonogold. the Zone Opportunity by Nevada. the of understand part sent which I difficulties on I

to You've I you. never two article. have responded requests an of

secondly, conclusion you the Corrado. at First, call. as have speaker very do closer your call you your move wrap Spencer you to of much this of microphone you And Jack up. the phone would Thank me

Jeff, will do so. Thanks,

Lawrence Danny Next we'll [ph]. from hear

I frame? timeframe job questions. the couple hard. you doing getting around quick for working any for do One Thanks good have a the such just a drilling date, to and time is, rough so have

in Yes. technical I if team, you it could would mean, be drill. are members, think my closed But Board treasury, that funds exactly couple yesterday. we we honest it it up our once have also. answer that, where these discretionary know to tell I and I was it of a would really to we to transactions to yesterday up is If was that. want

to et and Because plan. mean gearing say transactions to to so we love also I'd quarter. landing that to we're I'd And done love get would - sufficiency and have mercury cetera. up we have these going of say time fourth But

be get to very in publish plans far by really what that drill precise isn't do, started on the some I'd to and what we're stuff of like a I'd XXXX way, that then. So which away. very in is planning do exciting

mercury question [Mercury] at explained zooming is year owns Comstock the the by. other percentages, is was, other there overall This the that percentage And thing, an had you this partnership?

One two XX%. is, answer. a that, simple and immediate we own right. to Yes, answers That's there's straight

have the on the entity for agreement joint be any business, in new of XX:XX to we that However, okay. right venture

could theory, at XX% which get of indirectly, choice. our in we So is and the economics XX% or XX% directly then [inaudible]

That sounds great.

sounds All of positive. it

or time. turn are for there our this additional any back I'll no to call further questions over moderator the closing comments. at And

to you, specific a concerted based of a everybody. Thank of this number April. want thank We we investors that just I calls all request the made on time. effort take

little ran in it, forward here certainly worth we and much frequently So as over. that. well it more was we I to apologize I move updated a forward you September. But really think for look we keeping

for we your talking you look Thanks, time. to thank So forward and soon April.

for your That does participation. Thank all you conclude today’s conference.

may You disconnect. now