Continental Gold Ltd.
TSX : CNL
OTCQX : CGOOF

Continental Gold Ltd.

January 15, 2013 06:30 ET

Continental Gold Extends the High-Grade Gold and Silver in Yaragua and Veta Sur Vein Systems at Buritica, Colombia

TORONTO, ONTARIO--(Marketwire - Jan. 15, 2013) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 23 diamond drill-holes from the Yaraguá and Veta Sur vein systems, as part of the Company's ongoing exploration program at the Buriticá Project in Antioquia, Colombia. Seven drills are currently on site as part of the Company's Phase IV, minimum 95,000-metre diamond drill program for 2013.

Highlights

Yaraguá Vein System (Figures 1 and 2)

  • Drilling in the Yaraguá vein system ("Yaraguá") has resulted in extensions to several vein sets and recognition of new veins outside of the current mineral resource model, while demonstrating additional support for the mineral resource model prepared in accordance with National Instrument 43-101 ("NI 43-101").

  • In central and eastern Yaraguá, ten drill-holes transected the central and northern vein packages, with intersections of high-grade veins as good as or better than the current mineral resource model. Drill-hole intercepts exhibiting substantially higher grades and/or greater thicknesses than the mineral resource model include:

    • BUUY083: 22.3 metres @ 23.9 g/t gold and 255 g/t silver (including 4.6 metres @ 36.8 g/t gold, 1,071 g/t silver and 1.6 metres @ 183.0 g/t gold and 96 g/t silver) (Veins PRE and VNB, elevation of 1,364 metres)
    • BUUY086: 20.2 metres @ 11.4 g/t gold and 59 g/t silver (including 1.6 metres @ 68.3 g/t gold, 142 g/t silver and 0.6 metres @ 66.0 g/t gold and 24 g/t silver) (Veins PRE and VNB, elevation of 1,359 metres)
    • BUUY086: 10.79 metres @ 11.4 g/t gold and 57 g/t silver (including 1.07 metres @ 77.4 g/t gold and 410 g/t silver) (Vein C, elevation of 1,337 metres)
    • BUUY087: 3.3 metres @ 37.5 g/t gold and 27 g/t silver (including 1.5 metres @ 77.8 g/t gold and 35 g/t silver (Vein C, central Yaraguá, elevation of 1,393 metres)
    • BUUY079: 4.7 metres @ 7.6 g/t gold and 5 g/t silver (including 1.4 metres @ 21.2 g/t gold and 8 g/t silver) (Vein FWV, elevation of 1,165 metres)

  • Eight drill-holes intersected multiple veins north of the mineral resource model in central and eastern Yaraguá, including:

    • BUUY078: 0.75 metres @ 6.5 g/t gold and 334 g/t silver (elevation of 1,148 metres)
    • BUUY079: 1.0 metres @ 10.3 g/t gold, 36 g/t silver (elevation of 1,097 metres)
    • BUUY080: 6.6 metres @ 5.6 g/t gold and 18 g/t silver (including 2.9 metres @ 10.4 g/t gold and 33 g/t silver) (elevation of 1,135 metres)
    • BUUY081: 0.4 metres @ 2.7 g/t gold and 1,360 g/t silver (elevation of 1,273 metres)
    • BUUY086: 0.67 metres @ 9.2 g/t gold, 277 g/t silver and 14.4% zinc (elevation of 1,128 metres) and 1.25 metres @ 8.1 g/t gold, 141 g/t silver and 4.5% zinc (elevation of 1,067 metres)
    • BUUY087: 0.45 metres @ 6.8 g/t gold and 842 g/t silver (elevation of 1,217 metres) and 2.6 metres @ 7.4 g/t gold and 72 g/t silver (elevation of 1,206 metres)
    • BUUY088: 5.6 metres @ 5.9 g/t gold, 15 g/t silver and 3.2% zinc (elevation of 1,093 metres)
    • BUUY089: 5.2 metres @ 6.8 g/t gold and 259 g/t silver (including 1.3 metres @ 16.3 g/t gold, 892 g/t silver and 6.6% zinc (elevation of 1,065 metres)

These results are interpreted as representing substantial extensions to the Vein A, Vein D and other northerly yet to be modeled vein sets.

  • In eastern Yaraguá, the results of BUSY309 extended the southern and central Yaraguá vein sets; intercepts in the Murcielagos vein package include:

    • 5.0 metres @ 9.6 g/t gold and 10 g/t silver (including 1.0 metres @ 38.1 g/t gold and 14 g/t silver) (elevation of 1,317 metres)
    • 4.71 metres @ 6.0 g/t gold and 84 g/t silver (including 0.73 metres @ 23.5 g/t gold and 282 g/t silver) (elevation of 1,324 metres)

  • In central western Yaraguá, two drill-holes intersected relatively high-grade and thick intercepts in the Vein C package, including:

    • 6.3 metres @ 15.7 g/t gold and 11 g/t silver (including 2.0 metres @ 31.2 g/t gold and 19 g/t silver) (BUSY307; elevation of 1,255 metres)
    • 4.8 metres @ 40.9 g/t gold and 50 g/t silver (including 1.75 metres @ 109.1 g/t gold and 121 g/t silver) (BUSY312; elevation of 1,304 metres)

Both these intercepts vertically extend the high grades in Vein C in this area.

