TORONTO, ONTARIO--(Marketwire - Nov. 12, 2012) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 14 diamond drill-holes and also underground channel sampling from the Yaraguá vein system ("Yaraguá") at the Buriticá project in Antioquia, Colombia. Seven drills are currently on site as part of the Company's Phase IV, minimum 100,000-metre diamond drill program for 2012-2013.
Highlights
Yaraguá Vein System (Figures 1 and 2)
- Step-out deep drilling in western Yaraguá has intersected high-grade gold in BUSY291, including:
- 65.1 metres @ 10.4 g/t Gold and 9 g/t Silver, including 6.95 metres @ 65.5 g/t Gold and 33 g/t Silver
- 1.65 metres @ 65 g/t Gold and 63 g/t Silver
These intercepts are approximately 200 metres to the west of the current mineral resource estimate model announced on October 1, 2012 (the "Resource Model") prepared in accordance with National Instrument 43-101 ("NI 43-101") and are among the deepest intersections (around 630 metres in elevation ("RL")) obtained in Yaraguá drilling to date.
- Infill drilling in western Yaraguá continued to demonstrate high gold grades in the Murcielagos family of veins at intermediate elevations (RL 1,322 - RL 1,280 metres), with significant intercepts in BUSY285, including:
- 8.3 metres @ 8.3 g/t Gold and 11 g/t Silver, including 2.5 metres @ 14.1 g/t Gold and 14 g/t Silver
- 2.0 metres @ 21.1 g/t Gold and 9 g/t Silver
- 2.05 metres @ 14.2 g/t Gold and 8 g/t Silver
- Drilling in west-central and central Yaraguá has increased confidence in the high grades modeled in the central vein families in this area. Intercepts in the Sofia Vein include:
- 1.5 metres @ 31.7 g/t Gold and 7 g/t Silver (RL 1,222 metres, BUSY286)
- 0.5 metres @ 44 g/t Gold and 310 g/t Silver (RL 1,265 metres, BUSY289)
- 1.5 metres @ 45.9 g/t Gold and 10 g/t Silver (120 metres further east, RL 1,471 metres, BUUY077)
- BUUY077 also intersected high grades in the northern vein families, including:
- 1.4 metres @ 12.3 g/t Gold and 9 g/t Silver (San Antonio Vein, RL 1,457 metres)
- 1.6 metres @ 22.8 g/t Gold and 60 g/t Silver (Vein D, RL 1,447 metres)
- Systematic channel sampling along substantial strike lengths of existing underground development on the San Antonio vein in central Yaraguá demonstrated higher grades and thickness than the drilling-based Resource Model in this area, including:
- 49.8 g/t Gold and 68 g/t Silver over 1.35 metres average true width along 27 metres (RL 1,515 metres)
- 13.1 g/t Gold and 42 g/t Silver over 1.57 metres average true width along 36 metres (RL 1,450 metres)
