Continental Gold Drills High-Grade Gold and Silver in the Veta Sur and Laurel Vein Systems and Extensions at Buritica, Colombia

Marketwired

TORONTO, ONTARIO--(Marketwired - Jan 9, 2014) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 11 diamond drill-holes from the Veta Sur and eastern Laurel vein systems as part of the Company's 2013 exploration program at the Buriticá project in Antioquia, Colombia. Drilling will continue in 2014 with the goal of delivering robust mineral resource growth and upgrading inferred resources into the measured and indicated categories.

Highlights (referenced in Figures 1 and 2)

  • All drill-holes were successful in extending and infilling vein families in the Veta Sur vein system.
  • Nine drill-holes encountered a series of veins located north of the current block model for the Veta Sur system prepared in accordance with National Instrument 43-101 ("NI 43-101"). These as-yet unmodeled veins were intersected over strike lengths of up to 400 metres and vertical extents of up to 500 metres, the veins remaining open along strike and to depth. High-grade intercepts include:
    • 0.7 metres @ 26.8 g/t gold and 118 g/t silver (BUSY355, elevation of 1,112 metres);
    • 2.0 metres @ 11.7 g/t gold and 14 g/t silver (BUSY360, elevation of 1,175 metres);
    • 0.57 metres @ 3.0 g/t gold and 1,260 g/t silver (BUUY173, elevation of 1,582 metres);
    • 0.5 metres @ 0.8 g/t gold and 652 g/t silver (BUUY178, elevation of 1,741 metres);
    • 1.0 metres @ 0.3 g/t gold and 535 g/t silver (BUUY183, elevation of 1,219 metres); and
    • 0.5 metres @ 0.5 g/t gold and 673 g/t silver (BUUY202, elevation of 1,409 metres).
  • Three drill-holes intersected a series of veins located to the south of the current block model for the Veta Sur system. One of these holes, BUSY358, specifically targeted the Laurel vein system located well south of Veta Sur and also south of the Veta Sur ramp currently under construction. Highlighted intercepts from the three holes include:
    • 0.5 metres @ 44.2 g/t gold and 23 g/t silver (BUSY355, elevation of 1,447 metres);
    • 0.67 metres @ 26 g/t gold and 36 g/t silver (BUSY360, elevation of 1,481 metres); and
    • 0.6 metres @ 7.4 g/t gold and 16 g/t silver (BUSY358, elevation of 1,665 metres).
  • Elsewhere, several drill-holes extended veins within the Veta Sur mineralized envelope to greater depths than the current mineral resource model, with intercepts including: whereas several drill-holes extended veins to higher elevations than in the current mineral resource model, with intercepts including:
    • 0.7 metres @ 25.2 g/t gold and 64 g/t silver (BUSY355, elevation of 1,292 metres);
    • 0.95 metres @ 26.4 g/t gold and 14 g/t silver (BUSY360, elevation of 1,208 metres);
    • 0.5 metres @ 18.9 g/t gold and 1,020 g/t silver (BUUY159, elevation of 1,387 metres);
    • 1.35 metres @ 11.4 g/t gold and 205 g/t silver (BUUY159, elevation of 1,373 metres); and
    • 0.5 metres @ 13.6 g/t gold and 1,410 g/t silver (BUUY159, elevation of 1,248 metres);
      whereas several drill-holes extended veins to higher elevations than in the current mineral resource model, with intercepts including:
    • 0.5 metres @ 14.8 g/t and 76 g/t silver (BUUY159, elevation of 1,680 metres);
    • 4.15 metres @ 21.7 g/t gold and 19 g/t silver, including 0.5 metres @ 158.5 g/t gold and 62 g/t silver (BUUY194, elevation of 1,696 metres); and
    • 0.75 metres @ 13.6 g/t gold and 4 g/t silver (BUUY202, elevation of 1,699 metres).
  • Infill drilling continued to encounter better than expected vein grades and/or thicknesses from the current Veta Sur resource block model, with intercepts including:
    • 0.83 metres @ 19.8 g/t gold and 47 g/t silver (BUSY355, elevation of 1,149 metres);
    • 0.6 metres @ 26.8 g/t gold and 12 g/t silver (BUSY360, elevation of 1,304 metres);
    • 1.93 metres @ 18.9 g/t gold and 106 g/t silver (BUUY173, elevation of 1,678 metres);
    • 1.8 metres @ 9 g/t gold and 36 g/t silver (BUUY176, elevation of 1,615 metres);
    • 6.15 metres @ 10.4 g/t gold and 21 g/t silver, including 0.55 metres @ 83.1 g/t gold and 5 g/t silver (BUUY183, elevation of 1,685 metres); and
    • 9.85 metres @ 34.4 g/t gold and 111 g/t silver, including 1.13 metres @ 110.7 g/t gold and 236 g/t silver plus 1.0 metres @ 91.3 g/t gold and 261 g/t silver (BUUY202, elevation of 1,672 metres).

