SOURCE: Continental Gold Inc.

Continental Gold Inc.

December 17, 2015 06:30 ET

Continental Gold Provides a Feasibility Study Update and Drills 5.35 metres @ 51.7 g/t Gold, 52 g/t Silver at Buritica, Colombia

TORONTO, ON--(Marketwired - December 17, 2015) - Continental Gold Inc. (TSX: CNL)   (OTCQX: CGOOF) ("Continental" or the "Company") is pleased to provide an update on the Feasibility Study (FS) for its 100%-owned Buriticá project located in Antioquia, Colombia. The FS, which is being managed by JDS Energy and Mining Inc., is considerably ahead of schedule and is now anticipated to be released in the second half of Q1 2016 versus prior guidance of late Q2 2016. JDS Energy and Mining Inc. will also be responsible for the mine plan and project construction planning, and M3 Engineering & Technology Corporation will be responsible for the process engineering and infrastructure design work.

"With the feasibility study nearing completion, we are preparing to move forward into detailed engineering," commented Donald Gray, Chief Operating Officer of Continental. "We have assembled a strong, diverse team of leading industry professionals well-qualified to develop a comprehensive and executable plan; we are also pleased to be rapidly advancing the Buriticá project to a production decision in H2 2016."

Additionally, the Company is pleased to announce results for the final 12 diamond drill-holes through the Veta Sur and Yaraguá vein systems in 2015. These results are not included in the most recent mineral resource estimate for the Buriticá project where the Company outlined significant growth in all mineral resource categories as follows (CNL News Release, June 24, 2015):

 
COMBINED YARAGUÁ AND VETA SUR MINERAL RESOURCES
above a 3 g/t gold cut-off, as at May 11, 2015
RESOURCE   GRADES   METAL
Category   Tonnes (M)   Gold g/t   Silver g/t   Gold Eq
g/t
  Gold oz (M)   Silver
oz (M)
  Gold Eq oz (M)
Measured   0.89   19.0   55   19.9   0.54   1.58   0.57
Indicated   12.00   10.2   32   10.7   3.94   12.4   4.18
Total M & I   12.89   10.8   34   11.4   4.48   13.98   4.71
Inferred   15.6   9.0   29   9.5   4.5   14.7   4.8
                             
Notes - Reported tonnage and grade figures have been rounded from raw estimates to reflect the order of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. There have been no assumptions made as to metal prices or recoveries in this mineral resource estimate other than in gold equivalents that are calculated for GoldEq = Gold + Silver/60. M in Figures and Tables represents millions.

Drilling Highlights (referenced in Figures 1, 2, 3, 4 and 5)

  • Drilling across Yaraguá and Veta Sur was successful in infilling areas and elevation ranges amenable to potential development and mining of both vein systems. As well as confirming master vein continuity at grade-thicknesses similar to or better than in the current mineral resource model, drilling intersected significant mineralization in vein 'halos" and also intersected some veins not included in the resource model.
  • In central and west-central Veta Sur, drilling intersected multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model in these areas. High-grade intercepts in related master veins include:

    • 7.0 metres @ 12.8 g/t gold and 11 g/t silver, including 2.4 metres @ 30.6 g/t gold and 16 g/t silver (BUSY373D01, VS34, elevation of 1,156 metres);
    • 8.58 metres @ 12.7 g/t gold and 19 g/t silver, including 1.76 metres @ 23.1 g/t gold and 26 g/t silver (BUUY314D01, VS34, elevation of 1,336 metres);
    • 1.6 metres @ 50.6 g/t gold and 43 g/t silver (BUUY314D03, VS43, elevation of 1,306 metres);
    • 1.6 metres @ 88.7 g/t gold and 36 g/t silver (BUUY314D03, VS41, elevation of 1,256 metres);
    • 11.65 metres @ 10.1 g/t gold and 16 g/t silver, including 3.35 metres @ 29.1 g/t gold and 32 g/t silver (BUUY314D03, VS26, elevation of 1,122 metres);
    • 5.35 metres @ 51.7 g/t gold and 52 g/t silver, including 2.4 metres @ 112.3 g/t gold and 102 g/t silver (BUUY314D04, VS41, elevation of 1,299 metres);
    • 3.7 metres @ 27.8 g/t gold and 27 g/t silver, including 1.45 metres @ 69.3 g/t gold and 62 g/t silver (BUUY314D04, VS39, elevation of 1,292 metres); and
    • 4.1 metres @ 11.5 g/t gold and 50 g/t silver, including 1.95 metres @ 20.4 g/t gold and 62 g/t silver (BUUY314D04, VS31, elevation of 1,263 metres).