- Drilling in eastern Yaraguá extended some veins and also demonstrated grades, for the most part, similar to or higher than comparable areas of the Resource Model. Highlights of intercepts include:
Murcielagos South vein family:
- 9.0 metres @ 7.2 g/t Gold and 14 g/t Silver (RL 1,395 metres, BUSY301)
Murcielagos vein family:
- 5.3 metres @ 6.6 g/t Gold and 46 g/t Silver, including 1.4 metres @ 13.6 g/t Gold and 147 g/t Silver (RL 1,207 metres, BUSY279)
- 0.6 metres @ 99.2 g/t Gold and 24 g/t Silver (RL 1,333 metres, BUSY294)
- 1.1 metres @ 14.9 g/t Gold and 5 g/t Silver (RL 1,386 metres, BUSY301)
- 2.5 metres @ 8.1 g/t Gold and 15 g/t Silver (RL 1,337 metres, BUSY301)
Central vein families:
- 5.95 metres @ 10.9 g/t Gold and 23 g/t Silver, including 0.9 metres @ 41.4 g/t Gold and 101 g/t Silver (PRE vein, RL 1,236 metres, BUSY294)
- 1.0 metres @ 11.0 g/t Gold and 109 g/t Silver (Vein B, RL 1,223 metres, BUSY294)
- 1.6 metres @ 11.7 g/t Gold and 134 g/t Silver (Vein C, RL 1,347 metres, BUUY075)
Northern vein families:
- 1.9 metres @ 12.6 g/t Gold and 1 g/t Silver (HW vein, RL 1,360 metres, BUUY076)
- 0.6 metres @ 15.7 g/t Gold and 41 g/t Silver (San Antonio vein, RL 1,278 metres, BUUY082)
- 1.1 metres @ 10.5 g/t Gold and 7 g/t Silver (FW vein, RL 1,157 metres, BUSY301)
- Additional new veins were encountered to the north and south of the Yaraguá Resource Model, including:
- 1.0 metres @ 13.1 g/t Gold and 145 g/t Silver (Northern Yaraguá, RL 1,309 metres, BUUY076)
- 1.4 metres @ 0.6 g/t Gold and 299 g/t Silver (Southern Yaraguá, RL 1,583 metres, BUSY248)
"BUSY291 is a very significant hole for the Company as it continues with the trend of finding high grades and large widths in deep drilling," commented Ari Sussman, CEO. "We are eagerly anticipating the start of underground development as eventual deep drilling from underground should provide significant excitement and potential mineral resource growth."
Details
Continental's 100%-owned, 57,641-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 900 metres of strike and 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 570 metres of strike and 1,180 vertical metres. 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 updated mineral resource estimates for the Buriticá project prepared in accordance with NI 43-101.
Yaraguá
Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.
| Table I: Drilling Highlights - Yaraguá |
|||||||
| Drill-hole | From (m) |
To (m) |
Interval (m) |
Gold (g/t) |
Silver (g/t) |
