Continental Gold Limited
TSX : CNL
OTCQX : CGOOF

Continental Gold Limited

September 05, 2012 06:30 ET

Continental Gold Samples 75.2 g/t Gold and 405 g/t Silver Over 1.45 Metres True Width Along 57 Metres and Announces Drilling Results for the Yaragua and Veta Sur Systems at the Buritica Project

TORONTO, ONTARIO--(Marketwire - Sept. 5, 2012) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 22 diamond drill-holes and underground systematic channel sampling from the Company's ongoing program at the Buriticá project in Antioquia, Colombia.

Highlights

Yaraguá (Figures 1 and 2)

  • Underground systematic channel sampling (Levels 2, 2a and NV) of the northern part of the Yaraguá vein system has demonstrated the continuity of high grades over potential mining widths along substantial strike lengths, including in the HW Vein averaging 22.4 g/t Gold and 26 g/t Silver over 1.55 m true width along 213 m, the San Antonio Vein averaging 75.2 g/t Gold and 405 g/t Silver over 1.45 m true width along 57 m and the Centena Vein averaging 14.9 g/t Gold and 96 g/t Silver over 2.05 m true width along 49 m.
  • These precious metal grades are generally higher than the drilling-based assay results in comparable regions of the current mineral resource estimate model and will increase confidence levels in future mineral resource estimates.

  • High-grade drill intersections in the southern vein families in central and eastern Yaraguá demonstrate that these vein families have substantial depth and strike continuity. Significant intercepts in the Murcielagos vein family include:

    • 2.75 m @ 21.7 g/t Gold and 29 g/t Silver (BUSY272)
    • 3 m @ 12.8 g/t Gold and 17 g/t Silver (BUSY267)
    • 0.5 m @ 62.8 g/t Gold and 43 g/t Silver (BUSY271)
  • Intercepts in the Yaraguá South vein sets include:

    • 6.4 m @ 13.2 g/t Gold and 96 g/t Silver (BUSY250)
    • 0.4 m @ 54.6 g/t Gold and 46 g/t Silver (BUSY272)
  • Intercepts in the Murcielagos vein sets include:

    • 3.45 m @ 19.3 g/t Gold and 41 g/t Silver (BUSY298)
    • 1.1 m @ 24 g/t Gold and 33 g/t Silver (BUSY250)
  • All significant intercepts in the Yaraguá South and Murcielagos vein sets are outside of the current mineral resource estimate.

  • Drilling from underground in central Yaraguá has demonstrated the continuity of the central and northern veins to depths exceeding 400 m below underground development in this area. Significant intercepts in the San Antonio vein package include:

    • 1.6 m @ 6.6 g/t Gold and 162 g/t Silver (BUUY072)
    • 1.5 m @ 25.3 g/t Gold and 88 g/t Silver and 1.4 m @ 23.5 g/t Gold and 13 g/t Silver (BUUY073)
  • Further north and at greater depth, BUUY073 intersected a package of high silver/gold veins (including 0.4 m @ 0.9 g/t Gold and 408 g/t Silver), the most northerly yet encountered in Yaraguá drilling and 400 m below the surface expression of mineralization.
  • BUSY237 outlined the western extensions of northern and central Yaraguá vein sets to greater depths than previous drilling and these vein sets remaining open at depth and to the west. Significant intercepts include:

    • 1.85 m @ 26.5 g/t Gold and 383 g/t Silver
    • 1.5 m @ 16.8 g/t Gold and 9 g/t Silver
  • BUSY247 made the western-most intersection of the Yaraguá system to date, some 200 m west of detailed Yaraguá drilling, including:

    • 1.5 m @ 13.4 g/t Gold and 40 g/t Silver

Veta Sur (Figures 1 and 3)

  • Drill-holes BUSY257 and BUSY273 extended high-grade veins of the southern Veta Sur vein family to the southwest and these vein sets remaining open to the southwest and at depth. Significant intercepts include:
    • 2.9 m @ 38.9 g/t Gold and 504 g/t Silver, including 0.5 m @ 187.2 g/t Gold and 2,301 g/t Silver (BUSY257)
    • 2.3 m @ 12.1 g/t Gold (BUSY273)
  • BUSY293 extended high-grade subzones in central Veta Sur with intercepts including:
    • 0.6 m @ 256 g/t Gold and 83 g/t Silver
    • 5 m @ 10.1 g/t Gold and 34 g/t Silver including 1.1 m @ 33 g/t Gold and 97 g/t Silver
  • BUSY270 clarified the distribution of northeastern Veta Sur vein sets largely outside of the current mineral resource estimate model, higher-grade intercepts including:
    • 0.4 m @ 19.9 g/t Gold and 120 g/t Silver
    • 1.4 m @ 10.9 g/t Gold and 82 g/t Silver

"Results of both infill and step-out drilling of the Yaraguá and Veta Sur vein systems continue to positively deliver," commented Ari Sussman, CEO. "Additionally, our early-stage exploration efforts are ramping up nicely and we look forward in the near term to receiving and releasing our first assay results from diamond drilling of the La Estera and La Mano vein targets."

