Continental Gold Inc.
TSX : CNL
OTCQX : CGOOF

Continental Gold Inc.

June 16, 2015 06:30 ET

Continental Gold Drills Broad and High-Grade Intervals in the Veta Sur and Yaraguá Systems at Buriticá, Colombia

TORONTO, ONTARIO--(Marketwired - June 16, 2015) - Continental Gold Inc. (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 20 diamond drill-holes through the Veta Sur and Yaraguá vein systems at the Company's 100%-owned Buriticá project in Antioquia, Colombia. An updated mineral resource estimate for the Buriticá project is nearing completion and the results below are the final assays to be included in the database prior to cut-off.

Highlights (referenced in Figures 1 and 2)

  • Step-out drilling was successful in extending the Veta Sur system to the east, to the west and to depth. These drill-holes also infilled areas of the Veta Sur and western Yaraguá systems over a significant range of elevations.
  • In eastern Veta Sur, drilling intersected high-grade veins below or to the east of the current Veta Sur mineral resource envelope. New intercepts include:
    • 5.55 metres @ 16.9 g/t gold and 56 g/t silver, including 1.2 metres @ 45.3 g/t gold and 96 g/t silver (BUUY311D02, elevation of 1,133 metres);
    • 1.3 metres @ 178.0 g/t gold and 109 g/t silver (BUUY311D03, elevation of 1,058 metres);
    • 5.7 metres @ 50.7 g/t gold and 25 g/t silver, including 1.06 metres @ 176.9 g/t gold and 89 g/t silver (BUUY311D05, elevation of 1,085 metres); and
    • 4.05 metres @ 21.5 g/t gold and 38 g/t silver, including 1.03 metres @ 68.5 g/t gold and 68 g/t silver (BUUY311D05, elevation of 1,058 metres).

These intercepts are interpreted to represent extensions of the northern Veta Sur vein families, covering a range of elevations. These vein families remain open along strike to the east at depth.

  • Infill drilling encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block models for eastern Veta Sur and for western Yaraguá. High-grade intercepts in related master veins, include:
  • 1.6 metres @ 75.3 g/t gold and 36 g/t silver (BUUY311D02, MU, elevation of 1,037 metres);
    • 1.0 metres @ 162.8 g/t gold and 30 g/t silver (BUUY311D03, V30, elevation of 1,089 metres);
    • 0.5 metres @ 40.2 g/t gold and 14 g/t silver (BUUY311D04, V30, elevation of 1,044 metres); and
    • 2.65 metres @ 91.2 g/t gold and 42 g/t silver, including 1.0 metres @ 237.1 g/t gold and 83 g/t silver (BUUY311D05, V42, elevation of 1,132 metres).

These and other infill intercepts extend higher grade sub-domains in several vein families in both the eastern Veta Sur and western Yaraguá systems.

  • In western and far western Veta Sur, step-out drilling intersected multiple veins below or outside of the current Veta Sur mineral resource envelope. Key high-grade and/or broad intercepts in these areas include:
    • 1.1 metres @ 41.9 g/t gold and 28 g/t silver (BUUY289D07, elevation of 913 metres);
    • 5.1 metres @ 16.5 g/t gold and 18 g/t silver, including 1.0 metres @ 70.4 g/t gold and 59 g/t silver (BUUY308D02, elevation of 1,177 metres);
    • 11.06 metres @ 11.7 g/t gold and 30 g/t silver, including 1.61 metres @ 31.6 g/t gold and 75 g/t silver (BUUY308D02, elevation of 871 metres);
    • 4.04 metres @ 29.9 g/t gold and 128 g/t silver, including 1.11 metres @ 63.0 g/t gold and 167 g/t silver (BUUY308D03, elevation of 1,041 metres); and
    • 3.53 metres @ 14.5 g/t gold and 115 g/t silver, including 2.03 metres @ 23.7 g/t gold and 190 g/t silver (BUSY372D06, elevation of 995 metres).

These and other intercepts are interpreted to represent extensions of both northern and southern Veta Sur vein families and are encouraging for mineral resource growth in the western portion of the Veta Sur system at moderate elevations in the range of 1,400-900 metres. These vein families remain open vertically and to the southwest.