"Drilling continues to successfully infill and vertically extend existing veins while encountering new veins outside of the current mineral resource block model," commented Ari Sussman, CEO. "The updated mineral resource estimate remains on track for release in the first quarter of 2014 and will include the current drill results."

Details

Continental's 100%-owned, 58,773-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-outlined along 700 metres of strike and 1,300 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 the updated mineral resource estimates for the Buriticá projectprepared in accordance with NI 43-101. This release documents the results of extension and infill drilling of the Veta Sur system and, to the south of this, the Laurel vein system. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.

Table I: Drilling Highlights

HoleID From
(m)
To
(m)
Intercept
(m)
Gold (g/t) Silver (g/t) Zinc
(%)
Elevation
(m)
BUSY355 230.00 232.85 2.85 4.57 11.9 0.25 1570
310.50 311.00 0.50 2.28 16.6 0.06 1500
369.00 369.50 0.50 44.20 22.9 0.19 1447
377.00 377.50 0.50 2.74 20.5 0.34 1439
409.40 410.00 0.60 3.17 1.0 0.03 1410
416.65 417.40 0.75 9.32 7.2 0.04 1403
420.20 421.50 1.30 4.23 7.1 0.08 1400
432.70 433.20 0.50 5.48 8.9 0.20 1389
467.00 467.50 0.50 6.40 7.8 0.25 1358
493.00 493.50 0.50 2.22 6.9 0.04 1334
527.00 527.50 0.50 4.36 4.5 0.04 1303
529.40 532.00 2.60 2.64 6.2 0.06 1299
538.50 539.20 0.70 25.20 63.9 0.06 1292
541.20 544.50 3.30 5.13 10.7 0.14 1287
547.25 549.00 1.75 2.12 8.2 0.02 1284
551.40 552.00 0.60 3.04 17.2 0.04 1280
563.00 564.00 1.00 1.85 2.7 0.01 1270
604.30 604.80 0.50 3.14 35.2 0.04 1232
631.70 632.30 0.60 1.42 6.1 0.05 1206
641.00 642.70 1.70 3.65 9.5 0.02 1197
660.10 660.70 0.60 8.94 8.4 0.02 1180
667.62 672.20 4.58 3.80 12.8 0.01 1170
693.80 694.63 0.83 19.79 47.0 0.02 1149
699.70 701.10 1.40 6.20 7.7 0.02 1144
702.27 703.30 1.03 8.06 27.4 0.02 1141
711.00 711.70 0.70 2.92 7.5 0.01 1133
723.70 725.60 1.90 2.21 8.8 0.02 1121
731.90 735.00 3.10 7.55 36.2 0.07 1112
incl 732.95 733.65 0.70 26.80 118.0 0.25
BUSY358 147.50 148.10 0.60 7.41 16.0 0.95 1665
189.00 189.50 0.50 1.43 46.0 1.52 1627
216.10 217.30 1.20 2.43 52.4 0.04 1602
273.60 274.10 0.50 0.20 188.0 3.43 1550
329.00 329.60 0.60 0.97 24.9 0.03 1499
BUSY359 64.30 65.60 1.30 1.29 81.3 0.09 1653
171.25 173.00 1.75 1.15 55.9 0.09 1558
175.85 178.45 2.60 0.58 115.0 0.57 1553
185.40 185.90 0.50 11.35 74.9 0.44 1546
200.10 201.10 1.00 1.94 15.5 0.06 1533
228.80 229.35 0.55 4.89 131.0 0.18 1508
235.80 236.40 0.60 4.01 18.9 0.06 1501
255.50 256.00 0.50 7.09 102.0 0.06 1484
287.65 288.20 0.55 1.73 89.0 0.11 1455