Details

Continental's 100%-owned, 28,920-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 Limited" (below) for a précis of the maiden mineral resource estimate for Buriticá.

Yaraguá

Systematic channel sampling of northern Yaraguá vein families in recent underground development on Level 2 and above (Levels 2a and NV) (Figure 2) has been completed and is summarized in Table I, below.

Table I: Underground channel sampling, Yaraguá
0 g/t gold cut-off
Segment RL
(m)
Length*
(m)
Average
Width
(m)
Gold
(g/t)
Silver
(g/t)
Zinc
(%)
San A Vein Set 1450 132 1.89 12.74 65 1.0
San A Vein Set 1450 27 2.05 14.93 96 0.6
San A Vein Set 1450 57 1.45 75.22 405 0.5
San A Vein Set 1520 112 1.24 82.93 100 2.1
Centena Vein Set 1450 126 1.65 8.20 66 1.0
Centena Vein Set 1450 49 2.05 14.93 96 0.6
HW Vein Set 1450 213 1.55 23.38 26 0.5
HW Vein Set 1461 148 1.20 16.33 16 0.9
* Channel samples taken across the roof of the underground opening, spaced every 3 metres along the tabulated strike length. Widths are true horizontal.

These channel sampling results demonstrate the strong continuity of high grades over potential mining widths along substantial strike lengths of the main northern Yaraguá veins at these RL's and are comparable with the results from previously announced sampling at other levels.

These precious metal grades for each vein segment are generally higher than for drilling-based assay results in comparable regions of the current mineral resource model and will increase confidence levels in future mineral resource estimates.

Significant new drill intercepts in the Yaraguá system are tabulated below in Table II and are referenced in Figures 1 and 2.