Veta Sur Vein System (Figures 1 and 3)

  • Drilling in the Veta Sur vein system ("Veta Sur") has resulted in extensions to several vein sets and the recognition of other veins also outside of the current mineral resource model, as well as providing additional in-fill results within the current mineral resource model.

  • BUSY318, transected the central Veta Sur system, intersecting 20 auriferous veins within the current mineral resource, including an intercept of:

    • 16.5 metres @ 20.7 g/t gold and 41 g/t silver (including 1.12 metres @ 199 g/t gold and 346 g/t silver) (elevation of 1,647 metres)

extending a broad high-grade zone by 30 vertical metres.

  • Further down-hole, an intercept of:

    • 0.85 metres @ 137 g/t gold and 20 g/t silver (elevation of 1,563 metres)

      represents a substantially higher grade than the vein modeled in this area and may mark a new Stage II mineralized subzone. At greater depths and further south, BUSY318 intersected several newly recognized veins including an intercept of:

      0.42 metres @ 59.7 g/t gold and 644 g/t silver (elevation of 1,405 metres)

  • BUSY306 and BUSY313, drilled in north-eastern Veta Sur, both encountered around 20 auriferous veins, interpreted mostly as extensions of modeled veins. Intercepts outside of the current mineral resource model include:

    • 5.5 metres @ 8.8 g/t gold and 14 g/t silver (including 1.0 metres @ 17 g/t gold and 19 g/t silver) (BUSY306, elevation of 1,241 metres)
    • 1.85 metres @ 4.3 g/t gold and 330 g/t silver (including 0.95 metres @ 8.2 g/t gold and 597 g/t silver) (BUSY313, elevation of 1,280 metres)

  • BUSY302, also in northeastern Veta Sur, intersected:

    • 2.25 metres @ 21.9 g/t gold and 68 g/t silver (elevation of 1,682 metres and outside of the current mineral resource envelope)

  • BUSY311 extended several veins laterally in southwestern Veta Sur, high silver/gold intercepts include:

    • 1.3 metres @ 1.8 g/t gold and 378 g/t silver (including 0.4 metres @ 3.6 g/t gold and 1,080 g/t silver)

at an elevation of 1,650 metres, more than 800 metres higher vertically than high-grade gold intercepts encountered in this area with previous deep drilling.

"It is most pleasing to see drilling continues to extend the potential of both the Yaraguá and Veta Sur systems," commented Ari Sussman, CEO. "Additionally, infill drilling continues to intersect higher than modeled grades, corroborating our thesis that with increased density of data, grade should increase."

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. This release documents the results of infill and extension drilling of the Yaraguá and Veta Sur vein systems.