349.50 350.50 1.00 0.95 9.1 0.03 1399
360.45 361.30 0.85 1.19 1.8 0.19 1389
386.50 387.40 0.90 1.96 2.4 0.05 1366
BUSY360 61.50 63.07 1.57 1.70 17.4 0.32 1720
65.30 65.80 0.50 3.13 162.0 0.30 1717
203.60 204.60 1.00 7.37 0.2 0.01 1596
303.10 303.67 0.57 5.43 17.0 0.82 1510
326.30 327.85 1.55 1.60 6.8 0.05 1489
335.23 335.90 0.67 26.00 36.1 1.31 1481
337.07 338.28 1.21 2.39 3.9 0.04 1480
340.15 342.60 2.45 2.10 4.1 0.09 1476
362.65 363.35 0.70 1.51 5.2 0.18 1458
377.50 378.00 0.50 2.47 14.3 0.12 1445
384.40 385.05 0.65 2.26 16.9 0.30 1439
396.00 397.00 1.00 0.84 14.3 0.16 1428
410.00 410.50 0.50 4.94 6.4 0.03 1416
422.05 422.80 0.75 1.81 5.7 0.05 1406
436.20 436.70 0.50 9.29 10.1 0.88 1394
452.26 453.00 0.74 3.33 7.9 0.28 1380
454.10 455.40 1.30 3.88 10.5 0.13 1378
463.30 465.00 1.70 8.03 7.2 0.17 1369
469.40 470.10 0.70 11.20 9.4 0.01 1365
481.00 484.30 3.30 1.51 4.5 0.06 1353
490.34 491.00 0.66 3.07 2.6 0.05 1347
498.00 500.20 2.20 3.20 6.6 0.01 1339
502.00 503.70 1.70 5.64 22.2 0.30 1336
507.90 510.05 2.15 2.22 7.8 0.04 1330
514.50 515.40 0.90 2.17 5.6 0.01 1326
520.55 522.75 2.20 3.40 8.2 0.02 1320
535.65 536.15 0.50 4.70 10.6 0.17 1308
540.00 540.60 0.60 26.80 12.0 1.65 1304
549.00 549.50 0.50 8.14 28.1 1.01 1296
551.00 554.10 3.10 6.02 25.8 0.05 1292
567.25 568.45 1.20 12.43 22.5 0.32 1280
574.20 575.90 1.70 5.14 39.9 0.09 1274
577.60 578.70 1.10 3.42 18.1 0.03 1271
582.70 583.70 1.00 4.89 25.1 0.19 1267
615.00 615.50 0.50 2.04 4.1 0.02 1239
627.70 628.95 1.25 3.74 50.2 0.27 1228
651.25 652.20 0.95 26.40 13.5 0.27 1208
688.70 690.70 2.00 11.68 13.5 0.04 1175
696.15 697.60 1.45 4.39 12.6 0.02 1169
716.50 717.00 0.50 11.05 9.1 0.01 1152
BUUY159 16.20 17.85 1.65 3.94 8.6 0.82 1693
27.00 29.17 2.17 2.19 11.4 0.29 1682
31.10 31.60 0.50 14.80 76.0 0.23 1680
32.15 33.65 1.50 2.63 22.5 0.20 1678
35.20 36.90 1.70 8.30 18.3 0.44 1675
39.00 42.05 3.05 11.03 14.2 0.37 1670
42.75 44.62 1.87 3.36 12.6 0.36 1668
60.55 61.10 0.55 3.10 12.4 0.07 1652
65.40 65.95 0.55 2.43 10.2 0.20 1648
77.00 78.66 1.66 8.52 10.3 0.03 1636
84.00 91.50 7.50 5.15 26.0 0.10 1624
incl 86.80 89.15 2.35 13.11 69.4 0.19
95.20 97.95 2.75 18.21 52.1 0.06 1618
incl 96.20 97.30 1.10 41.18 92.9 0.06
113.75 114.25 0.50 9.00 53.3 0.03 1603
116.00 117.10 1.10 1.49 6.1 0.06 1600
123.80 124.40 0.60 4.55 8.3 0.03 1593
130.40 132.80 2.40 1.64 6.5 0.05 1586
139.43 139.94 0.51 1.20 118.0 0.04 1579
147.40 148.40 1.00 2.06 4.2 0.01 1571
158.20 159.80 1.60 6.70 8.5 0.04 1560
177.70 181.60 3.90 2.09 18.6 0.03 1540
187.00 187.60 0.60 2.54 14.1 0.02 1534
195.00 197.80 2.80 1.59 10.9 0.02 1525
