Continental Gold Drills Broad and High-Grade Intervals in Infill and Extensions of the Yaragua System at Buritica, Colombia

Marketwired
0

TORONTO, ONTARIO--(Marketwired - Apr 29, 2015) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 17 diamond drill-holes through the Yaraguá vein system at the Company's 100%-owned Buriticá project in Antioquia, Colombia. Drilling continues 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 mineral resource growth. An updated mineral resource estimate for the Buriticá project remains on track for completion in late Q2 2015.

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

- Step-out drilling was successful in extending the Yaraguá system to the west and to depth whereas infill drilling, largely at high angles to the veins, focused on elevations around the Higabra tunnel.

- In western Yaraguá, step-out drilling extended a bulk mineralized zone discovered in BUSY291 (65.1 metres @ 10.4 g/t gold and 9 g/t silver, CNL News Release, November 12, 2012). New intercepts in this zone, located below the current Yaraguá mineral resource envelope, include:

  • 17.38 metres @ 10.8 g/t gold and 7 g/t silver (BUUY291D01, elevation of 614 metres);

  • 10.3 metres @ 6.2 g/t gold and 5 g/t silver (BUUY291D02, elevation of 640 metres);

  • 7.95 metres @ 4.7 g/t gold and 6 g/t silver (BUUY291D03, elevation of 537 metres); and

  • 21.15 metres @ 4.6 g/t gold and 4 g/t silver (BUUY291D05, elevation of 595 metres).

These drill-holes, along with BUSY291, are interpreted to outline a northeast-elongate zone, more than 100 metres in vertical extent and 25 x 40 metres in horizontal strike, open vertically in both directions and along strike to the southwest. Mineralization takes the form of moderately-dipping, sheeted gold-rich pyrite-Kspar veinlets, locally cross-cut by auriferous base-metal veins. This style of mineralization ("291-Style") is interpreted as relatively high-temperature "porphyry" style and may contribute further to more bulk style gold potential of Buriticá at depth.

- Elsewhere, drilling also intersected multiple veins below or outside of the current Yaraguá mineral resource envelope, extending the vertical extents of several Yaraguá vein families. In western Yaraguá, key intercepts include:

  • 0.5 metres @ 24.6 g/t gold and 20 g/t silver (BUUY291D01, elevation of 636 metres);

  • 5.25 metres @ 6.7 g/t gold and 22 g/t silver, including 1.25 metres @ 15.9 g/t gold and 80 g/t silver (BUUY291D01, elevation of 595 metres);

  • 1.6 metres @ 8.7 g/t gold and 5 g/t silver (BUUY291D03, elevation of 613 metres);

  • 0.5 metres @ 43.5 g/t gold and 15 g/t silver (BUUY291D03, elevation of 501 metres);

  • 0.65 metres @ 17.6 g/t gold and 3 g/t silver (BUUY291D04, elevation of 620 metres); and

  • 4.6 metres @ 9.9 g/t gold and 55 g/t silver, including 1.2 metres @ 27.6 g/t gold and 180 g/t silver (BUUY291D05, elevation of 581 metres);

and, in eastern Yaraguá:

  • 3.2 metres @ 15.3 g/t gold and 28 g/t silver (BUUY305, elevation of 1,081 metres); and

  • 2.6 metres @ 8.1 g/t gold and 6 g/t silver (BUUY309, elevation of 1,085 metres).

Most of the Yaraguá vein families remain open to depth and the grades encountered in this drilling are encouraging for future mineral resource growth.

- Infill drill-holes encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model for Yaraguá. Broad and/or high-grade intercepts in related master veins, in eastern Yaraguá, include:

  • 1.3 metres @ 71.2 g/t gold and 14 g/t silver (GEOMK17, MU10, elevation of 1,370 metres);

  • 6.1 metres @ 4.4 g/t gold and 29 g/t silver, including 1.2 metres @ 10.4 g/t gold and 21 g/t silver (GEOMK17, MU3, elevation of 1,278 metres);

  • 14.17 metres @ 5.6 g/t gold and 5 g/t silver, including 1.77 metres @ 24.5 g/t gold and 18 g/t silver (BUUY309, MU3, elevation of 1,025 metres);

  • 3.46 metres @ 9.0 g/t gold and 30 g/t silver (BUUY309, PRE, elevation of 1,023 metres);

  • 2.05 metres @ 66.3 g/t gold and 15 g/t silver (BUUY309, VNB, elevation of 1,018 metres);

  • 0.56 metres @ 21.6 g/t gold and 35 g/t silver (BUUY306, MUS, elevation of 1,099 metres);

  • 4.21 metres @ 12.3 g/t gold and 12 g/t silver, including 1.03 metres @ 31.9 g/t gold and 25 g/t silver (BUUY306, MU2, elevation of 1,073 metres); and

  • 0.57 metres @ 23.0 g/t gold and 62 g/t silver (BUUY306, PRE, elevation of 1,067 metres);

and, in central Yaraguá:

  • 1.0 metres @ 33.3 g/t gold and 107 g/t silver (BUUY304, MU2, elevation of 1,237 metres);

  • 0.55 metres @ 48.8 g/t gold and 30 g/t silver (BUUY307, MU2, elevation of 1,247 metres);

  • 1.7 metres @ 28 g/t gold and 8 g/t silver (BUUY307, MU4, elevation of 1,253 metres);