Yaraguá Vein System

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)
BUSY307 139.00 140.50 1.50 1.31 3.0 0.1 1477
160.80 161.20 0.40 4.08 4.7 0.2 1459
192.00 195.00 3.00 1.65 13.9 0.7 1433
199.00 200.50 1.50 0.30 60.1 0.6 1428
258.50 261.00 2.50 5.23 17.2 2.2 1379
344.00 345.90 1.90 17.38 29.2 0.3 1310
355.60 359.30 3.70 2.77 6.8 0.2 1300
390.50 393.90 3.40 3.15 5.7 0.0 1272
402.00 403.55 1.55 1.92 4.2 0.1 1263
411.50 417.80 6.30 15.67 10.6 0.1 1255
incl. 411.50 413.50 2.00 31.20 19.2 0.1 1255
421.85 423.60 1.75 9.28 11.0 0.2 1247
429.50 431.50 2.00 6.57 26.8 0.2 1241
434.22 438.50 4.28 2.40 6.0 0.0 1237
440.80 442.55 1.75 4.49 11.4 0.2 1232
455.50 457.00 1.50 2.07 1.6 0.1 1220
497.10 499.75 2.65 1.62 23.2 0.1 1187
BUSY309 128.50 131.00 2.50 0.78 8.6 0.2 1443
180.46 181.50 1.04 2.98 6.2 0.0 1398
191.00 192.60 1.60 3.26 91.6 1.1 1389
229.00 230.00 1.00 2.32 28.7 0.0 1355
238.80 239.95 1.15 2.67 6.9 0.9 1348
255.70 257.10 1.40 1.50 24.2 1.0 1333
265.75 270.46 4.71 5.97 84.0 1.9 1324
incl. 269.73 270.46 0.73 23.45 282.1 1.6 1320
273.40 278.40 5.00 9.60 9.7 0.6 1317
incl. 277.00 278.00 1.00 38.10 13.5 0.3 1314
285.55 290.50 4.95 1.38 11.3 0.8 1306
294.18 297.05 2.87 1.82 10.1 1.5 1304
298.75 300.40 1.65 2.75 18.3 1.0 1303
322.00 323.00 1.00 0.88 33.4 12.6 1275
360.40 362.00 1.60 5.44 15.8 1.1 1242
388.55 402.80 14.25 3.08 5.4 1.5 1218
incl. 394.70 396.00 1.30 9.01 8.5 1.7 1212
490.30 492.00 1.70 1.46 6.5 0.2 1131
496.20 499.20 3.00 4.69 34.8 0.1 1126
BUSY312 136.25 139.50 3.25 2.47 4.1 0.2 1485
166.00 167.00 1.00 3.18 2.8 0.3 1463
169.00 170.00 1.00 3.42 3.5 0.2 1460
189.00 191.10 2.10 5.25 45.9 8.8 1445
273.60 273.90 0.30 2.25 6.4 0.9 1380
342.00 342.60 0.60 2.20 11.1 0.1 1329
377.00 381.80 4.80 40.93 49.9 0.2 1304
incl. 377.00 378.75 1.75 109.07 121.3 0.3 1304
385.00 386.60 1.60 14.69 6.0 0.0 1298
393.00 394.40 1.40 1.97 10.9 0.2 1292
406.00 407.30 1.30 5.36 7.3 0.1 1282
416.50 417.00 0.50 10.45 11.4 0.3 1275
420.00 421.55 1.55 4.52 77.2 0.4 1272
442.10 446.20 4.10 3.93 9.0 0.5 1256
BUSY316 20.00 23.00 3.00 0.14 52.0 0.0 1702
104.00 104.70 0.70 0.06 43.1 0.3 1634
156.00 157.00 1.00 0.13 194.4 0.2 1591
BUUY078 10.20 10.60 0.40 2.28 2.1 0.9 1373
39.50 39.90 0.40 6.19 18.8 6.1 1348
62.30 63.00 0.70 1.63 84.7 0.3 1328
106.70 107.20 0.50 10.80 123.0 0.4 1291
133.50 135.45 1.95 3.30 2.0 0.0 1268
148.75 149.20 0.45 3.27 16.5 0.4 1255
191.50 192.00 0.50 1.46 4.0 0.4 1219
264.00 265.50 1.50 1.13 1.7 0.1 1157
275.00 275.75 0.75 6.53 333.6 1.3 1148
286.50 287.30 0.80 1.38 9.2 0.2 1138
347.30 348.30 1.00 9.65 7.1 1.3 1087
BUUY079 13.00 14.00 1.00 4.35 3.3 0.0 1369
16.00 19.00 3.00 1.54 5.7 0.2 1366
63.70 66.50 2.80 2.89 23.9 0.1 1321
228.00 232.70 4.70 7.56 5.4 0.3 1165
incl. 230.20 231.60 1.40 21.20 8.3 0.4 1163
272.50 273.00 0.50 4.05 2.6 0.1 1123
300.70 301.70 1.00 10.28 35.8 1.6 1097
305.60 306.80 1.20 4.03 99.0 1.7 1092
378.00 380.20 2.20 3.79 8.0 0.6 1024
BUUY080 70.50 72.50 2.00 0.93 11.5 0.1 1430
104.40 105.20 0.80 1.87 7.5 0.3 1397
139.50 140.80 1.30 1.95 9.6 0.4 1364
154.50 155.50 1.00 4.70 2.8 0.2 1350
187.90 191.20 3.30 1.19 9.2 0.9 1318
199.20 201.50 2.30 7.90 10.0 0.7 1307
203.50 204.50 1.00 4.67 4.6 0.5 1303
240.00 245.20 5.20 6.92 34.5 4.7 1268
incl. 243.00 245.20 2.20 12.89 52.6 7.9 1266
259.00 261.00 2.00 1.59 9.9 0.6 1250
356.50 356.90 0.40 6.62 144.0 0.0 1158
363.60 364.55 0.95 1.45 15.3 0.1 1151
369.00 369.50 0.50 4.44 22.1 0.7 1146
380.40 387.00 6.60 5.59 18.2 0.0 1135
incl. 382.10 385.02 2.92 10.38 32.9 0.0 1134
BUUY081 54.00 55.50 1.50 2.65 3.2 0.0 1356
77.75 79.10 1.35 18.75 45.7 0.4 1345
111.50 113.00 1.50 1.09 2.5 0.0 1329
196.50 198.00 1.50 1.14 0.7 0.0 1289
226.80 229.40 2.60 3.28 2.7 0.1 1275
231.40 231.80 0.40 2.69 1360.0 0.8 1273
