Continental Gold Ltd.
TSX : CNL
OTCQX : CGOOF

Continental Gold Ltd.

April 07, 2015 06:30 ET

Continental Gold Continues to Drill Greater Grades and Widths than the Current Mineral Resource Block Model for the Veta Sur Vein System, Buritica, Colombia

TORONTO, ONTARIO--(Marketwired - April 7, 2015) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 15 diamond drill-holes through the eastern Veta Sur vein system at the Company's 100%-owned Buriticá project in Antioquia, Colombia. Drilling continues with the goal of upgrading Inferred resources into the Measured and Indicated categories under National Instrument 43-101 ("NI 43-101") guidelines, and delivering overall robust mineral resource growth.

Highlights (referenced in Figures 1, 2 and 3)

  • Drilling was successful in infilling sections of the eastern Veta Sur vein system, covering more than 200 metres of lateral strike by 700 metres of vertical extent. Additionally, some drill-holes continued north past the Veta Sur vein system and infilled sections of the western portion of the Yaraguá vein system covering more than 300 metres of lateral strike by 300 metres of vertical extent.

  • Step-out drilling extended the eastern Veta Sur system below and to the south of the current mineral resource envelope.

  • Infill drill-holes encountered multiple vein families with grades X thicknesses that are substantially greater than those expected from the current mineral resource block model for Veta Sur. Broad and/or high-grade intercepts in related Veta Sur master veins include:

    • 7.1 metres @ 19.9 g/t gold and 64 g/t silver, including 1.95 metres @ 51.5 g/t gold and 84 g/t silver (BUUY288D01, V26, elevation of 1,067 metres);
    • 0.5 metres @ 67.4 g/t gold and 17 g/t silver (BUUY288D01, V24, elevation of 1,050 metres);
    • 9.96 metres @ 15.4 g/t gold and 61 g/t silver, including 1.16 metres @ 52.1 g/t gold and 235 g/t silver (BUUY288D02, V30, elevation of 1,066 metres);
    • 4.33 metres @ 40.4 g/t gold and 20 g/t silver, including 1.08 metres @ 150.8 g/t gold and 59 g/t silver (BUUY288D03, V30, elevation of 1,173 metres);
    • 6.08 metres @ 97 g/t gold and 17 g/t silver, including 1.65 metres @ 352.2 g/t gold and 47 g/t silver (BUUY288D04, V30, elevation of 1,133 metres);
    • 2.13 metres @ 49.2 g/t gold and 9 g/t silver (BUUY288D04, V24, elevation of 1,106 metres);
    • 8.35 metres @ 13.1 g/t gold and 42 g/t silver, including 1.0 metres @ 50.9 g/t gold and 82 g/t silver (BUUY288D06, V24, elevation of 1,001 metres);
    • 1.15 metres @ 43.1 g/t gold and 14 g/t silver (BUUY288D07, V30, elevation of 1,115 metres); and
    • 2.4 metres @ 1.5 g/t gold and 1,303 g/t silver (BUUY298, V62, elevation of 1,398 metres).

  • These and other intercepts in the 1,000 to 1,400-metre range of elevations confirm the continuity of, and extend high grade sub-domains within, the northern packages of veins in eastern Veta Sur, contributing to increased confidence levels of high-grade gold and silver mineral resources in this area. The grade X thicknesses of these veins are particularly encouraging as the drilled area is proximal to the main haulage development proposed in the 2014 Preliminary Economic Assessment (the "PEA").

  • Drill-holes that penetrated to the north of Veta Sur into the western Yaraguá vein system encountered multiple vein families with grades X thicknesses that are substantially greater than those expected from the current mineral resource block model for Yaraguá. Broad and/or higher-grade intercepts in related master veins include:

    • 1.01 metres @ 7.7 g/t gold and 192 g/t silver (BUUY288D05, VNB, elevation of 1,161 metres);
    • 6.9 metres @ 10.4 g/t gold and 15 g/t silver, including 1.1 metres @ 39.9 g/t gold and 32 g/t silver (BUUY288D07, MU1, elevation of 1,093 metres); and
    • 0.8 metres @ 13.9 g/t gold and 7 g/t silver (BUUY298, MU11, elevation of 1,505 metres).