  • 2.45 metres @ 209 g/t gold and 52 g/t silver (BUUY307, VNBC1, elevation of 1,266 metres);

  • 8.25 metres @ 10.4 g/t gold and 15 g/t silver, including 1.0 metres @ 25.9 g/t gold and 26 g/t silver (BUUY307, VNC2 & SOF, elevation of 1,278 metres);

  • 2.9 metres @ 8.7 g/t gold and 6 g/t silver, including 1.15 metres @ 18.8 g/t gold and 10 g/t silver (BUUY313, MU, elevation of 1,218 metres);

  • 0.6 metres @ 36.4 g/t gold and 37 g/t silver (BUUY310, MU2, elevation of 1,167 metres);

  • 13.9 metres @ 5.3 g/t gold and 6 g/t silver, including 1.7 metres @ 11.2 g/t gold and 6 g/t silver (GEOMK14, MU4, elevation of 1,459 metres);

  • 2.45 metres @ 17.3 g/t gold and 13 g/t silver, including 1.3 metres @ 28.7 g/t gold and 11 g/t silver (GEOMK14, PRE, elevation of 1,447 metres);

  • 2.5 metres @ 11.6 g/t gold and 81 g/t silver, including 0.55 metres @ 43.9 g/t gold and 325 g/t silver (GEOMK14, VNAD, elevation of 1,340 metres);

  • 2.85 metres @ 12.5 g/t gold and 75 g/t silver (BUUY296, MUS1, elevation of 1,125 metres);

  • 4.5 metres @ 9.4 g/t gold and 22 g/t silver, including 1.5 metres @ 14.7 g/t gold and 6 g/t silver (BUUY296, VNE, elevation of 1,080 metres); and

  • 1.1 metres @ 20.1 g/t gold and 12 g/t silver (BUUY312, VNAD, elevation of 1,266 metres);

and, in western Yaraguá:

  • 1.28 metres @ 23.6 g/t gold and 9 g/t silver (BUUY291D01, VNB, elevation of 641 metres);

  • 2.12 metres @ 8.9 g/t gold and 35 g/t silver (BUUY291D02, FWV, elevation of 631 metres);

  • 1.25 metres @ 14.7 g/t gold and 19 g/t silver (BUUY291D03, VNB, elevation of 649 metres);

  • 1.75 metres @ 28.2 g/t gold and 25 g/t silver (BUUY291D04, MU11, elevation of 866 metres); and

  • 2.45 metres @ 14.2 g/t gold and 15 g/t silver (BUUY291D04, SOF, elevation of 693 metres).

- These and other intercepts will contribute to increased confidence levels of high-grade gold and silver mineral resources within master vein families covering large vertical and horizontal extents of the Yaraguá system. The grade X thicknesses of these veins in the 1,000-1,400-metre range of elevations are particularly encouraging as this is proximal to the main haulage developments proposed in the 2014 Preliminary Economic Assessment (the "PEA"), and also restricts the influence of areas within the Yaraguá system that were previously modelled as containing predominately low to medium precious metal grades.

"The 2014 drilling program at Yaraguá continues to achieve better results than anticipated from the May 2014 mineral resource estimate," commented Ari Sussman, President and CEO of Continental. "We look forward to completing an updated mineral resource estimate prior to the end of this quarter and are optimistic that our internal targets will be achieved in the study."

Details

Continental's 100%-owned, 59,285-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 PEA prepared in accordance with NI 43-101. This release documents the results of infill and extension drilling through the Yaraguá vein system. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1, 2, 3 and 4.

Table I: Drilling Highlights

HoleID

From
(m)

To
(m)

Interval
*(m)

Gold
(g/t)

Silver
(g/t)

Zinc
(%)

Elevation
(m)