Zinc (%) |
Elevation (m) |
| BUSY248 | 31.50 | 33.00 | 1.50 | 0.24 | 58.0 | 0.04 | 1619 |
| 82.80 | 84.20 | 1.40 | 0.61 | 299.1 | 4.35 | 1583 | |
| 453.30 | 454.25 | 0.95 | 2.50 | 3.8 | 0.01 | 1341 | |
| 461.00 | 462.20 | 1.20 | 1.82 | 16.0 | 0.03 | 1334 | |
| 494.20 | 495.40 | 1.20 | 1.32 | 3.1 | 0.01 | 1305 | |
| BUSY279 | 60.00 | 61.50 | 1.50 | 0.87 | 26.8 | 0.11 | 1481 |
| 114.20 | 116.20 | 2.00 | 1.15 | 8.6 | 0.11 | 1451 | |
| 165.42 | 166.00 | 0.58 | 5.90 | 40.8 | 1.21 | 1404 | |
| 178.00 | 179.00 | 1.00 | 1.51 | 20.3 | 0.14 | 1392 | |
| 245.60 | 246.50 | 0.90 | 1.45 | 14.5 | 0.43 | 1330 | |
| 266.20 | 266.75 | 0.55 | 1.72 | 11.4 | 3.65 | 1311 | |
| 305.00 | 306.55 | 1.55 | 2.47 | 0.4 | 0.01 | 1274 | |
| 345.90 | 347.50 | 1.60 | 4.90 | 5.3 | 1.78 | 1238 | |
| 379.30 | 384.60 | 5.30 | 6.55 | 46.4 | 0.95 | 1207 | |
| incl. | 379.30 | 380.70 | 1.40 | 13.60 | 147.0 | 1.76 | 1202 |
| 509.00 | 509.55 | 0.55 | 2.82 | 18.6 | 0.08 | 1086 | |
| BUSY283 | 43.50 | 44.75 | 1.25 | 1.16 | 10.4 | 0.03 | 1486 |
| 109.00 | 110.00 | 1.00 | 3.71 | 25.3 | 0.01 | 1457 | |
| 123.70 | 125.00 | 1.30 | 2.93 | 28.0 | 0.02 | 1440 | |
| 162.00 | 163.90 | 1.90 | 1.37 | 8.1 | 0.20 | 1405 | |
| 178.00 | 179.10 | 1.10 | 5.34 | 6.0 | 0.21 | 1391 | |
| 181.70 | 182.70 | 1.00 | 4.19 | 13.6 | 1.49 | 1387 | |
| 185.70 | 186.30 | 0.60 | 3.56 | 47.5 | 4.70 | 1383 | |
| 196.90 | 197.40 | 0.50 | 14.10 | 17.7 | 2.83 | 1372 | |
| 228.10 | 229.00 | 0.90 | 1.77 | 4.4 | 0.21 | 1348 | |
| 250.20 | 251.40 | 1.20 | 6.34 | 2.1 | 0.09 | 1323 | |
| 257.70 | 259.00 | 1.30 | 1.80 | 5.7 | 0.90 | 1316 | |
| 277.00 | 278.00 | 1.00 | 0.44 | 99.4 | 0.30 | 1298 | |
| 307.80 | 309.20 | 1.40 | 2.72 | 10.3 | 0.73 | 1272 | |
| 340.00 | 341.45 | 1.45 | 2.14 | 9.2 | 3.82 | 1239 | |
| 380.50 | 392.30 | 11.80 | 2.24 | 24.3 | 0.78 | 1199 | |
| 438.50 | 440.00 | 1.50 | 7.85 | 6.7 | 0.16 | 1148 | |
| 545.60 | 547.50 | 1.90 | 1.28 | 2.6 | 0.03 | 1050 | |
| BUSY285 | 357.00 | 359.00 | 2.00 | 1.81 | 17.6 | 0.22 | 1405 |
| 388.20 | 388.70 | 0.50 | 7.11 | 13.2 | 0.37 | 1374 | |
| 448.00 | 456.30 | 8.30 | 8.31 | 11.3 | 0.47 | 1322 | |
| incl. | 448.50 | 451.00 | 2.50 | 14.09 | 14.2 | 0.86 | 1316 |
| 474.00 | 476.00 | 2.00 | 5.65 | 4.5 | 0.06 | 1300 | |
| 486.00 | 488.00 | 2.00 | 21.05 | 9.4 | 0.08 | 1289 | |
| 496.60 | 498.65 | 2.05 | 14.17 | 7.9 | 0.13 | 1280 | |
| incl. | 496.60 | 497.10 | 0.50 | 51.90 | 23.3 | 0.15 | 1280 |
| 501.00 | 502.00 | 1.00 | 8.43 | 5.5 | 0.07 | 1275 | |
| 516.25 | 517.00 | 0.75 | 3.65 | 5.8 | 0.02 | 1264 | |
