Continental Gold Ltd.
TSX : CNL
OTCQX : CGOOF

Continental Gold Ltd.

July 09, 2014 06:30 ET

Continental Gold Step-Out Drilling Hits 2.2 metres @ 2,615 g/t Gold and 388 g/t Silver at Veta Sur and Significantly Extends the Laurel System at Buritica, Colombia

TORONTO, ONTARIO--(Marketwired - July 9, 2014) -

Editors note: There are three graphics associated with this press release.

Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 17 diamond drill-holes in the Veta Sur, Laurel and Yaraguá vein systems at the Company's 100%-owned Buriticá project in Antioquia, Colombia. Drilling continues throughout 2014 with the goal of upgrading Inferred resources into the Measured and Indicated categories under National Instrument 43-101 ("NI 43-101") guidelines, and delivering overall robust mineral resource growth.

Highlights (referenced in Figures 1, 2 and 3)

  • Drilling was successful in extending and infilling the central and northeastern areas of the Veta Sur vein system through a broad range of elevations. Northeast extensions of the Laurel vein system (south of Veta Sur) were intersected in nine drill-holes. Extensions to, and infill of, the western Yaraguá system were also achieved. Drilling includes the Company's first six directionally-drilled holes, increasing the productivity and reducing the costs of the mineral resource delineation program at Buriticá.

Veta Sur Vein System

  • Through a 250-metre strike length of central and northeastern Veta Sur, drill-holes intersected multiple veins outside of the current Veta Sur mineral resource envelope. Significant intercepts were made over a 1,200 metres vertical extent, mostly below this envelope, and include:
    • 1.18 metres @ 14.4 g/t gold and 49 g/t silver (BUSY361D, elevation of 1,255 metres);
    • 2.5 metres @ 18.9 g/t gold and 24 g/t silver (BUSY361D, elevation of 1,130 metres);
    • 0.3 metres @ 231 g/t gold and 81 g/t silver (BUSY362, elevation of 1,115 metres);
    • 0.6 metres @ 29.4 g/t gold and 16 g/t silver (BUSY364, elevation of 1,707 metres);
    • 1.04 metres @ 19.2 g/t gold and 7 g/t silver (BUSY364, elevation of 1,536 metres);
    • 0.5 metres @ 331 g/t gold and 93 g/t silver (BUSY364, elevation of 1,525 metres);
    • 1.1 metres @ 9.4 g/t gold and 384 g/t silver (BUSY366D, elevation of 1,219 metres);
    • 0.5 metres @ 26.2 g/t gold and 28 g/t silver (BUSY367D01, elevation of 1,045 metres); and
    • 2.4 metres @ 16.1 g/t gold and 140 g/t silver (BUSY367D01, elevation of 528 metres).
  • The Veta Sur vein system remains open at depth below the deeper intercepts noted above. Although some of these intercepts are among the deepest yet encountered in Veta Sur, they lie in an elevation range potentially developable from proposed underground infrastructure.
  • In addition, step-out drilling intercepted high-grade gold and silver at elevations above the current mineral resource estimate, and include:
    • 4.0 metres @ 218.7 g/t gold and 25 g/t silver (BUSY363, elevation of 1,629 metres);
    • 0.6 metres @ 42.6 g/t gold and 8 g/t silver (BUUY270, elevation of 1,582 metres); and
    • 2.2 metres @ 2,615.4 g/t gold and 388 g/t silver (BUUY270, end of hole, elevation of 1,617 metres).
  • In central and northeastern Veta Sur, drilling through most of the vein families commonly encountered vein grades X thicknesses through a broad range of elevations that are significantly above those expected from the current mineral resource block model. Related intercepts and veins include:
    • 1.45 metres @ 69 g/t gold and 551 g/t silver (BUSY361D01, V31, elevation of 917 metres);
    • 4.3 metres @ 11.5 g/t gold and 31 g/t silver, including 1.9 metres @ 23.7 g/t gold and 64 g/t silver (BUSY361D02, V31, elevation of 794 metres);
    • 5.1 metres @ 7.9 g/t gold and 27 g/t silver, including 1.4 metres @ 13.8 g/t gold and 58 g/t silver (BUSY361D03, V34, elevation of 871 metres);
    • 0.55 metres @ 1.1 g/t gold and 466 g/t silver (BUSY363, V110, elevation of 1,618 metres);
    • 2.35 metres @ 6.5 g/t gold and 22 g/t silver, including 1.1 metres @ 11.8 g/t gold and 34 g/t silver (BUSY363, V43, elevation of 1,553 metres);
    • 2.4 metres @ 12.8 g/t gold and 55 g/t silver, including 1.0 metres @ 19.5 g/t gold and 120 g/t silver (BUSY364, V39, elevation of 1,193 metres);
    • 0.5 metres @ 26.7 g/t gold and 73 g/t silver (BUSY364, V31, elevation of 1,161 metres);
    • 1.0 metres @ 19.3 g/t gold and 17 g/t silver (BUSY367D01, elevation of 696 metres);
    • 7.45 metres @ 40 g/t gold and 170 g/t silver, including 2.85 metres @ 99.8 g/t gold and 406 g/t silver (BUUY208, V51, elevation of 1,677 metres);
    • 0.55 metres @ 21.9 g/t gold and 8 g/t silver (BUUY208, V31, elevation of 1,616 metres);
    • 0.5 metres @ 1.4 g/t gold and 1,280 g/t silver (BUUY208, V20, elevation of 1,548 metres);
    • 13.45 metres @ 8 g/t gold and 25 g/t silver, including 2.05 metres @ 30.5 g/t gold and 100 g/t silver (BUUY249D02, V34, elevation of 728 metres);
    • 0.87 metres @ 56.5 g/t gold and 669 g/t silver (BUUY273, V43, elevation of 1,567 metres);
    • 8.2 metres @ 5.1 g/t gold and 20 g/t silver, including 2.45 metres @ 12.5 g/t gold and 54 g/t silver (BUUY273, V48, elevation of 1,572 metres);
    • 1.0 metres @ 1.7 g/t gold and 617 g/t silver (BUUY273, V51, elevation of 1,576 metres);
    • 1.0 metres @ 15.7 g/t gold and 217 g/t silver (BUUY273, V70, elevation of 1,622 metres); and
    • 0.5 metres @ 1.5 g/t gold and 924 g/t silver (BUUY273, V75, elevation of 1,628 metres).