Vein**

BUUY291D

17.45

18.45

1.00

5.71

46.8

0.01

1159

outside

47.85

48.35

0.50

8.18

12.6

0.62

1137

outside

178.70

179.35

0.65

2.00

16.6

0.12

1040

outside

BUUY291D01

109.30

110.00

0.70

3.61

4.9

0.13

853

MU11

162.15

162.80

0.65

1.68

10.5

0.01

814

MU10

207.75

208.75

1.00

1.53

1.2

0.01

781

below

382.70

383.25

0.55

3.33

3.1

0.03

660

PRE

391.35

391.90

0.55

2.21

5.0

0.11

655

below

411.35

412.63

1.28

23.59

8.5

0.06

641

VNB

420.30

420.80

0.50

24.60

19.5

0.32

636

below

432.60

433.73

1.13

6.50

3.0

0.01

628

below

437.24

454.62

17.38

10.79

7.2

0.01

614

below

incl

438.57

440.30

1.73

24.56

6.2

0.01

and

446.13

447.32

1.19

28.15

6.8

0.01

465.97

469.66

3.69

3.11

7.9

0.01

604

below

473.00

473.77

0.77

3.79

1.3

0.01

602

below

479.00

484.25

5.25

6.67

21.9

0.01

595

below

incl

483.00

484.25

1.25

15.93

80.4

0.02

below

487.55

489.40

1.85

2.94

8.0

0.01

592

below

507.45

509.87

2.42

3.09

3.1

0.02

578

below

519.81

523.10

3.29

5.27

23.9

0.04

570

below

525.30

525.81

0.51

5.81

29.2

0.15

568

below

BUUY291D02

80.00

80.70

0.70

1.73

1.1

0.01

867

MU1

105.30

106.50

1.20

1.36

1.2

0.11

848

MU11

149.00

150.00

1.00

2.10

3.8

0.03

816

MU10

323.00

324.00

1.00

1.71

3.4

0.01

696

PRE

341.00

341.60

0.60

11.35

31.8

0.61

684

VNB

347.50

348.00

0.50

3.49

9.0

0.01

680

VNC

368.10

369.80

1.70

3.96

3.7

0.02

666

SOF

394.00

395.00

1.00

6.86

2.0

0.01

649

HWV

399.00

409.30

10.30

6.19

4.8

0.01

640

below

incl

399.70

401.80

2.10

13.16

6.5

0.01

411.80

412.30

0.50

3.81

10.7

0.39

638

dilution

416.00

418.05

2.05

2.90

10.5

0.08

635

dilution

422.00

424.12

2.12

8.88

35.0

0.79

631

FWV

469.55

470.60

1.05

1.59

14.5

0.11

602

VND

484.00

484.50

0.50

3.22

14.7

0.31

594

outside

495.70

497.50

1.80

1.96

7.9

0.02

586

outside

526.00

527.00

1.00

1.07

7.2

0.08

568

outside

BUUY291D03

191.25

191.80

0.55

4.10

20.2

0.01

683

PRE

230.15

232.00

1.85

2.42

11.8

0.01

653

dilution

236.75

238.00

1.25

14.72

19.4

0.58

649

VNB

240.45

241.90

1.45

3.54

4.0

0.01

646

below

260.20

261.70

1.50

6.75

30.3

0.39

631

below

265.40

265.90

0.50

4.03

31.0

0.09

627

below

275.00

275.50

0.50

4.20

8.1

0.01

620

below

283.40

285.00

1.60

8.71

4.5

0.01

613

below

294.70

295.50

0.80

16.50

11.2

0.01

605

below

318.70

319.70

1.00

4.32

1.2

0.01

587

below

335.35

336.40

1.05

1.40

10.6

0.09

575

below

365.70

366.25

0.55

7.78

76.5

0.13

553

below

380.65

388.60

7.95

4.65

6.1

0.03

537

outside

incl

382.00

383.70

1.70

11.67

10.6

0.02

400.20

400.70

0.50

4.12

18.0

0.18

528

outside

437.00

437.50

0.50

43.50

15.4

0.01

501

outside

BUUY291D04

88.95

90.70

1.75

28.16

25.1

0.02

866

MU11

209.80

211.00

1.20

1.29

11.8

0.00

779

below

286.00

287.00

1.00

1.21

3.0

0.01

725

PRE

325.70

327.35

1.65

1.46

9.5

0.16

698

VNB

332.35

334.80

2.45

14.19

15.3

0.05

693

SOF

357.80

358.10

0.30

6.71

16.5

0.66

677

HWV

384.90

386.40

1.50

23.65

2.2

0.01

659

SAV

392.00

393.00

1.00

4.65

9.1

0.02

655

dilution

397.80

403.05

5.25

2.12

6.7

0.07

649

dilution

410.35

411.35

1.00

13.30

105.3

0.86

643

FWV

421.50

423.10

1.60

2.97

13.7

0.08

636

dilution

439.25

439.75

0.50

7.95

38.4

2.02

626

VND

447.40

448.05

0.65

17.60

2.9

0.03

620

below

467.25

467.90

0.65

1.57

3.6

0.13

609

below

486.00

486.50

0.50

5.70

60.8

1.60

598

below

506.50

507.00

0.50

17.80

45.7

0.13

586

below

590.55

591.10

0.55

1.25

15.3

0.13

539

below

BUUY291D05

230.50

231.00

0.50

1.42

18.0

0.02

692

below

289.25

290.55

1.30

2.22

4.0

0.01

651

PRE

296.90

297.50

0.60

5.21

1.9

0.01

646

VNB

311.85

312.40

0.55

3.11

2.2

0.01

636

below

322.60

324.35

1.75

3.24

6.7

0.14

628

below

345.15

348.95

3.80

2.42

2.4

0.01

612

below

352.85

374.00

21.15