  • Step-out drilling also intersected multiple veins outside of the current Veta Sur and Yaraguá mineral resource envelopes. Key intercepts, below or to the south of Veta Sur, include:

    • 1.25 metres @ 0.1 g/t gold and 392 g/t silver (BUUY288D, elevation of 1,539 metres);
    • 0.65 metres @ 7.8 g/t gold and 146 g/t silver (BUUY288D03, elevation of 1,403 metres);
    • 1.72 metres @ 24.4 g/t gold and 35 g/t silver (BUSY368D02, elevation of 1,345 metres); and
    • 0.5 metres @ 15.6 g/t gold and 24 g/t silver (BUUY368D03, elevation of 1,321 metres).

  • These and other extensions of the Veta Sur system shown in Table 1 are all in proximity to mining development proposed in the PEA. Most of the vein families in eastern Veta Sur remain open to depth and to the east. High-grade mineralization encountered in this area located outside of the current mineral resource block model is encouraging and may contribute to future mineral resource growth.

"Results from the 2014 infill and extension drilling program in Veta Sur continue to demonstrate robust continuity of master veins, commonly with better grades than predicted from the current mineral resource estimate," commented Ari Sussman, President and CEO of Continental. "This bodes well for the next mineral resource estimate for the Buriticá project, anticipated in late Q2 2015, as well as for the future development of Veta Sur."

Details

Continental's 100%-owned, 59,285-hectare project, Buriticá, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style ("Stage I") variably overprinted by texturally and chemically distinctive high-grade ("Stage II") mineralization. The two most extensively explored of these areas (the Yaraguá and Veta Sur systems) are central to this land package. The Yaraguá system has been drill-outlined along 1,100 metres of strike and 1,700 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 1,000+ metres of strike and 1,800 vertical metres and has been partially sampled in underground developments. Both systems are characterized by multiple, steeply-dipping veins and broader, more disseminated mineralization and both remain open at depth and along strike, at high grades. See "About Continental Gold" below for a précis of the PEA prepared in accordance with NI 43-101. This release documents the results of infill and extension drilling through the eastern Veta Sur and parts of western Yaraguá. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1, 2 and 3.