Laurel Vein System

  • The Laurel vein system is located directly to the south of Veta Sur and has clear potential to share underground access in a future mining scenario. Overall drilling to date in the system has demonstrated potential vein dimensions of over 700 metres laterally x 1,000 metres vertically, while remaining open along strike to the southeast and at depth. Additionally, some 300 metres further along strike to the southwest from the limits of drilling, the Company appears to have recently sampled mineralized Laurel veins (assays pending) in the Higabra Valley Tunnel.
  • Drilling of the Laurel vein system intersected multiple vein packages over lateral extents of 270 metres and an elevation range of 660 metres (Figures 1 and 3). Higher grade and broader intercepts include:
    • 8.3 metres @ 6.1 g/t gold and 23 g/t silver, including 1.2 metres @ 24 g/t gold and 36 g/t silver (BUSY361D01, elevation of 1,306 metres);
    • 26.3 metres @ 3 g/t gold and 37 g/t silver (BUSY361D02, elevation of 1,320 metres);
    • 1.6 metres @ 7.7 g/t gold and 11 g/t silver (BUSY361D03, elevation of 1,357 metres);
    • 0.7 metres @ 19.7 g/t gold and 29 g/t silver (BUSY361D03, elevation of 1,335 metres);
    • 2.15 metres @ 26.3 g/t gold and 121 g/t silver, including 1.1 metres @ 50.5 g/t gold and 232 g/t silver (BUSY367D01, elevation of 1,216 metres);
    • 1.0 metres @ 12.5 g/t gold and 17 g/t silver (BUUY228D, elevation of 1,696 metres);
    • 0.5 metres @ 19.4 g/t gold and 71 g/t silver (BUUY228D, elevation of 1,677 metres);
    • 1.9 metres @ 11.3 g/t gold and 65 g/t silver (BUUY249D, elevation of 1,295 metres); and
    • 0.68 metres @ 21.3 g/t gold and 49 g/t silver (BUUY249D, elevation of 1,288 metres).

Yaraguá Vein System

  • Drill-holes that passed through western Yaraguá resulted in depth extensions to, and infill of, the vein system in this area. Significant intercepts, under the current Yaraguá mineral resource envelope, include:
    • 0.67 metres @ 21.4 g/t gold and 38 g/t silver (BUUY249D01, elevation of 701 metres); and
    • 2.07 metres @ 7.6 g/t gold and 24 g/t silver, including 0.5 metres @ 27.6 g/t gold and 48 g/t silver (BUUY249D01, elevation of 694 metres).
  • Vein grades X thicknesses significantly above those expected from the Yaraguá mineral resource block model were encountered through a broad elevation range. Related intercepts and veins include:
    • 0.41 metres @ 95.1 g/t gold and 103 g/t silver (BUSY361D02, MU10, elevation of 709 metres);
    • 0.75 metres @ 11.3 g/t gold and 5 g/t silver (BUSY363, MU2, elevation of 1,394 metres); and
    • 7.0 metres @ 4 g/t gold and 6 g/t silver, including 1.1 metres @ 11.4 g/t gold and 6 g/t silver (BUSY363, HWV, elevation of 1,250 metres).

