SOURCE: Continental Gold Inc.

Continental Gold Inc.

October 02, 2017 06:30 ET

Continental Gold Drills High-Grade Gold Intervals at the Yaragua Deposit at Buritica, Colombia

Drill Hole BUUY320 Intersects 6.10 metres at 67.69 g/t gold and 136.8 g/t silver

TORONTO, ON--(Marketwired - October 02, 2017) - Continental Gold Inc. (TSX: CNL) (OTCQX: CGOOF) ("Continental" or the "Company") is pleased to announce additional results from its 25,000-metre drilling program at its 100%-owned Buriticá project in Antioquia, Colombia. The Company presently has four diamond drill rigs in operation with four additional rigs scheduled to start drilling over the next few weeks. The focus of the program is to increase and upgrade mineral resources to higher classification categories by testing for high-grade and broad mineralized zones ("BMZ") within the mineral reserve and resource envelopes and testing high-impact targets along strike of existing mineral resources as well as grassroots targets proximal to existing and proposed infrastructure. The Company remains well financed with approximately US$350 million of available liquidity as of August 31, 2017.

Highlights (referenced in Figures 1, 2 and 3)

  • 6.10 metres @ 67.69 g/t gold and 136.8 g/t silver (BUUY320)
  • 7.55 metres @ 19.96 g/t gold and 33.5 g/t silver (BUUY321)
  • 6.72 metres @ 28.07 g/t gold and 36.8 g/t silver (BUUY322)
  • 3.25 metres @ 51.76 g/t gold and 95.3 g/t silver (BUUY324)
  • 7.85 metres @ 39.13 g/t gold and 44.2 g/t silver (BUUY326)

"Our team continues to do excellent work targeting areas within the mineral reserves for high precious metal grades. In particular, we are extremely pleased with the results as the intercepts reported herein average almost 200% more precious metals than the current mineral resource block model estimate for the corresponding areas in the Yaraguá deposit," commented Ari Sussman, CEO. "With the infill drilling campaign in this area complete, the drill will be mobilized to a new chamber to resume testing for broad mineralized zones and infilling other parts of the Yaraguá deposit."

Details: Yaraguá Drill Results and Planned Trial Mining Stope

A fan of 10 underground diamond drill holes from a chamber located off a ramp in the Yaraguá vein system were completed, the results of which are reported in Table 1. Although the drill holes were not targeting a potential BMZ in the Yaraguá deposit, the precious metal grades and widths are in aggregate 193% higher than the current mineral resource block model estimate for this specific area of the Yaraguá deposit. Furthermore, the drilling successfully confirmed the continuity of the vein system.

In addition, the objective of the drilling program was also to infill the HW2 vein in this location of the Yaraguá deposit for the purpose of estimating a local area mineral resource prior to extracting a mechanized long-hole trial mining test stope (see Figure 1). The Company will release further details of the upcoming trial mining test in the near term.

Table 1: Yaraguá Drill Results
 
     Hole ID
  From   To   Intercept   Gold**   Silver**   Vein   Elevation
  (m)   (m)   Interval*   (g/t)   (g/t)   Domain   (m)
            (m)                
 BUUY319   24.30   27.70   3.40   13.80   28.1   NWSE3   1522
 incl   26.25   27.70   1.45   26.45   55.9        
 BUUY319   31.60   33.20   1.60   4.25   4.3   FWV11   1520
 BUUY319   47.85   48.75   0.90   13.90   10.3   SA12   1515
 BUUY319   52.50   53.00   0.50   8.71   19.1   HWV2   1514
 BUUY319   62.00   63.40   1.40   2.27   7.3   HWV1   1510
 BUUY319   64.80   65.35   0.55   3.30   3.4       1510
 BUUY319   82.50   84.60   2.10   20.82   17.8   SOF10   1504
 incl   83.60   84.60   1.00   39.19   32.3        
 BUUY319   100.80   104.55   3.75   15.17   6.1   C10   1497
 incl   100.80   101.90   1.10   39.00   7.7        
                
 BUUY320   14.80   16.00   1.20   4.56   3.3       1529
 BUUY320   18.30   19.00   0.70   10.45   4.3   VND10   1529
 BUUY320   22.60   23.40   0.80   1.12   6.3       1529
 BUUY320   27.25   27.80   0.55   5.42   4.4       1529
 BUUY320   30.90   31.45   0.55   19.25   3.9   NWSE3   1529
 BUUY320   36.00   42.10   6.10   67.69   136.8   FWV11 +SA12   1529
 incl   36.00   37.00   1.00   49.37   67.1        
 incl   39.00   40.50   1.50   235.68   501.2   SA12***    
 BUUY320   47.80   52.50   4.70   8.52   16.7   HWV1+HWV2   1528
 incl   48.90   50.00   1.10   27.23   52.1        
 BUUY320   54.10   55.20   1.10   1.69   11.4       1528
 BUUY320   76.75   78.60   1.85   5.67   5.5   SOF10   1528
                
