Continental Precious Minerals Inc.
TSX : CZQ

Continental Precious Minerals Inc.

October 16, 2014 08:30 ET

Continental Drills 0.46% Copper Equivalent at DOK

TORONTO, ONTARIO--(Marketwired - Oct. 16, 2014) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.

Continental Precious Minerals Inc. (TSX:CZQ) (the "Company", or "Continental") is pleased to announce the analytical results for the diamond drilling program completed on the DOK copper-gold project located in northwest British Columbia. The DOK property is located between the Schaft Creek and Galore Creek copper deposits to the south and the active exploration currently underway north of the Stikine River. Pursuant to an option agreement with Boxxer Gold Corp. (TSX VENTURE:BXX)(PINKSHEETS:BXXRF), Continental has the right to earn up to a 75% interest in the DOK Property if certain conditions are met (see Press Release on April 14, 2014). The 2014 diamond drilling program consisting of 2 holes totalling 834.9m has been completed. Highlights are:

Highlights:

  • Diamond drill hole (DDH) DOK-01-2014, returned three intervals of greater than 0.10% copper equivalent in potassic and phyllic altered andesite. The entire hole shows elevated concentrations of copper-gold-silver and molybdenum,
  • The lower 24.4 m of DDH DOK-01-2014 intersected 0.012% molybdenum as well as significant copper-gold-silver concentrations in hydrothermal breccia,
  • DDH DOK-2014-02 intersected three intervals averaging greater than 0.10% copper equivalent is in strongly potassic and phyllic altered andesite and quartz monzonite intrusive. This hole contains elevated concentration in copper-gold-silver,
  • The analytical results show a copper-gold-silver and a copper-gold-silver-molybdenum style of mineralization, and
  • The significant pyrite concentration in the drill hole combined with the analytical results, alteration, mineralogy and lithology suggest that the drilling may have intersected the outer edge of a hydrothermal porphyry copper-gold system.

The weighted average grade of the mineralized intervals in the two diamond drill holes are as follows:

DDH ID From (m) To (m) Interval (m) Copper (%) Gold (g/t) Silver (g/t) Molybdenum (%) CuEq (%)
DOK-01-2014 6.1 410.0 403.9 0.04 0.03 0.40 0.001 0.07
including 129.5 312.4 182.9 0.07 0.04 0.60 trace 0.11
including 275.8 294.1 18.3 0.33 0.13 1.90 0.001 0.46
including 385.6 410.0 24.4 0.03 0.05 0.98 0.012 0.14
DOK-02-2014 33.5 384.1 350.6 0.05 0.04 0.50 trace 0.08
including 33.5 88.4 54.9 0.11 0.06 1.64 trace 0.18
including 125.0 185.9 60.9 0.07 0.05 0.46 trace 0.12
including 289.6 304.8 15.2 0.03 0.09 0.62 trace 0.11

The above core interval do not represent true width of the mineralization

Cu Eq calculations assumes 100% metal recoveries and metal prices of $US2.75/lb copper, $US1445/oz. gold, $US27.74/oz. silver and $US14.64/lb molybdenum.

Mr. Vig, CEO of Continental stated that "We are pleased with the results of the 2014 drilling program and the confirmation at depth of broad intervals of porphyry copper style mineralization. The data suggest that these first two holes may have been completed on the outer edge of the porphyry system, which combined with the higher grade intervals, is considered very encouraging and warrants follow up work."

DDH DOK-01-2014 was designed to test a stronger portion of the chargeability signature. This hole intersected an 18.5m interval of higher grade copper-gold-silver mineralization within a broad interval of 0.11% CuEq. The lower interval in the hole yielded a 24.4m interval that returned 0.012% molybdenum as well as copper-gold-silver mineralization in a hydrothermal breccia. The interval in the hole between 6.1m and 129.5m returned variable metal values that ranged from 41 to 953 parts per million ("ppm") copper, 0.001 to 0.064g/t gold, 0.1 to 0.5 g/t silver and less than 1 to 11ppm molybdenum. The mineralization is not restricted to a specific lithology.

DDH DOK-02-2014 is located 400m along strike from DDH DOK-01-2014 to test a weaker portion of the chargeability signature. This hole intersected three broad intervals of copper-gold-silver mineralization. This hole contains no appreciable concentration of molybdenum. The interval from 289.6 to 304.8m returned a weighted average of 0.093g/t gold, 0.62g/t silver and 0.03% copper in hydrothermal breccia. The absence of molybdenum suggest that this hydrothermal breccia is different than that intersected in DDH DOK-01-2014. The mineralization in this hole occurs in several host rocks.

Diamond Drilling and Sampling Procedures:

The diamond drilling was completed using NQ core size. Overall core recovery was estimated to be greater than 97%. After cutting, one half of the core is collected for sample preparation and analysis and the other half is retained for future reference. Sample intervals were selected based on lithology changes/alteration intensity/estimated mineral content. The sample interval was maintained at 3.0m for the majority of the samples collected. Sample preparation was completed by ACME Analytical Laboratories Ltd ("ACME") located in Smithers, British Columbia and sample analyses were completed by ACME in Vancouver, British Columbia. Base metals were assayed using the ACME's standard sample preparation and ICP-ES finish. Lower detection limits are as follows: Cu >0.001%, Mo >0.001%, Silver values had a lower detection limit of 0.1g/t. Gold is assayed by fire assay - fusion of a 30-gram followed by ICP-ES finish; with a lower detection limit of 0.005 g/t. ACME has an 9001:2008 International Standard Organization rating.

Phil van Angeren, P.Geol., a qualified person pursuant to National Instrument 43-101, Standards for Disclosure for Mineral Projects, has reviewed, verified and approved the technical information disclosed in this news release.

Cautionary Statement Regarding Forward-Looking Statements

Forward-Looking Statements: This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with exploration, development, production, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, the Company will derive there from.

Readers are cautioned that the foregoing list of factors is not exhaustive. Actual results and developments may differ materially from those contemplated by these statements. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

Forward-looking statements in this news release are made as of the date of this release, and are made based on management's beliefs, estimates and opinions and the Company undertakes no obligation to update forward-looking statements and if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The forward looking statements or information contained in this press release are expressly qualified by this cautionary statement.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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