"The Laurel vein system, consisting of at least seven veins, is proving to be a more serious target than originally interpreted," commented Ari Sussman, CEO of Continental. "Given it is located close to the proposed future mining infrastructure in the Higabra Valley, we are formulating plans for more advanced exploration on the target, including an expanded drilling program and underground drifting along the system from the Higabra Valley Tunnel in order to complete an initial mineral resource estimate for Laurel in 2015."

Details

Continental's 100%-owned, 59,095-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 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 1,040 metres of strike and 1,400 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 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 (completed after the December 31, 2013 closure of the database for the Buriticá 2014 mineral resource estimate) through central and northeastern Veta Sur, the northeastern Laurel vein system to the south of Veta Sur and western Yaraguá to the north. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1, 2 and 3.

Table I: Drilling Highlights

HoleID

m
From
m
To
Inter-
cept
Inter-
val*
Au
(g/t)
Ag
(g/t)
Zn
(%)
Inter-
cept
RL (m)
Vein
system
/Vein**
BUSY361D336.50337.000.500.38335.00.841480Laurel
354.00354.600.600.1266.30.641463Laurel
366.70367.200.500.0476.30.031451Laurel
373.80374.300.505.217.31.521444Laurel
402.00402.500.504.6514.70.351417Laurel
463.70464.200.502.1853.00.061359Laurel
480.00481.901.905.5740.10.081342Laurel
485.30487.251.951.3767.20.111337Laurel
495.60503.608.001.6811.10.011323Laurel
517.15518.301.152.52209.20.701308Laurel
525.20527.702.501.457.20.011300Laurel
570.00574.904.904.7618.40.101255VSur
incl571.00572.181.1814.3948.50.31 VSur
578.00578.500.5017.60252.00.091252VSur
707.50710.002.5018.8623.70.481130VSur
incl707.50708.601.1040.7551.71.06 VSur
BUSY361D0160.7562.701.952.545.80.141368Laurel
71.1371.650.522.784.80.341360Laurel
77.3580.503.153.1230.80.401352Laurel
90.1592.702.551.3610.30.061341Laurel
96.0097.801.801.8713.30.051336Laurel
108.00114.006.002.3820.20.041322Laurel
122.90131.208.306.0922.70.071306Laurel
incl130.00131.201.2023.9535.60.03 Laurel
136.40149.8013.401.486.80.011290Laurel
161.85165.303.452.8919.90.071276VSur
198.50199.000.504.9812.00.391245VSur
270.20271.201.007.821.80.451181VSur
281.45283.301.852.939.70.031170VSur
289.35290.601.252.108.70.061164VSur
309.95310.450.502.134.50.081146V130
400.00401.301.302.700.80.011066VSur
577.05578.501.4569.04551.30.37917V31
580.00581.501.503.934.40.01915VSur
601.90603.001.101.362.90.01897Yar/MU1
631.00632.801.801.011.40.01873Yar
BUSY361D0224.2024.750.550.99262.01.591416Laurel
64.6565.801.151.192.70.271378Laurel
85.9586.450.503.4152.50.601358Laurel
91.3591.950.603.1922.40.031353Laurel
92.4598.155.702.0631.50.091348Laurel
101.65127.9526.302.9736.50.041320Laurel
131.48132.050.573.518.50.051316Laurel
142.65143.150.508.4777.30.441306VSur
151.85152.750.905.993.70.031298VSur
158.80159.750.953.857.10.271291VSur
180.45181.651.206.0154.10.051271VSur
208.55209.050.504.4511.50.051246VSur
234.15234.650.505.59157.00.281222VSur
255.95257.151.203.331.20.021202VSur
315.60316.751.153.7523.70.201147VSur
331.15333.852.704.5711.60.051132VSur
incl331.65332.651.0010.3124.70.06 VSur
661.80663.531.733.6610.90.01830V39
673.65675.551.902.324.60.08819V34
698.75703.054.3011.5231.40.07794V31
incl701.15703.051.9023.6963.70.13 V31
746.95748.701.753.345.90.02753Yar/MU11
796.86797.270.4195.10103.00.98709MU10
BUSY361D0330.0030.500.502.632.71.781413Laurel
81.0082.001.001.2015.50.061366Laurel
89.7591.351.607.6910.50.471357Laurel
101.70102.701.003.928.90.051347Laurel
105.50106.501.001.8093.90.631343Laurel
107.15107.650.507.7225.80.071342Laurel
115.10115.800.7019.6529.30.051335Laurel
120.60121.100.505.5827.50.581330Laurel
122.33124.001.673.1412.70.131327Laurel
142.00143.001.005.125.90.021310Laurel
150.30151.501.201.2810.80.011302Laurel
154.50155.000.505.4334.80.021299Laurel
176.10176.700.603.1810.10.701279Laurel
181.40182.000.603.563.50.021274Laurel
184.40185.701.301.3763.00.121271Laurel
190.10190.600.502.2669.80.041266Laurel
222.90223.600.701.132.40.041236VSur
233.90234.951.050.49120.90.111226VSur