 BUUY321   22.45   23.10   0.65   3.36   6.0   VND10   1527
 BUUY321   32.60   33.70   1.10   8.34   10.1   NWSE3   1525
 BUUY321   36.00   43.55   7.55   19.96   33.5   FWV11 +SA12    
 incl   40.55   42.40   1.85   70.54   79.8   SA12***    
 BUUY321   48.80   49.30   0.50   4.09   6.0       1523
 incl   52.50   53.90   1.40   14.62   11.1   HWV2***    
 BUUY321   62.60   63.10   0.50   3.32   4.4       1522
 BUUY321   69.20   70.40   1.20   4.78   7.6   HWV1   1521
 BUUY321   79.45   82.65   3.20   4.10   4.5   SOF10   1520
                
 BUUY322   19.95   20.45   0.50   3.13   8.7   VND10   1530
 BUUY322   36.80   43.52   6.72   28.07   36.8   FWV11 +SA12    
 incl   38.30   39.35   1.05   116.71   42.1        
 incl   41.50   43.00   1.50   34.19   74.5   SA12***    
 BUUY322   54.95   58.20   3.25   4.22   16.3   HWV2   1531
 incl   54.95   56.10   1.15   7.46   8.0       1531
 BUUY322   59.80   61.45   1.65   6.27   32.5   HWV1   1531
 BUUY322   93.85   94.35   0.50   6.91   7.6   SOF10   1532
 BUUY322   111.40   111.95   0.55   32.60   9.8   C40   1533
 BUUY322   121.95   125.00   3.05   2.16   8.4   CB18   1534
                
 BUUY323   16.55   17.20   0.65   13.00   3.6   VND09   1526
 BUUY323   25.45   26.15   0.70   5.93   7.1   VND10   1523
 BUUY323   27.20   27.80   0.60   12.15   3.8   NWSE3   1523
 BUUY323   31.50   33.00   1.50   4.60   3.4       1522
 BUUY323   38.10   38.60   0.50   17.35   138.0   FWV11   1520
 BUUY323   40.90   44.45   3.55   5.93   9.2   SA12 + HWV2    
 incl   40.90   42.90   2.00   7.35   10.5   SA12***    
 BUUY323   45.50   46.50   1.00   4.96   8.7       1518
 BUUY323   50.50   52.60   2.10   6.23   12.5   HWV1   1517
 BUUY323   65.35   67.00   1.65   2.54   6.0   SOF10   1513
 BUUY323   79.30   80.30   1.00   2.84   2.8       1510
 BUUY323   85.80   86.80   1.00   12.49   5.5   C10   1509
                
 BUUY324   15.40   15.90   0.50   7.11   2.8   VNAD9   1526
 BUUY324   18.30   19.00   0.70   4.67   1.8       1526
 BUUY324   22.10   22.70   0.60   7.27   8.4   VND10   1525
 BUUY324   37.75   41.00   3.25   51.76   95.3   FWV11 +SA12    
                        +NWS3    
 incl   37.75   38.80   1.05   4.93   11.7   NWSE3   1522
 incl   40.00   41.00   1.00   162.24   293.8   FWV11+SA12***    
 BUUY324   44.35   45.00   0.65   5.85   6.5       1520
 BUUY324   61.60   62.65   1.05   3.85   7.8   HWV2   1517
 BUUY324   65.10   65.60   0.50   3.34   4.3       1516
 BUUY324   71.50   78.50   7.00   2.89   10.9   HWV1   1514
 incl   76.40   78.50   2.10   4.69   13.8        
                
 BUUY325   17.80   19.10   1.30   2.13   2.2       1532
 BUUY325   20.30   20.80   0.50   4.87   11.1   VND10   1532
 BUUY325   23.10   23.76   0.66   16.40   6.8   NWSE3   1532
 BUUY325   32.50   33.20   0.70   7.82   5.3   FWV11   1533
 BUUY325   36.90   40.60   3.70   4.72   28.1   SA12    
 incl   39.30   40.60   1.30   10.08   43.3   SA12***    
 BUUY325   49.20   55.95   6.75   2.32   6.1   HWV2+NW2   1535
                