| BUSY286 | 49.95 | 51.00 | 1.05 | 3.33 | 2.6 | 0.02 | 1545 |
| 173.85 | 176.43 | 2.58 | 5.35 | 21.5 | 0.54 | 1435 | |
| 250.70 | 251.20 | 0.50 | 3.34 | 20.0 | 0.16 | 1367 | |
| 317.00 | 318.00 | 1.00 | 9.08 | 6.1 | 0.51 | 1307 | |
| 332.00 | 334.94 | 2.94 | 2.24 | 1.7 | 0.04 | 1293 | |
| 357.00 | 358.00 | 1.00 | 10.40 | 24.5 | 0.15 | 1272 | |
| 369.00 | 373.00 | 4.00 | 3.01 | 76.3 | 0.32 | 1255 | |
| 397.00 | 398.00 | 1.00 | 2.77 | 31.5 | 0.15 | 1237 | |
| 402.00 | 403.44 | 1.44 | 2.17 | 20.1 | 0.33 | 1231 | |
| 412.50 | 414.00 | 1.50 | 31.70 | 7.0 | 0.02 | 1222 | |
| 435.00 | 439.00 | 4.00 | 2.50 | 30.9 | 0.17 | 1201 | |
| 454.40 | 456.00 | 1.60 | 1.76 | 16.2 | 0.22 | 1191 | |
| 464.40 | 465.15 | 0.75 | 11.40 | 7.4 | 0.11 | 1177 | |
| 470.00 | 471.00 | 1.00 | 1.68 | 2.6 | 0.02 | 1165 | |
| BUSY289 | 240.00 | 241.50 | 1.50 | 1.34 | 9.0 | 0.10 | 1384 |
| 249.80 | 251.00 | 1.20 | 2.84 | 5.7 | 0.05 | 1376 | |
| 294.60 | 295.50 | 1.50 | 8.91 | 8.7 | 0.31 | 1338 | |
| 331.50 | 333.00 | 1.50 | 3.00 | 2.7 | 0.03 | 1305 | |
| 352.20 | 355.20 | 3.00 | 4.70 | 6.6 | 0.11 | 1287 | |
| 375.00 | 376.40 | 1.40 | 2.95 | 4.2 | 0.21 | 1275 | |
| 384.20 | 384.70 | 0.50 | 44.00 | 310.0 | 7.75 | 1265 | |
| 393.50 | 395.00 | 1.50 | 2.75 | 2.4 | 0.12 | 1253 | |
| 399.00 | 402.00 | 3.00 | 1.93 | 18.5 | 0.89 | 1247 | |
| 412.10 | 413.50 | 1.40 | 7.61 | 55.4 | 0.42 | 1237 | |
| 450.00 | 451.50 | 1.50 | 2.91 | 18.3 | 0.57 | 1205 | |
| 488.00 | 490.00 | 2.00 | 2.09 | 3.1 | 0.12 | 1172 | |
| BUSY291 | 1233.50 | 1235.15 | 1.65 | 65.02 | 63.2 | 0.09 | 654 |
| 1257.50 | 1322.60 | 65.10 | 10.42 | 8.8 | 0.01 | 635 | |
| incl. | 1270.65 | 1277.60 | 6.95 | 65.54 | 33.0 | 0.01 | 619 |
| incl. | 1276.00 | 1277.60 | 1.60 | 192.00 | 90.5 | 0.02 | 603 |
| BUSY294 | 44.50 | 45.50 | 1.00 | 1.00 | 91.4 | 0.10 | 1487 |
| 60.00 | 61.00 | 1.00 | 4.82 | 0.6 | 0.02 | 1483 | |
| 88.60 | 91.00 | 2.40 | 1.63 | 24.2 | 0.17 | 1476 | |
| 156.75 | 159.25 | 2.50 | 3.87 | 6.0 | 0.52 | 1422 | |
| 161.60 | 162.60 | 1.00 | 4.20 | 43.9 | 0.51 | 1417 | |
| 189.10 | 189.60 | 0.50 | 2.99 | 47.1 | 8.93 | 1394 | |
| 259.40 | 260.00 | 0.60 | 99.20 | 24.4 | 3.99 | 1333 | |
| 309.15 | 310.15 | 1.00 | 14.55 | 5.7 | 0.14 | 1290 | |
| 322.50 | 324.50 | 2.00 | 1.74 | 4.5 | 1.34 | 1279 | |
| 331.50 | 333.00 | 1.50 | 3.17 | 0.7 | 0.01 | 1270 | |
| 351.80 | 355.00 | 3.20 | 1.65 | 9.3 | 0.75 | 1254 | |
| 357.60 | 359.00 | 1.40 | 1.17 | 4.6 | 0.56 | 1247 | |
| 373.45 | 379.40 | 5.95 | 10.90 | 23.1 | 0.60 | 1236 | |
| incl. | 378.50 | 379.40 | 0.90 | 41.35 | 100.6 | 0.49 | 1232 |