251.00251.700.705.212.60.031210VSur
280.70295.8015.101.5512.40.031171VSur
302.10303.701.602.345.70.051163VSur
306.80307.500.706.1629.60.031160VSur
309.80310.901.101.697.10.041157VSur
313.80314.300.503.267.70.031153VSur
318.10319.000.901.745.80.031149VSur
332.35338.305.951.9611.00.051132VSur
341.00342.001.001.655.40.011129VSur
395.00395.850.851.303.20.011080VSur/V130
506.00507.101.101.690.50.01982VSur
556.10557.201.101.932.70.01938V48
589.80590.700.900.917.10.01908V41
627.60632.705.107.9126.80.01871V34
incl627.60629.001.4013.8158.30.02 V34
643.00644.001.001.7310.00.01861Vsur
649.90651.301.405.9415.00.01855Vsur
673.00676.003.001.286.00.06833Vsur
699.00699.500.502.975.80.02812Vsur
BUSY362262.00262.800.802.690.80.051522Laurel
348.80350.802.002.908.70.041437VSur/V180
368.20369.201.001.96206.10.031419VSur
684.05684.350.30231.0080.60.081115VSur
781.39782.651.261.862.20.021020VSur
817.91818.921.011.022.90.01985VSur
853.05854.000.951.440.80.01951VSur
BUSY3636.007.001.001.926.80.011705VSur/V140
33.7034.350.651.282.90.391682V130
53.9054.400.501.4724.80.091666V125
95.7099.704.00218.6725.10.071629VSur
incl97.4099.702.30377.2734.20.07 VSur
112.85113.400.551.13466.00.241618V110
119.20120.301.100.4653.10.041612V90
154.90155.500.601.8813.20.081583V62
190.15192.502.356.4821.70.091553V43
incl191.40192.501.1011.8033.60.12 V43
193.75195.001.254.2230.70.061551V42
212.30213.100.801.271.70.191536V41
224.90225.500.600.9941.80.481526V39
351.60352.901.301.813.00.061424Yar/MU10
390.25391.000.7511.304.70.111394MU2
498.74499.250.511.3216.70.031309VNB
568.00575.007.003.955.50.111250HWV
incl568.00569.101.1011.406.00.02 HWV
601.10602.101.000.1397.40.151228SAV
627.45628.000.550.984.10.211208FWV
667.70668.200.501.949.60.011177VNAD
681.50682.000.501.9813.00.011166VNA
686.67687.200.532.2421.60.021162Yar
BUSY364470.35470.880.532.2512.70.441719Vsur
479.35479.950.6029.4015.80.861707Vsur
484.05484.850.802.645.10.321700Vsur
499.62500.130.512.708.40.101676Vsur
547.30548.000.703.096.00.101610Vsur
592.50593.000.502.616.10.041561Vsur
601.10605.604.502.226.50.061541Vsur
610.36611.401.0419.156.90.031536Vsur
614.00615.351.353.244.20.201533Vsur
616.50617.000.505.477.90.021529Vsur
619.70620.200.50331.0093.00.401525Vsur
HoleIDm
From
m
To
Inter-
cept
Inter-
val*
Au
(g/t)
Ag
(g/t)
Zn
(%)
Inter-
cept
RL (m)
Vein
system
/Vein**
636.50637.200.701.836.40.021503V130
715.00716.501.504.859.50.021337V110
733.50734.651.1512.7830.40.471323VSur
833.20833.700.500.7470.90.041251V48
909.00911.402.4012.7554.50.051193V39
incl909.00910.001.0019.50119.50.11 V39
942.80943.500.702.808.80.011169V34
955.00955.500.5026.7073.40.241161V31
BUSY366D504.75506.051.302.757.10.011273VSur
531.60532.100.502.528.10.031247VSur
559.50560.601.109.38383.90.471219VSur
612.45612.950.503.368.60.051166VSur
627.00627.500.502.112.60.401152VSur
716.70717.500.801.101.60.041063VSur
813.13813.650.5211.458.10.03967VSur
852.13852.770.643.624.30.01928VSur
988.60989.751.152.026.20.02793VSur
1166.501167.000.501.432.30.01617VSur
BUSY367D186.00186.500.500.1654.60.021589Laurel
213.40214.100.702.601.90.111562Laurel
BUSY367D0137.0037.700.706.778.30.171260Laurel
43.5044.701.201.162.70.191254Laurel
83.3585.502.1526.28121.10.101216Laurel
incl83.3584.451.1050.53231.90.19 Laurel
146.50147.300.801.109.50.071158VSur
219.00219.600.602.327.10.041091VSur
268.80269.300.5026.2027.60.041045VSur
290.70291.300.603.5816.30.151024VSur
300.15300.650.501.579.80.051016VSur
399.60400.100.502.166.90.01924V125
406.70407.300.601.061.60.02918VSur
426.60427.851.251.443.00.01899VSur
453.10454.301.202.674.80.00875VSur
608.20609.401.207.1211.20.01734VSur
614.80615.300.507.7029.60.03728V39
640.00641.001.001.636.50.01705V34
650.40651.401.0019.2516.50.02696V31
666.20667.951.752.545.90.01681VSur
763.80765.401.603.955.40.01594VSur
839.00841.402.4016.09140.10.12528VSur
incl839.00840.201.2027.85274.70.19 VSur
BUUY20815.0015.600.6010.6087.10.711697VSur/V70
24.9027.652.751.719.20.101688V65
35.0542.507.4540.04170.00.851677V51
incl38.4041.252.8599.75406.41.58 V51
48.3549.000.654.0450.40.071671V48
57.0058.351.351.428.20.191664V43
79.5580.400.854.11227.40.621647V39
90.0090.500.502.9615.60.531639V34
104.90106.601.703.2913.60.061627V32
107.60109.101.506.9218.40.201625V32