These, and other infill intercepts with substantial grades X thicknesses, extend high-grade sub-domains in Veta Sur vein families (Figure 3) in areas and at elevations that are close to proposed development.

  • In central and west-central Yaraguá, drilling also encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model. Such intercepts in related master veins include:

    • 0.5 metres @ 68.7 g/t gold and 313 g/t silver (BUUY315, MU7, elevation of 1,252 metres);
    • 1.0 metres @ 32.1 g/t gold and 37 g/t silver (BUUY316, MU71, elevation of 1,213 metres);
    • 0.5 metres @ 132.0 g/t gold and 36 g/t silver (BUUY316, MU4, elevation of 1,229 metres);
    • 2.7 metres @ 58.9 g/t gold and 26 g/t silver, including 1.15 metres @ 127.0 g/t gold and 37 g/t silver (BUUY318, VNE31, elevation of 1,197 metres); and
    • 1.05 metres @ 29.5 g/t gold and 28 g/t silver (BUUY318, VNC18, elevation of 1,199 metres).

These and other infill intercepts extend higher grade sub-domains in many of the Yaraguá vein families (Figure 5) in areas and at elevations close to proposed developments at Yaraguá.

  • In both the Yaraguá and Veta Sur systems, drilling intersected precious metal mineralization on the margins of and between master veins and also veins outside of the current mineral resource envelopes. The latter intersections appear to be extensions of master veins and include:

    • 2.56 metres @ 5.0 g/t gold and 327 g/t silver, including 0.8 metres @ 11.5 g/t gold and 1,030 g/t silver (BUUY314D01, elevation of 1,182 metres); and
    • 0.54 metres @ 7.7 g/t gold and 369 g/t silver (BUUY314D01, elevation of 1,136 metres).

Vein intercepts between master veins include:

  • 3.55 metres @ 3.6 g/t gold and 7 g/t silver (BUUY314D01, elevation of 1,377 metres); and
  • 0.5 metres @ 6.2 g/t gold and 13 g/t silver (BUUY314D04, elevation of 1,409 metres).

Intercepts in the mineralized "halos" of master veins include:

  • 1.45 metres @ 8.0 g/t gold and 7 g/t silver (BUUY314D03, elevation of 1,210 metres);
  • 0.5 metres @ 7.8 g/t gold and 12 g/t silver (BUUY314D04, elevation of 1,402 metres); and
  • 5.25 metres @ 3.6 g/t gold and 5 g/t silver (BUUY318, elevation of 1,201 metres).

These and numerous other intercepts confirm and extend the utility of the Company's (2015) estimation of mineralization on the margins of master veins. These "halo" models will be used to dilute vein resources to minimum potential mining widths and are particularly significant for areas where potential stopes may include mineralized material around one or more master veins. Such material had previously been assigned zero grades.

Details

Continental's 100%-owned, 61,784-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 2015 mineral resource estimate prepared in accordance with Canadian National Instrument 43-101 ("NI 43-101"). This release documents the results of 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, 2, 3, 4 and 5.