| 381.55 | 386.00 | 4.45 | 3.73 | 27.1 | 0.33 | 1227 | |
| 384.40 | 385.40 | 1.00 | 10.99 | 108.5 | 1.09 | 1223 | |
| 447.55 | 448.20 | 0.65 | 3.65 | 7.1 | 0.18 | 1171 | |
| 504.70 | 505.20 | 0.50 | 3.75 | 15.9 | 0.04 | 1122 | |
| BUSY301 | 97.00 | 101.10 | 4.10 | 3.13 | 20.9 | 0.09 | 1476 |
| 122.15 | 125.10 | 2.95 | 2.40 | 2.2 | 0.16 | 1454 | |
| 176.55 | 180.80 | 4.25 | 1.47 | 3.3 | 0.26 | 1412 | |
| 184.00 | 192.40 | 8.40 | 1.67 | 6.1 | 0.64 | 1404 | |
| 194.80 | 203.80 | 9.00 | 7.15 | 13.7 | 0.37 | 1395 | |
| incl. | 199.00 | 200.10 | 1.10 | 28.19 | 31.6 | 0.15 | 1393 |
| 206.00 | 207.90 | 1.90 | 2.72 | 14.3 | 1.40 | 1389 | |
| 213.30 | 214.40 | 1.10 | 14.85 | 5.2 | 0.64 | 1386 | |
| 265.50 | 268.00 | 2.50 | 8.05 | 14.6 | 0.63 | 1337 | |
| 286.00 | 288.85 | 2.85 | 2.97 | 17.2 | 1.17 | 1320 | |
| 311.50 | 312.45 | 0.95 | 1.96 | 9.8 | 0.11 | 1300 | |
| 324.70 | 325.50 | 0.80 | 1.15 | 32.9 | 0.79 | 1290 | |
| 339.70 | 341.00 | 1.30 | 7.20 | 57.3 | 1.12 | 1278 | |
| 345.60 | 347.10 | 1.50 | 5.73 | 6.5 | 0.44 | 1273 | |
| 368.70 | 369.40 | 0.70 | 2.48 | 27.1 | 0.32 | 1260 | |
| 404.45 | 406.40 | 1.95 | 1.44 | 8.7 | 0.15 | 1227 | |
| 412.35 | 414.00 | 1.65 | 2.98 | 3.5 | 0.19 | 1220 | |
| 452.50 | 453.30 | 0.80 | 3.50 | 22.6 | 0.35 | 1189 | |
| 491.40 | 492.50 | 1.10 | 10.45 | 7.4 | 0.08 | 1157 | |
| BUUY075 | 45.40 | 47.00 | 1.60 | 11.70 | 134.4 | 0.11 | 1347 |
| 70.00 | 71.00 | 1.00 | 3.12 | 1.7 | 0.01 | 1329 | |
| 113.20 | 114.70 | 1.50 | 1.46 | 7.5 | 0.03 | 1296 | |
| 184.50 | 186.00 | 1.50 | 1.36 | 1.8 | 0.10 | 1244 | |
| 235.70 | 236.40 | 0.70 | 1.15 | 26.4 | 0.18 | 1206 | |
| 249.60 | 251.30 | 1.70 | 0.34 | 81.6 | 0.32 | 1195 | |
| 259.00 | 259.60 | 0.60 | 4.43 | 6.2 | 0.01 | 1187 | |
| 270.50 | 271.05 | 0.55 | 2.93 | 20.3 | 0.16 | 1179 | |
| 305.40 | 305.90 | 0.50 | 1.57 | 15.9 | 1.82 | 1154 | |
| BUUY076 | 33.40 | 34.00 | 0.60 | 5.76 | 21.2 | 0.01 | 1367 |
| 50.10 | 52.00 | 1.90 | 12.55 | 1.4 | 0.05 | 1360 | |
| 85.00 | 87.00 | 2.00 | 2.77 | 1.7 | 0.01 | 1347 | |
| 146.80 | 148.00 | 1.20 | 3.32 | 39.5 | 0.95 | 1319 | |
| 168.00 | 169.00 | 1.00 | 13.08 | 145.3 | 1.13 | 1309 | |
| 286.50 | 288.40 | 1.90 | 1.40 | 3.4 | 0.12 | 1260 | |
| BUUY077 | 75.00 | 76.50 | 1.50 | 45.90 | 10.4 | 0.05 | 1471 |
| 84.00 | 85.50 | 1.50 | 4.32 | 3.1 | 0.51 | 1465 | |
| 99.60 | 101.00 | 1.40 | 12.25 | 9.0 | 1.33 | 1457 | |
| 127.50 | 129.10 | 1.60 | 22.80 | 60.3 | 1.50 | 1447 | |
| BUUY082 | 53.00 | 54.35 | 1.35 | 4.70 | 0.9 | 0.01 | 1334 |
| 68.00 | 69.10 | 1.10 | 1.58 | 28.8 | 0.73 | 1322 | |