258.30 258.70 0.40 6.28 12.2 0.1 1260
273.80 274.20 0.40 7.67 7.3 0.2 1253
279.00 279.50 0.50 0.09 79.2 0.1 1251
BUUY083 15.20 20.20 5.00 5.05 33.0 0.3 1371
24.70 47.00 22.30 23.91 255.0 1.9 1364
incl. 28.40 33.00 4.60 36.83 1070.8 6.1 1361
and 41.20 42.80 1.60 183.00 96.3 0.5 1352
53.50 56.00 2.50 7.10 13.6 0.4 1343
61.00 66.00 5.00 2.71 8.6 0.2 1337
79.40 79.80 0.40 4.80 24.4 5.9 1324
95.98 96.38 0.40 5.64 41.8 3.5 1311
280.00 282.00 2.00 1.64 18.9 0.1 1175
BUUY085 4.50 5.70 1.20 4.21 45.3 0.2 1378
45.50 50.20 4.70 1.67 2.5 0.3 1347
59.00 62.60 3.60 1.86 9.6 0.3 1337
64.50 66.55 2.05 2.30 8.2 0.4 1333
69.60 71.75 2.15 7.84 35.9 1.0 1330
83.50 85.40 1.90 2.43 17.0 5.5 1319
91.00 93.00 2.00 1.16 16.3 0.4 1314
111.00 112.00 1.00 1.61 22.0 1.2 1299
135.00 138.00 3.00 1.16 4.4 0.5 1281
151.50 154.00 2.50 2.70 1.4 0.0 1269
166.50 168.00 1.50 4.43 1.5 0.0 1258
BUUY086 11.72 16.20 4.48 2.74 7.7 0.1 1371
23.75 24.15 0.40 7.71 62.0 0.2 1361
26.30 46.50 20.20 11.38 59.2 0.9 1359
incl. 30.50 32.10 1.60 68.30 141.8 0.5 1355
and 39.90 40.50 0.60 66.03 24.1 1.3 1347
48.60 49.50 0.90 3.10 14.2 2.5 1340
52.00 62.79 10.79 11.41 56.5 2.5 1337
incl. 59.82 60.89 1.07 77.43 409.5 14.6 1330
69.30 71.00 1.70 1.20 27.1 0.8 1322
73.30 73.70 0.40 2.22 303.0 2.2 1319
98.00 98.40 0.40 1.34 9.3 6.0 1298
115.50 116.70 1.20 2.78 22.2 1.5 1283
281.00 281.40 0.40 3.12 19.6 10.3 1143
299.43 300.10 0.67 9.16 277.0 14.4 1128
335.50 336.35 0.85 1.31 30.7 1.8 1098
347.20 349.00 1.80 1.27 6.7 1.0 1089
374.30 375.55 1.25 8.10 140.9 4.5 1067
386.00 389.20 3.20 1.07 31.8 0.4 1057
BUUY087 50.10 50.50 0.40 2.35 6.8 0.1 1451
98.30 99.10 0.80 1.95 3.5 0.1 1406
109.80 110.85 1.05 4.46 3.4 0.1 1395
112.10 115.40 3.30 37.49 27.2 1.8 1393
incl. 112.50 114.00 1.50 77.76 35.1 1.8 1393
133.00 134.00 1.00 13.25 2.2 0.1 1374
176.60 177.00 0.40 5.31 40.7 4.6 1334
low recov 204.30 207.70 3.40 1.40 61.9 5.3 1308
220.00 221.00 1.00 0.34 32.8 4.0 1294
229.50 231.70 2.20 0.39 25.0 5.6 1285
240.50 241.60 1.10 1.13 21.9 2.2 1275
245.00 248.00 3.00 0.62 15.1 0.9 1270
290.00 290.90 0.90 1.92 12.0 0.2 1228
301.90 302.35 0.45 6.78 842.0 1.0 1217
313.80 316.40 2.60 7.36 71.8 0.4 1206
326.60 330.00 3.40 2.65 39.4 0.5 1194
396.50 397.50 1.00 1.56 1.4 0.0 1128
BUUY088 9.50 11.50 2.00 4.00 2.3 0.0 1373
20.70 33.00 12.30 1.33 5.7 0.3 1363
35.00 38.00 3.00 3.48 9.1 1.0 1350
53.00 54.60 1.60 2.72 10.8 0.5 1334
62.40 66.35 3.95 2.37 12.2 0.9 1326
71.60 72.00 0.40 4.22 35.7 1.9 1317
81.80 83.15 1.35 4.32 80.1 7.2 1308
135.30 138.60 3.30 1.11 14.1 0.3 1260
146.50 147.00 0.50 3.76 1.3 0.1 1250
214.00 215.50 1.50 1.05 9.5 0.3 1189
311.30 311.70 0.40 7.76 15.5 1.1 1103
317.70 318.10 0.40 7.56 8.5 1.3 1097
321.90 327.50 5.60 5.94 14.8 3.2 1093
BUUY089 28.70 32.65 3.95 1.49 4.6 0.3 1354
55.50 58.00 2.50 18.24 52.1 1.1 1330
87.00 87.90 0.90 3.62 4.5 0.3 1300
103.40 109.85 6.45 3.41 20.0 2.8 1285
incl. 107.84 108.44 0.60 14.55 157.1 24.4 1281
120.50 121.30 0.80 2.03 3.2 0.4 1270
132.65 134.20 1.55 1.41 8.6 2.1 1258
137.80 141.10 3.30 1.94 3.1 0.3 1254
144.65 146.15 1.50 2.68 5.7 0.4 1247
149.10 150.40 1.30 16.78 13.9 4.6 1243
302.00 304.50 2.50 8.80 75.6 0.1 1103
321.00 322.80 1.80 2.44 18.0 3.9 1086
337.00 338.00 1.00 1.06 23.6 0.2 1071
343.60 348.80 5.20 6.81 259.3 2.3 1065
incl. 343.60 344.90 1.30 16.32 891.8 6.6 1065
391.10 391.50 0.40 14.45 134.0 3.6 1022
BUUY090 28.10 28.50 0.40 2.87 3.3 0.2 1484
90.70 93.00 2.30 9.86 10.1 1.1 1454
*Intercepts calculated at 1 g/t gold + 30 g/t silver cut-off grades for minimum intervals of 0.4 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. Drill-holes designated "BUUY" were collared from underground, whereas drill-holes designated "BUSY" were collared at surface.

