Continuum Resources Ltd.
TSX VENTURE : CNU

Continuum Resources Ltd.

May 31, 2006 10:44 ET

Continuum Commences Underground Diamond Drilling at the Natividad Gold/Silver Mine, Oaxaca, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2006) - Continuum Resources Ltd (TSX VENTURE:CNU) is pleased to announce exploration progress, including the start of a underground diamond drilling, at their Natividad gold-silver deposit located near the city of Oaxaca, Oaxaca State, southern Mexico. Continuum is now in a position to begin drilling from underground stations on Level 1 to confirm the up-dip and down-dip extent of the mineralization, to test at least three other sub-parallel vein systems, and to follow the zone with additional underground drifting towards the north. Recent exploration by Continuum, including the rehabilitation of underground exploration tunnels, has identified the northern continuation of the orebody (the Northern Extension Zone) to the north of a major, E-W-oriented fault (the Capulalpam fault). The objective of this drilling program is to define the vertical and horizontal dimensions of the potential panel of mineralization north of the Capulalpam fault, and to provide geochemical assays from the major vein systems. This fault has offset the deposit and marks the northern limit of historic mining. The Company continues to work on the site preparations of additional drill stations on levels 1 and 6. Natividad is a bonanza-grade, epithermal gold-silver deposit which has produced over 1 million ounces of gold and 23 million ounces of silver since the 1930's.

One of the most significant historic drill intersections at Natividad reported by ASARCO in their limited, 1992 underground drilling program (hole N-18), intersected the same vein which has recently been exposed and sampled in the Northern Extension Zone. This drill hole returned 14.6 gpt of gold and 81 gpt silver over a true thickness of 4.95 meters. This Level 1 intersection is located approximately 500 meters south of, and 500 meters below, two ASARCO surface holes which graded 36 gpt gold and 315 gpt silver over 0.6 meters in their hole N-20, and 45 gpt gold and 120 gpt silver over 0.7 meters in hole N-24.

Another ASARCO underground hole, N-8, was drilled into an argillically-altered monzonite on Level 1 and yielded an average grade of 0.6 gpt gold over a drilled interval of 50.0 meters. This hole presents the possibility of an additional target for large-tonnage, low-grade gold mineralization in the monzonite, which overlies the high-grade, shale-hosted vein mineralization. The current drilling program will also test the low-grade, bulk-tonnage potential of the monzonite.

Concurrently, caved mine adits in the Manchega area, situated 1.5 km southwest of the Level 1 Natividad mine entrance, are being opened and rehabilitated by Continuum for sampling, with the objective of outlining additional drill targets outside of the main mine workings. Surface sampling over the entrance of the Manchega adit yielded 6.7 meters (true width) grading 7.25 gpt gold and 67 gpt silver (reported in a Continuum news release dated January 26, 2005). The first fifty meters of the Manchega adit have now been rehabilitated for sampling. The Manchega area was the focus of early mining in the Natividad district although it was abandoned when higher grade gold and silver ores were discovered in the main Natividad mine in the 1950's.

The Qualified Person for this project, under the definition established by National Instrument 43-101, is Lawrence Dick, Ph.D., P.Geo. Geochemical analyses were carried out by ALS Chemex in North Vancouver, B.C.

On behalf of Continuum Resources Ltd.

Greig Hutton, P.Eng.

President


Contact Information

  • Continuum Resources Ltd
    Greig Hutton, P.Eng.
    President
    (604) 629 0000
    or
    Continuum Resources Ltd
    Leighton Bocking
    Investor Relations
    (604) 629-0000
    info@continuumresources.com