Good day. And welcome to the Comstock Mining Q3 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to your moderator Corrado De Gasperis. Please go ahead.

Thanks, Keith, and good morning and afternoon, everyone. It's Corrado here, CEO of Comstock Mining. And welcome to our 2017 third quarter conference call. We've completed our third quarter review efficiently with Deloitte & Touche and filed our full third quarter and year-to-date financial statements on Form 10-Q last night, and released the summary of those results through our press release this morning. Our third quarter was extremely focused on productive as we consummated various strategic initiatives especially the joint venture option agreement with Tonogold Resources, while closing on land and water sales at higher values, reducing our debt, closing the quarter with a significantly enhanced balance sheet. And we also received during the quarter of 2017, the Nevada Excellence in Mine Reclamation Award recognized for some of the most excellent mine reclamation in Nevada. This happens to be our second first place recognition in last three years which this year awarded only to three firms, Newmont, Kinross and Comstock Mining. We also progressed to additional strategic collaborations. Before I get into some of the details let me highlight that if we don't have a copy of today's release handy, you'll find a copy on our website at www.comstockmining.com under news/press release. We will keep the same format as previously for the call taking as many questions as time will allow. And then I'll be available after the call as always for any Q&A or any follow up remarks that people might want to call in on. If you are unable to ask questions in the call again remember we can be available afterwards. Before I do begin let me also say that any statements related to matter that are not purely historical facts may constitute forward-looking statements. These statements based on current expectations and are subject to the same…

[Operator Instructions] We will take our first question from Jake Sekelsky with Roth Capital. Please go ahead.

Hi, Corrado. Good, how are you? Just a quick question on your option agreement with Tonogold. Just hoping to get some color here. Can you just speak to their strategy for funding? And maybe some of the milestones that which you keep an eye out over call it the next 12 months.

. Yes, absolutely. Jake, thank you for the question. So we were extremely diligent working together with Tono and developing the plan and in terms of their funding strategy not only did we have direct contact and exposure to their lead investors but in fact they visited the site and participated in parts of due diligence. And so it was very, very important for us that this was phased very carefully. I would say both for protection of the company but also to position the success of the joint venture, almost all decisions have been consistent with that. And to that end it was very important not only to us but our investors that they were fully funded through that first phase. So not only they invested a tremendous amount of energy and capital leading up to this but therefore we funded those beautiful six months. That first six months includes a $1 million commitment for not only very, very strong work on the build up from the ground up of the resource in Lucerne but also designing, developing and it will be ultimately to Mark and the technical committee about the commence of drilling. So tremendous amount of benefit and information should flow from that first six months. And that should parlay it right into the second phase of which I am not intimate with all of the components of it but we know that there is already strong commitment from some strong institutions moving towards into the second phase. So we feel very, very good about it. But we also feel very good about the way it was structured so that it's methodical, it's diligent, it's from the ground up and of course Mark's transparency with us seems to be his same philosophy with his investors. So he is going to be very transparent. He is going to very communicative and we'll be doing that often together.

Got it, got it, all right, thanks. I am looking forward to updates on this JV going forward. It seems like you guys are taking the right steps to move forward with Lucerne.

Thank you, Jake. Thank you. Appreciate that very much.

We'll take the next question from Eliot Cohen with Oppenheimer. Please go ahead.

Hello. Thank you for taking my call, Corrado. Very good, very good. I just wanted to congratulate you on what I perceive as operational excellence here with all the milestones you completed and all the promises you kept here. It's a very impressive list, your strategic and operational highlights for the third quarter here as I review them and listen to you talk and we are just looking forward to getting these properties active. We are looking for some high grade drill results because that's what gets investors excited, that's what I am excited about as a reproving the greatness of the Comstock Lode which I think you are very close to doing in the next couple of years.

Thank you, Eliot. I appreciate that. I think that the last 12 months we had a lot of hard work including the establishment of this joint venture agreement. We planted some very good seeds with new development and we are well on our way to strengthen the balance sheet with the land sales and debt. I personally feel like the activities have gone from 80% fixed to 20% development so hopefully now 95 plus percent development and marching forward to really make 2018 an extremely meaningful year.