Two fans of underground holes were drilled in eastern and central Yaraguá, targeting the central and northern Yaraguá vein families and extensions of the Yaraguá system further to the north (Figure 1). Each drill-hole encountered multiple gold-silver and variable base metal mineralized intercepts. Within the current Yaraguá mineral resource envelope, the grades and apparent thicknesses of these intercepts were generally consistent with related vein domains in comparable areas of the current mineral resource model. Drill-hole intercepts exhibiting substantially higher grades and/or greater thicknesses than the current model include:

  • BUUY083 from 24.7 metres down-hole, 22.3 metres @ 23.9 g/t gold and 255 g/t silver (including 4.6 metres @ 36.8 g/t gold, 1,071 g/t silver and 1.6 metres @ 183 g/t gold and 96 g/t silver) (elevation of 1,364 metres)

  • BUUY086 from 26.3 metres down-hole, 20.2 metres @ 11.4 g/t gold and 59 g/t silver (including 1.6 metres @ 68.3 g/t gold, 142 g/t silver and 0.60 metres @ 66.0 g/t gold and 24 g/t silver) (elevation of 1,359 metres)

The above intercepts represent amalgamations of the PRE and VNB vein packages with true thicknesses of more than 12 metres.

  • BUUY086 from 52 metres down-hole, 10.79 metres @ 11.4 g/t gold and 57 g/t silver (including 1.07 metres @ 77.4 g/t gold and 410 g/t silver) (elevation of 1,337 metres)

  • BUUY087 from 112.1 metres down-hole, 3.3 metres @ 37.5 g/t gold and 27 g/t silver (including 1.5 metres @ 77.8 g/t gold and 35 g/t silver) (elevation of 1,393 metres)

Those intercepts in Vein C are separated by more than 200 metres of lateral strike.

  • BUUY079 from 228.0 metres down-hole, 4.7 metres @ 7.6 g/t gold and 5 g/t silver (including 1.4 metres @ 21.2 g/t gold and 8 g/t silver). This intercept in Vein FWV is at an elevation of 1,165 metres.

Drill-holes that were continued to the north of and outside the current Yaraguá mineral resource model intersected multiple veins, some of which are enriched in silver and zinc with over 200 metre lateral and 200 metre vertical extents. In central Yaraguá, significant intersections include:

  • BUUY080 from 380.4 metres down-hole, 6.6 metres @ 5.6 g/t gold and 18 g/t silver (including 2.92 metres @ 10.4 g/t gold and 33 g/t silver) (elevation of 1,135 metres)
  • BUUY081 from 231.4 metres down-hole, 0.4 metres @ 2.7 g/t gold and 1,360 g/t silver (elevation of 1,273 metres)
  • BUUY087 from 301.9 metres down-hole, 0.45 metres @ 6.8 g/t gold and 842 g/t silver (elevation of 1,217 metres) and also, from 313.8 metres down-hole, 2.6 metres @ 7.4 g/t gold and 72 g/t silver (elevation of 1,206 metres)

In eastern Yaraguá, significant intersections include:

  • BUUY078 from 275.0 metres down-hole, 0.75 metres @ 6.5 g/t gold and 334 g/t silver (elevation of 1,148 metres)
  • BUUY079 from 300.7 metres down-hole, 1.0 metres @ 10.3 g/t gold, 36 g/t silver (elevation of 1,097 metres)
  • BUUY086 from 299.43 metres down-hole, 0.67 metres @ 9.2 g/t gold, 277 g/t silver and 14.4% zinc (elevation of 1,128 metres) and also, from 374.3 metres down-hole, 1.25 metres @ 8.1 g/t gold, 141 g/t silver and 4.5% zinc (elevation of 1,067 metres)
  • BUUY088 from 321.9 metres down-hole, 5.6 metres @ 5.9 g/t gold, 15 g/t silver and 3.2% zinc (elevation of 1,093 metres)
  • BUUY089 from 302.0 metres down-hole, 2.5 metres @ 8.8 g/t gold and 76 g/t silver (elevation of 1,103 metres) and also, from 343.6 metres down-hole, 5.2 metres @ 6.8 g/t gold, 259 g/t silver and 2.3% zinc (including 1.3 metres @ 16.3 g/t gold, 892 g/t silver and 6.6% zinc (elevation of 1,065 metres)

These and other intercepts are interpreted to represent lateral and/or vertical extensions of the Vein A and Vein D packages and also yet to be modeled vein domains to the north of the current Yaraguá mineral resource model.