4.58

4.0

0.01

595

below

incl

352.85

354.75

1.90

11.54

4.2

0.01

and

363.35

364.35

1.00

33.63

20.0

0.01

381.65

382.15

0.50

3.22

7.1

0.56

589

below

383.30

386.85

3.55

2.50

14.6

0.15

587

below

391.40

396.00

4.60

9.92

54.6

0.09

581

below

incl

391.90

393.10

1.20

27.62

180.1

0.28

412.00

413.95

1.95

8.45

18.2

0.03

569

below

415.20

415.80

0.60

3.55

9.2

0.08

568

below

429.20

429.70

0.50

2.71

6.7

0.01

559

below

461.80

462.30

0.50

4.97

7.1

0.01

538

below

500.35

500.85

0.50

1.83

1.2

0.00

514

below

570.70

571.20

0.50

2.13

5.2

0.01

473

below

641.95

643.00

1.05

2.10

3.3

0.01

434

below

BUUY296

98.80

101.65

2.85

12.50

75.1

1.39

1125

MUS1

105.80

107.80

2.00

14.79

22.4

0.38

1122

MU1

114.35

115.75

1.40

12.57

31.8

0.24

1118

MU11

133.67

134.50

0.83

4.24

13.1

0.03

1109

MU10

197.00

201.50

4.50

9.37

22.3

0.35

1080

VNE

incl

198.00

199.50

1.50

14.73

6.2

0.06

266.50

267.05

0.55

2.86

119.0

2.48

1053

HWV

285.80

287.30

1.50

4.15

21.0

0.26

1045

FWV

308.00

309.00

1.00

1.48

12.3

0.10

1037

VND

BUUY304

1.70

3.00

1.30

1.00

0.5

0.01

1177

outside

87.05

87.60

0.55

0.96

3.7

0.15

1204

below

175.00

177.10

2.10

2.17

10.1

0.02

1233

MU

188.40

189.40

1.00

33.33

106.6

0.15

1237

MU2

193.45

193.95

0.50

36.60

22.6

0.68

1239

MU5

206.45

207.40

0.95

3.26

1.6

0.01

1243

MU4

221.50

222.00

0.50

4.52

19.4

0.14

1248

VNE

227.95

235.35

7.40

3.79

8.5

0.05

1252

PRE

236.85

238.15

1.30

6.20

6.5

0.03

1253

VNB

248.95

249.45

0.50

4.28

6.2

0.28

1257

VNBC

250.40

251.85

1.45

8.32

3.9

0.10

1258

CBV

255.15

260.90

5.75

5.50

23.6

0.26

1261

VNC

270.80

272.10

1.30

2.81

4.8

0.08

1264

VNC1

279.35

280.40

1.05

3.43

82.3

0.31

1267

SOF

281.90

284.10

2.20

3.52

11.2

0.46

1268

HWV

373.80

374.40

0.60

3.49

24.6

0.04

1298

dilution

376.20

376.70

0.50

5.60

130.0

2.62

1298

VNA

395.70

396.20

0.50

2.98

26.5

0.11

1305

dilution

441.90

442.45

0.55

1.72

2.6

0.19

1320

N24

463.20

464.50

1.30

9.53

48.7

0.47

1327

N25

467.65

468.25

0.60

5.18

26.3

0.01

1328

dilution

BUUY305

5.50

6.00

0.50

0.04

101.0

0.03

1170

outside

126.00

126.50

0.50

8.51

11.8

1.42

1143

MUS3

158.50

159.60

1.10

1.22

3.5

0.44

1135

MUS31

177.00

179.30

2.30

1.24

3.8

0.82

1131

below

184.05

187.00

2.95

1.88

10.3

1.08

1129

below

218.00

219.00

1.00

2.29

7.6

0.69

1122

below

223.75

224.30

0.55

3.39

2.7

0.22

1121

below

257.50

258.80

1.30

2.24

13.8

0.21

1114

MUS

270.30

276.70

6.40

1.17

31.2

0.49

1110

MU11

295.00

296.00

1.00

2.86

15.4

0.65

1107

MU

311.10

311.70

0.60

1.21

308.0

1.63

1103

below

329.00

329.50

0.50

2.73

13.4

1.24

1100

below

340.30

343.50

3.20

1.50

3.2

0.34

1098

below

374.00

376.50

2.50

2.66

11.0

0.83

1092

below

381.30

382.45

1.15

5.13

4.3

0.38

1090

SOF

401.00

401.50

0.50

2.86

3.4

0.10

1087

HWV

417.00

421.80

4.80

7.25

20.0

7.69

1084

SAV

incl

419.00

420.50

1.50

11.65

21.5

8.72

431.30

434.50

3.20

15.31

28.0

21.32

1081

below

incl

431.85

432.90

1.05

30.22

38.6

16.90

439.70

440.20

0.50

5.55

6.5

0.23

1080

VND

442.00

442.50

0.50

4.07

117.0

6.07

1080

VNAD

459.30

463.80

4.50

2.38

26.9

0.58

1077

dilution

467.65

469.20

1.55

6.69

23.8

1.91

1076

VNA

470.85

471.50

0.65

5.61

6.9

0.83

1075

dilution

474.60

476.85

2.25

2.02

3.8

0.64

1074

N10

501.10

502.20

1.10

1.62

18.0

6.04

1070

N15

BUUY306

151.32

151.82

0.50

9.02

4.7

0.01

1115

below

155.45

155.97

0.52

2.10

4.7

0.18

1114

below

191.67

192.23

0.56

21.60

34.5

0.08

1099

MUS

217.24

219.12

1.88

1.64

2.0

0.04

1089

MU11

240.85

242.30

1.45

1.51

1.6

0.01

1081

MAR

252.24

253.48

1.24

2.76

8.8

0.02

1077

MIC

258.62

262.83

4.21

12.31

11.9

0.03

1073

MU2

incl

260.35

261.38

1.03

31.88

25.1

0.03

273.28

273.84

0.56

6.63

64.3