| 78.75 | 79.65 | 0.90 | 3.40 | 235.4 | 1.99 | 1313 | |
| 98.30 | 99.60 | 1.30 | 0.50 | 33.0 | 0.51 | 1296 | |
| 119.10 | 119.70 | 0.60 | 15.70 | 40.5 | 1.37 | 1278 | |
| 213.80 | 215.40 | 1.60 | 2.04 | 15.2 | 0.60 | 1199 | |
| 227.10 | 231.00 | 3.90 | 1.50 | 11.0 | 1.89 | 1188 | |
| 272.00 | 274.50 | 2.50 | 1.57 | 2.0 | 0.17 | 1150 | |
| 284.25 | 285.75 | 1.50 | 1.28 | 14.7 | 0.22 | 1141 | |
| 303.00 | 306.30 | 3.30 | 0.89 | 9.5 | 1.02 | 1122 | |
| BUUY084 | 8.10 | 9.20 | 1.10 | 3.91 | 5.9 | 0.21 | 1488 |
| 107.10 | 111.70 | 4.60 | 2.92 | 5.8 | 0.13 | 1400 | |
| 123.30 | 125.35 | 2.05 | 2.11 | 2.1 | 0.04 | 1387 | |
| 175.00 | 175.80 | 0.80 | 4.28 | 12.9 | 1.39 | 1343 | |
| *Intercepts calculated at 1 g/t gold + 30 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 30% and actual true width of the down-hole interval. | |||||||
BUSY291 was drilled successfully from the south through the central Veta Sur vein system (see October 29, 2012 news release for Veta Sur assay results). The hole then continued into western Yaraguá (Figure I), intersecting high-grade vein mineralization (from 1,233.5 metres down-hole, 1.65 metres @ 65.0 g/t Gold and 63 g/t Silver) and a broad intercept (from 1,257.5 metres, 65.1 metres @ 10.4 g/t Gold and 9 g/t Silver, including 6.95 metres @ 65.5 g/t Gold and 33 g/t Silver) comprising multiple high-grade veins (including 1.6 metres @ 192 g/t Gold and 91 g/t Silver). These intercepts are more than 200 metres west of the Yaraguá Resource Model at around RL 630 metres and are among the deepest intercepts encountered in Yaraguá drilling to date. The low base metal contents and other geochemical characteristics of the deep intercepts in BUSY291 are similar to other intercepts of deep mineralization encountered at Buriticá to date. Artisanal workings, located some 1,200 metres above the deep intercepts in BUSY291, are consistent with the large vertical extent of the mineralization seen elsewhere at Buriticá.
BUSY285, also continued from Veta Sur (see October 29, 2012 news release for Veta Sur assay results) into western Yaraguá, encountered good grades and thicknesses in the Murcielagos family of veins, expanding a high-grade section in the Resource Model at approximately RL 1,300 metres. Significant Murcielagos intercepts between 448 metres and 499 metres down-hole included 8.3 metres @ 8.3 g/t Gold and 11 g/t Silver (including 2.5 metres @ 14.1 g/t Gold and 14 g/t Silver), 2.0 metres @ 21.1 g/t Gold and 9 g/t Silver and also 2.05m @ 14.2 g/t Gold and 8 g/t Silver).