  • Infill drilling in western Veta Sur encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model in this area. High-grade intercepts in related master veins, include:
  • 2.98 metres @ 19.2 g/t gold and 19 g/t silver, including 1.1 metres @ 33.0 g/t gold and 17 g/t silver (BUUY308D03, V41, elevation of 1,050 metres);
  • 2.13 metres @ 34.7 g/t gold and 124 g/t silver, including 1.05 metres @ 57.8 g/t gold and 219 g/t silver (BUUY308D04, V43, elevation of 1,218 metres);
    • 2.33 metres @ 45.8 g/t gold and 65 g/t silver, including 1.24 metres @ 81.7 g/t gold and 106 g/t silver (BUUY308D06, V43, elevation of 1,143 metres); and
    • 1.83 metres @ 40.7 g/t gold and 310 g/t silver (BUSY372D04, V110, elevation of 1,070 metres).

These and other infill intercepts extend high grade sub-domains in central and southern veins in western Veta Sur.
"Veta Sur continues to deliver robust results and we remain confident that this will be reflected in our upcoming updated mineral resource estimate", commented Ari Sussman, President and CEO of Continental.

Details

Continental's 100%-owned, 59,283-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 2014 Preliminary Economic Assessment (the "PEA") prepared in accordance with Canadian National Instrument 43-101 ("NI 43-101"). This release documents the results of extension and infill drilling through the Yaraguá and Veta Sur vein systems. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1, and 2.