Table I: Drilling Highlights

                                 
Hole ID
  From (m)
  To (m)
  Interval* (m)   Gold (g/t)   Silver (g/t)   Zinc (%)   Elevation (m)   Vein **
BUSY373D   222.00   222.95   0.95   0.03   61.7   0.10   1569   VS185
    280.85   281.60   0.75   0.64   28.6   0.12   1515   VS180
BUSY373D01   103.75   104.65   0.90   2.64   18.5   0.69   1415   VS160
    107.65   108.15   0.50   1.46   15.0   0.47   1411   dilution
    144.60   145.20   0.60   1.38   6.6   0.01   1379   between
    157.70   158.20   0.50   5.98   36.4   0.83   1368   VS150
    210.95   211.75   0.80   0.25   67.5   0.05   1321   VS120
    249.45   250.20   0.75   1.13   2.3   0.01   1287   VS110
    259.75   260.50   0.75   0.91   6.2   0.02   1278   VS90
    375.90   383.90   8.00   6.06   5.3   0.02   1172   VS42
incl   380.80   383.40   2.60   12.63   6.3   0.04        
    391.15   391.65   0.50   36.40   64.3   1.09   1165   VS39
    395.60   402.60   7.00   12.77   11.4   0.01   1156   VS34
incl   400.20   402.60   2.40   30.59   16.2   0.02        
BUSY373D02   78.30   78.90   0.60   7.67   17.7   0.26   1425   VS160
    80.35   80.90   0.55   2.99   25.5   1.00   1423   dilution
    118.35   118.88   0.53   2.95   15.5   0.40   1393   VS150
    121.95   122.54   0.59   1.26   10.3   0.15   1391   VS120
    180.22   180.77   0.55   1.74   29.8   0.42   1346   VS110
    196.70   197.88   1.18   1.37   7.6   0.11   1333   VS90
    210.20   210.72   0.52   1.75   2.1   0.01   1323   VS65
    252.59   253.10   0.51   1.62   2.4   0.05   1292   VS43
    267.70   268.20   0.50   1.99   3.1   0.19   1281   VS41
    280.10   282.25   2.15   7.72   46.9   0.90   1271   VS39
incl   280.10   280.95   0.85   16.35   104.0   2.27        
    296.57   297.25   0.68   1.34   6.0   0.01   1260   VS32
BUUY314D   140.00   140.50   0.50   1.42   38.5   0.04   1537   VS160
    150.80   151.35   0.55   6.36   2.6   0.02   1528   VS150
    190.25   192.60   2.35   4.81   9.1   0.16   1493   VS140
BUUY314D01   0.70   1.20   0.50   2.70   24.0   0.11   1479   VS130
    27.90   28.40   0.50   4.81   36.8   1.31   1457   VS123
    30.70   31.30   0.60   4.06   11.7   0.18   1455   VS120
    36.70   37.20   0.50   2.58   6.0   0.31   1450   VS110
    62.40   63.50   1.10   3.82   8.9   0.45   1429   VS90
    66.49   67.61   1.12   2.02   10.4   0.31   1426   VS75
    80.00   80.54   0.54   3.19   14.4   0.60   1416   VS70
    102.92   103.47   0.55   6.96   6.1   0.17   1397   VS62
    114.90   116.45   1.55   9.38   15.2   0.38   1387   VS51
    118.80   119.85   1.05   7.13   14.1   0.28   1384   VS48
    125.25   128.80   3.55   3.56   7.3   0.17   1377   between
    132.35   133.35   1.00   7.34   56.1   0.09   1374   VS43
    141.53   142.67   1.14   7.06   19.0   0.23   1366   VS42
    152.55   153.12   0.57   2.76   4.3   0.11   1358   between
    163.46   163.97   0.51   13.95   30.1   0.04   1349   VS41
    165.94   166.50   0.56   5.60   6.2   0.07   1347   VS39
    167.63   170.43   2.80   2.67   6.8   0.09   1344   dilution
    172.25   180.83   8.58   12.70   19.0   0.14   1336   VS34
incl   172.25   174.05   1.80   19.62   32.6   0.07        
and   177.91   179.67   1.76   23.10   25.8   0.50        