0.15

1069

MU3

281.43

282.00

0.57

23.00

61.7

0.07

1067

PRE

292.59

293.09

0.50

11.75

179.0

0.94

1063

VNB

299.70

300.35

0.65

3.07

17.2

0.01

1060

VNC

311.29

312.10

0.81

2.30

3.7

0.02

1056

dilution

313.67

316.37

2.70

2.52

6.6

0.30

1055

SOF

331.39

332.97

1.58

1.50

0.7

0.06

1049

HWV

414.95

415.53

0.58

1.02

3.2

0.04

1022

VNAD

452.52

453.03

0.51

1.85

36.7

1.64

1011

N10

BUUY307

88.69

89.30

0.61

8.66

19.0

1.54

1213

below

105.50

106.55

1.05

1.14

12.4

0.04

1219

MUS1

167.00

168.00

1.00

3.58

3.5

0.03

1242

MU

183.50

184.05

0.55

48.80

29.8

0.15

1247

MU2

186.20

186.70

0.50

2.62

161.0

0.26

1248

MU5

198.00

199.70

1.70

28.02

8.3

0.32

1253

MU4

204.00

205.80

1.80

7.86

8.3

0.07

1255

VNE

212.20

213.20

1.00

4.51

5.4

0.07

1258

PRE

220.00

220.50

0.50

3.42

4.9

0.08

1260

VNB

230.00

230.55

0.55

3.03

21.5

0.10

1264

VNBC

232.50

233.00

0.50

10.40

25.2

0.15

1265

CBV

234.55

237.00

2.45

208.95

52.2

0.08

1266

VNBC1

241.00

243.00

2.00

3.53

3.8

0.04

1268

dilution

248.50

250.40

1.90

6.68

7.1

0.08

1271

VNC

252.90

253.40

0.50

4.77

5.4

0.17

1272

VNC1

262.50

270.75

8.25

10.37

14.8

0.51

1278

incl

262.50

263.50

1.00

25.86

25.9

0.70

VNC2

and

265.80

266.90

1.10

20.30

37.1

0.33

SOF

274.30

276.50

2.20

3.88

13.3

0.21

1280

HWV

278.80

282.00

3.20

2.72

10.4

0.20

1282

SAV

302.00

302.50

0.50

6.59

114.0

3.42

1289

FWV

324.10

325.40

1.30

9.68

102.5

2.01

1297

VNAD

BUUY309

43.65

44.18

0.53

2.91

1.5

0.32

1149

below

128.60

130.50

1.90

1.85

1.1

0.01

1104

below

165.10

167.70

2.60

8.11

5.5

0.11

1085

below

184.22

185.42

1.20

8.15

16.5

0.16

1076

MUS

212.96

213.55

0.59

13.65

10.2

0.03

1061

MU1

214.55

216.72

2.17

2.05

24.5

0.13

1060

MU11

226.14

227.23

1.09

2.22

5.3

0.17

1055

MU10

230.23

231.50

1.27

2.24

2.8

0.04

1053

below

232.94

233.60

0.66

5.98

2.6

0.02

1052

MU

243.63

245.34

1.71

4.58

2.2

0.04

1046

below

263.45

265.09

1.64

1.65

2.5

0.03

1037

MAR

267.05

268.00

0.95

3.85

1.5

0.02

1035

MIC

269.56

270.06

0.50

15.60

8.3

0.02

1034

CENT

275.93

290.10

14.17

5.59

4.5

0.02

1025

MU3

incl

286.79

288.56

1.77

24.54

17.5

0.02

292.54

296.00

3.46

8.98

30.3

0.01

1023

PRE

304.45

306.50

2.05

66.26

15.0

0.04

1018

VNB

314.06

314.56

0.50

11.05

625.0

1.54

1014

VNC

429.90

430.62

0.72

0.72

86.3

0.36

965

VNA

432.40

432.94

0.54

4.71

14.5

0.58

964

below

471.58

472.64

1.06

1.30

17.1

0.64

950

N15

BUUY310

83.68

85.00

1.32

1.17

2.0

0.03

1169

MUS1

95.83

97.55

1.72

4.51

8.6

0.04

1169

MUS1

113.20

114.25

1.05

4.08

2.5

0.09

1168

MU1

123.80

124.44

0.64

5.12

3.2

0.19

1168

MU11

145.00

145.55

0.55

2.29

4.5

0.20

1167

MU10

168.15

168.75

0.60

36.40

37.0

0.17

1167

MU2

175.40

177.40

2.00

1.53

2.6

0.02

1166

MU4

238.10

238.80

0.70

1.83

5.9

0.04

1166

HWV

255.00

255.80

0.80

5.43

76.7

0.53

1166

SAV

257.65

258.15

0.50

3.27

18.2

0.19

1166

FWV

307.75

308.30

0.55

8.84

46.0

0.77

1165

VNAD

327.80

329.10

1.30

0.84

110.0

0.26

1165

VNA

333.15

334.30

1.15

1.76

3.5

0.12

1164

CENT

387.93

389.12

1.19

2.98

64.5

0.01

1163

N24

BUUY312

7.30

7.88

0.58

1.32

1.6

0.06

1178

outside

83.60

84.15

0.55

3.65

5.1

0.03

1201

MUS1

136.50

137.05

0.55

9.45

6.7

0.58

1216

MU11

146.60

147.60

1.00

1.73

9.3

0.28

1220

MU10

163.00

163.90

0.90

2.58

4.0

0.05

1225

MU

177.00

178.10

1.10

1.60

2.4

0.22

1229

MU2

184.35

185.65

1.30

2.22

2.9

0.03

1231

MU4

210.00

211.30

1.30

2.08

4.4

0.09

1239

VNBC

267.60

268.10

0.50

3.99

25.0

0.54

1257

SAV

272.50

273.00

0.50

7.17

174.0

1.40

1259

FWV

278.60

279.35

0.75

14.60

3.3

0.14

1261

VND

294.70

295.80

1.10

20.08

11.9

0.06

1266

VNAD

309.90

311.10

1.20

1.71

3.1

0.04

1271

VNA

340.60

341.50

0.90

0.95

8.8

0.02

1281

CENT

BUUY313

96.60