Table II: Drilling Highlights - Yaraguá
Drill-hole From
(m)
To
(m)
Interval Gold
(g/t)
Silver
(g/t)
Zinc
(%)
Elevation
(m)
BUSY237 192.00 193.00 1.00 3.01 76.0 0.24 1496
207.00 208.00 1.00 4.31 16.0 0.10 1482
224.30 226.00 1.70 1.86 22.1 1.28 1465
260.55 262.40 1.85 26.45 382.7 4.44 1430
358.50 359.50 1.00 3.78 7.8 0.13 1338
470.50 481.58 11.08 4.83 14.2 0.04 1227
incl. 475.00 476.50 1.50 16.84 8.9 0.03 1227
483.45 486.00 2.55 3.71 3.6 0.13 1210
BUSY241 237.00 238.10 1.10 8.02 26.0 0.06 1379
BUSY242 532.80 535.00 2.20 2.59 5.8 0.06 1300
578.60 580.00 1.40 2.89 7.3 0.26 1260
BUSY244 61.50 62.50 1.00 5.96 41.8 3.66 1464
71.00 73.20 2.20 2.43 12.8 0.29 1454
176.50 177.40 0.90 9.28 50.6 0.06 1365
359.50 360.50 1.00 0.27 57.9 0.06 1206
BUSY247 202.40 203.00 0.60 1.39 15.8 1.65 1605
408.50 412.00 3.50 6.61 21.2 0.10 1427
incl. 409.50 411.00 1.50 13.35 39.6 0.16 1427
514.00 514.60 0.60 0.14 74.0 0.27 1338
BUSY250 97.40 98.85 1.45 2.57 27.0 2.08 1498
104.50 109.00 4.50 1.57 13.9 0.45 1490
113.50 117.40 3.90 3.28 18.4 0.63 1481
174.00 178.18 4.18 1.45 4.0 0.52 1426
193.60 200.00 6.40 13.16 95.7 0.86 1407
incl. 194.92 196.55 1.63 35.42 270.0 0.31 1407
288.40 290.50 2.10 2.59 19.8 0.80 1319
323.30 327.50 4.20 1.94 1.0 0.12 1284
354.60 367.85 13.25 4.29 11.0 1.76 1254
incl. 358.90 360.00 1.10 23.98 33.0 5.05 1254
489.80 495.00 5.20 2.67 16.4 0.09 1132
BUSY253 253.00 253.40 0.40 0.58 182.0 0.49 1555
267.50 268.00 0.50 3.98 1.1 0.01 1542
570.85 572.00 1.15 0.31 123.2 0.59 1271
609.75 611.50 1.75 1.66 1.8 0.18 1238
BUSY266 46.50 47.00 0.50 6.43 206.0 0.05 1515
87.90 88.90 1.00 6.64 129.0 0.74 1478
147.67 148.32 0.65 2.25 72.1 7.92 1428
231.00 231.55 0.55 3.32 6.9 0.76 1355
296.03 297.50 1.47 2.77 4.2 0.96 1298
345.46 345.86 0.40 8.75 49.0 3.00 1257
352.03 352.90 0.87 4.86 22.3 2.45 1250
376.60 377.10 0.50 7.30 32.0 1.85 1230
418.80 419.20 0.40 10.47 6.2 1.68 1194
BUSY267 150.50 154.50 4.00 2.45 14.8 0.33 1446
165.80 166.50 0.70 10.27 29.0 1.28 1431
175.50 178.80 3.30 1.89 3.1 0.08 1422
315.50 317.00 1.50 4.08 3.3 0.03 1296
362.70 363.50 0.80 5.17 0.7 0.10 1249
426.65 429.00 2.35 4.57 6.1 0.04 1189
440.00 441.00 1.00 5.91 3.7 0.06 1176
452.00 455.00 3.00 12.77 16.8 0.17 1164
459.00 461.00 2.00 2.75 2.5 0.11 1159
466.25 466.90 0.65 25.64 234.0 0.52 1151
482.00 484.00 2.00 3.41 39.0 0.75 1137
BUSY271 94.50 96.40 1.90 4.56 12.7 0.23 1497
192.00 193.05 2.05 3.28 7.2 0.41 1404
196.00 197.65 1.65 3.27 7.0 0.76 1398
329.50 330.80 1.30 4.05 60.0 0.45 1272
388.00 393.85 5.85 2.02 8.4 0.07 1211
463.00 465.00 2.00 3.18 3.7 0.08 1138
511.20 515.00 3.80 4.42 12.5 0.02 1091
521.50 524.70 3.20 5.82 8.2 0.05 1080
548.20 548.70 0.50 62.81 43.0 0.04 1056
565.50 568.00 2.50 3.93 2.9 0.02 1042
571.30 572.00 0.70 25.44 35.0 0.02 1030
BUSY272 46.00 47.00 1.00 1.10 53.0 0.04 1511
186.30 188.10 1.80 5.76 24.8 0.18 1377
229.40 229.80 0.40 54.63 46.0 2.54 1336
317.50 319.00 1.50 5.42 1.3 0.02 1306
366.50 367.20 0.70 7.88 82.0 5.16 1252
398.40 402.60 4.20 1.16 19.7 2.54 1206
409.00 410.60 1.60 2.83 73.6 0.89 1176
414.20 416.80 2.60 1.57 18.2 4.10 1166
421.75 424.50 2.75 21.68 28.6 0.17 1153
incl. 422.15 423.15 1.00 56.40 68.0 0.08 1153
454.35 455.00 0.65 4.01 7.9 2.41 112
481.10 481.50 0.40 2.86 175.0 1.02 1098
BUSY275 126.00 127.10 1.10 3.53 64.6 0.76 1465
179.00 180.40 1.40 4.97 0.5 0.01 1413
217.80 218.80 1.00 2.00 3.1 0.26 1380
335.75 337.30 1.55 7.52 7.9 1.47 1260
351.00 352.45 1.45 3.54 15.1 0.26 1245
367.00 373.30 6.30 2.43 41.3 0.27 1226
BUSY298 228.70 232.15 3.45 19.31 41.0 0.16 1364
incl. 228.70 229.75 1.05 41.68 91.0 0.19 1364
261.00 262.00 1.00 8.68 17.8 0.09 1332
412.00 413.00 1.00 10.85 2.4 0.03 1184
455.85 457.00 1.15 2.44 2.5 0.02 1140
BUUY072 131.90 132.90 1.00 4.21 1.3 0.10 1373
143.50 149.50 6.00 2.02 2.4 0.15 1349
181.00 183.20 2.20 3.30 6.6 0.19 1325
189.40 193.50 4.10 2.64 6.5 0.31 1316
270.00 270.70 0.70 4.09 18.0 0.67 1242
310.80 311.80 1.00 3.30 69.0 0.11 1204
366.20 367.80 1.60 6.64 162.2 0.75 1151
394.30 394.70 0.40 7.58 6.3 0.11 1126
BUUY073 96.70 97.00 0.30 14.30 15.6 2.49 1430
151.50 153.00 1.50 25.31 88.4 0.76 1392
166.50 167.90 1.40 23.50 12.7 0.03 1380
306.10 306.60 0.50 1.17 367.0 0.20 1284
334.24 334.64 0.40 0.94 408.0 2.66 1264
380.00 381.00 1.00 5.35 2.1 0.07 1231
BUUY074 48.55 49.00 0.45 4.82 13.7 0.46 1451
137.00 139.30 2.30 2.09 4.5 0.39 1369
153.50 157.50 4.00 4.44 9.7 0.55 1351
163.50 165.50 2.00 2.30 8.9 0.44 1343
234.50 243.70 9.20 1.74 12.7 1.45 1277
289.40 289.70 0.30 8.47 11.0 0.88 1230
307.00 310.25 3.25 2.04 1.8 0.03 1211
362.10 364.00 1.90 2.68 9.7 0.16 1164
* Intercepts calculated at 1 g/t gold and 30 g/t silver cut-off grades with up to 20% internal dilution and generally tabulated if greater than 10 gram x metres gold equivalent. True widths not accurately known but generally are between 30% and actual true width of the down-hole interval.