    196.13   197.56   1.43   2.18   8.2   0.04   1323   VS32
    200.70   201.75   1.05   3.27   7.8   0.12   1320   VS31
    247.14   247.86   0.72   18.65   23.2   0.34   1283   VS28
    304.65   305.26   0.61   9.73   2.7   0.07   1238   VS22
    310.36   311.45   1.09   5.54   2.9   0.01   1234   VS20
    348.70   349.25   0.55   1.26   283.0   1.87   1204   VS16
    367.83   368.46   0.63   3.39   89.7   0.05   1189   outside
    375.43   377.99   2.56   5.00   326.8   0.11   1182   outside
incl   375.43   376.23   0.80   11.50   1030.0   0.31        
    383.50   385.24   1.74   2.64   15.8   0.16   1176   outside
    432.75   433.40   0.65   5.71   27.5   0.02   1138   outside
    435.95   436.49   0.54   7.73   369.0   9.87   1136   outside
    441.36   442.78   1.42   2.58   22.7   0.63   1132   C40
    485.50   486.16   0.66   1.81   1.3   0.01   1098   C11
    509.95   511.25   1.30   1.59   11.2   0.01   1079   SOF11
    544.30   547.84   3.54   3.91   1.6   0.02   1051   SOF10
    567.55   569.25   1.70   2.26   11.1   0.01   1035   HWV1
    615.50   616.16   0.66   0.53   216.0   0.02   1001   SA12
    661.16   661.70   0.54   4.66   5.4   0.01   967   VND10
    677.80   679.87   2.07   2.00   14.9   0.02   955   VNAD9
BUUY314D02   9.60   10.20   0.60   4.56   17.6   0.15   1457   VS123
    22.50   23.10   0.60   2.50   12.2   0.16   1447   VS120
    40.08   40.60   0.52   9.49   7.2   0.07   1433   VS110
    44.75   45.78   1.03   13.78   14.3   0.33   1429   VS90
    58.80   59.30   0.50   2.20   4.9   0.11   1418   VS75
    85.67   86.20   0.53   15.25   13.5   0.19   1396   VS62
    95.50   96.00   0.50   28.20   24.9   0.66   1389   VS51
    101.95   102.60   0.65   9.43   18.7   0.60   1383   VS48
BUUY314D03   28.55   29.75   1.20   2.47   10.3   0.28   1450   VS120
    39.85   40.35   0.50   9.61   4.5   0.06   1440   VS110
    41.80   42.90   1.10   3.48   9.7   0.47   1438   dilution
    48.75   49.40   0.65   3.40   20.0   0.16   1432   between
    83.25   83.95   0.70   16.05   16.2   0.44   1399   VS90
    92.30   92.80   0.50   7.10   5.8   0.05   1391   VS75
    95.50   96.00   0.50   8.40   12.6   0.31   1388   VS70
    97.80   98.30   0.50   3.44   10.4   0.21   1386   VS65
    107.30   108.45   1.15   1.96   4.9   0.06   1376   between
    138.90   141.30   2.40   3.15   4.3   0.06   1346   VS62
    154.00   157.30   3.30   3.60   9.0   0.17   1331   VS51
    167.20   167.75   0.55   6.99   66.0   0.11   1320   VS48
    181.65   183.25   1.60   50.60   42.6   1.90   1306   VS43
    207.15   208.25   1.10   2.20   3.7   0.01   1283   VS42
    232.50   233.20   0.70   4.02   3.7   0.04   1259   dilution
    235.10   236.70   1.60   88.70   35.5   0.05   1256   VS41
    238.10   239.74   1.64   8.01   20.1   0.07   1253   VS39
    244.20   244.75   0.55   3.01   10.9   0.05   1248   between
    248.10   248.60   0.50   4.46   10.5   0.02   1244   between
    256.25   258.70   2.45   9.38   38.2   0.03   1235   VS34
    260.45   264.35   3.90   5.14   26.6   0.02   1230   dilution
incl   260.45   261.50   1.05   9.70   50.9   0.02        
    265.60   269.00   3.40   9.28   27.6   0.02   1225   V32
incl   265.60   266.75   1.15   20.06   40.6   0.02        