97.62

1.02

9.97

17.2

0.18

1199

MUS1

110.60

111.17

0.57

0.12

120.0

0.02

1202

MUS

127.60

128.10

0.50

4.20

12.3

0.03

1206

MU11

153.50

155.40

1.90

2.87

10.2

0.35

1213

MU10

171.35

174.25

2.90

8.74

6.3

0.06

1218

MU

incl

173.10

174.25

1.15

18.79

10.2

0.09

178.00

178.50

0.50

8.81

17.4

1.51

1219

MU5

186.15

186.70

0.55

6.50

6.5

0.26

1222

MU4

188.85

189.90

1.05

3.64

8.3

0.15

1222

VNE

193.00

194.50

1.50

6.04

7.7

0.34

1224

PRE

199.75

201.15

1.40

3.07

4.9

0.05

1225

VNB

204.70

205.20

0.50

20.20

26.6

0.40

1227

VNBC

213.90

215.25

1.35

3.46

5.7

0.06

1229

CBV

235.85

237.80

1.95

5.45

28.9

0.70

1236

VNC1

264.10

264.70

0.60

4.41

3.3

0.21

1244

HWV

268.65

270.10

1.45

3.98

9.1

0.32

1246

SAV

321.00

321.50

0.50

1.13

4.5

0.34

1262

VNA

349.75

350.25

0.50

1.74

10.5

0.03

1272

dilution

381.90

382.50

0.60

5.10

149.0

0.44

1283

N24

GEOMK14

11.60

15.60

4.00

4.00

7.5

0.25

1497

MU

16.65

23.20

6.55

2.13

2.1

0.07

1492

dilution

28.50

31.00

2.50

3.13

4.5

0.12

1487

MU2

51.60

53.00

1.40

1.58

4.7

0.66

1471

MU5

55.60

69.50

13.90

5.33

5.7

0.57

1459

MU4

incl

64.50

66.20

1.70

11.24

6.0

0.46

79.60

81.00

1.40

2.62

4.4

0.58

1451

VNE

83.55

86.00

2.45

17.30

13.2

1.76

1447

PRE

incl

84.70

86.00

1.30

28.72

11.2

0.99

93.00

94.50

1.50

2.48

4.1

0.18

1441

VNB

102.00

104.85

2.85

2.85

1.6

0.07

1434

VNBC

107.00

108.40

1.40

6.15

2.9

0.13

1431

CBV

146.95

147.75

0.80

7.08

3.8

0.16

1403

VNC2

151.50

152.00

0.50

28.00

57.3

2.73

1399

SOF

188.80

189.65

0.85

3.46

4.2

0.46

1373

FWV

203.00

204.40

1.40

1.46

4.3

0.50

1362

VND

230.60

231.75

1.15

2.41

14.6

0.12

1343

NWSE

234.00

236.50

2.50

11.58

81.1

0.19

1340

VNAD

incl

234.00

234.55

0.55

43.90

325.0

0.03

324.00

324.55

0.55

2.91

19.1

0.16

1278

CENT

345.00

345.63

0.63

3.03

22.9

0.03

1264

N24

GEOMK17

0.00

2.20

2.20

1.93

12.8

0.08

1667

above

160.60

161.90

1.30

4.12

0.8

0.01

1527

MUS2

234.00

234.64

0.64

2.55

13.7

0.52

1463

MUS21

277.00

278.30

1.30

1.70

14.9

1.99

1425

MUS

280.40

282.03

1.63

1.27

9.5

1.06

1422

MU1

302.10

302.70

0.60

4.21

20.7

1.36

1403

MU11

306.00

308.00

2.00

2.33

8.0

1.50

1399

dilution

311.70

316.10

4.40

2.45

5.3

0.46

1392

dilution

334.90

336.70

1.80

3.45

12.2

0.79

1374

dilution

339.90

341.20

1.30

71.22

13.8

0.41

1370

MU10

345.50

346.85

1.35

3.25

3.5

0.06

1365

dilution

424.50

428.00

3.50

1.49

3.3

0.07

1295

MU

435.15

435.65

0.50

4.26

9.2

0.05

1288

MU4

441.40

447.50

6.10

4.36

29.0

0.62

1278

MU3

incl

443.80

445.00

1.20

10.37

21.4

0.03

453.50

454.20

0.70

10.85

3.4

0.44

1272

PRE

458.40

460.20

1.80

1.49

1.3

0.05

1267

VNB

491.40

492.00

0.60

2.07

11.3

0.14

1239

VNC

539.00

543.70

4.70

1.49

2.4

0.08

1195

CENT

550.10

552.60

2.50

2.83

5.7

0.17

1187

CENT

572.70

573.40

0.70

1.19

3.0

0.02

1169

FWV

*

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 70% of the down-hole interval and near true width (for GEOMK14, GEOMK17 and BUUY291D-D05, about 50%). 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 envelopes. Dilution is defined as new mineralization outside 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 Yaraguá comprised four fans (for 15 underground drill-holes) drilled from chambers set up in the Higabra Valley tunnel, at elevations around 1,170 metres (Figures 1 and 2). Drill-holes in three of the fans were broadly north-directed and shallowly-inclined to achieve very high angle intersections with master vein sets through most of the Yaraguá vein families. Two holes (GEOMK14 and GEOMK17) were drilled from surface, primarily for geotechnical purposes, but also infilled parts of the Yaraguá system at higher elevations than the underground holes were targeting. Five holes (BUUY291D01-D05) were directionally drilled off of BUUY291D, deep into western Yaraguá.