Table I: Drilling Highlights

Hole ID From
(m)
To
(m)
Intercept*
(m)
Gold
(g/t)
Silver
(g/t)
Zinc
(%)
Elevation
(m)
Vein**
BUUY289D07 17.70 18.30 0.60 9.03 51.6 0.03 1326 below
109.65 110.40 0.75 1.84 2.9 0.02 1241 V48
269.45 277.48 8.03 6.51 9.1 0.01 1090 below
incl 271.15 272.60 1.45 25.17 17.2 0.01
295.15 295.70 0.55 12.90 73.9 0.13 1073 V39
328.54 329.20 0.66 1.65 1.6 0.01 1044 below
422.29 422.96 0.67 2.85 0.5 0.01 963 V34
480.80 481.90 1.10 41.91 28.4 0.21 913 outside
540.08 540.73 0.65 1.30 2.2 0.01 863 outside
BUUY308D 63.50 64.05 0.55 1.13 5.3 1.17 1598 outside
248.70 250.00 1.30 2.05 2.5 0.04 1434 outside
262.00 263.00 1.00 3.06 13.1 0.30 1422 outside
293.20 294.00 0.80 5.59 22.6 0.55 1394 outside
BUUY308D01 127.50 129.00 1.50 5.17 14.8 0.06 1177 V48
438.50 439.10 0.60 23.90 1.8 0.01 946 outside
442.00 442.60 0.60 7.84 6.0 0.01 944 outside
575.00 577.70 2.70 15.27 13.4 0.01 862 outside
582.45 583.45 1.00 2.21 23.9 0.09 859 outside
613.70 614.90 1.20 1.88 4.1 0.03 842 outside
643.85 644.50 0.65 1.50 2.4 0.01 826 outside
BUUY308D02 58.40 59.00 0.60 0.36 238.0 0.02 1225 V43
109.70 114.80 5.10 16.51 17.8 0.02 1177 outside
incl 112.30 113.30 1.00 70.35 59.3 0.08
402.00 404.30 2.30 11.30 19.0 0.02 931 outside
419.20 419.75 0.55 4.82 6.9 0.01 918 outside
445.52 446.17 0.65 9.86 14.1 0.01 897 outside
469.49 480.55 11.06 11.68 30.0 0.09 871 outside
incl 474.10 475.25 1.15 30.19 35.6 0.03
and 477.09 478.70 1.61 31.61 74.5 0.37
485.60 491.70 6.10 3.40 8.2 0.01 862 outside
incl 490.45 491.70 1.25 9.15 5.6 0.01
503.69 513.65 9.96 3.21 2.0 0.01 845 outside
527.75 528.25 0.50 8.12 4.7 0.00 834 outside
543.75 544.25 0.50 14.10 13.8 0.02 822 outside
587.60 589.20 1.60 2.72 2.9 0.03 789 outside
601.08 608.40 7.32 3.92 6.5 0.03 775 outside
BUUY308D03 45.65 46.60 0.95 11.15 15.3 0.68 1422 outside
78.00 78.50 0.50 13.55 24.7 0.51 1391 outside
128.95 129.56 0.61 2.70 25.4 2.01 1343 V120
178.72 179.25 0.53 2.12 0.7 0.00 1295 V110
414.08 414.69 0.61 1.97 3.0 0.02 1070 V48
425.56 426.45 0.89 10.45 5.7 0.01 1059 V43
433.80 436.78 2.98 19.15 19.0 0.01 1050 V41
incl 433.80 434.90 1.10 32.95 17.1 0.02
444.25 448.29 4.04 29.86 128.0 0.08 1041 below
incl 444.25 445.36 1.11 62.98 166.9 0.03
513.42 514.28 0.86 2.01 1.0 0.00 975 V39
546.75 547.25 0.50 2.07 9.0 0.01 943 V34
644.25 644.75 0.50 3.55 13.5 0.01 851 below
BUUY308D04 33.65 34.30 0.65 2.25 9.9 0.21 1428 outside
57.40 58.15 0.75 2.35 1.9 0.07 1407 outside
64.63 65.80 1.17 24.25 40.2 0.29 1401 outside
281.52 283.65 2.13 34.70 124.4 0.06 1218 V43
incl 282.10 283.15 1.05 57.81 219.2 0.09
476.69 477.54 0.85 4.03 3.6 0.01 1069 below
483.05 483.78 0.73 3.56 1.9 0.02 1064 below
496.46 497.20 0.74 1.33 5.4 0.02 1054 below
598.00 599.80 1.80 3.37 4.3 0.01 984 outside
605.00 606.50 1.50 4.32 3.8 0.01 980 outside
669.20 670.05 0.85 1.60 0.1 0.01 941 outside
BUUY308D05 0.00 0.73 0.73 20.80 19.2 0.83 1419 outside
31.63 34.14 2.51 2.41 11.5 0.16 1390 outside
128.70 129.25 0.55 4.82 4.2 0.01 1312 V110
260.30 263.05 2.75 4.72 17.3 0.02 1206 V48
incl 260.30 261.35 1.05 9.50 34.1 0.03
266.90 267.40 0.50 8.71 27.1 0.03 1202 V43
426.50 427.15 0.65 7.63 69.0 0.01 1088 outside
494.23 501.80 7.57 7.77 14.1 0.01 1042 outside
incl 494.70 496.35 1.65 18.61 28.0 0.02
and 500.30 501.30 1.00 11.37 10.7 0.01
BUUY308D06 4.60 5.14 0.54 2.53 9.1 0.66 1428 outside
17.62 19.43 1.81 11.01 20.6 0.51 1416 outside
32.36 33.02 0.66 1.93 9.9 0.31 1403 outside
51.80 52.36 0.56 3.14 23.6 0.31 1385 outside