 BUUY326   13.00   14.55   1.55   2.71   1.8   VNAD9   1525
 BUUY326   18.60   19.10   0.50   6.18   17.0   VND10   1524
 BUUY326   20.60   21.70   1.10   2.71   3.7       1523
 BUUY326   35.45   43.30   7.85   39.13   44.2   FWV11 +SA12    
 incl   38.50   39.75   1.25   40.30   2.6       1516
    42.30   43.30   1.00   245.64   304.2   SA12***    
 BUUY326   47.35   50.80   3.45   4.65   7.3   HWV2   1512
 incl   47.35   48.65   1.30   9.28   7.8       1513
 BUUY326   61.20   61.70   0.50   3.67   3.4       1508
 BUUY326   63.30   65.90   2.60   3.30   9.4   NW2   1507
 BUUY326   74.65   79.80   5.15   3.32   9.2   HWV1   1502
 BUUY326   81.00   82.10   1.10   2.48   8.6   SOF10   1501  
 BUUY326   85.45   86.00   0.55   3.89   6.6   C11   1500  
                 
 BUUY327   7.95   8.50   0.55   14.55   5.0   VNAD9   1528  
 BUUY327   15.73   16.30   0.57   6.42   6.7   VND10   1526  
 BUUY327   41.45   46.85   5.40   13.91   22.3   FWV11 +SA12      
 incl   42.80   44.20   1.40   28.47   44.6   FWV11***      
 incl   45.20   46.35   1.15   26.03   38.3       1517  
 BUUY327   49.70   50.35   0.65   26.70   6.9   NWSE3   1516  
 BUUY327   52.20   54.10   1.90   4.52   12.7       1515  
 BUUY327   57.50   59.15   1.65   2.18   4.4       1514  
 BUUY327   64.00   64.60   0.60   6.01   6.0   HWV2   1512  
                 
 BUUY328   30.00   31.00   1.00   3.06   3.2   VND10   1527  
 BUUY328   40.30   40.80   0.50   3.96   2.6   FWV11   1526  
 incl   42.30   44.20   1.90   42.36   96.2   SA12***      
 BUUY328   48.00   49.40   1.40   11.30   22.1   NWSE3   1525  
 BUUY328   56.67   58.10   1.43   4.27   2.8   HWV2   1525  
 BUUY328   62.70   63.20   0.50   3.03   1.8   HWV1   1524  
  • Intercepts calculated at a composite 1 g/t gold equivalent (70:1 Au/Ag) for minimum intervals of 0.5 metres, with up to 20% internal dilution. True widths are estimated to be between 75-100%.
  • Grades herein are reported as uncapped values.
  • Certain drill holes went through narrow mined-out tunnels and, for those intersections, precious metal grades from either the May 2015 NP 43- 101 mineral resource block model or channel sampling results previously announced were incorporated into the overall interval. If neither were available, a grade of nil was assigned.

Note: Drill holes designated "BUUY" were collared from underground.

Geological Description of the Buriticá Project

Continental's 100%-owned, 70,764-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.

Technical Information

Mauricio Castañeda, Vice-President, Exploration of 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.

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 information on the Buriticá project, please refer to the technical report, prepared in accordance with NI 43-101, entitled "Buriticá Project NI 43-101 Technical Report Feasibility Study, Antioquia, Colombia" and dated March 29, 2016 with an effective date of February 24, 2016, led by independent consultants JDS Energy & Mining Inc. The technical report 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 an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Formed in April 2007, the Company - led by an international management team with a successful track record of discovering and developing large high-grade gold deposits in Latin America -- is focused on advancing its fully-permitted high-grade Buriticá gold project to production with first gold pour on track for early 2020. Additional details on Continental Gold's suite of gold exploration properties are also 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 timing of a production decision, advancing the Buriticá project, exploration results, potential mineralization, potential development of mine openings, potential improvement of mining dilution grades, increasing the drill program and amount of equipment 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 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" that may be 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.

Image Available: http://www.marketwire.com/library/MwGo/2017/10/2/11G146098/Images/2_Plan_View_OCT2_LG-4409816a572c820cb8f347d4fc1a019d.jpg
Image Available: http://www.marketwire.com/library/MwGo/2017/10/2/11G146098/Images/3_Cross_Section_OCT2_LG-191bcf16cb69b860a0d72c71da293e51.jpg
Image Available: http://www.marketwire.com/library/MwGo/2017/10/2/11G146098/Images/4_Long_Section_OCT2_LG-0628f171d0e4868ea7da641e071fb4b2.jpg

Contact Information