Drilling in west-central Yaraguá (BUSY286, BUSY289) and central Yaraguá (BUUY077, BUUY084) generally intersected grades comparable with those of the Resource Model, increasing confidence in the high grades modeled in the central vein families in these areas. Intercepts of the Sofia Vein included:
- 1.5 metres @ 31.7 g/t Gold and 7 g/t Silver (RL 1,222 metres, BUSY286)
- 0.5 metres @ 44 g/t Gold and 310 g/t Silver (1,265 metres, BUSY289)
- 1.5 metres @ 45.9 g/t Gold and 10 g/t Silver (120 metres further east, RL 1,471 metres, BUUY077)
BUUY077 also intersected high grades in the northern vein families, including:
- 1.4 metres @ 12.3 g/t Gold and 9 g/t Silver (San Antonio Vein, RL 1,457 metres)
- 1.6 metres @ 22.8 g/t Gold and 60 g/t Silver (Vein D, RL 1,447 metres)
Also in central Yaraguá, systematic sampling of the San Antonio vein set was undertaken on new underground development 50 metres further east on Level NV (RL 1,515 metres) and at 65 metres lower RL on Level 2. Results are tabulated below:
Table II: Underground channel sampling - Yaraguá
| 0 g/t gold cut-off | ||||||
| Segment | RL (m) |
Length* (m) |
Average Width (m) |
Gold (g/t) |
Silver (g/t) |
Zinc (%) |
| San A Vein Set | 1515 | 27 | 1.35 | 49.76 | 68.4 | 2.02 |
| San A Vein Set | 1450 | 36 | 1.57 | 13.10 | 41.7 | 0.62 |
| * Channel samples taken across the roof of the underground opening, spaced every 3 metres along the tabulated strike length. Widths are true horizontal. | ||||||
On both levels, high grades were continuous over substantial strike lengths; on Level NV, the San Antonio vein along 27 metres averaging 49.8 g/t Gold and 68 g/t Silver over an average true width of 1.35 metres. For both sets of samples, the gold and silver grades are higher than in comparable areas of the Resource Model, which was based on drilling prior to the underground sampling.
In eastern Yaraguá, drilling tested mainly the southern and central vein families (BUSY301, BUSY294, BUSY283 and BUSY279) and also the central and northern vein packages (BUUY075, BUUY076 and BUUY082). This drilling generally intersected grades comparable to or greater than in the Resource Model, extended some modeled veins and encountered new veins to both the north and south of the Resource Model.
BUSY301 intersected the Murcielagos South vein family (9.0 metres @ 7.2 g/t Gold and 14 g/t Silver, including 1.1 metres @ 28.2 g/t Gold and 32 g/t Silver, from 194.8 metres down-hole) at RL 1,395 metres and on the margins of the Resource Model. This intercept is consistent with the grades of the Murcielagos South vein family generally increasing to depth and to the west, where this vein family has been encountered in deep drilling to RLs around 800 metres.