61.45 62.09 0.64 2.17 13.3 0.21 1376 outside
145.71 146.33 0.62 3.97 0.9 0.02 1300 V110
320.90 323.23 2.33 45.77 64.6 0.04 1143 V43
incl 320.90 322.14 1.24 81.65 106.0 0.06
494.47 495.02 0.55 2.65 0.4 0.00 1003 below
570.66 571.21 0.55 6.61 24.1 0.02 947 below
602.34 602.78 0.44 14.00 38.9 0.02 924 outside
607.96 611.50 3.54 3.04 4.3 0.02 919 outside
616.67 617.40 0.73 2.32 1.8 0.01 915 outside
634.15 636.70 2.55 1.79 4.4 0.01 902 outside
644.05 647.00 2.95 1.59 3.0 0.01 895 outside
651.15 658.20 7.05 3.07 3.3 0.01 888 outside
668.90 670.15 1.25 6.93 1.1 0.01 881 outside
694.20 696.35 2.15 2.85 3.6 0.03 865 outside
717.00 717.50 0.50 11.20 7.0 0.01 852 outside
748.30 749.75 1.45 1.58 25.1 0.02 834 outside
771.00 772.00 1.00 1.97 4.4 0.06 822 outside
820.25 821.00 0.75 5.05 14.8 0.26 797 outside
824.00 825.80 1.80 7.64 36.3 0.79 795 outside
827.00 828.85 1.85 3.98 0.9 0.01 794 outside
830.70 831.45 0.75 3.77 4.0 0.01 792 outside
BUUY311D 3.80 4.38 0.58 1.21 7.3 2.11 1695 outside
33.10 35.80 2.70 0.24 121.0 0.69 1669 outside
63.90 64.45 0.55 3.17 3.7 0.37 1643 outside
292.85 293.35 0.50 2.91 3.4 0.09 1444 outside
301.33 301.85 0.52 5.00 3.1 0.19 1437 outside
310.70 312.90 2.20 6.32 80.4 0.10 1428 outside
313.45 315.77 2.32 5.87 11.7 0.09 1425 outside
326.84 327.45 0.61 2.97 11.5 0.01 1415 outside
354.20 354.90 0.70 1.99 7.2 0.02 1392 outside
392.95 394.00 1.05 4.11 12.0 0.02 1358 below
409.80 411.00 1.20 1.68 48.0 0.02 1344 below
417.35 418.00 0.65 2.47 55.1 0.03 1337 V130
443.70 444.30 0.60 1.61 20.9 0.02 1315 V125
BUUY311D01 4.15 4.80 0.65 2.06 11.4 0.02 1315 V125
102.70 103.35 0.65 5.38 2.2 0.01 1235 V62
142.00 142.50 0.50 2.61 53.0 0.27 1203 V48
149.50 150.30 0.80 7.26 33.8 0.15 1197 V42
159.60 160.25 0.65 5.62 3.2 0.04 1189 V41
188.60 189.85 1.25 2.41 2.0 0.03 1165 V39
190.50 191.70 1.20 4.77 3.6 0.02 1164 V34
200.00 202.20 2.20 4.45 63.6 0.39 1155 below
203.20 204.00 0.80 6.87 9.4 0.23 1154 V31
206.50 207.00 0.50 4.47 25.7 0.04 1151 dilution
210.65 211.70 1.05 2.54 1.9 0.03 1148 dilution
214.95 215.45 0.50 3.24 6.1 0.11 1145 V30
230.80 231.45 0.65 1.77 4.2 0.01 1132 V24
246.70 251.25 4.55 6.66 12.2 0.05 1117 MU1
incl 249.00 250.00 1.00 15.00 20.7 0.09
261.40 263.60 2.20 2.75 9.6 0.09 1107 MU11
BUUY311D02 2.20 2.80 0.60 1.51 4.4 0.02 1307 V125
109.00 109.85 0.85 1.05 1.6 0.04 1216 V62
133.45 134.15 0.70 1.29 0.8 0.02 1195 V48
143.00 143.60 0.60 1.34 0.9 0.01 1187 V43
178.00 178.80 0.80 1.66 1.6 0.01 1158 V41
198.60 201.20 2.60 2.35 8.8 0.01 1139 V39
203.50 209.05 5.55 16.93 56.3 0.44 1133 below
incl 204.00 205.20 1.20 45.33 96.1 0.39
217.55 218.60 1.05 2.09 5.6 0.07 1125 V31
234.60 235.15 0.55 5.03 4.7 0.10 1111 V30
238.30 242.30 4.00 1.41 2.8 0.03 1106 below
258.35 259.45 1.10 4.05 48.5 0.03 1091 below
269.30 269.80 0.50 4.88 12.4 0.16 1083 MU1
283.20 283.73 0.53 3.18 14.8 0.01 1071 MU11
315.26 316.15 0.89 0.81 94.3 0.08 1045 MU10
324.30 325.90 1.60 75.31 35.9 0.07 1037 MU
BUUY311D03 11.45 12.20 0.75 1.50 21.7 0.01 1316 V130
16.70 17.20 0.50 2.54 4.3 0.03 1312 V125
61.20 61.70 0.50 1.24 2.1 0.05 1272 V115
84.80 86.00 1.20 2.35 7.2 0.05 1250 V90
147.65 148.15 0.50 2.97 1.1 0.01 1195 V62
170.00 170.70 0.70 1.17 1.3 0.01 1176 V48
199.40 200.80 1.40 1.69 2.2 0.02 1150 V41
201.70 204.55 2.85 3.78 4.0 0.11 1146 dilution
225.05 225.60 0.55 3.71 4.7 0.02 1128 dilution
227.25 227.80 0.55 3.86 2.5 0.03 1126 dilution
228.40 228.90 0.50 7.95 12.9 0.05 1125 V39