    270.95   271.45   0.50   58.60   342.0   0.13   1223   VS31
    274.00   276.15   2.15   2.81   8.2   0.04   1219   dilution
    280.10   281.60   1.50   13.87   23.6   0.03   1214   VS30
    284.25   285.70   1.45   7.95   7.2   0.02   1210   dilution
    305.15   305.70   0.55   4.71   4.8   0.01   1191   between
    323.35   324.55   1.20   1.80   11.9   0.06   1173   between
    359.20   359.70   0.50   3.61   4.9   0.03   1140   dilution
    361.85   367.00   5.15   5.28   17.6   0.02   1134   VS28
incl   364.45   365.50   1.05   13.95   60.5   0.06        
    368.10   379.75   11.65   10.08   15.7   0.04   1122   VS26
incl   375.90   379.25   3.35   29.12   32.0   0.06        
    441.85   442.45   0.60   1.56   1.2   0.02   1063   VS24
    628.00   629.75   1.75   2.02   0.8   0.01   894   VS16
BUUY314D04   15.20   16.40   1.20   3.49   8.2   0.61   1438   VS120
    19.73   20.23   0.50   3.91   15.4   0.3   1434   VS110
    41.15   41.65   0.50   6.01   12.5   0.32   1415   VS90
    46.15   46.65   0.50   5.00   12.2   1.21   1410   between
    47.85   48.35   0.50   6.21   12.9   0.82   1409   between
    56.05   56.55   0.50   7.76   12.4   0.41   1402   dilution
    57.60   59.20   1.60   15.75   8.8   0.5   1399   VS75
    60.75   61.28   0.53   11.60   13.1   1.17   1397   VS70
    69.90   70.45   0.55   16.05   6.3   0.01   1389   VS65
    100.02   100.60   0.58   3.01   5.1   0.02   1362   VS51
    114.10   114.60   0.50   2.32   6.6   0.16   1350   VS48
    151.50   152.05   0.55   3.14   2.0   0.11   1316   VS43
    153.50   155.00   1.50   18.61   38.6   0.6   1314   VS42
    167.25   172.60   5.35   51.73   51.6   0.52   1299   VS41
incl   170.20   172.60   2.40   112.25   102.2   1.13        
    176.00   179.70   3.70   27.84   26.5   0.21   1292   VS39
incl   178.25   179.70   1.45   69.30   62.4   0.51        
    199.00   199.50   0.50   5.29   4.3   0.02   1274   VS34
    202.17   203.50   1.33   5.44   4.2   0.01   1271   VS32
    208.20   212.30   4.10   11.48   49.7   0.09   1263   VS31
incl   210.35   212.30   1.95   20.39   62.2   0.13        
    216.70   217.20   0.50   3.16   20.2   0.05   1258   VS30
    253.20   253.80   0.60   4.00   1.8   0.01   1225   VS28
BUUY315   110.60   111.10   0.50   1.80   286.0   0.08   1222   MU9
    154.30   155.30   1.00   1.67   12.4   0.44   1240   MU5
    181.60   182.10   0.50   68.70   313.0   0.93   1252   MU7
    189.00   189.80   0.80   6.72   2.2   0.06   1255   VNE30
    220.60   222.80   2.20   2.20   11.6   0.77   1269   VNB19
    238.35   239.00   0.65   5.05   2.1   0.02   1276   VNC18
    248.70   249.85   1.15   1.67   6.7   0.30   1281   C11
    325.00   326.10   1.10   12.65   353.0   1.49   1315   VND10
    341.10   341.60   0.50   30.90   400.0   1.66   1322   VNAD9
    405.30   405.80   0.50   1.38   9.0   0.19   1353   N20
BUUY316   24.00   24.67   0.67   1.67   1.5   0.03   1183   outside
    110.22   110.72   0.50   3.28   2.2   0.01   1212   MU9
    112.95   113.95   1.00   32.13   37.3   0.01   1213   MU71
    152.60   153.32   0.72   20.60   7.0   0.42   1227   MU2
    158.50   159.00   0.50   132.00   36.3   0.29   1229   MU4
    163.00   163.50   0.50   9.70   17.7   0.45   1230   MU5
