The first drilling results are in on Comstock Metals' QV project in the Yukon; cause for celebration its president and CEO says.

By Kip Keen

Posted: Thursday, 11 Oct 2012

HALIFAX, NS (MINEWEB) -

They were the first two drillholes from Comstock Metals' VG zone on the QV project in the Yukon's White Gold district: 1.28 g/t Au over 56 metres and 1.02 g/t over 82 metres. And much anticipated as well, coming on the heels of Comstock Metals' discovery of wide gold mineralized zones at surface via trenching earlier this year.

But the results clearly didn't satisfy some. After Comstock Metals reported the intercepts, which started near surface and also contained higher grades zones up to 6.07 g/t over 6 metres, its shareprice had fallen as much as 35 percent to C$0.32 at presstime on strong trading volume.

Perhaps some held expectations for higher grades over greater widths.

But in an interview with Mineweb, Rasool Mohammad, Comstock Metals' President and CEO, defended the initial drilling results, calling the share dumping by some shareholders on Wednesday a "premature reaction."

"People haven't really understood the system yet," Mohammad said.

Why premature? Mohammad emphasized a broad range of points, focusing on: favourable geometry of the deposit to open pit mining given a relatively shallow dip; proximity to surface; apparent continuity of high grade within the VG zone; and beyond VG, four as of yet untested targets.

Click here to read the full Mineweb article on Comstock Metals