229.75 231.40 1.65 3.34 14.5 0.06 1123 dilution
234.50 236.20 1.70 5.08 4.3 0.05 1119 V34
238.40 239.60 1.20 2.46 2.7 0.02 1116 dilution
244.50 245.00 0.50 3.02 4.2 0.06 1111 dilution
253.35 259.90 6.55 4.45 31.3 0.31 1099 V31
incl 258.35 259.90 1.55 9.46 58.4 0.70
271.00 272.00 1.00 162.80 29.6 0.09 1089 V30
304.60 305.60 1.00 7.44 11.3 0.01 1060 MU1
306.60 307.90 1.30 178.00 109.2 0.03 1058 below
367.00 367.50 0.50 0.38 81.3 0.09 1009 MU10
512.30 512.80 0.50 1.00 3.0 0.01 894 PRE
576.40 576.90 0.50 1.08 7.3 0.00 845 VNC
578.65 579.15 0.50 4.01 13.3 0.01 843 SOF
BUUY311D04 163.60 164.65 1.05 12.79 3.0 1.39 1159 below
167.55 168.10 0.55 5.44 7.6 0.01 1156 below
201.70 205.20 3.50 1.86 5.6 0.03 1123 V38
238.00 239.20 1.20 3.42 6.3 0.05 1092 V43
245.35 245.85 0.50 11.20 4.6 0.01 1085 V39
256.40 257.60 1.20 3.26 11.4 0.06 1075 V34
263.00 264.00 1.00 3.39 8.4 0.04 1069 V31
272.00 274.60 2.60 1.84 3.3 0.05 1059 dilution
290.80 291.30 0.50 40.20 14.4 0.08 1044 V30
317.80 320.45 2.65 6.11 11.4 0.01 1018 MU1
incl 319.00 320.45 1.45 10.12 16.4 0.01 1018
337.30 338.40 1.10 14.71 13.1 0.01 1002 MU11
390.80 391.50 0.70 1.02 0.8 0.01 954 MU
450.80 451.30 0.50 2.11 7.9 0.01 901 below
BUUY311D05 57.70 58.20 0.50 1.36 1.9 0.01 1250 V90
150.00 150.50 0.50 1.79 7.8 0.04 1168 V62
177.40 178.75 1.35 1.36 2.3 0.02 1143 V48
188.70 191.35 2.65 91.15 41.6 0.36 1132 V42
incl 190.35 191.35 1.00 237.13 83.3 0.92
196.00 196.60 0.60 3.38 9.3 0.02 1128 V41
212.80 213.50 0.70 3.94 10.4 0.03 1113 V39
217.35 218.90 1.55 3.73 5.0 0.05 1109 V34
227.20 228.30 1.10 3.32 7.6 0.11 1101 V31
232.75 234.65 1.90 7.60 8.0 0.02 1095 V30
241.00 246.70 5.70 50.74 24.6 0.20 1085 below
incl 241.00 242.15 1.15 65.61 21.7 0.04
and 243.20 244.26 1.06 176.93 88.8 0.98
266.40 267.00 0.60 4.35 18.0 0.09 1067 V24
274.70 278.75 4.05 21.54 37.5 0.10 1058 below
incl 276.72 277.75 1.03 68.45 67.8 0.03
319.90 320.55 0.65 2.08 4.1 0.01 1023 MU1
348.70 349.45 0.75 0.11 404.0 0.11 999 MU10
448.15 448.95 0.80 2.21 1.1 0.00 919 below
BUSY372D 320.16 320.77 0.61 1.14 23.8 0.00 1501 outside
328.62 329.40 0.78 1.07 11.7 0.00 1494 outside
386.44 387.20 0.76 3.67 19.7 0.00 1445 outside
BUSY372D01 44.80 45.80 1.00 4.50 12.7 0.40 1391 outside
BUSY372D02 251.00 251.50 0.50 5.68 15.1 0.03 1143 V110
BUSY372D03 0.00 0.50 0.50 20.00 33.9 0.55 1391 outside
455.50 459.10 3.60 6.55 38.6 0.03 1053 V110
incl 455.50 456.50 1.00 16.35 70.8 0.03
BUSY372D04 29.00 29.60 0.60 1.56 11.4 0.85 1391 outside
249.60 250.20 0.60 2.33 2.8 0.01 1221 outside
473.02 474.85 1.83 40.65 310.4 1.26 1070 V110
BUSY372D06 42.50 43.92 1.42 3.14 9.8 0.62 1390 outside
50.35 50.85 0.50 1.99 8.1 0.14 1384 outside
570.47 574.00 3.53 14.52 114.8 0.05 995 below
incl 570.47 572.50 2.03 23.73 190.0 0.05
590.20 590.70 0.50 3.75 18.3 0.10 983 below
* 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 30% and 80% of the down-hole interval. 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) whereas other intercepts are designated as below or outside of the current Buriticá mineral resource envelope. Dilution is defined as new mineralization between 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 the Veta Sur system was comprised of three drill-fans, two of these drilled from underground platforms in the Veta Sur ramp and the third from surface (Figures 1 and 2). Five drill-holes, initiated from the eastern-most drill-fan, continued north through the Veta Sur system and into the western Yaraguá system.