120.70121.250.5521.908.10.021616V31
138.85139.400.550.3376.70.131602V30
177.40178.000.600.27100.00.121572V24
200.40200.900.500.6918.14.821554V22
208.70209.200.501.361280.01.041548V20
247.00248.401.400.55168.80.491519V16
BUUY228D2.003.001.0012.4816.62.741696Laurel
25.0025.500.5019.4070.62.981677Laurel
55.0055.500.506.19335.00.221651Laurel
185.60186.100.500.2965.80.611538Laurel
196.20197.501.300.9416.34.311529Laurel
216.00217.701.701.9410.70.331511Laurel
225.00226.001.001.071.50.011504Laurel
253.05253.800.750.04158.00.041480Laurel
294.80296.201.400.8651.10.391443VSur
299.07299.600.531.36103.00.171440VSur
300.60301.801.203.504.40.081438VSur
342.10342.800.701.052.50.081402VSur
355.60356.801.201.785.90.021390VSur
390.20391.401.201.6389.20.241360VSur
395.35396.501.151.985.40.011355VSur
419.60420.150.551.818.10.011334VSur
BUUY249D38.7039.300.601.938.72.121660Laurel
115.55116.100.550.6173.02.061585Laurel
133.85134.400.551.2980.50.991567Laurel
148.30150.101.800.7682.62.611551Laurel
200.15201.301.150.0459.50.031501Laurel
254.55255.300.753.5912.80.141447Laurel
290.30293.703.401.582.60.021410Laurel
348.90350.201.302.582.60.091354Laurel
355.40355.900.503.3842.61.361348Laurel
361.00364.003.001.2616.40.711340Laurel
391.15391.700.551.6018.30.151312Laurel
407.70409.601.9011.2964.81.661295Laurel
416.17416.850.6821.3048.60.381288Laurel
419.55420.100.553.0917.51.541284VSur
437.55438.450.901.7311.30.791266VSur
456.80458.001.202.4519.30.421247VSur
518.50519.000.500.60302.00.531186VSur
BUUY249D0150.8052.001.201.180.20.011085Laurel
82.8083.350.553.6530.70.041056Laurel
164.75165.500.752.130.90.01984VSur
453.05454.301.253.1412.40.01740VSur
474.25474.750.503.874.50.01723Yar/MU11
489.35489.900.551.147.60.01710Yar
500.25500.920.6721.4038.20.02701Yar
507.93510.002.077.6024.30.06694Yar
incl508.45508.950.5027.6048.20.02 Yar
523.05523.600.553.4423.20.01683Yar
555.85556.400.551.722.10.01656Yar
BUUY249D0283.7084.600.902.333.20.041046Laurel
102.50103.601.101.150.20.011029Laurel
140.80141.300.505.0314.00.52998VSur
400.00400.600.606.6312.60.28783VSur
403.75404.300.553.221.30.01780VSur
441.50442.701.201.491.20.03749V43
456.35469.8013.457.9625.30.05728V34
incl456.35458.402.0530.46100.00.04 V34
476.85477.400.557.653.50.01721V31
494.00494.500.505.1811.80.10708VSur
497.37498.501.132.651.30.00705VSur
516.25518.602.351.707.50.02690Yar/MU1
BUUY27016.2516.900.651.346.30.131519Yar/MU11
51.9052.400.503.934.10.021537MUS
110.30111.150.854.175.30.351565Yar
126.00126.500.501.88536.01.051572VSur
144.50145.000.501.1221.50.501581VSur
147.55148.150.6042.608.40.691582VSur
168.00169.001.000.7927.50.191592V110
210.00211.501.508.546.80.031611V123
223.30225.502.202615.41388.22.201617VSur
incl223.80225.001.204730.00701.03.96 VSur
and225.00225.500.50154.0016.80.08 VSur
BUUY27322.8523.851.001.1015.40.101522Yar/MU11
82.1082.600.500.20217.00.821551VSur
91.6094.603.001.6269.80.681557V42
114.00114.870.8756.50669.00.741567V43
117.80126.008.205.1219.80.601572V48
incl121.60124.052.4512.5154.41.08 V48
131.00132.001.001.67616.52.541576V51
142.00142.600.601.5121.93.661581VSur
191.50192.000.500.21718.00.141605V62
213.00213.600.600.41122.00.321616V65
223.50226.503.005.47101.60.801622V70
incl223.50224.501.0015.70216.52.22 V70
230.75231.801.053.27113.60.241625VSur
237.10237.700.606.8784.61.241627V75
239.00239.500.501.52924.00.871628V75
240.40240.900.505.45138.00.491629VSur
255.00255.600.604.7210.30.081636VSur
303.00303.500.504.743.20.561659V110
311.00311.500.503.4162.03.231663VSur
320.10322.802.703.3316.10.221668VSur
*Intercepts calculated at 1 g/t gold + 50 g/t silver cut-off grades for minimum intervals of 0.5 metres, with up to 30% internal dilution. True widths not accurately known but generally are between 30% of the down-hole interval and near true width (e.g. BUUY208). Drill-holes designated "BUUY" were collared from underground, and drill-holes designated "BUSY" were collared at surface. Holes directionally- drilled from "mother holes" (BUzYDxxx) are designated BUzYxxxDyy.
**Intercepts outside of the current mineral resource envelopes are designated by their respective vein system (Veta Sur: VSur; Yaraguá: Yar and Laurel) whereas intercepts in vein domains are respectively nominated by vein code (e.g. V34).