The results of BUSY309 extend the southern and central Yaraguá vein sets to the east and to depth in eastern Yaraguá. Thick intercepts in the Murcielagos vein package include:

  • From 273.4 metres down-hole, 5.0 metres @ 9.6 g/t gold and 10 g/t silver (including 1.0 metres @ 38.1 g/t gold and 14 g/t silver) (elevation of 1,317 metres)
  • From 265.75 metres down-hole, 4.71 metres @ 6.0 g/t gold and 84 g/t silver (including 0.73 metres @ 23.5 g/t gold and 282 g/t silver) (elevation of 1,324 metres)

BUSY307 and BUSY312 were drilled from central Yaraguá to the northwest, testing the southern and central Yaraguá vein packages. Within the mineral resource envelope, mineralized intercepts were generally of comparable grades and thicknesses to comparable vein domains in the current mineral resource model. Both drill-holes vertically extended high gold grades in Vein C, with broad intercepts of:

  • BUSY307: from 411.5 metres down-hole, 6.3 metres @ 15.7 g/t gold and 11 g/t silver (including 2.0 metres @ 31.2 g/t gold and 19 g/t silver) (elevation of 1,255 metres)
  • BUSY312: from 377.0 metres down-hole, 4.8 metres @ 40.9 g/t gold and 50 g/t silver (including 1.75 metres @ 109.1 g/t gold and 121 g/t silver) (elevation of 1,304 metres)

and also extended the Sofia Vein with intercepts of:

  • BUSY307 from 421.85 metres down-hole, 1.75 metres @ 9.3 g/t gold and 11 g/t silver (elevation of 1,247 metres)
  • BUSY312 from 385.0 metres down-hole, 1.6 metres @ 14.7 g/t gold and 6 g/t silver (elevation of 1,298 metres)

BUSY316 intersected several high silver/gold vein domains (Table I) at high elevations in the sparsely-drilled Yaraguá South area. It is not yet clear whether these vein domains may represent the most southerly shallow parts of the Yaraguá system or whether the veins encountered are easterly extensions of the southern Veta Sur vein system (Figure 1).

Veta Sur Vein System

Significant new drill intercepts are listed below in Table II and are referenced in Figures 1 and 3.