Table I: Drilling Highlights

Drill-hole From
(m)
To
(m)
Intercept
*
Gold
(g/t)
Silver
(g/t)
Zinc
(%)
Elevation
(m)
Vein**
BUUY286 1.63 3.15 1.52 1.03 3.4 0.20 1511 MU10
42.63 43.20 0.57 1.66 6.2 0.09 1528 outside
127.15 128.23 1.08 1.78 24.4 0.04 1563 70
131.65 134.00 2.35 2.23 28.3 0.12 1566 110
165.00 166.00 1.00 2.88 11.9 0.04 1579 125
BUUY288D 6.30 6.80 0.50 1.81 18.2 4.97 1693 outside
32.00 33.00 1.00 1.15 0.7 0.01 1671 outside
40.20 41.00 0.80 4.80 8.7 1.40 1664 outside
107.20 107.70 0.50 0.63 71.6 1.34 1606 outside
177.50 178.55 1.05 0.04 356.0 0.02 1545 outside
184.05 185.30 1.25 0.12 391.6 0.63 1539 outside
282.10 283.10 1.00 1.29 10.2 0.12 1454 outside
310.25 311.10 0.85 1.27 1.2 0.13 1429 outside
BUUY288D01 23.65 25.20 1.55 4.59 26.5 0.11 1406 below
28.00 29.00 1.00 1.97 11.9 0.05 1403 below
55.90 56.45 0.55 2.41 6.9 0.07 1379 below
93.40 96.80 3.40 1.50 11.9 0.02 1346 below
110.00 110.60 0.60 1.99 5.5 0.02 1334 130
140.50 141.00 0.50 13.40 33.0 0.31 1308 125
155.50 156.00 0.50 6.04 9.1 0.01 1296 123
162.60 163.10 0.50 5.11 15.1 0.03 1290 120
206.50 207.00 0.50 2.59 9.7 0.08 1253 110
266.67 267.20 0.53 3.52 8.8 0.15 1202 62
288.46 289.15 0.69 3.17 7.5 0.02 1184 48
337.50 338.10 0.60 24.20 51.1 0.03 1143 41
344.00 345.55 1.55 7.43 33.9 0.02 1137 39
359.80 361.00 1.20 4.75 8.0 0.25 1124 34
364.00 365.00 1.00 7.09 2.8 0.03 1121 32
408.50 409.00 0.50 3.49 24.2 0.01 1084 30
417.00 417.50 0.50 7.23 5.9 0.01 1077 28
422.90 430.00 7.10 19.86 64.4 0.10 1067 26
incl 425.20 427.15 1.95 51.51 83.7 0.26
449.55 450.05 0.50 67.40 17.4 0.01 1050 24
BUUY288D02 19.00 20.10 1.10 5.53 42.6 0.06 1405 outside
21.10 22.60 1.50 3.46 66.5 0.22 1402 outside
96.55 99.00 2.45 2.16 15.2 0.02 1337 below
115.75 116.30 0.55 6.12 21.5 0.06 1322 below
122.00 122.65 0.65 3.15 8.5 0.14 1317 below
132.08 133.10 1.02 6.44 23.5 0.09 1308 130
149.00 149.65 0.65 3.92 8.1 0.03 1294 dilution
152.65 153.20 0.55 5.38 7.8 0.13 1291 125
159.50 160.12 0.62 3.18 14.5 0.07 1285 dilution
164.85 165.43 0.58 8.06 9.5 0.13 1280 123
170.25 171.30 1.05 28.85 16.3 0.05 1275 120
259.02 260.46 1.44 2.11 10.2 0.04 1200 70
266.50 267.35 0.85 3.31 5.1 0.09 1194 62
294.85 295.50 0.65 3.09 19.0 0.05 1171 dilution
299.36 300.57 1.21 14.85 7.2 0.34 1167 48
314.45 315.10 0.65 7.21 4.0 0.07 1155 43
331.90 332.40 0.50 4.58 6.0 0.02 1140 42
354.58 355.58 1.00 22.00 24.1 0.17 1121 39
375.45 376.00 0.55 4.99 21.9 0.03 1105 34
392.65 393.20 0.55 4.99 5.5 0.01 1091 32
405.00 405.60 0.60 8.29 24.2 0.03 1081 31
413.74 423.70 9.96 15.44 61.0 0.21 1066 30
incl 419.50 420.55 1.05 40.60 228.9 0.19
and 422.04 423.20 1.16 52.10 235.3 1.51 28
443.55 445.80 2.25 3.33 8.1 0.01 1049 26
BUUY288D03 4.35 4.95 0.60 4.20 69.3 0.06 1405 outside
6.15 6.80 0.65 7.76 146.0 0.42 1403 outside
34.75 35.40 0.65 3.18 16.9 0.40 1380 below
64.70 66.70 2.00 1.51 8.7 0.02 1356 below
75.47 80.05 4.58 1.56 7.7 0.04 1345 below
102.50 105.20 2.70 1.62 4.8 0.05 1326 130
113.60 114.10 0.50 14.30 44.9 0.08 1318 125