In eastern Veta Sur, drilling intersected high-grade veins below or to the east of the current Veta Sur mineral resource envelope. New high-grade and/or broad intercepts include:

  • 2.2 metres @ 6.3 g/t gold and 80 g/t silver (BUUY311D, elevation of 1,428 metres);
  • 5.55 metres @ 16.9 g/t gold and 56 g/t silver, including 1.2 metres @ 45.3 g/t gold and 96 g/t silver (BUUY311D02, elevation of 1,133 metres);
  • 1.3 metres @ 178.0 g/t gold and 109 g/t silver (BUUY311D03, elevation of 1,058 metres);
  • 1.05 metres @ 12.8 g/t gold and 3 g/t silver (BUUY311D04, elevation of 1,159 metres);
  • 5.7 metres @ 50.7 g/t gold and 25 g/t silver, including 1.15 metres @ 65.6 g/t gold and 22 g/t silver and 1.06 metres @ 176.9 g/t gold and 89 g/t silver (BUUY311D05, elevation of 1,085 metres); and
  • 4.05 metres @ 21.5 g/t gold and 38 g/t silver, including 1.03 metres @ 68.5 g/t gold and 68 g/t silver (BUUY311D05, elevation of 1,058 metres).

These and other intercepts are interpreted to represent extensions of northern Veta Sur vein families. The high grades and widths obtained are encouraging for overall mineral resource growth covering a range of elevations (1,250-1,100 metres RL) and in locations proximal to the main haulage developments proposed in the PEA. These vein families remain open along strike to the east at depth.

Infill drilling encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block models for eastern Veta Sur and western Yaraguá. High-grade intercepts in related master veins, include:

  • 4.55 metres @ 6.7 g/t gold and 12 g/t silver, including 1.0 metres @ 15.0 g/t gold and 21 g/t silver (BUUY311D01, MU1, elevation 1,117 metres);
  • 1.6 metres @ 75.3 g/t gold and 369 g/t silver (BUUY311D02, MU, elevation of 1,037 metres);
  • 1.0 metres @ 162.8 g/t gold and 30 g/t silver (BUUY311D03, V30, elevation of 1,089 metres);
  • 0.5 metres @ 40.2 g/t gold and 14 g/t silver (BUUY311D04, V30, elevation of 1,044 metres);
  • 1.1 metres @ 14.7 g/t gold and 13 g/t silver (BUUY311D04, MU11, elevation of 1,002 metres); and
  • 2.65 metres @ 91.2 g/t gold and 42 g/t silver, including 1.0 metres @ 237.1 g/t gold and 83 g/t silver (BUUY311D05, V42, elevation of 1,132 metres).

These and other infill intercepts extend higher-grade sub-domains in several vein families in the eastern Veta Sur and western Yaraguá systems.