We will take the next question from Chip Unsworth with Legend Merchants. Please go ahead.

Hey, Corrado. How are you? So the properties are up for sale I just want to kind of look back on a couple of things that I read before the water rights that you have attached to the industrial property. What is the actual amount that you need to keep on those 98 acre?

Good question. So the industrial property has 98 acres. We believe that it can operate effectively. It's about anywhere from 20 to let say 40 acres feet of water right. What's important is that the water right that we just sold is just a little over 50 acre feet. The second portion of that sale was at $1,500 an acre foot. So we are sitting with well over --

So what's a math on that?

Well, we are sitting over 200 remaining which put the value at over $3 million just for the remaining water rights. Now even though some of those would stay with the land, they would still have to be purchased with that land. So obviously it's important to have them associated. So the land effective for the buyer but acreage and the water rights together we are looking at where from still $9 million to $10 million realized. So it itself would pay off the remainder of our debt. Having said that, the Daney Ranch is looking to bring an ultimately $4.4 million - $3.5 million plus immediately really which gives us a direct path. They are not only paying off of all our debt --

Does the Daney Ranch have water right also or is that only for a commercial purpose.

Oh yes, no, no, it comes with the sufficiency of water rights. We don't talk about those separately but they are there as well, yes, so both of the properties are uniquely positioned right on Highway 50 zoned properly, certified and with all the water rights that need to operate.

So Google or any of these other companies that are moving in area they are going to be doing construction, they need to have water rights, is that correct?

100% correct and as they continue to come in and accumulate their needs, all of the periphery around it which is developing now just faster have growing this right. So just becomes scarcer and scarcer.

All right then well keep it up, so see the stock move up.

Appreciate it very much, thank you.

And we will take our next question from [indiscernible]

Yes, hello, Mr. De Gasperis. I am a shareholder and supporter of Comstock and I just want to say thanks for taking the call on this open form. I read in your report the strategic collaboration that you have with Itronics Inc, and I am familiar with Itronics and some of its successes. But my question is this with a new collaboration and its focus on the KAM-Thio technology, what are the key benefits that you envision will come from this collaboration?

So it's really fascinating. Dr. Whitney with Itronics has really created an extraction technology using non cyanide materials that is effective very effective on silver. So the idea here is to see if testing on our existing leach pad and when you think about leach pad across the data, the best of the best probably we ranked at the top of the list with maybe historically 59% yield or some maybe 50%. This is an opportunity to see can we extract some portion efficiently of that remaining silver. What's fascinating is the material used to do that also effectively remediates and cleanse the pad. So an almost immediate benefit potentially the largest benefit would be we are remediating the pad and saving substantial all, substantially majority if not substantially all of the future cost. Our bond for that is almost $7 million. So you have the possibility of increased revenue. You have the possibility of efficiently cleansing your pad in the same process. And ultimately if that cleansing is super efficient, if it is super effective then you can actually reuse component for the pad and avoid capital. So it's a technology that has been approving in various other applications. It's working in a pilot phase. We are still at the front end of the testing. We've gotten through bottle roll test that have been very successful. We are looking to start some column testing here in November. So a lot of pretty exciting possibility, application certainly then could extend way beyond our operation as well. So I hope that's helpful. We are excited about that. That we felt it was important to acknowledge it because of the investments that Itronics has already made and some of the early successes frankly.

Right on. Well, thanks for that. I appreciate it. I do find it fascinating the environmentally friendly work that you are doing and the awards that you've received. So just keep up the good work and appreciate the answer.

And there appears we have no further questions at this time. I'll return the floor to you Corrado for any closing remarks.

I just want to thank everybody for their interest. I think we had a very, very hard tough march to this place. We feel confident and good about where we are going. We have the clear path with our projects and with our partners. So we are looking forward to a lot more updates, a lot more of the update being value creating being very prospective looking. And look forward to much more frequent communication. Please again to this end if anybody wants to have any further communication, please don't hesitate to call us directly and have a great day.

And this will conclude today's program. Thanks for your participation. You may now disconnect.