Continuum Resources Ltd.
TSX VENTURE : CNU

Continuum Resources Ltd.

September 08, 2005 09:15 ET

Continuum Options Lachatao Gold Prospect in the Natividad Gold-Silver District, Oaxaca, Mexico

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 8, 2005) - Continuum Resources Ltd. (TSX VENTURE:CNU) is pleased to announce the signing of an agreement with the communities of Lachatao, Amatlan and Yavesia who together own the surface and mineral rights to the Lachatao gold-silver prospects located in the State of Oaxaca, southern Mexico. The property is located 40 km NE of the capital city of Oaxaca, and is accessible by paved highway and a 15 km stretch of good-quality gravel road.

The Lachatao property consists of numerous, historically-mined epithermal vein and stockwork-hosted gold and silver prospects and is situated on-trend with the important Natividad gold-silver deposit. The Natividad deposit, also under option to Continuum, produced approximately 1 million ounces of gold from high grade veins, and is situated approximately 8 km to the NE of Lachatao. In total, Continuum now controls approximately 12 km of the Natividad-Lachatao structural trend which hosts numerous past-producing epithermal deposits, and prospects. As well, the Company holds either by option, or through staking, approximately 40,000 hectares covering most of the Natividad precious metals district.

The Lachatao property was explored previously by the Consejo de Recursos Minerales, and more recently (1996) by Minera Teck S.A. de C.V (now Teck Cominco). Reverse circulation drilling by both parties returned highly-encouraging results, with gold mineralization hosted in quartz veins and vein stockworks within a highly-altered dacite porphyry intrusion. The following table lists selected, significant results from earlier drilling on the San Pedro zone, carried out by the Consejo and Teck:



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DDH Interval length (m) Gold (gpt) Silver (gpt)
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Consejo de
Minerales
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BDSPP-1 20.45 1.25 9.66
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BDSPP-2 3.95 6.74 88.24
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BDSPP-6 13.95 6.68 16.12
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Minera Teck
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96-01 1.5 20.62 57.0
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96-02 49.5 0.51 6.69
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Includes 1.5 13.21 10.1
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And 3.0 7.84 8.30
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96-03 85.5 0.97 5.59
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Includes 1.5 2.14 12.11
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96-04 96.0 0.62 3.4
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Includes 7.5 1.88 4.23
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And 7.5 2.36 6.62
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96-09 33.0 0.92 2.83
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Includes 7.5 3.43 8.54
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And 1.5 10.03 20.0
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Under the terms of the agreement, Continuum must make cash payments totaling $US500,000 and expend US$2 million in exploration over a three year period to acquire a 70 percent interest in the property. Given that the communities involved control both the mineral and surface rights, exploration can begin immediately. The Company plans to drill test the San Pedro zone and its extensions as a follow-up to the earlier drilling, utilizing the geological model developed at Natividad.

The Qualified Person for this project, under the definition established by National Instrument 43-101, is Lawrence Dick, Ph.D., P.Geo., with the assistance of Chris Osterman, Ph.D., a registered professional geologist in the State of Arizona. Geochemical analyses were obtained from internal company reports, and have not been verified by Continuum.

On behalf of Continuum Resources Ltd.

Lawrence A. Dick, Ph.D., P.Geo.


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