Continuum Resources Ltd.
TSX VENTURE : CNU

Continuum Resources Ltd.

November 03, 2005 09:20 ET

Continuum Resources Ltd.: Further Results from Talea Epithermal Silver-Zinc Prospect in Southern Mexico Include Values of Up to 1,055 gpt Silver Over True Width of 1.3 Meters

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2005) - Continuum Resources Ltd. (TSX VENTURE:CNU) and Cloudbreak Resources Ltd. (TSX VENTURE:CDB) are pleased to announce further results from an ongoing program of surface and underground geological mapping and geochemical sampling at the Talea epithermal silver-zinc prospect, located in the state of Oaxaca, in southern Mexico. Recent results include values of up to 1,055 gpt silver over a true width of 1.3 meters, and zinc values up to 7.62% over a true width of 2.0 meters from the lowest elevation tunnel rehabilitated to date.

Ongoing rehabilitation of tunnels, to allow for geochemical sampling, has been ongoing since July, 2005. An earlier press release (August 25, 2005) reported initial results, including seven chip channel samples from historic workings which graded between 836 and 8,750 gpt silver.

The 5,700 hectare prospect is located 22 kilometers east of Continuum's Natividad gold-silver deposit. Natividad historically produced over 960,000 ounces of gold and 23 million ounces of silver since records were kept in 1938, from a two-kilometer-long section of a multiple vein system which has been traced for nearly 12 kilometers on surface.

The Talea vein system is comprised of sub-parallel striking epithermal quartz veins which contain silver and zinc as the main ore elements. To date, 11 historic adits have been discovered on the veins along a strike length on surface of over 5 kilometers. The veins range in true width from less than 1.0 meter to 6.0 meters and contain the silver minerals proustite-pyrargyrite, argentite, as well as sphalerite, galena and pyrite. The host rocks are Jurassic-age shales, the same as those which host the nearby Natividad vein systems.

Historic tunnels, which provided access to silver ores mined during Spanish Colonial times, have now been discovered between 1850 and 1000 meters elevation, a vertical distance of approximately 850 meters along the 5 kilometers of identified strike length of the vein system. Higher silver grades, and wider vein widths, have been identified in the San Jose de Gracias tunnel, located at an elevation of approximately 1000 meters. Zinc values from this tunnel are also significantly higher than samples taken at higher elevations.

The table below lists all channel sample results over the 140 meter long San Jose de Gracias tunnel. Distance between channel samples, which represent true widths of the vein, were generally between 7 and 10 meters.



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Sample Width (m) Ag (gpt) Zn (%)
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51692-694 2.2 48.2 2.72
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51695-697 2.1 640.6 1.95
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Including 51696 0.8 1,640.0 0.97
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51698-700 1.9 186.7 2.91
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51706-708 4.2 13.3 0.93
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51709-710 4.0 170.9 5.55
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Including 2.5 2.65 8.59
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51711-713 3.5 220.6 6.47
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Includes 51712 1.0 less than 5 13.45
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And includes 51713 1.3 530 5.81
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51714-715 2.9 26.6 1.21
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51716-717 1.6 33.9 4.11
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51718-719 2.7 145.8 1.00
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51722-725 5.1 226.9 2.24
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Includes 51723 1.9 407.0 3.30
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51726-728 5.0 206.7 2.98
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51729-731 3.6 570.0 3.99
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Includes 51730 1.2 918.0 5.77
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51732-734 2.8 589.5 3.77
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Includes 51732 0.5 270.0 11.85
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And includes 51733 1.3 1,055 2.98
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51735-51736 1.95 108.9 1.11
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51737-51739 2.1 247.4 2.78
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51572-574 6.0 68.9 4.82
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Includes 51573 2.0 118.0 7.62
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The results from surface and underground exploration of the historic workings on the Talea vein system to date are interpreted by management to warrant follow-up, and the program will now proceed to the drilling stage. Road building, to provide access to drill stations, will begin during early November, and drilling is planned to begin during the latter part of November.

Cloudbreak may earn a 60% interest in the Talea property from Continuum by expending $1.25 million on exploration on the property over three years, and issuing an additional 400,000 Cloudbreak shares. Continuum is the operator of the project.

Continuum has assembled a large, approximately 40,000 hectare property covering the entire Natividad-Talea district. In addition to the exploration being undertaken at Talea, the Company is actively exploring: underground at Natividad, where a northern extension to the historic orebody has been discovered; along the southern extension of the Natividad trend where numerous, past-producing gold-silver deposits are being mapped and sampled; and at Lachatao, a recent acquisition at the southern end of the belt where previous drilling has identified significant gold-bearing vein systems and disseminations.

The Qualified Person for this project, under the definition established by National Instrument 43-101 is Lawrence Dick, Ph.D., P.Geo. Additional assistance in the field and data quality control was provided by Chris Osterman, Ph.D, and a professional geologist registered in the state of Arizona. Geochemical analyses were carried out by ALS Chemex in North Vancouver, B.C.

On behalf of Continuum Resources Ltd.

Lawrence A. Dick, President


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