118.85 120.14 1.29 2.36 6.1 0.02 1314 123
143.22 143.75 0.53 12.65 52.0 0.04 1296 120
193.80 195.95 2.15 1.50 5.3 0.01 1257 65
225.65 226.35 0.70 3.65 2.5 0.47 1235 48
255.70 256.30 0.60 3.79 20.3 0.03 1214 42
266.95 267.45 0.50 3.03 3.5 0.02 1206 41
279.80 280.83 1.03 3.55 12.5 0.02 1196 34
282.02 282.60 0.58 6.20 10.1 0.02 1195 32
298.10 298.65 0.55 3.52 26.9 0.08 1184 31
309.65 313.98 4.33 40.35 19.8 0.19 1173 30
incl 312.90 313.98 1.08 150.76 59.2 0.69
316.42 316.92 0.50 20.00 58.2 0.18 1171 30
318.00 321.50 3.50 5.56 16.6 0.14 1168 28
330.90 331.40 0.50 13.80 9.1 0.14 1161 26
347.00 351.88 4.88 6.24 10.8 0.11 1147 24
incl 348.75 350.03 1.28 15.33 25.8 0.02
BUUY288D04 49.10 57.00 7.90 1.53 12.5 0.03 1345 below
71.00 72.05 1.05 2.15 4.1 0.07 1332 below
94.50 97.30 2.80 2.72 8.3 0.04 1312 130
106.50 110.10 3.60 4.95 13.1 0.03 1301 125
129.50 133.50 4.00 4.31 6.8 0.02 1282 120
150.00 155.20 5.20 2.29 5.1 0.07 1264 110
170.10 171.10 1.00 2.51 1.6 0.08 1251 75
204.52 205.45 0.93 1.44 4.1 0.13 1224 62
258.40 260.71 2.31 3.23 2.9 0.16 1180 42
273.50 276.50 3.00 3.07 4.4 0.02 1168 39
301.09 304.30 3.21 4.45 5.8 0.02 1147 32
306.70 307.20 0.50 6.79 6.0 0.03 1144 31
317.07 323.15 6.08 97.00 16.5 0.07 1133 30
incl 317.07 318.72 1.65 352.22 47.4 0.09
324.40 326.04 1.64 2.68 4.2 0.04 1130 dilution
338.24 338.74 0.50 4.43 4.5 0.03 1121 28
351.60 355.94 4.34 4.68 7.6 0.05 1108 26
incl 352.50 353.55 1.05 12.10 13.1 0.12
357.27 359.40 2.13 49.15 9.0 0.08 1106 24
434.35 436.74 2.39 3.81 4.6 0.00 1051 below
486.60 487.20 0.60 3.66 2.1 0.02 1016 below
BUUY288D05 56.25 59.50 3.25 2.14 14.7 0.03 1346 130
83.15 84.00 0.85 4.13 18.2 0.28 1328 125
89.00 89.50 0.50 3.24 7.8 0.09 1325 123
95.60 98.00 2.40 1.93 5.2 0.04 1319 120
124.50 126.00 1.50 1.95 2.4 0.07 1303 115
168.00 174.65 6.65 2.24 28.8 0.08 1278 48
209.00 210.00 1.00 7.97 84.4 0.04 1261 34
230.60 231.70 1.10 4.14 5.1 0.04 1251 31
234.00 235.70 1.70 4.52 4.5 0.05 1249 30
238.60 239.40 0.80 7.49 11.0 0.10 1247 28
265.75 266.40 0.65 1.98 8.2 1.02 1234 24
352.45 353.16 0.71 1.23 1.1 0.01 1196 below
385.66 386.24 0.58 3.05 4.0 0.13 1183 below
412.37 413.90 1.53 1.28 3.1 0.01 1172 PRE
440.92 441.93 1.01 7.67 192.3 0.45 1161 VNB
462.65 466.40 3.75 2.09 1.6 0.01 1152 VNC
471.18 471.85 0.67 8.45 7.0 0.01 1150 SOF
486.82 487.35 0.53 1.51 181.0 0.07 1145 SAV
BUUY288D06 30.50 43.00 12.50 1.30 12.5 0.04 1338 below
63.30 63.80 0.50 13.20 14.4 0.28 1319 130
68.35 69.05 0.70 4.90 242.0 0.23 1314 dilution
71.50 74.30 2.80 3.06 8.6 0.11 1310 dilution
93.10 99.45 6.35 3.77 6.2 0.05 1287 125
147.40 148.00 0.60 2.58 5.8 0.30 1242 115
196.00 197.00 1.00 3.33 3.6 0.26 1198 70
229.75 230.25 0.50 3.31 53.2 0.06 1168 below
263.55 264.10 0.55 7.11 16.0 0.02 1137 48
342.70 343.30 0.60 2.84 16.9 0.02 1066 34
392.75 393.25 0.50 8.28 23.4 0.01 1021 31
402.80 405.85 3.05 11.88 28.8 0.08 1010 30
407.55 415.90 8.35 13.14 42.1 0.02 1001 24
incl 411.10 413.75 2.65 16.60 42.4 0.03
