The 1370 hectare Corona project is located approximately 270 km southwest of the city of Chihuahua, Mexico. The property is located in the Sierra Madre Occidental precious metal belt, hosting producing gold-silver mines such as Ocampo, Dolores, Pinos Altos, El Sauzal, and Mulatos. In December 2018, Comstock announced that Desarrollos Mineros El Aguila, S.A. de C.V., a wholly owned subsidiary of Fresnillo plc, exercised the option agreement to acquire the 1,370 hectare Corona project. Comstock continues to own a 0.5% NSR in the Corona property.
During the year ended September 30, 2013, the Company completed all option requirements and earned a 50% interest in the Corona Property. On December 7, 2015, Golden Goliath Resources Ltd., which holds the other 50% interest in the Corona property, announced that it had signed an option agreement with Fresnillo PLC that includes the Corona property. Under the terms of the agreement, Fresnillo PLC may earn a 100% interest (subject to a 1% NSR half of which may be purchased for US$500,000) in the Corona property as well six other properties held by Golden Goliath by making cash payments totaling US$3 million over 3 years and by paying all mining rights (property taxes) and conducting all assessment work required to keep the properties in good standing. Comstock estimates its potential share of these option payments to be US$200,000 if all option payments are made by Fresnillo PLC over the three-year period. Fresnillo PLC has the right to terminate the option agreement at any time. During the three months ended December 31, 2016, the Company received $9,590 in option payments from Golden Goliath.
The Corona Property is underlain by Tertiary-aged volcanic and intrusive rocks broadly subdivided into the “Upper Volcanic Group” (predominately rhyolite tuff, ignimbrite and flow with variable thicknesses of red-coloured conglomerate and sandstone)) and the “Lower Volcanic Group” (mostly andesite plus sedimentary rocks). This two-fold subdivision is in widespread usage in north-western Mexico, where many of the region’s precious and base metal deposits are found in the Lower Group and the Upper Group acts as a cover, concealing mineralization. Several significant deposits are the same age or occur in the Upper Volcanic sequence such as El Sauzal (Goldcorp), Mulatos (Alamos Gold) and a very recent discovery, the Orisyvo gold deposit (Fresnillo PLC), which is reported to have indicated & inferred resources of 2.72 million ounces of gold in oxides and 6.51 million ounces of gold in sulphides.