Drilling in eastern, central, western and far-western Yaraguá (Figures 1 and 2) targeted lateral and depth extensions of the vein systems. All 16 drill-holes intersected multiple gold and silver-mineralized intervals which included high-grade intercepts.

In eastern Yaraguá, BUSY272 and BUSY266 cut the southern vein families, the latter drill-hole continuing into the central vein sets. Intercepts in the Yaraguá South vein sets (BUSY266, from 87.9 m downhole, 1 m @ 6.6 g/t Gold and 129 g/t Silver and BUSY272 from 229.4 m, 0.4 m @ 54.6 g/t Gold and 46 g/t Silver) are encouraging with respect to the vertical continuity of these vein sets. Both drill-holes confirmed the continuity of the Murcielagos vein family at depth in eastern Yaraguá and including a high-grade intercept in BUSY272 (from 421.75 m, 2.75 m @ 21.7 g/t Gold and 29 g/t Silver, including 1 m @ 56.4 g/t Gold and 68 g/t Silver).

In central Yaraguá, BUSY250, BUSY271, BUSY267, BUSY275 and BUSY298 tested the Murcielagos vein sets over more than 100 metres of strike length and depth extent of up to 450 metres, below Murcielagos developments. High-grade intercepts in BUSY250 (from 193.6 m, 6.4 m @ 13.2 g/t Gold and 96 g/t Silver, including 1.63 m @ 35.4 g/t Gold and 270 g/t Silver) are more than 700 metres vertically above Yaraguá South vein intersections in deep drill-hole BUSY258, demonstrating vertical grade continuity in this vein set. BUSY250 (from 358.9 m, 1.1 m @ 24.0 g/t Gold and 33 g/t Silver) and BUSY298 (from 228.7 m, 3.45 m @ 19.3 g/t Gold and 41 g/t Silver) also demonstrated vertical and lateral grade continuity in the Murcielagos vein set. BUSY267, BUSY271 and BUSY298 each made solid multiple intersections in the Murcielagos vein family, which included in BUSY267, from 452 m down-hole, 3 m @ 12.8 g/t Gold and 17 g/t Silver, plus from 466.25 m, 0.65 m @ 25.6 g/t Gold and 234 g/t Silver. Approximately 100 metres deeper, BUSY271 intersected, from 548.2 m, 0.5 m @ 62.8 g/t Gold and 43 g/t Silver plus from 571.3 m, 0.7 m @ 25.4 g/t Gold and 35 g/t Silver.

Drilled to the south from central Yaraguá (Figure 1), BUSY241 made the first significant intercept (from 237 m, 1.1 m @ 8.0 g/t Gold and 26 g/t Silver) in the far south Yaraguá area, underlying a NE-trending soil geochemical anomaly.