    174.10   177.32   3.22   1.83   7.7   0.34   1235   MU6
    187.25   188.10   0.85   2.81   15.6   0.06   1239   MU7
    207.50   209.70   2.20   8.49   3.8   0.05   1246   PRE20
    227.20   228.00   0.80   14.35   37.7   0.18   1252   VNB19
    238.90   240.60   1.70   10.23   4.6   0.29   1256   VNC18
    254.00   255.10   1.10   1.37   20.4   2.24   1261   C11
    265.70   268.00   2.30   4.92   4.2   0.14   1265   SOF10
    296.50   298.42   1.92   8.98   21.5   1.58   1276   HWV1
    301.00   301.50   0.50   9.14   22.2   0.09   1277   SA12
BUUY317   98.50   99.00   0.50   11.20   8.1   0.18   1162   MU71
    137.20   137.70   0.50   3.18   13.0   0.41   1158   MU51
    156.50   157.05   0.55   17.65   15.8   0.08   1157   MU7
    159.50   160.00   0.50   8.09   3.4   0.01   1157   VNE30
    162.55   166.50   3.95   4.65   5.0   0.03   1156   VNE31
incl   163.85   164.90   1.05   8.67   5.0   0.02        
    173.70   174.75   1.05   2.73   15.6   0.09   1156   PRE20
    215.80   216.30   0.50   4.34   129.0   0.32   1153   C20
    242.45   243.50   1.05   5.46   41.8   0.48   1152   SOF10
    248.50   249.00   0.50   2.90   12.4   1.22   1152   HWV1
    251.20   251.70   0.50   6.00   8.5   0.02   1152   NWSE3
    253.00   254.80   1.80   7.49   7.7   0.04   1152   HWV2
    261.75   262.90   1.15   1.35   3.1   0.01   1152   SA12
    286.63   287.13   0.50   3.79   2.2   0.02   1151   FWV11
    321.90   322.50   0.60   1.75   12.8   0.05   1152   VNA8
BUUY318   96.70   97.40   0.70   2.19   2.5   0.01   1187   MU71
    128.50   129.00   0.50   1.48   14.2   0.14   1191   MU2
    156.75   157.50   0.75   1.50   1.9   0.01   1195   MU6
    163.90   164.40   0.50   7.33   161.0   0.62   1196   MU7
    172.15   172.65   0.50   6.33   9.3   0.04   1196   VNE30
    176.45   179.15   2.70   58.94   25.9   0.25   1197   VNE31
incl   176.45   177.60   1.15   126.97   37.4   0.17        
    183.50   184.10   0.60   16.80   7.5   0.43   1198   PRE20
    185.30   191.75   6.45   3.09   4.4   0.10   1198   VNB19
    193.15   196.70   3.55   2.17   5.0   0.09   1199   dilution
    197.80   198.30   0.50   4.21   7.3   0.33   1199   CB18
    200.45   201.50   1.05   29.52   28.2   0.62   1199   VNC18
    205.70   206.25   0.55   15.25   18.9   0.08   1200   C40
    208.75   214.00   5.25   3.64   4.5   0.13   1201   dilution
    215.90   216.50   0.60   4.06   2.8   0.06   1201   C30
    217.30   217.90   0.60   8.16   4.5   0.04   1201   C20
    221.00   221.60   0.60   2.54   1.5   0.01   1201   between
    238.15   238.65   0.50   3.24   49.1   0.13   1203   C11
    241.30   242.80   1.50   2.90   56.8   0.08   1203   C10
    244.35   244.88   0.53   2.96   142.0   1.19   1204   SOF11
    251.85   252.45   0.60   3.12   27.9   0.21   1204   SOF10
    263.70   264.25   0.55   2.12   4.5   0.04   1205   HWV1
    291.43   291.93   0.50   1.96   0.9   0.07   1208   HWV2
    305.45   305.95   0.50   8.91   12.0   0.07   1209   SA12
    308.95   309.65   0.70   10.10   15.6   0.04   1209   FWV11
    312.56   313.70   1.14   4.43   69.7   0.54   1210   VND10
    356.70   357.25   0.55   0.92   7.2   0.02   1213   VNAD9
                                 