and 414.90 415.90 1.00 50.85 81.8 0.04
446.00 447.00 1.00 2.70 1.3 0.01 974 MU1
467.50 468.50 1.00 3.05 1.1 0.01 955 below
630.30 631.40 1.10 1.72 8.1 0.02 813 below
683.50 685.70 2.20 1.73 1.8 0.01 768 below
BUUY288D07 7.90 15.40 7.50 1.34 12.8 0.03 1343 below
26.60 27.30 0.70 2.57 7.6 0.04 1332 below
38.50 39.50 1.00 6.35 86.4 0.03 1322 130
43.40 56.20 12.80 3.03 8.8 0.06 1308 123
70.50 71.50 1.00 10.60 13.9 0.05 1296 120
88.50 89.10 0.60 3.91 5.6 0.04 1281 115
96.00 96.50 0.50 6.98 3.3 0.03 1275 90
114.25 114.85 0.60 1.99 14.1 0.02 1259 75
155.00 155.50 0.50 3.21 2.4 0.30 1226 62
187.40 188.45 1.05 2.32 5.7 0.24 1199 48
218.60 219.20 0.60 3.54 14.4 0.02 1174 41
263.00 265.05 2.05 10.07 28.1 0.03 1136 34
273.80 276.85 3.05 7.78 16.8 0.07 1126 31
280.00 282.50 2.50 8.77 15.2 0.12 1122 30
incl 281.25 282.50 1.25 12.63 23.1 0.23
284.40 285.00 0.60 29.50 60.4 0.24 1119 30
288.70 289.85 1.15 43.13 13.5 0.02 1115 30
310.70 317.60 6.90 10.41 15.4 0.08 1093 MU1
incl 315.00 316.10 1.10 39.93 32.1 0.19
385.80 386.75 0.95 7.93 4.6 0.02 1036 MU10
395.35 396.35 1.00 2.18 4.1 0.01 1028 MU
399.10 399.70 0.60 0.16 125.0 0.14 1025 below
432.75 433.30 0.55 2.58 4.1 0.02 997 below
490.85 491.40 0.55 2.04 1.3 0.01 950 below
499.00 500.00 1.00 4.60 14.6 0.01 944 PRE
525.45 526.00 0.55 1.41 2.6 0.03 922 VNB
BUUY298 3.60 4.40 0.80 13.90 7.2 0.27 1505 MU11
15.50 16.20 0.70 1.31 3.5 0.09 1497 MU1
61.00 62.00 1.00 1.76 4.9 0.12 1467 39
100.13 103.85 3.72 1.79 9.0 0.20 1438 42
106.66 111.50 4.84 3.33 19.6 0.08 1433 43
114.00 114.50 0.50 9.07 8.6 0.07 1431 48
121.40 122.00 0.60 7.33 121.0 0.22 1426 below
128.40 129.50 1.10 3.52 8.5 0.03 1421 below
139.50 140.00 0.50 7.58 28.4 0.04 1414 51
151.50 153.00 1.50 5.23 8.3 0.08 1405 62
162.40 164.80 2.40 1.51 1302.5 1.64 1398 62
175.00 176.00 1.00 3.12 4.3 0.30 1390 dilution
180.80 182.00 1.20 5.10 64.3 0.19 1386 65
190.00 191.80 1.80 2.57 13.1 0.02 1380 dilution
213.00 213.80 0.80 5.26 5.8 0.10 1365 70
245.00 246.00 1.00 3.71 6.7 0.09 1344 75
250.00 251.00 1.00 2.86 17.0 0.22 1341 dilution
257.00 257.50 0.50 7.11 23.1 0.13 1337 90
269.50 272.00 2.50 2.97 6.1 0.04 1328 110
277.70 278.80 1.10 2.87 6.9 0.06 1324 dilution
285.80 286.30 0.50 3.57 20.7 0.06 1319 115
320.00 321.75 1.75 7.79 6.4 0.04 1297 120
322.50 326.00 3.50 2.83 5.4 0.05 1294 dilution
333.50 335.00 1.50 2.91 3.2 0.05 1289 dilution
337.00 338.70 1.70 3.71 1.5 0.02 1287 123
355.00 357.20 2.20 10.49 11.6 0.18 1275 125
363.20 363.70 0.50 10.20 36.9 0.08 1271 130
370.50 371.10 0.60 9.06 3.4 0.04 1266 140
BUUY301 2.80 3.40 0.60 1.00 30.0 0.55 1513 outside
110.70 111.30 0.60 2.13 3.1 0.23 1583 41
146.50 147.50 1.00 0.93 24.6 0.61 1606 42
184.20 185.00 0.80 1.85 4.7 0.45 1631 43
186.00 187.00 1.00 3.23 5.1 0.57 1632 48
BUSY368D02 23.50 24.50 1.00 5.74 10.9 0.07 1431 outside
26.60 27.30 0.70 7.34 14.7 0.26 1429 outside
32.30 34.17 1.87 4.99 14.2 0.38 1422 outside
65.70 67.00 1.30 3.69 7.9 0.22 1390 outside
126.20 127.92 1.72 24.38 34.5 0.44 1345 outside