The significant intercepts of the southern Yaraguá vein families in all of the above drill-holes are outside of the current mineral resource estimate.

BUUY072, BUUY073 and BUUY074 were drilled from underground-targeted central and northern Yaraguá vein families at depth below developments in Central Yaraguá. BUUY073 (from 151.5 m, 1.5 m @ 25.3 g/t Gold and 88 g/t Silver plus, from 166.5 m, 1.4 m @ 23.5 g/t Gold and 13 g/t Silver) and 100 metres further west, BUUY072 (from 366.2 m, 1.6 m @ 6.6 g/t Gold and 162 g/t Silver) intersected the San Antonio vein package. Further down-hole, BUUY073 intersected several veins with high silver/gold (including from 334.24 m, 0.4 m @ 0.94 g/t Gold, 408 g/t Silver and 2.66% Zinc). These are the most northerly veins yet encountered in Yaraguá drilling, some 400 metres vertically below surface expression of precious metal mineralization.

BUSY237 extended several of the Yaraguá vein families to the west and to depth in western Yaraguá, outside of the current mineral resource estimate model. The high-grade intercept (from 260.55 m, 1.85 m @ 26. 5 g/t Gold, 383 g/t Silver and 4.44% Zinc) appears to relate to the San Antonio vein package, whereas the deeper, low base-metal intersection (from 475 m, 1.5 m @ 16.8 g/t Gold and 9 g/t Silver) appears to correlate with central vein sets further east.

BUSY247 demonstrates that parts of the Yaraguá vein system extend more than 200 metres further west of BUSY237 for a total strike length of up to 900 metres and open to the west. The main broad intercept in this drill-hole (from 408.5 m, 3.5 m @ 6.6 g/t Gold and 21 g/t Silver) included a high-grade interval (1.5 m @ 13.4 g/t Gold and 40 g/t Silver).

Veta Sur

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

Table III: Drilling Highlights - Veta Sur
Drill-hole From
(m)
To
(m)
Interval Gold
(g/t)
Silver
(g/t)
Zinc
(%)
Elevation
(m)
BUSY256 26.30 27.45 1.15 0.19 146.0 0.04 1735
114.00 115.13 1.13 4.16 6.1 0.28 1650
149.40 150.00 0.60 3.56 6.1 0.10 1617
172.67 173.40 0.73 3.34 9.3 1.28 1595
BUSY257 297.80 298.90 1.10 3.58 73.0 1.12 1597
338.40 339.60 1.20 2.10 28.0 0.79 1558
378.25 381.15 2.90 38.89 503.6 0.21 1520
incl. 378.25 378.75 0.50 187.17 2301.0 0.64 1520
BUSY268 275.70 276.10 0.40 9.37 23.0 1.79 1624
312.00 316.60 4.60 1.80 36.0 1.05 1590
517.00 518.20 1.20 1.30 14.0 0.83 1405
BUSY270 66.60 67.30 0.70 0.29 34.0 0.05 1646
86.70 89.30 2.60 1.91 1.0 0.06 1626
134.00 136.50 2.50 3.07 13.4 0.05 1581
228.00 229.50 1.50 1.26 18.0 0.07 1490
317.06 317.55 0.49 12.43 46.0 0.19 1406
376.30 377.50 1.20 4.87 4.7 0.02 1380
381.90 388.60 6.70 3.12 33.8 0.19 1350
incl. 388.20 388.60 0.40 19.88 120.0 1.90 1341
390.90 391.40 0.50 10.46 19.0 0.12 1335
416.50 417.75 1.25 1.96 5.0 0.12 1310
458.50 463.00 4.50 1.40 4.4 0.02 1268
499.30 504.20 4.90 4.42 26.0 0.63 1229
incl. 501.40 502.80 1.40 10.90 82.0 2.14 1229
BUSY273 185.90 188.20 2.30 12.12 4.5 0.19 1746
291.50 293.20 1.70 0.19 86.3 1.88 1677
333.00 334.00 1.00 0.06 58.0 0.24 1650
BUSY293 160.50 161.50 1.00 3.65 87.9 0.22 1635
164.20 164.60 0.40 5.11 197.0 0.24 1630
213.60 214.20 0.60 256.00 82.9 0.03 1587
244.00 245.70 1.70 2.61 18.6 0.09 1559
251.00 256.00 5.00 10.07 34.0 0.12 1549
incl. 253.20 254.30 1.10 32.99 97.0 0.11 1549
288.10 288.75 0.65 1.25 43.9 0.04 1519
311.85 312.30 0.45 4.57 10.2 0.03 1497
368.00 370.00 2.00 3.49 9.7 0.14 1447
388.55 389.00 0.45 3.22 48.6 2.11 1428
*Intercepts calculated at 1 g/t gold and 30 g/t silver cut-off grades with up to 20% internal dilution and generally tabulated if greater than 10 gram x metres gold equivalent. True widths not accurately known but generally are between 30% and actual true width of the down-hole interval.