In western and far western Veta Sur, step-out drilling intersected multiple veins below or outside of the current Veta Sur mineral resource envelope. Key high-grade and/or broad intercepts in these areas include:

  • 8.03 metres @ 6.5 g/t gold and 9 g/t silver, including 1.45 metres @ 25.2 g/t gold and 17 g/t silver (BUUY289D07, elevation of 1,090 metres);
  • 1.1 metres @ 41.9 g/t gold and 28 g/t silver (BUUY289D07, elevation of 913 metres);
  • 0.6 metres @ 23.9 g/t gold and 2 g/t silver (BUUY308D01, elevation of 946 metres);
  • 2.7 metres @ 15.3 g/t gold and 13 g/t silver (BUUY308D01, elevation of 862 metres);
  • 5.1 metres @ 16.5 g/t gold and 18 g/t silver, including 1.0 metres @ 70.4 g/t gold and 59 g/t silver (BUUY308D02, elevation of 1,177 metres);
  • 2.3 metres @ 11.3 g/t gold and 19 g/t silver (BUUY308D02, elevation of 931 metres);
  • 11.06 metres @ 11.7 g/t gold and 30 g/t silver, including 1.15 metres @ 30.2 g/t gold and 36 g/t silver and 1.61 metres @ 31.6 g/t gold and 75 g/t silver (BUUY308D02, elevation of 871 metres);
  • 0.95 metres @ 11.2 g/t gold and 15 g/t silver (BUUY308D03, elevation of 1,422 metres);
  • 4.04 metres @ 29.9 g/t gold and 128 g/t silver, including 1.11 metres @ 63.0 g/t gold and 167 g/t silver (BUUY308D03, elevation of 1,041 metres);
  • 1.17 metres @ 24.3 g/t gold and 40 g/t silver (BUUY308D04, elevation of 1,401 metres);
  • 0.73 metres @ 20.8 g/t gold and 19 g/t silver (BUUY308D05, elevation of 1,419 metres);
  • 7.57 metres @ 7.8 g/t gold and 14 g/t silver, including 1.65 metres @ 18.6 g/t gold and 28 g/t silver (BUUY308D05, elevation of 1,042 metres);
  • 1.81 metres @ 11.0 g/t gold and 21 g/t silver (BUUY308D06, elevation of 1,416 metres);
  • 0.5 metres @ 20.0 g/t gold and 34 g/t silver (BUSY372D03, elevation of 1,391 metres); and
  • 3.53 metres @ 14.5 g/t gold and 115 g/t silver, including 2.03 metres @ 23.7 g/t gold and 190 g/t silver (BUSY372D06, elevation of 995 metres).

These and other intercepts are interpreted to represent extensions of both northern and southern Veta Sur vein families and are encouraging for mineral resource growth in the west Veta Sur system at moderate elevations in the range of 1400-900 metres RL. These vein families remain open vertically and to the southwest.

Infill drilling in western Veta Sur encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model in this area. High-grade intercepts in related master veins, include:

  • 2.98 metres @ 19.2 g/t gold and 19 g/t silver, including 1.1 metres @ 33.0 g/t gold and 17 g/t silver (BUUY308D03, V41, elevation of 1,050 metres);
  • 2.13 metres @ 34.7 g/t gold and 124 g/t silver, including 1.05 metres @ 57.8 g/t gold and 219 g/t silver (BUUY308D04, V43, elevation of 1,218 metres);
  • 2.33 metres @ 45.8 g/t gold and 65 g/t silver, including 1.24 metres @ 81.7 g/t gold and 106 g/t silver (BUUY308D06, V43, elevation of 1,143 metres); and
  • 1.83 metres @ 40.7 g/t gold and 310 g/t silver (BUSY372D04, V110, elevation of 1,070 metres).

These and other infill intercepts extend high grade sub-domains in central and southern veins in western Veta Sur.

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 "Buriticá 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 Inc. is the public holding company of CGL Buritica Ltd. (formerly Continental Gold Limited), 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. The PEA 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 recently achieved major advances at the Buriticá project and anticipates completing environmental permitting in 2015.

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.

To view Figure 1, click on the following link: http://media3.marketwire.com/docs/2646a.pdf

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