Three fans of holes were drilled from the south of Veta Sur, from surface and also from the Veta Sur Ramp (Figure 1). These fans involved "mother" holes (designated BUzYDxxx) and six holes (designated BUzYxxxDyy) deviated and directionally-drilled from collars at depth in the mother holes. Additional holes were drilled from southern (BUSY364) and northeastern Veta Sur platforms (BUSY363), from underground in Veta Sur (BUUY208) and also from underground (towards the southwest) in Yaraguá (BUUY270, BUUY273) (Figure 1). Drill-holes from the south of Veta Sur targeted potential extensions of the Laurel vein system, deep extensions and infill of the Veta Sur system and also the southwestern Yaraguá system. Directional drilling was vital in attaining infill and extension targets particularly at lower elevations, both increasing productivity and reducing costs of the mineral resource delineation program.

To the south of Veta Sur, drilling intersected multiple vein packages over lateral extents of 270 metres and an elevation range of 660 metres. These vein packages are interpreted to be northeastern extensions of the northeast-trending Laurel vein system (Table I, Figures 1 and 3). Higher grade and broader intercepts include:

  • 8.3 metres @ 6.1 g/t gold and 23 g/t silver, including 1.2 metres @ 24.0 g/t gold and 36 g/t silver (BUSY361D01, elevation of 1,306 metres);
  • 26.3 metres @ 3.0 g/t gold and 37 g/t silver (BUSY361D02, elevation of 1,320 metres);
  • 1.6 metres @ 7.7 g/t gold and 11 g/t silver (BUSY361D03, elevation of 1,357 metres);
  • 0.7 metres @ 19.7 g/t gold and 29 g/t silver (BUSY361D03, elevation of 1,335 metres);
  • 2.15 metres @ 26.3 g/t gold and 121 g/t silver, including 1.1 metres @ 50.5 g/t gold and 232 g/t silver (BUSY367D01, elevation of 1,216 metres);
  • 1.0 metres @ 12.5 g/t gold and 17 g/t silver (BUUY228D, elevation of 1,696 metres);
  • 0.5 metres @ 19.4 g/t gold and 71 g/t silver (BUUY228D, elevation of 1,677 metres);
  • 1.9 metres @ 11.3 g/t gold and 65 g/t silver (BUUY249D, elevation of 1,295 metres); and
  • 0.68 metres @ 21.3 g/t gold and 49 g/t silver (BUUY249D, elevation of 1,288 metres).