Table II: Drilling Highlights, Veta Sur
Drill-hole From
(m)
To
(m)
Interval
(m)
Gold
(g/t)
Silver
(g/t)
Zinc
(%)
Elevation
(m)
BUSY302 29.65 31.90 2.25 21.93 68.4 7.0 1682
73.40 77.10 2.70 0.99 70.4 1.3 1641
BUSY304 318.55 319.30 0.75 0.39 49.9 0.3 1657
357.10 358.00 0.90 0.87 71.6 0.5 1629
BUSY306 196.00 197.00 1.00 1.30 3.8 0.1 1519
206.50 208.70 2.10 1.51 5.0 0.1 1509
234.60 235.00 0.40 12.75 25.3 0.1 1481
255.88 256.28 0.40 2.21 9.8 0.0 1460
261.56 262.70 1.14 8.42 10.8 0.0 1455
290.90 291.40 0.50 5.56 25.7 0.1 1426
297.30 300.60 3.30 4.53 10.0 0.0 1420
324.70 326.00 1.30 3.25 10.3 0.0 1393
332.73 333.23 0.50 4.73 13.1 0.0 1385
337.75 338.15 0.40 3.42 6.4 0.0 1381
341.84 342.70 0.86 2.40 8.1 0.0 1377
425.00 426.00 1.00 4.45 4.7 0.0 1296
443.20 443.80 0.60 4.54 5.0 0.0 1278
453.00 453.95 0.95 9.07 5.4 0.0 1268
481.50 487.00 5.50 8.84 14.2 0.1 1241
incl. 484.50 485.50 1.00 17.00 19.1 0.0 1238
491.00 491.48 0.48 3.30 9.3 0.1 1231
498.49 499.50 1.01 4.78 5.9 0.1 1224
502.50 507.50 5.00 3.54 10.2 0.0 1220
524.50 526.00 1.50 4.26 10.5 0.0 1199
532.80 534.40 1.60 3.98 7.6 0.0 1191
BUSY311 235.55 237.60 2.05 0.50 84.9 1.1 1716
262.90 264.00 1.10 4.51 66.6 1.2 1694
287.35 288.50 1.15 1.35 21.6 1.2 1675
319.65 320.95 1.30 1.78 378.1 2.5 1650
incl. 319.65 320.05 0.40 3.56 1080.0 6.9 1650
364.90 365.35 0.45 0.73 15.2 0.6 1615
394.60 395.40 0.80 0.86 20.7 0.4 1593
BUSY313 4.70 5.70 1.00 0.68 86.4 0.0 1706
17.25 17.70 0.45 4.64 155.0 2.5 1694
83.77 84.70 0.93 2.10 84.4 0.1 1631
125.90 126.80 0.90 7.62 51.4 0.0 1591
132.25 133.40 1.15 2.17 29.2 0.0 1585
214.00 216.10 2.10 1.56 12.4 0.1 1507
222.00 223.18 1.18 7.42 10.7 0.1 1500
242.07 242.47 0.40 7.54 10.1 0.1 1481
255.80 256.90 1.10 12.05 231.0 0.1 1467
267.97 268.80 0.83 2.09 7.9 0.0 1456
276.45 277.90 1.45 3.02 30.4 0.1 1447
294.45 294.85 0.40 4.08 6.9 0.0 1430
308.00 309.50 1.50 1.57 46.6 0.1 1417
316.75 320.50 3.75 2.77 9.4 0.0 1409
332.00 333.00 1.00 3.68 12.1 0.2 1394
339.00 339.40 0.40 9.15 12.9 0.0 1387
341.50 344.00 2.50 5.43 15.5 0.0 1385
361.00 363.10 2.10 2.23 196.9 0.4 1366
incl. 362.00 363.10 1.10 3.81 353.2 0.7 1365
366.80 367.40 0.60 6.52 258.0 0.2 1360
378.10 380.20 2.10 0.86 28.9 0.1 1349
383.25 383.65 0.40 2.07 84.1 0.2 1344
403.00 404.00 1.00 1.99 16.6 1.5 1325
429.00 432.00 3.00 1.45 59.5 0.1 1300
441.90 444.30 2.40 1.94 41.9 0.0 1288
449.65 451.50 1.85 4.32 330.4 0.2 1280
incl. 449.65 450.60 0.95 8.22 596.8 0.1 1280
491.00 496.00 5.00 3.03 44.9 0.1 1241
BUSY314 403.60 404.20 0.60 1.05 5.4 1.3 1561
413.90 414.50 0.60 1.35 24.2 1.7 1553
417.40 418.90 1.50 1.86 17.5 4.2 1550
BUSY315 28.30 28.90 0.60 0.39 72.2 2.5 1683
67.80 69.00 1.20 1.08 1.6 0.2 1646
78.50 79.60 1.10 0.33 45.8 0.0 1636
BUSY318 57.95 59.55 1.60 0.08 99.1 0.3 1735
110.95 111.35 0.40 8.50 6.0 0.3 1692
115.10 117.80 2.70 0.89 35.8 3.0 1688
133.45 134.45 1.00 2.07 4.1 0.1 1673
139.35 140.63 1.28 3.81 9.4 0.4 1668
151.85 152.33 0.48 9.39 76.4 0.1 1658
153.95 154.43 0.48 3.39 47.4 0.0 1656
165.50 182.00 16.50 20.70 40.5 0.2 1647
incl. 172.25 173.37 1.12 198.97 345.6 0.1 1641
and 181.15 182.00 0.85 63.67 30.2 0.1 1634
184.05 187.00 2.95 1.78 8.4 0.1 1631
189.29 192.30 3.01 1.49 11.8 0.2 1627
193.92 195.35 1.43 1.68 34.9 0.3 1623
208.00 210.35 2.35 1.36 20.6 0.1 1611
239.22 240.06 0.84 2.45 15.0 0.1 1585
245.63 247.29 1.66 2.92 8.9 0.1 1580
251.78 252.28 0.50 2.64 32.1 0.4 1575
261.13 261.80 0.67 7.89 16.4 0.1 1567
266.60 267.45 0.85 137.00 20.1 0.0 1563
273.86 275.00 1.14 5.04 2.4 0.0 1557
297.28 298.85 1.57 1.30 19.9 0.1 1537
317.48 317.89 0.41 2.45 44.5 0.5 1520
328.15 329.00 0.85 1.38 9.6 0.0 1511
365.30 366.25 0.95 2.76 18.7 0.5 1481
417.80 418.40 0.60 9.61 8.9 0.4 1438
458.80 459.22 0.42 59.70 644.0 0.3 1405
*Intercepts calculated at 1 g/t gold + 30 g/t silver cut-off grades for minimum intervals of 0.4 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.

Three drill-holes (BUSY302, BUSY315 and BUSY306) targeted northeasterly extensions of the Veta Sur vein system into the area of Yaraguá South (Figure 1).

The most easterly of these drill-holes, BUSY306, intersected 20 auriferous veins (with low silver/gold), over 390 metres vertical and 120 metres horizontal strike lengths, respectively. All intercepts (Table II) are outside of the current mineral resource model but apparently align with modeled veins to the southwest. Several broad and/or high-grade intercepts, including 5.5 metres @ 8.8 g/t gold and 14 g/t silver (containing 1.0 metres @ 17 g/t gold and 19 g/t silver, from 484.5 metres down-hole, elevation of 1,238 metres) will facilitate the northeasterly extension of several Veta Sur vein sets at grade-thicknesses above 3 g/t gold cut-off. All veins are open laterally and to depth.