186.90 187.70 0.80 2.05 9.1 0.02 1311 below
206.05 207.60 1.55 3.24 13.6 0.11 1299 below
225.40 225.90 0.50 1.90 6.1 0.05 1280 120
295.25 296.85 1.60 9.64 5.2 0.03 1217 125
308.50 309.45 0.95 1.87 0.8 0.02 1206 below
BUSY368D03 13.27 13.77 0.50 15.55 24.0 0.02 1321 outside
20.36 22.97 2.61 2.93 11.4 0.18 1313 outside
25.10 25.80 0.70 5.45 5.2 0.86 1310 outside
45.60 46.15 0.55 9.44 16.9 0.03 1292 outside
100.40 101.20 0.80 1.80 13.2 0.57 1246 outside
184.20 185.10 0.90 2.00 7.4 0.28 1175 below
202.46 203.05 0.59 2.28 5.9 0.12 1160 130
303.00 303.63 0.63 2.72 7.1 0.01 1076 below
BUSY371D 82.90 84.80 1.90 1.41 3.8 0.06 1658 outside
87.80 88.65 0.85 0.63 127.0 3.83 1654 outside
136.20 136.75 0.55 0.71 380.0 2.16 1616 outside
270.60 272.05 1.45 2.24 5.1 1.26 1510 outside
280.70 281.30 0.60 3.85 30.5 1.59 1502 outside
298.70 299.20 0.50 0.05 333.0 0.15 1488 outside
341.10 342.35 1.25 1.11 3.7 0.02 1454 outside
GEOMK16 165.90 168.20 2.30 3.20 63.5 0.55 1595 170
196.55 197.70 1.15 3.19 27.8 1.04 1570 160
205.90 209.60 3.70 2.71 9.6 0.16 1561 dilution
211.90 212.45 0.55 12.25 10.1 0.18 1558 150
213.60 214.10 0.50 4.47 4.9 0.36 1557 dilution
248.50 249.30 0.80 2.84 14.0 0.27 1527 140
251.00 254.15 3.15 2.83 13.3 0.21 1524 130
267.90 268.50 0.60 23.10 18.8 0.18 1511 125
284.10 285.10 1.00 3.59 8.7 0.05 1497 dilution
295.10 295.80 0.70 4.11 28.6 0.19 1488 123
304.90 307.35 2.45 1.54 7.3 0.13 1479 dilution
310.05 310.55 0.50 3.80 12.3 0.16 1476 dilution
312.45 313.00 0.55 4.33 7.5 0.05 1474 120
326.75 327.60 0.85 13.70 17.6 0.34 1462 115
352.60 356.20 3.60 1.60 15.2 0.01 1439 110
368.95 371.10 2.15 2.79 12.6 0.04 1426 90
383.40 384.55 1.15 3.39 143.1 1.54 1415 70
397.60 402.05 4.45 1.98 65.0 0.22 1401 65
406.15 410.70 4.55 3.59 74.8 0.10 1394 62
414.86 415.70 0.84 3.31 30.3 0.02 1390 51
461.82 463.50 1.68 2.37 30.7 0.02 1351 42
467.63 468.40 0.77 2.76 6.3 0.01 1347 41
* Intercepts calculated at 1 g/t gold + 50 g/t silver cut-off grades for minimum intervals of 0.5 metres, with up to 30% internal dilution. True widths not accurately known but generally are between +50 to +80% of the down-hole interval but +30 to +40% for more oblique holes (GEOMK16 and BUUY298). Drill-holes designated "BUUY" were collared from underground, and drill-holes designated "BUSY" were collared at surface. Holes directionally-drilled from "mother holes" (BUUYDxxx or BUSYDxxx) are designated BUUYxxxDxx or BUSYxxxDxx, as the case may be.
** Intercepts in vein domains are respectively nominated by vein code (e.g. VNC and other alpha-numerics for Yaraguá, Vxxx for Veta Sur) whereas other intercepts are designated as below or outside of the current Buriticá mineral resource envelopes. Dilution is defined as new mineralization outside of modelled vein domains. Intercepts with grades X thicknesses apparently substantially greater than for the corresponding vein domains in the current mineral resource block model are also highlighted in bold.