BUSY257, BUSY268 and BUSY273 targeted southwest extensions of the Veta Sur system. Each drill-hole encountered multiple intersections in the more southerly of Veta Sur vein packages, with both high and low silver/gold. The high-grade intercepts in BUSY257 (from 378.25 m, 2.9 m @ 38. 9 g/t Gold and 504 g/t Silver, including 0.5 m @ 187.2 g/t Gold and 2,301 g/t Silver) and BUSY273 (from 185.9 m, 2.3 m @ 12.1 g/t Gold and 5 g/t Silver) appear to correlate as a NE-trending vein. The precious metal intersections in all three holes are outside the current mineral resource estimate model and the related veins remain open to the southwest and at depth.

Drilled to obtain oriented core, BUSY293 cut multiple veins with both high and low silver/gold in central Veta Sur. Intercepts included high-grade Stage II mineralization (from 213.6 m, 0.6 m @ 256.0 g/t Gold and 83 g/t Silver) and also a broad interval (from 251.0 m, 5.0 m @ 10.1 g/t Gold and 34 g/t Silver, including 1.1 m @ 33.0 g/t Gold and 97 g/t Silver) exhibiting both Stage I and Stage II mineralization.

BUSY270 and BUSY256 clarified the distribution of northeastern Veta Sur vein sets largely outside of the current mineral resource model. Higher-grade intercepts in BUSY270 include from 388.2 m, 0.4 m @ 19.9 g/t Gold and 120 g/t Silver and, from 501.4 m, 1.4 m @ 10.9 g/t Gold and 82 g/t Silver. BUSY256 encountered both high and low silver/gold veins at relatively high elevations in the area between the Yaraguá and Veta Sur vein systems.

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 Yaraguá and Veta Sur Systems is available on the Company's website at www.continentalgold.com.

For additional technical information on the Buriticá project, please refer to the Company's technical report (the "Technical Report") entitled "Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated October 24, 2011 as amended November 23, 2011, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.

About Continental Gold Limited

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. A maiden mineral resource estimate classified in accordance with NI 43-101 for the Buriticá project covers two major vein systems, with combined measured and indicated mineral resources of 1,110,000 tonnes of mineralized material containing 630,000 ounces of gold grading 17.8 g/t gold, 1,500,000 ounces of silver grading 42 g/t silver, and 18,700,000 pounds of zinc grading 0.8% zinc. The inferred mineral resource is 6,900,000 tonnes of mineralized material containing 2,500,000 ounces of gold grading 11.4 g/t gold, 9,500,000 ounces of silver grading 43 g/t silver and 88,000,000 pounds of zinc grading 0.6% zinc. For additional technical information on the Buriticá project, please refer to the Company's technical report entitled "Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated October 24, 2011, as amended November 23, 2011, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com. Additional details on the Buriticá project and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.

With a goal of being the first modern-day gold producer in Colombia, Continental will commence construction of an underground ramp in H2 2012, initially providing access for underground drilling and eventually used for commercial production. A Phase III drill program is also underway at the Buriticá project to further delineate the resource and drill new target zones identified within its concessions. Additional details on the Buriticá project and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.

Forward-Looking Statements

This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

Differences in Reporting of Resource Estimates

This press release was prepared in accordance with Canadian standards which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources," "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). The CIM Standards differ significantly from standards in the United States. While the terms "mineral resource," "measured mineral resources," "indicated mineral resources," and "inferred mineral resources" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute "reserves" by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.

To view Figure 1 - Plan View of New Drilling Highlights, please visit the following link:

http://media3.marketwire.com/docs/816725A.pdf

To view Figure 2 - Longitudinal Section of Yaraguá Drilling Highlights & Plan View of Underground Sampling, please visit the following link:

http://media3.marketwire.com/docs/816725B.pdf

To view Figure 3- Longitudinal Section of Veta Sur Drilling Highlights, please visit the following link:

http://media3.marketwire.com/docs/816725C.pdf

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