Update: Comstock Metals 2012 Drill Results

Comstock Metals high-grade gold-silver discovery: drillhole assays 258 g/t Ag, 6.33 g/t Au, 3.8% Pb, and 2.8% Zn over 1.00 m

Comstock Metals Ltd. discovers a new zone of porphyry-style gold mineralization-drill hole ended in strong gold mineralization after drilling 34.5 m of 0.36 g/t gold

Claims

The Corona property consists of six claims which total 850 hectares (2,100 acres) in size: Corona, Corona II, Corona III, Corona Norte, Corona Sur and La Esperanza.

Exploration Program

Four old workings have been identified on the property to date:
1. An old east-west trending adit located within the Esperanza claim on the southern portion of the property. This adit was used to exploit a high-grade sulphide vein that has returned assays from underground of 12.43 g/t gold, 2,634 g/t silver, 8.35% lead, 3.84% copper and 1.59% zinc. A grab sample taken in 2001 returned 42 g/t gold. The adit itself is approximately 30 metres long, but the geochemical anomaly on the surface above it is over 1000 metres long.
2. A very old collapsed shaft lies in the northeast part of the property. The shaft is at the eastern end of a 1000 metre long zone that is 75 to 100 metres wide which is open to the south along the width of the zone. Rock samples with values ranging from 1 to 16 g/t gold have been found throughout this zone. Free gold can be panned from the soil on a hilltop about 75 metres west of the old shaft.
3. An old working known as La Mula is found in the northwestern part of the property on the Corona III claim. The shaft is at the eastern end of a 1000 metre long zone that is 75 to 100 metres wide and open to the south along the width of the zone. Rock samples with values ranging from 1 to 16 g/t gold have been found throughout this zone. Free gold can be panned from the soil on a hilltop about 75 metres west of the old shaft.
4.Small old workings are also found on the Corona II claim at the north end of the property.

Corona is under option to Comstock Metals, which has the right to earn a 60% interest in the Corona property. In order to exercise the Corona Option, Comstock Metals must incur $500,000 in work expenditures on the Corona Property over a period of three years or less, of which at least $200,000 much be spent within one year of the date of the agreement, and also issue a total of 300,000 shares to Golden Goliath once the company goes public over three years: 50,000 shares to be issued on listing on a stock exchange (received by the Company), 100,000 shares 12 months after listing and 150,000 shares 24 months after listing. Once Comstock Metals has earned its interest a joint venture will be formed. Comstock Metals will have the right to earn an additional 15% interest by completing a feasibility study.

The Company is pleased with this agreement as it allows for the continuing exploration and development of this attractive property, while allowing Golden Goliath to focus its exploration efforts on other properties within Uruachic camp.

Geology

The Corona property covers an area of intensely altered volcanic rocks of the favourable Lower Volcanic Sequence that are cut by brecciated and altered intrusive rocks and are overlain by a relatively thin section of the Upper Volcanc Sequence rhyolitic tuffs. Visible gold can be panned from the soil on a hilltop just south of the Northeast Zone, as well as from the Esperanza claim.

The Northeast Zone appears to be made up of several down dropped blocks off set along the NE-SW trending, sub-parallel, structures. The zone is overlain by a thin, tuffaceous unit, which is also believed to have potential for mineralization, and potential stripping ratios seem very favourable. Recent work to the north of the Zone has shown that this area also has untested potential. The overlying Upper Volcanic rhyolitic rocks exhibit crackle brecciation and quartz flooding. Anomalous gold values in soils are also found here. There are examples of Lower Sequence mineralization flooding into the overlying rocks and the Northeast Zone may be another such case. That also opens the possibility of a zone of concentrated precious metal mineralization caused by the pooling of hydrothermal fluids along the unconformity separating the two units.

La Mula

Five reverse circulation drill holes were completed on Corona's La Mula Zone, which lies approximately 1.5 kilometres northwest of the main drilling zone on the Northeast Zone and may well be genetically related. The objective of the drilling at the La Mula Zone was to extend this zone to the east, northeast and possibly to the west. Satellite images show that La Mula is situated on a strong east-west lineament that crosses the Uruachic camp. Holes drilled near the old La Mula workings have already returned 19.84 metres grading 1.21 g/t gold with 35.09 g/t silver and 12.21 metres grading 1.59 g/t gold with 31.46 g/t silver. Subsequent surface sampling 80 metres east of the old workings returned 2.57 g/t  gold and 2,280 g/t  silver in a mostly overburden covered area that has now been drill tested. The source of this surface mineralization still remains unknown.
Comstock’s work to date has been very encouraging, with field work in 2008 returning channel samples grading 8.77 g/t gold over 5m true widt, at a previously untested area west of Alcappara zone, 814 g/t silver over 8m true width (oxide zone) south of the Northeast Zone , 114g/t silver, 2.28% Cu and 0.2 g/t gold over 10m true width in a new zone southwest of La Mula. In 2007 Comstock samples averaged 22.25 g/t gold, 667.5 g/t silver,16.3% Pb and 1.4 % Zn over 0.5 m in the Esperanza zone. Comstock plans to drill these newly discovered zones along with previously drilled areas by Golden Goliath Resources in 2002-2003.