These step-out holes extended a bulk mineralized zone discovered in BUSY291 (65.1 metres @ 10.4 g/t gold and 9 g/t silver, (CNL News Release, November 12, 2012). New intercepts in this zone, below the current Yaraguá mineral resource envelope (Figures 2 and 4), include:

  • 17.38 metres @ 10.8 g/t gold and 7 g/t silver (BUUY291D01, elevation of 614 metres);

  • 10.3 metres @ 6.2 g/t gold and 5 g/t silver (BUUY291D02, elevation of 640 metres);

  • 7.95 metres @ 4.7 g/t gold and 6 g/t silver (BUUY291D03, elevation of 537 metres); and

  • 21.15 metres @ 4.6 g/t gold and 4 g/t silver (BUUY291D05, elevation of 595 metres).

These drill-holes, along with BUSY291, are interpreted to outline a northeast-elongate zone, over 100 metres in vertical extent and 25 x 40 metres in the horizontal, open to depth, upwards and to the southwest. Mineralization takes the form of moderately-dipping, sheeted gold-rich pyrite-Kspar veinlets with high lead/zinc but base-metal-poor, chemically and morphologically distinct from and locally cross-cut by auriferous base-metal veins. Selvages around the pyritic veinlets exhibit potassic, biotite-stable alteration. This mineralization ("291-Style") is interpreted as an apparently relatively high-temperature, "porphyry" style and may contribute further to more bulk style gold potential of Buriticá at depth.

Elsewhere, drilling also intersected multiple veins below or outside of the current Yaraguá mineral resource envelope (Table 1), extending the vertical extents of several Yaraguá vein families. In western Yaraguá, key intercepts include:

  • 0.5 metres @ 24.6 g/t gold and 20 g/t silver (BUUY291D01, elevation of 636 metres);

  • 5.25 metres @ 6.7 g/t gold and 22 g/t silver, including 1.25 metres @ 15.9 g/t gold and 80 g/t silver (BUUY291D01, elevation of 595 metres);

  • 1.6 metres @ 8.7 g/t gold and 5 g/t silver (BUUY291D03, elevation of 613 metres);

  • 0.8 metres @ 16.5 g/t gold and 11 g/t silver (BUUY291D03, elevation of 605 metres);

  • 0.5 metres @ 43.5 g/t gold and 15 g/t silver (BUUY291D03, elevation of 501 metres);

  • 0.65 metres @ 17.6 g/t gold and 3 g/t silver (BUUY291D04, elevation of 620 metres);

  • 0.5 metres @ 17.8 g/t gold and 46 g/t silver (BUUY291D04, elevation of 586 metres); and

  • 4.6 metres @ 9.9 g/t gold and 55 g/t silver, including 1.2 metres @ 27.6 g/t gold and 180 g/t silver (BUUY291D05, elevation of 581metres);

and, in eastern Yaraguá:

  • 3.2 metres @ 15.3 g/t gold and 28 g/t silver, including 1.05 metres @ 30.2 g/t gold and 39 g/t silver (BUUY305, elevation of 1,081 metres); and

  • 2.6 metres @ 8.1 g/t gold and 6 g/t silver (BUUY309, elevation of 1,085 metres).

Most of the Yaraguá vein families remain open to depth and the grades encountered in this drilling are encouraging for future mineral resource growth.

Infill drill-holes encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected (Table 1) from the current mineral resource block model for eastern, central and western Yaraguá (Figures 1, 2 and 3). Broad and/or high-grade intercepts in related master veins, in eastern Yaraguá, include:

  • 1.3 metres @ 71.2 g/t gold and 14 g/t silver (GEOMK17, MU10, elevation of 1,370 metres);

  • 6.1 metres @ 4.4 g/t gold and 29 g/t silver, including 1.2 metres @ 10.4 g/t gold and 21 g/t silver (GEOMK17, MU3, elevation of 1,278 metres);

  • 14.17 metres @ 5.6 g/t gold and 5 g/t silver, including 1.77 metres @ 24.5 g/t gold and 18 g/t silver (BUUY309, MU3, elevation of 1,025 metres);

  • 3.46 metres @ 9 g/t gold and 30 g/t silver (BUUY309, PRE, elevation of 1,023 metres);

  • 2.05 metres @ 66.3 g/t gold and 15 g/t silver (BUUY309, VNB, elevation of 1,018 metres);

  • 0.56 metres @ 21.6 g/t gold and 35 g/t silver (BUUY306, MUS, elevation of 1,099 metres);

  • 4.21 metres @ 12.3 g/t gold and 12 g/t silver, including 1.03 metres @ 31.9 g/t gold and 25 g/t silver (BUUY306, MU2, elevation of 1,073 metres);

  • 0.57 metres @ 23 g/t gold and 62 g/t silver (BUUY306, PRE, elevation of 1,067 metres); and

  • 4.8 metres @ 7.3 g/t gold and 20 g/t silver, including 1.5 metres @ 11.7 g/t gold and 22 g/t silver (BUUY305, SAV, elevation of 1,084 metres);

and, in central Yaraguá:

  • 1.0 metres @ 33.3 g/t gold and 107 g/t silver (BUUY304, MU2, elevation of 1,237 metres);

  • 0.5 metres @ 36.6 g/t gold and 23 g/t silver (BUUY304, MU5, elevation of 1,239 metres);