* 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 more than 80% of the down-hole interval for Yaraguá drill-holes and 40-70% for Veta Sur drill-holes. 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 mineralization around the margins of modelled vein domains. Intercepts with grades X thicknesses apparently substantially greater than for the corresponding vein domains in the current mineral resource block model are also highlighted in bold.

Infill and extension drilling of the Veta Sur system comprised two drill-fans, drill-holes respectively targeting west-central and central Veta Sur (Figures 1 and 2). Two drill-holes continued into western Yaraguá (Figure 1). Drill-holes from the Higabra tunnel targeted the central and west-central Yaraguá system (Figures 1 and 4).

In central and west-central Veta Sur, drilling intersected multiple vein families with grades X thicknesses that are commonly significantly greater than those expected from the current mineral resource block model in these areas. These intercepts in related master veins are highlighted in Table 1 and include:

  • 7.0 metres @ 12.8 g/t gold and 11 g/t silver, including 2.4 metres @ 30.6 g/t gold and 16 g/t silver (BUSY373D01, VS34, elevation of 1,156 metres);
  • 8.58 metres @ 12.7 g/t gold and 19 g/t silver, including 1.76 metres @ 23.1 g/t gold and 26 g/t silver (BUUY314D01, VS34, elevation of 1,336 metres);
  • 1.6 metres @ 50.6 g/t gold and 43 g/t silver (BUUY314D03, VS43, elevation of 1,306 metres);
  • 1.6 metres @ 88.7 g/t gold and 36 g/t silver (BUUY314D03, VS41, elevation of 1,256 metres);
  • 11.65 metres @ 10.1 g/t gold and 16 g/t silver, including 3.35 metres @ 29.1 g/t gold and 32 g/t silver (BUUY314D03, VS26, elevation of 1,122 metres);
  • 5.35 metres @ 51.7 g/t gold and 52 g/t silver, including 2.4 metres @ 112.3 g/t gold and 102 g/t silver (BUUY314D04, VS41, elevation of 1,299 metres);
  • 3.7 metres @ 27.8 g/t gold and 27 g/t silver, including 1.45 metres @ 69.3 g/t gold and 62 g/t silver (BUUY314D04, VS39, elevation of 1,292 metres); and
  • 4.1 metres @ 11.5 g/t gold and 50 g/t silver, including 1.95 metres @ 20.4 g/t gold and 62 g/t silver (BUUY314D04, VS31, elevation of 1,263 metres).

These, and other infill intercepts with substantial grades X thicknesses, extend high grade sub-domains in Veta Sur vein families (Figure 3) in areas and at elevations that are close to proposed development.

Elsewhere, drill intercepts in master veins were generally around the grades X thicknesses expected from the current mineral resource block model for Veta Sur (Figure 3), adding further confidence to this model.

In central and west-central Yaraguá, drilling also encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model. Such intercepts in related master veins are highlighted in Table 1 and include:

  • 0.5 metres @ 68.7 g/t gold and 313 g/t silver (BUUY315, MU7, elevation of 1,252 metres);
  • 0.5 metres @ 30.9 g/t gold and 400 g/t silver (BUUY315, VNAD9, elevation of 1,322 metres);
  • 1.0 metres @ 32.1 g/t gold and 37 g/t silver (BUUY316, MU71, elevation of 1,213 metres);
  • 0.5 metres @ 132.0 g/t gold and 36 g/t silver (BUUY316, MU4, elevation of 1,229 metres);
  • 2.7 metres @ 58.9 g/t gold and 26 g/t silver, including 1.15 metres @ 127.0 g/t gold and 37 g/t silver (BUUY318, VNE31, elevation of 1,197 metres); and
  • 1.05 metres @ 29.5 g/t gold and 28 g/t silver (BUUY318, VNC18, elevation of 1,199 metres).