Infill and extension drilling of eastern Veta Sur and western Yaraguá was accomplished mainly by directional methods in two fans of northwest-directed holes from underground and surface-collared mother holes. A third fan of southwest-directed holes was drilled from underground in Yaraguá to examine eastern Veta Sur at substantially higher elevations than the directionally-drilled holes (Figures 1, 2 and 3). GEOMK16 was drilled from surface, primarily for geotechnical purposes, but also infilled parts of the Veta Sur system at higher elevations.

In eastern Veta Sur, drill-holes encountered multiple vein families, through vertical extents of more than 700 metres and lateral extents of up to 300 metres, demonstrating the continuity of master vein families through such extents (Figures 1 and 2). Intercepts in these vein families (Table 1) generally exhibited apparent grades X thicknesses comparable with or substantially greater than those expected from the current Veta Sur mineral resource block model (Figure 2). Such broad and/or high-grade intercepts, in related master veins, include:

    • 0.6 metres @ 24.2 g/t gold and 51 g/t silver (BUUY288D01, V41, elevation of 1,143 metres);
    • 7.1 metres @ 19.9 g/t gold and 64 g/t silver, including 1.95 metres @ 51.5 g/t gold and 84 g/t silver (BUUY288D01, V26, elevation of 1,067 metres);
    • 0.5 metres @ 67.4 g/t gold and 17 g/t silver (BUUY288D01, V24, elevation of 1,050 metres);
    • 1.05 metres @ 28.9 g/t gold and 16 g/t silver (BUUY288D02, V120, elevation of 1,275 metres);
    • 9.96 metres @ 15.4 g/t gold and 61 g/t silver, including 1.05 metres @ 40.6 g/t gold and 229 g/t silver and 1.16 metres @ 52.1 g/t gold and 235 g/t silver (BUUY288D02, V30 and V28, elevation of 1,066 metres);
    • 4.33 metres @ 40.4 g/t gold and 20 g/t silver, including 1.08 metres @ 150.8 g/t gold and 59 g/t silver (BUUY288D03, V30, elevation of 1,173 metres);
    • 6.08 metres @ 97 g/t gold and 17 g/t silver, including 1.65 metres @ 352.2 g/t gold and 47 g/t silver (BUUY288D04, V30, elevation of 1,133 metres);
    • 2.13 metres @ 49.2 g/t gold and 9 g/t silver (BUUY288D04, V24, elevation of 1,106 metres);
    • 8.35 metres @ 13.1 g/t gold and 42 g/t silver, including 1.0 metres @ 50.9 g/t gold and 82 g/t silver (BUUY288D06, V24, elevation of 1,001 metres);
    • 1.15 metres @ 43.1 g/t gold and 14 g/t silver (BUUY288D07, V30, elevation of 1,115 metres);
    • 2.4 metres @ 1.5 g/t gold and 1,303 g/t silver (BUUY298, V62, elevation of 1,398 metres); and
    • 0.6 metres @ 23.1 g/t gold and 19 g/t silver (GEOMK16, V125, elevation of 1,511 metres).

These and other intercepts (highlighted in Table 1) in the 1,000 to 1,400-metre range of elevation confirm the continuity of, and extend high grade sub-domains within, the northern packages of veins in eastern Veta Sur (Figure 2) and will contribute to increased confidence levels of high-grade gold and silver mineral resources in this area. The grade X thicknesses of these veins are encouraging for future development of an area that is located close to main haulage development outlined in the PEA.

Drill-holes that penetrated to the north of Veta Sur into the western Yaraguá vein system (Figure 1) encountered multiple vein families with grades X thicknesses that are substantially greater than those expected from the current mineral resource block model for Yaraguá in this area. Broad and/or higher-grade intercepts in related master veins include:

    • 1.01 metres @ 7.7 g/t gold and 192 g/t silver (BUUY288D05, VNB, elevation of 1,161 metres);
    • 6.9 metres @ 10.4 g/t gold and 15 g/t silver, including 1.1 metres @ 39.9 g/t gold and 32 g/t silver (BUUY288D07, MU1, elevation of 1,093 metres); and
    • 0.8 metres @ 13.9 g/t gold and 7 g/t silver (BUUY298, MU11, elevation of 1,505 metres).

Step-out drilling also intersected multiple veins outside of the current Veta Sur and Yaraguá mineral resource envelopes (Table 1; Figures 2 and 3). Key intercepts, below or to the south of Veta Sur, include:

    • 1.25 metres @ 0.1 g/t gold and 392 g/t silver (BUUY288D, elevation of 1,539 metres);
    • 0.65 metres @ 7.8 g/t gold and 146 g/t silver (BUUY288D03, elevation of 1,403 metres);
    • 1.72 metres @ 24.4 g/t gold and 35 g/t silver (BUSY368D02, elevation of 1,345 metres); and
    • 0.5 metres @ 15.6 g/t gold and 24 g/t silver (BUUY368D03, elevation of 1,321 metres).