BUSY302, drilled with a northwest azimuth, encountered a high-grade base metal-rich vein (2.25 metres @ 21.9 g/t gold, 68 g/t silver and 7.0% zinc, from 29.65 metres down-hole, elevation of 1,682 metres). This intercept is outside of the current mineral resource envelope for the more southerly Veta Sur vein sets. After intersecting a high silver/gold vein further down-hole, BUSY302 was abandoned because of drilling problems prior to reaching its prime targets.

BUSY315, after intersecting several veins with high silver/gold, was also abandoned at shallow depths prior to attaining its main targets.

Drilled from north to south across central Veta Sur, BUSY318 intersected (around elevations of 1,734 metres) high silver/gold veins that appear to align with high-grade gold intercepts in BUSY291 (see October 29, 2012 news release) more than 800 metres below and also outside of the current mineral resource envelope.

Between 100 metres and 300 metres down-hole, BUSY318 intersected eighteen veins, with intercepts mostly exhibiting gold and silver grades comparable with corresponding domains in the current mineral resource model in this area. The high-grade intercept of 16.5 metres @ 20.7 g/t gold and 41 g/t silver (from 165.5 metres down-hole, elevation of 1,647 metres ) included two very high grade intervals (1.12 metres @ 199.0 g/t gold, 346 g/t silver and 0.85 metres @ 63.7 g/t gold and 30 g/t silver) of Stage II mineralization. The true horizontal width of this intercept (estimated as 10 metres) is greater than the corresponding domains in the mineral resource model and is at elevations more than 30 metres higher than the nearest high-grade intercepts in BUSY079 (see August 31, 2010 news release). From 266.6 metres down-hole, BUSY318 intersected 0.85 metres @ 137.0 g/t gold and 20 g/t silver (elevation of 1,563 metres). This intercept is of substantially higher grades than the related mineral resource domain and interpreted to be part of a steeply plunging, high-grade (Stage II mineralized) subzone, separate from that further up-hole.

From 300 metres down-hole, BUSY318 intersected four auriferous veins to the south of the Veta Sur mineral resource envelope. These intercepts are interpreted to represent a southern family of yet to be modeled veins in Veta Sur, which will be drilled from the Veta Sur ramp in 2013. The BUSY318 intercept of 0.42 metres @ 59.7 g/t gold and 644 g/t silver (from 458.8 metres down-hole, elevation of 1,405 metres) is the most southerly and deepest high-grade intercept so far encountered in the southern Veta Sur vein family.

Two drill-holes (BUSY311 and BUSY314), located some 550 metres to the southwest of BUSY318, tested for extensions of the Veta Sur system in this area (Figure 1). Each drill-hole encountered multiple intervals of high silver/gold mineralization and moderate to high base metal contents at relatively high elevations between 1,550 and 1,700 metres elevation to the southwest of the Veta Sur mineral resource model. The two higher grade intercepts in BUSY311 (1.10 metres @ 4.5 g/t gold and 67 g/t silver, from 262.9 metres down-hole and also 1.30 metres @ 1.8 g/t gold and 378 g/t silver, including 0.4 metres @ 3.6 g/t gold, 1,080 g/t silver and 6.9% zinc, from 319.65 metres down-hole, elevation of 1,650 metres) are interpreted as potential extensions of central Veta Sur vein sets. BUSY210 (see November 23, 2011 news release) drilled the potential vertical extensions of these veins some 800 metre lower in elevation and 100 metres to the northeast along strike and exhibited much higher gold grades with low silver/gold. Further drilling will clarify the depth extensions of vein sets encountered in BUSY311 and BUSY314 in due course.

BUSY304 intersected several veins with high silver/gold about 200 metres to the southwest of intercepts in BUSY311. These vein sets may represent far southwesterly extensions of Veta Sur or westerly extensions of the Laurel vein system within the La Estera area (see December 13, 2012 news release).

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 "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated November 15, 2012 with an effective date of October 22, 2012, 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, 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 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 combined 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 newest hard rock gold producer in Colombia, Continental has commenced the construction of the access tunnel, which will initially provide access for underground drilling and eventually used for commercial production. The objective of the drill program underway at the Buriticá project is 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, and 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 the surface projection of veins in the October 2012 mineral resource model on geology-topography", please visit the following link: http://media3.marketwire.com/docs/FIG1846763.jpg.

To view "Figure 2 - Yaraguá Long Section, showing new drilling highlights against the outlines of the October 2012 mineral resource envelope", please visit the following link: http://media3.marketwire.com/docs/FIG2846763.jpg.

To view "Figure 3 - Veta Sur Long Section, showing new drilling highlights against the outlines of the October 2012 mineral resource envelope.", please visit the following link: http://media3.marketwire.com/docs/FIG3846763.jpg.

Contact Information