These and other infill intercepts extend higher grade sub-domains in many of the Yaraguá vein families (Figure 5) in areas and over elevation ranges (1,100-1,300 metres) that are close to proposed development in Yaraguá.

Other drill intercepts in master veins were generally around the grades X thicknesses expected from the current mineral resource block model for Yaraguá (Figure 5), adding further confidence to this model.

In both the Yaraguá and Veta Sur systems, drilling intersected precious metal mineralization on the margins of and between master veins and also veins outside of the current mineral resource envelopes (Table 1). The latter intersections appear to be extensions of master veins and include:

  • 2.56 metres @ 5.0 g/t gold and 327 g/t silver, including 0.8 metres @ 11.5 g/t gold and 1,030 g/t silver (BUUY314D01, elevation of 1,182 metres); and
  • 0.54 metres @ 7.73 g/t gold and 369.0 g/t silver (BUUY314D01, elevation of 1,136 metres).

Vein intercepts between master veins in Veta Sur include:

  • 3.55 metres @ 3.6 g/t gold and 7 g/t silver (BUUY314D01, elevation of 1,377 metres); and
  • 0.5 metres @ 6.2 g/t gold and 13 g/t silver (BUUY314D04, elevation of 1,409 metres).

Intercepts in the mineralized "halos" of master veins include:

  • 1.45 metres @ 8.0 g/t gold and 7 g/t silver (BUUY314D03, elevation of 1,210 metres, Veta Sur);
  • 0.5 metres @ 7.8 g/t gold and 12 g/t silver (BUUY314D04, elevation of 1,402 metres, Veta Sur); and
  • 5.25 metres @ 3.6 g/t gold and 5 g/t silver (BUUY318, elevation of 1,201 metres, Yaraguá).

These and numerous other intercepts confirm and extend the utility of the Company's (2015) estimation of mineralization on the margins of master veins. Such "halo" models will be used to dilute vein resources to minimum potential mining widths and are particularly significant for areas where potential stopes may include mineralized material around one or more master veins. Such material had previously been assigned zero grades.

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 Company's NI 43-101 technical report (the "Technical Report") entitled "Independent Technical Report and Resource Estimate on the Buriticá Gold Project 2015" dated August 7, 2015, with an effective date of May 11, 2015, led by independent consultants Mining Associates Limited. 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 high-grade Buriticá gold project to production. On June 24, 2015, the Company announced an updated mineral resource estimate for the Buriticá project, prepared in accordance with NI 43-101, based on 271,003 metres of drilling and sampling (as at May 11, 2015). This estimate covers the Yaraguá and Veta Sur vein systems, with a combined Measured mineral resource of 0.89 million tonnes of mineralized material containing 0.54 million ounces of gold grading 19 g/t gold, 1.58 million ounces of silver grading 55 g/t silver, and 13.4 million pounds of zinc grading 0.7% zinc, and a combined Indicated mineral resource of 12 million tonnes of mineralized material containing 3.94 million ounces of gold grading 10.2 g/t gold, 12.4 million ounces of silver grading 32 g/t silver, and 112.6 million pounds of zinc grading 0.4% zinc. The combined Inferred mineral resource is 15.6 million tonnes of mineralized material containing 4.5 million ounces grading 9.0 g/t gold, 14.7 million ounces of silver grading 29 g/t silver and 91 million pounds of zinc grading 0.3% zinc. 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 timing and completion of a feasibility study, timing of a production decision, the estimation of mineral resources, advancing the Buriticá project, exploration results, potential mineralization, potential development of mine openings, potential improvement of mining dilution grades, 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.

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