These and other extensions of the Veta Sur system shown in Table 1 are all in proximity to mining development proposed in the PEA. Most of the vein families in eastern Veta Sur remain open to depth and grades encountered in this drilling are encouraging for mineral resource growth in this area.

Technical Information

Vic Wall, PhD, special advisor to the Company and a qualified person for the purpose of NI 43-101, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Dr. Wall is a geologist with 35 years' experience in the minerals mining, consulting, exploration and research industries. Following a career in Australian and North American academes, he held senior positions in a number of multinational major and junior minerals companies. A Fellow of the Australian Institute of Geoscientists, Dr. Wall is Principal of Vic Wall & Associates, a Brisbane-based consultancy that provides geoscientific services to mineral companies and government agencies, worldwide.

The Company utilizes a rigorous, industry-standard QA/QC program. HQ and NQ core is sawn or split with one-half shipped to a sample preparation lab in Medellín run by ALS Colombia Limited ("ALS") in Colombia, whereas BQ core samples are full core. Samples are then shipped for analysis to an ALS-certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check assayed at SGS Colombia S.A., a certified assay laboratory in Medellín, Colombia.

The Company does not receive assay results for drill-holes in sequential order; however, all significant assay results are publicly reported. A listing of assay results to date for the Buriticá project is available on the Company's website at www.continentalgold.com.

For additional information on the Buriticá project, please refer to the PEA (entitled "Buritica Gold Project, NI 43-101 Technical Report Preliminary Economic Assessment, Antioquia, Colombia", and dated December 22, 2014 with an effective date of November 17, 2014), led by M3 Engineering and Technology of Tucson, Arizona, with contributions from other independent consultants including NCL Ingeneria y Construccion SPA, which was responsible for the underground mine plan for the Buriticá project. The PEA is preliminary in nature and includes inferred mineral resources that are considered to be too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty the PEA will be realized. Further, mineral resources are not mineral reserves and have not demonstrated economic viability. The PEA is available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.

About Continental Gold

Continental Gold Limited is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production. On November 17, 2014, the Company announced the PEA, the results of which included an 18-year mine life based on 20,055,000 tonnes grading 7.80 g/t gold and 19.35 g/t silver, resulting in 4,777,000 ounces of recovered gold and 7,088,000 ounces of recovered silver, and utilized the May 2014 mineral resource estimate prepared in accordance with NI 43-101. The PEA concludes an after-tax net present value at a 5% discount of $1.08 billion and an after-tax internal rate of return of 31.5% on an initial capital cost of $390.3 million with a payback of 2.8 years.

With a goal of being the newest large-scale hard rock gold producer in Colombia, Continental has achieved major advances in recent times and anticipates completing environmental permitting in 2015. A Phase VII drill program is underway at the Buriticá project to further delineate mineral resources and drill new target zones identified within its concessions.

Additional details on the Buriticá project, including the PEA, and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.

Forward-Looking Statements

This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, results of the PEA, advancing the Buriticá project, exploration results, potential mineralization, potential development of mine openings, potential improvement of mining dilution grades, timing of an updated mineral resource estimate, and exploration and mine development plans, and is based on current expectations that involve a number of significant business risks and uncertainties. Forward-looking statements are subject to other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, an inability to advance the Buriticá project to the next level, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Specific reference is made to the most recent Annual Information Form on file with Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements, and are made as of the date hereof. The Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

Differences in Reporting of Resource Estimates

This press release was prepared in accordance with Canadian standards, which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources," "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). The CIM Standards differ significantly from standards in the United States. While the terms "mineral resource," "measured mineral resources," "indicated mineral resources," and "inferred mineral resources" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute "reserves" by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.

Figure 1 - Plan view of highlights of new drilling in eastern Veta Sur and western Yaraguá showing the surface projection of veins in the current (2014) Buriticá mineral resource model on geology-topography is available at the following address: http://media3.marketwire.com/docs/150307_CNL_Figure-1.pdf

Figure 2 - Cross-Section (line A-B on Figure 1) showing highlights of new drilling against the grades of veins from the 2014 Veta Sur mineral resource block model is available at the following address: http://media3.marketwire.com/docs/150307_CNL_Figure-2.pdf

Figure 3 - Long Section (line C-D on Figure 1) showing highlights of new drilling against the outlines of the 2014 Veta Sur mineral resource envelope is available at the following address: http://media3.marketwire.com/docs/150307_CNL_Figure-3.pdf

Contact Information