202.50 204.00 1.50 3.88 66.4 0.07 1519
207.00 207.60 0.60 0.66 219.0 0.47 1515
227.45 227.95 0.50 1.24 31.5 0.04 1496
238.40 239.00 0.60 0.71 116.0 0.05 1485
249.65 250.32 0.67 3.16 34.2 0.05 1475
258.90 261.80 2.90 2.28 112.2 0.03 1464
273.65 274.45 0.80 3.85 15.4 0.09 1452
287.45 287.95 0.50 2.96 54.4 0.31 1439
297.65 298.15 0.50 0.34 96.7 0.19 1430
327.50 328.00 0.50 0.04 83.5 0.10 1402
341.20 343.50 2.30 5.61 249.7 0.76 1387
incl 341.20 341.70 0.50 18.90 1020.0 2.92
357.05 358.40 1.35 11.37 205.2 2.35 1373
363.18 363.68 0.50 2.64 115.0 0.07 1368
383.68 384.18 0.50 0.15 136.0 0.53 1349
385.30 385.80 0.50 7.59 146.0 0.60 1347
399.30 400.30 1.00 7.20 266.2 1.34 1334
414.70 415.40 0.70 0.20 269.0 0.80 1319
424.30 425.30 1.00 1.83 3.5 0.02 1310
431.00 431.90 0.90 1.43 7.2 0.07 1304
443.50 444.50 1.00 1.06 53.9 0.29 1292
458.50 460.70 2.20 0.73 27.9 0.08 1277
463.00 466.93 3.93 1.32 10.2 0.07 1271
472.27 473.00 0.73 3.67 3.4 0.07 1265
483.80 485.20 1.40 1.46 8.4 0.13 1254
490.50 491.00 0.50 13.55 1410.0 3.52 1248
492.50 493.50 1.00 1.60 24.7 1.63 1246
BUUY173 20.95 21.52 0.57 1.82 9.7 0.39 1693
24.35 24.85 0.50 2.65 10.9 0.09 1691
27.15 28.85 1.70 3.87 10.1 0.14 1688
29.93 32.50 2.57 7.05 35.9 0.19 1686
34.83 36.65 1.82 11.84 19.6 0.37 1682
40.83 42.76 1.93 18.86 105.9 0.55 1678
45.70 46.74 1.04 3.20 26.6 0.16 1675
59.00 60.35 1.35 1.53 9.7 0.21 1664
68.00 69.16 1.16 1.39 3.8 0.15 1658
73.30 74.95 1.65 2.53 6.3 0.28 1653
76.10 76.65 0.55 6.51 12.8 0.51 1652
97.60 98.10 0.50 1.05 50.9 0.04 1636
159.00 159.50 0.50 1.91 46.1 0.08 1589
168.53 169.10 0.57 3.04 1260.0 3.77 1582
191.00 191.60 0.60 0.13 126.0 0.08 1565
231.30 231.80 0.50 0.79 33.2 0.63 1534
273.10 273.60 0.50 0.05 110.0 0.04 1502
BUUY176 165.50 166.00 0.50 1.75 25.4 0.05 1617
167.00 167.60 0.60 1.35 7.9 0.18 1617
171.00 177.00 6.00 3.98 26.3 0.42 1615
incl 173.00 174.80 1.80 9.03 36.2 0.18 1615
193.00 194.50 1.50 2.33 14.7 0.83 1611
198.25 198.75 0.50 4.62 15.5 2.06 1610
208.50 209.05 0.55 0.95 14.5 1.03 1607
265.30 265.80 0.50 0.17 142.0 0.17 1594
283.80 284.30 0.50 0.32 236.0 1.64 1590
365.70 366.20 0.50 4.02 41.1 2.24 1571
420.90 421.40 0.50 1.52 10.8 0.41 1558
453.70 454.20 0.50 0.40 39.8 0.73 1549
BUUY178 6.00 7.00 1.00 2.34 2.7 0.06 1712
22.70 27.00 4.30 2.70 26.6 0.59 1715
56.00 57.10 1.10 4.28 24.2 1.30 1720
141.00 141.50 0.50 0.28 85.6 1.00 1733
146.00 146.60 0.60 0.68 365.0 5.60 1734
179.50 180.00 0.50 0.37 249.0 0.47 1738
203.50 204.00 0.50 0.79 652.0 0.91 1741
223.00 224.10 1.10 0.25 51.1 0.45 1743
233.00 234.50 1.50 0.53 34.3 0.06 1744
235.90 236.45 0.55 2.23 229.0 0.04 1744
BUUY183 2.00 3.45 1.45 3.03 11.0 0.23 1707