The Laurel vein system remains open at depth and to the northeast of the current drilling. The system is sparsely drill-constrained for more than 700 metres to the southwest, for a strike length in excess of one kilometre and an elevation range of more than 1,000 metres. Contiguous with Veta Sur, the Laurel system, not included in current mineral resource estimates, could potentially share proposed Veta Sur development infrastructure.

Further north, through a 250+-metre strike length of central and northeastern Veta Sur, drill-holes intersected multiple veins outside of the current Veta Sur mineral resource envelope. Significant intercepts were made over a vertical extent of almost 1,200 metres, mostly below this envelope and include:

  • 1.18 metres @ 14.4 g/t gold and 49 g/t silver (BUSY361D, elevation of 1,255 metres);
  • 0.5 metres @ 17.6 g/t gold and 252 g/t silver (BUSY361D, elevation of 1,252 metres);
  • 2.5 metres @ 18.9 g/t gold and 24 g/t silver, including 1.1 metres @ 40.8 g/t gold and 52 g/t silver (BUSY361D, elevation of 1,130 metres);
  • 0.3 metres @ 231 g/t gold and 81 g/t silver (BUSY362, elevation of 1,115 metres, adjacent core not recovered);
  • 0.6 metres @ 29.4 g/t gold and 16 g/t silver (BUSY364, elevation of 1,707 metres);
  • 1.04 metres @ 19.2 g/t gold and 7 g/t silver (BUSY364, elevation of 1,536 metres);
  • 0.5 metres @ 331 g/t gold and 93 g/t silver (BUSY364, elevation of 1,525 metres);
  • 1.15 metres @ 12.8 g/t gold and 30 g/t silver (BUSY364, elevation of 1,323 metres);
  • 1.1 metres @ 9.4 g/t gold and 384 g/t silver (BUSY366D, elevation of 1,219 metres);
  • 0.5 metres @ 26.2 g/t gold and 28 g/t silver (BUSY367D01, elevation of 1,045 metres); and
  • 2.4 metres @ 16.1 g/t gold and 140 g/t silver, including 1.2 metres @ 27.9 g/t gold and 275 g/t silver (BUSY367D01, elevation of 528 metres)

Intercepts above the current mineral resource envelope include:

  • 4.0 metres @ 218.7 g/t gold and 25 g/t silver, including 2.3 metres @ 377.3 g/t gold and 34 g/t silver (BUSY363, elevation of 1,629 metres);
  • 0.6 metres @ 42.6 g/t gold and 8 g/t silver (BUUY270, elevation of 1,582 metres); and
  • 2.2 metres @ 2,615.4 gold and 388 g/t silver (BUUY270, elevation of 1,617 metres).

The Veta Sur vein system remains open to depth below all of the Veta Sur intercepts noted above and in Table I. Although some of these intercepts are among the deepest yet encountered in Veta Sur, these and the shallow extensions also highlighted are all situated within an elevation range potentially developable from proposed underground infrastructure.

In central and northeastern Veta Sur, drilling through a broad range of elevations generally encountered vein grades X thicknesses comparable with those expected from the current mineral resource block model, for most of the vein families. Intercepts and related veins with substantially greater grade X thicknesses include:

  • 1.45 metres @ 69.0 g/t gold and 551 g/t silver (BUSY361D01, V31, elevation of 917 metres);
  • 4.3 metres @ 11.5 g/t gold and 31 g/t silver, including 1.9 metres @ 23.7 g/t gold and 64 g/t silver (BUSY361D02, V31, elevation of 794 metres);
  • 5.1 metres @ 7.9 g/t gold and 27 g/t silver, including 1.4 metres @ 13.8 g/t gold and 58 g/t silver (BUSY361D03, V34, elevation of 871 metres);
  • 0.55 metres @ 1.1 g/t gold and 466 g/t silver (BUSY363, V110, elevation of 1,618 metres);
  • 2.35 metres @ 6.5 g/t gold and 22 g/t silver, including 1.1 metres @ 11.8 g/t gold and 34 g/t silver (BUSY363, V43, elevation of 1,553 metres);
  • 2.4 metres @ 12.8 g/t gold and 55 g/t silver, including 1.0 metres @ 19.5 g/t gold and 120 g/t silver (BUSY364, V39, elevation of 1,193 metres);
  • 0.5 metres @ 26.7 g/t gold and 73 g/t silver (BUSY364, V31, elevation of 1,161 metres);
  • 1.0 metres @ 19.3 g/t gold and 17 g/t silver (BUSY367D01, elevation of 696 metres);
  • 7.45 metres @ 40.0 g/t gold and 170 g/t silver, including 2.85 metres @ 99.8 g/t gold and 406 g/t silver (BUUY208, V51, elevation of 1,677 metres);
  • 0.55 metres @ 21.9 g/t gold and 8 g/t silver (BUUY208, V31, elevation of 1,616 metres);
  • 0.5 metres @ 1.4 g/t gold and 1,280 g/t silver (BUUY208, V20, elevation of 1,548 metres);
  • 13.45 metres @ 8.0 g/t gold and 25 g/t silver, including 2.05 metres @ 30.5 g/t gold and 100 g/t silver (BUUY249D02, V34, elevation of 728 metres);
  • 0.87 metres @ 56.5 g/t gold and 669 g/t silver (BUUY273, V43, elevation of 1,567 metres);
  • 8.2 metres @ 5.1 g/t gold and 20 g/t silver, including 2.45 metres @ 12.5 g/t gold and 54 g/t silver (BUUY273, V48, elevation of 1,572 metres);
  • 1.0 metres @ 1.7 g/t gold and 617 g/t silver (BUUY273, V51, elevation of 1,576 metres);
  • 1.0 metres @ 15.7 g/t gold and 217 g/t silver (BUUY273, V70, elevation of 1,622 metres);
  • 0.5 metres @ 1.5 g/t gold and 924 g/t silver (BUUY273, V75, elevation of 1,628 metres).

Drill-holes that passed through western Yaraguá resulted in depth extensions to, and infill of, the Yaraguá vein system in this area. Significant intercepts, below the current Yaraguá mineral resource envelope, include:

  • 0.67 metres @ 21.4 g/t gold and 38 g/t silver (BUUY249D01, elevation of 701 metres); and
  • 2.07 metres @ 7.6 g/t gold and 24 g/t silver, including 0.5 metres @ 27.6 g/t gold and 48 g/t silver (BUUY249D01, elevation of 694 metres).

Vein grades X thicknesses significantly above those expected from the current Yaraguá mineral resource block model were also encountered through a broad elevation range. Related intercepts and veins include:

  • 0.41 metres @ 95.1 g/t gold and 103 g/t silver (BUSY361D02, MU10, elevation of 709 metres);
  • 7.0 metres @ 4.0 g/t gold and 6 g/t silver, including 1.1 metres @ 11.4 g/t gold and 6 g/t silver (BUSY363, HWV, elevation of 1,250 metres); and
  • 0.75 metres @ 11.3 g/t gold and 5 g/t (BUSY363, MU2, elevation of 1,394 metres)

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 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 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 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 technical information on the Buriticá project, please refer to the Company's technical report (the "Technical Report") entitled "Independent Technical Report and Resource Estimate on the Buritica Gold Project 2013" with an effective date of December 31, 2013, 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 May 13, 2014, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101. This estimate covers the Yaraguá and Veta Sur vein systems, with a combined Measured mineral resource of 0.99 million tonnes of mineralized material containing 0.65 million ounces of gold grading 20.4 g/t gold, 1.54 million ounces of silver grading 48 g/t silver, and 15.0 million pounds of zinc grading 0.7% zinc, and a combined Indicated mineral resource of 7.41 million tonnes of mineralized material containing 2.15 million ounces of gold grading 9.0 g/t gold, 6.89 million ounces of silver grading 29 g/t silver, and 75.1 million pounds of zinc grading 0.5% zinc. The combined Inferred mineral resource is 16.7 million tonnes of mineralized material containing 4.2 million ounces grading 7.8 g/t gold, 13.1 million ounces of silver grading 24 g/t silver and 111 million pounds of zinc grading 0.3% 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 achieved major advances with the access tunnel, which is providing access for underground drilling and will eventually be used for commercial production. A Phase V drill program is underway at the Buriticá project to further delineate the mineral resources 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, and exploration and mine development plans, 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. 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 highlights of new drilling, please click the following link: http://www.marketwire.com/library/20140708-CNL1FIG800.jpg

To view Figure 2 - Long Section, (line C-D on Figure 1), please click the following link: http://www.marketwire.com/library/20140708-CNL2FIG800.jpg

To view Figure 3 - Cross Section (line A-B on Figure 1), please click the following link: http://www.marketwire.com/library/20140708-CNL3FIG800.jpg

Contact Information