  • 0.55 metres @ 48.8 g/t gold and 30 g/t silver (BUUY307, MU2, elevation of 1,247 metres);

  • 1.7 metres @ 28 g/t gold and 8 g/t silver (BUUY307, MU4, elevation of 1,253 metres);

  • 2.45 metres @ 209.0 g/t gold and 52 g/t silver (BUUY307, VNBC1, elevation of 1,266 metres);

  • 8.25 metres @ 10.4 g/t gold and 15 g/t silver, including 1.0 metres @ 25.9 g/t gold and 26 g/t silver and 1.1 metres @ 20.3 g/t gold and 37 g/t silver (BUUY307, VNC2 and SOF, elevation of 1,278 metres);

  • 2.9 metres @ 8.7 g/t gold and 6 g/t silver, including 1.15 metres @ 18.8 g/t gold and 10 g/t silver (BUUY313, MU, elevation of 1,218 metres);

  • 0.5 metres @ 20.2 g/t gold and 27 g/t silver (BUUY313, VNBC, elevation of 1,227 metres);

  • 0.6 metres @ 36.4 g/t gold and 37 g/t silver (BUUY310, MU2, elevation of 1,167 metres);

  • 13.9 metres @ 5.3 g/t gold and 6 g/t silver, including 1.7 metres @ 11.2 g/t gold and 6 g/t silver (GEOMK14, MU4, elevation of 1,459 metres);

  • 2.45 metres @ 17.3 g/t gold and 13 g/t silver, including 1.3 metres @ 28.7 g/t gold and 11 g/t silver (GEOMK14, PRE, elevation of 1,447 metres);

  • 2.5 metres @ 11.6 g/t gold and 81 g/t silver, including 0.55 metres @ 43.9 g/t gold and 325 g/t silver (GEOMK14, VNAD, elevation of 1,340 metres);

  • 2.85 metres @ 12.5 g/t gold and 75 g/t silver (BUUY296, MUS1, elevation of 1,125 metres);

  • 4.5 metres @ 9.4 g/t gold and 22 g/t silver, including 1.5 metres @ 14.7 g/t gold and 6 g/t silver (BUUY296, VNE, elevation of 1,080 metres);

  • 0.75 metres @ 14.6 g/t gold and 3 g/t silver (BUUY312, VND, elevation of 1,261 metres); and

  • 1.1 metres @ 20.1 g/t gold and 12 g/t silver (BUUY312, VNAD, elevation of 1,266 metres);

plus, in western Yaraguá:

  • 1.28 metres @ 23.6 g/t gold and 9 g/t silver (BUUY291D01, VNB, elevation of 641 metres);

  • 2.12 metres @ 8.9 g/t gold and 35 g/t silver (BUUY291D02, FWV, elevation of 631 metres);

  • 1.25 metres @ 14.7 g/t gold and 19 g/t silver (BUUY291D03, VNB, elevation of 649 metres);

  • 1.75 metres @ 28.2 g/t gold and 25 g/t silver (BUUY291D04, MU11, elevation of 866 metres); and

  • 2.45 metres @ 14.3 g/t gold and 15 g/t silver (BUUY291D04, SOF, elevation of 693 metres).

These and other intercepts will contribute to increased confidence levels of high-grade gold and silver mineral resources within master vein families through large vertical and horizontal extents of the Yaraguá system. The grade X thicknesses of these veins in the 1,000-1,400-metre range of elevations are particularly encouraging as this is proximal to the main haulage developments proposed in the PEA and also restricts the influence of areas within Yaraguá that were previously modelled as containing predominately low to medium precious metal 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 PEA (entitled "Buritica Gold Project, NI 43-101 Technical Report Preliminary Economic Assessment, Antioquia, Colombia", and dated December 22, 2014 with an effective date of November 17, 2014), led by M3 Engineering and Technology of Tucson, Arizona, with contributions from other independent consultants including NCL Ingeneria y Construccion SPA, which was responsible for the underground mine plan for the Buriticá project. The PEA is preliminary in nature and includes inferred mineral resources that are considered to be too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty the PEA will be realized. Further, mineral resources are not mineral reserves and have not demonstrated economic viability. The PEA 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 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 November 17, 2014, the Company announced the PEA, the results of which included an 18-year mine life based on 20,055,000 tonnes grading 7.80 g/t gold and 19.35 g/t silver, resulting in 4,777,000 ounces of recovered gold and 7,088,000 ounces of recovered silver, and utilized the May 2014 mineral resource estimate prepared in accordance with NI 43-101. The PEA concludes an after-tax net present value at a 5% discount of $1.08 billion and an after-tax internal rate of return of 31.5% on an initial capital cost of $390.3 million with a payback of 2.8 years.

With a goal of being the newest large-scale hard rock gold producer in Colombia, Continental has achieved major advances in recent times and anticipates completing environmental permitting in 2015. A Phase VII drill program is underway at the Buriticá project to further delineate mineral resources and drill new target zones identified within its concessions.

Additional details on the Buriticá project, including the PEA, 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, results of the PEA, advancing the Buriticá project, exploration results, potential mineralization, potential development of mine openings, potential improvement of mining dilution grades, timing of an updated mineral resource estimate, 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.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/cnl0429fig1.pdf.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/cnl0429fig2.pdf.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/cnl0429fig3.pdf.

To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/cnl0429fig4.pdf.

Advertisement

Recommended Stories