16.90 17.40 0.50 15.00 16.7 0.30 1696
25.75 31.90 6.15 10.43 21.2 0.18 1685
incl 27.65 28.20 0.55 83.10 5.3 0.15
33.80 35.40 1.60 19.65 39.9 0.21 1682
40.10 44.85 4.75 8.52 99.5 0.28 1675
incl 40.60 42.35 1.75 20.15 255.0 0.68
50.30 51.35 1.05 1.22 4.1 0.37 1670
74.60 75.23 0.63 2.85 7.5 0.68 1651
84.50 85.10 0.60 2.91 9.1 0.93 1644
96.00 96.50 0.50 7.11 222.0 0.31 1635
130.40 130.90 0.50 1.80 61.5 0.03 1608
172.70 173.20 0.50 2.20 379.0 4.09 1576
187.85 188.40 0.55 0.27 166.0 0.07 1564
217.60 218.80 1.20 1.18 52.4 0.78 1542
241.20 241.75 0.55 0.80 277.0 1.34 1524
258.95 259.45 0.50 2.17 138.0 9.30 1511
328.08 329.10 1.02 5.20 0.7 0.04 1459
342.70 343.80 1.10 2.86 20.1 0.02 1448
426.10 426.60 0.50 0.59 41.2 1.99 1387
488.20 488.90 0.70 0.59 33.9 1.51 1342
623.85 624.40 0.55 1.89 11.7 0.54 1243
629.65 630.15 0.50 1.19 13.5 4.49 1238
656.00 657.00 1.00 0.34 534.5 0.37 1219
724.75 725.50 0.75 0.23 76.8 0.05 1169
758.30 759.10 0.80 3.43 46.6 0.01 1144
BUUY194 12.70 13.25 0.55 1.73 6.6 0.35 1705
24.00 25.80 1.80 1.96 8.6 0.09 1702
28.45 29.15 0.70 3.00 15.6 0.03 1700
30.35 30.85 0.50 12.05 68.4 0.08 1700
37.65 41.80 4.15 21.67 18.9 0.97 1696
incl 41.30 41.80 0.50 158.50 61.8 1.22
51.79 52.38 0.59 12.40 145.0 2.50 1692
180.70 181.20 0.50 0.37 49.6 0.33 1646
193.90 194.40 0.50 0.17 214.0 0.43 1641
260.00 261.00 1.00 0.16 80.3 0.25 1619
262.10 262.85 0.75 0.26 158.0 0.95 1618
284.90 285.40 0.50 0.63 436.0 0.13 1611
302.20 302.80 0.60 0.43 34.0 2.13 1605
BUUY202 12.25 13.00 0.75 13.60 3.9 0.31 1699
17.50 18.00 0.50 2.63 31.2 0.82 1695
26.25 26.90 0.65 17.25 374.0 1.77 1688
37.00 46.85 9.85 34.35 111.3 0.60 1672
incl 42.10 43.23 1.13 110.65 236.4 2.05
and 44.60 45.60 1.00 91.30 261.0 0.99
66.35 70.50 4.15 2.67 6.7 0.27 1653
75.20 75.80 0.60 3.29 7.6 0.40 1649
85.73 86.60 0.87 7.41 272.7 1.08 1640
91.05 91.55 0.50 2.68 18.2 0.52 1636
96.65 97.15 0.50 3.50 22.0 0.34 1631
101.93 102.73 0.80 23.29 336.1 0.35 1627
110.67 115.15 4.48 3.12 8.8 0.13 1617
117.00 117.50 0.50 0.87 324.0 1.45 1615
129.05 129.55 0.50 32.30 10.5 0.02 1605
140.25 140.75 0.50 0.87 27.6 0.07 1596
150.60 151.10 0.50 0.63 45.0 0.72 1588
172.75 173.27 0.52 0.49 34.7 3.11 1570
197.94 200.50 2.56 1.38 212.7 0.51 1548
271.95 273.00 1.05 0.67 386.8 3.75 1490
372.70 373.20 0.50 0.47 673.0 0.68 1409
377.80 378.30 0.50 0.22 225.0 0.40 1405
383.00 383.70 0.70 0.06 48.6 0.14 1401
*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% and near true width (e.g. BUUY173 and BUUY178) of the down-hole interval. Drill-holes designated "BUUY" were collared from underground, and drill-holes designated "BUSY" were collared at surface.