BUSY279, BUSY294 and BUSY301 intersected the Murcielagos vein family over RLs ranging from 1,207 metres to 1,386 metres, demonstrating higher grades and/or thickness on the margins of the Resource Model and further defining an area of good grade thickness in eastern Yaraguá. Murcielagos vein family intercepts include:
- 5.3 metres @ 6.6 g/t Gold and 46 g/t Silver, including 1.4 metres @ 13.6 g/t Gold and 147 g/t Silver (RL 1,207 metres, BUSY279)
- 0.6 metres @ 99.2 g/t Gold and 24 g/t Silver (RL 1,333 metres, BUSY294)
- 1.1 metres @ 14.9 g/t Gold and 5 g/t Silver (RL 1,386 metres, BUSY301)
- 2.5 metres @ 8.1 g/t Gold and 15 g/t Silver (RL 1,337 metres, BUSY301)
The central vein families in Yaraguá east were also intersected by all drill-holes in this area, at grades generally consistent with the Resource Model. Intercepts in the central vein family include:
- 5.95 metres @ 10.9 g/t Gold and 23 g/t Silver, including 0.9 metres @ 41.4 g/t Gold and 101 g/t Silver (PRE vein, RL 1,236 metres, BUSY294)
- 1.0 metres @ 11 g/t Gold and 109 g/t Silver (Vein B, RL 1,223 metres, BUSY294)
- 1.6 metres @ 11.7 g/t Gold and 134 g/t Silver (Vein C, RL 1,347 metres, BUUY075)
The northern vein families in Yaraguá east were intersected by the drill-holes and added further definition to these vein families. Significant intercepts include:
- 1.9 metres @ 12.6 g/t Gold and 1 g/t Silver (HW vein, RL 1,360 metres, BUUY076)
- 0.6 metres @ 15.7 g/t Gold and 41 g/t Silver (San Antonio vein, RL 1,278 metres, BUUY082)
- 1.1 metres @ 10.5 g/t Gold and 7 g/t Silver (FW vein, RL 1,157 metres, BUSY301)
BUUY075 and BUUY076 continued to the north, intersecting several sets of veins with moderate to high silver/gold, outside of the Resource Model, including, in BUUY076, from 168 metres down-hole (RL 1,309 metres), 1.0 metres @ 13.1 g/t Gold and 145 g/t Silver.
BUSY279, BUSY283, BUSY294 and BUSY301 drilled in eastern Yaraguá, and BUSY248 drilled in the central Yaraguá area, all intersected multiple veins of the Yaraguá South vein family, all outside of the Resource Model. Intercepts were mainly of modest grades and moderate to high silver/gold, but indicate this family of veins extend over more than 500 metres lateral strike and more than 500 metres of vertical strike. Further drilling is required to clarify whether this vein family exhibits potentially mineable grades at depth.
BUSY248 also discovered a family of veins in the far south of Yaraguá (Figure I). These veins exhibit very high silver/gold at RLs around 1,600 metres, intercepts include 1.4 metres @ 0.6 g/t Gold, 299 g/t Silver and 4.35% Zinc.
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. Core is sawn in half with one-half shipped to a sample preparation lab in Medellín run by ALS Colombia Limited ("ALS") in Colombia. 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 ACME Analytical Laboratories in Vancouver, British Columbia and/or Inspectorate America Corp. in Reno, Nevada.
The Company does not receive assay results for drill-holes in sequential order; however, all assay results are publicly reported. A complete listing of assay results to date for the Buriticá project is available on the Company's website at www.continentalgold.com.
For additional technical information on the Buriticá project, please refer to the Company's technical report (the "Technical Report") entitled "Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated October 24, 2011, as amended November 23, 2011, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.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 October 1, 2012, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% zinc.
In August 2012, Continental achieved an important milestone, receiving formal approval for the modification of its existing Environmental Impact Assessment. The amendment allows the Company to build a six-kilometre switchback road and begin underground development by constructing a one-kilometre access tunnel. With a goal of being the first modern-day gold producer in Colombia, Continental will commence the construction of the access tunnel in H2 2012, initially providing access for underground drilling and eventually used for commercial production. A Phase IV drill program is underway at the Buriticá project to further delineate the mineral resource and drill new target zones identified within its concessions.
Additional details on the Buriticá project 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, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and 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, 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 forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and 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.
To view figure 1, "Plan View of new drilling highlights, showing also the surface projection of veins in the October 1, 2012 resource estimate model," please visit the following link: http://media3.marketwire.com/docs/ContinentalGoldfigure1.pdf.
To view figure 2, "Longitudinal Section of Yaraguá drilling and underground sampling highlights and also the October 1, 2012 resource estimate model," please visit the following link: http://media3.marketwire.com/docs/ContinentalGoldfigure2.pdf.
Contact Information:
Nisha Hasan
Director, Investor Relations
+1.416.583.5611
info@continentalgold.com
www.continentalgold.com