Four holes (BUSY355, BUSY360, BUSY359 and BUUY176) were drilled from the south to the north to transect the Veta Sur vein system over a strike length of 300 metres and through a substantial range of elevations. Intercepts to the south of the current Veta Sur mineral resource envelope include:

  • 0.5 metres @ 44.2 g/t gold and 23 g/t silver (BUSY355, elevation of 1,447 metres); and
  • 0.67 metres @ 26 g/t gold and 36 g/t silver (BUSY360, elevation of 1,481 metres).

These and other intercepts represent previously unmodeled southern Veta Sur vein families, which remain open laterally and to depth.

Nine drill holes (including the four holes mentioned above) intersected multiple families of veins to the north of the current Veta Sur mineral resource, with high-grade gold and/or silver intercepts including:

  • 3.1 metres @ 7.6 g/t gold and 36 g/t silver, including 0.7 metres @ 26.8 g/t gold and 118 g/t silver (BUSY355, elevation of 1,112 metres);
  • 2.0 metres @ 11.7 g/t gold and 14 g/t silver (BUSY360, elevation of 1,175 metres);
  • 0.57 metres @ 3 g/t gold and 1,260 g/t silver (BUUY173, elevation of 1,582 metres);
  • 0.5 metres @ 0.8 g/t gold and 652 g/t silver (BUUY178, elevation of 1,741 metres);
  • 0.5 metres @ 0.5 g/t gold and 673 g/t silver (BUUY202, elevation of 1,409 metres); and
  • 1.0 metres @ 0.3 g/t gold and 535 g/t silver (BUUY183, elevation of 1,219 metres).

Intercepts within BUUY202 (from 372 metres down-hole), BUUY183 (from 328 metres down-hole) and BUUY178 (from 223 metres down-hole) potentially represent far-west extensions of the Yaraguá vein system over a 500-metre range of elevations with the silver-to-gold ratio varying between moderate to high.

Intercepts to the south of the aforementioned holes - BUSY355 (699-735 metres down-hole), BUSY359 (349-388 metres down-hole), BUSY360 (627-717 metres down-hole), BUUY173 (159-274 metres down-hole), BUUY178 (223-237 metres down-hole), BUUY194 (180-303 metres down-hole) and BUUY176 (265-455 metres down-hole) - represent previously unmodeled northern vein families of the Veta Sur vein system. These vein families have now been intersected over 400 metres of strike length and at depth ranges of 1,000 metres, and typically appear to show increasing gold/silver with depth. The northern Veta Sur vein families remain open laterally and to depth.

Elsewhere, several drill-holes extended parts of the Veta Sur mineralized envelope to greater depths than the current mineral resource model, with intercepts (from northeast to southwest) including:

  • 2.3 metres @ 5.6 g/t gold and 250 g/t silver, including 0.5 metres @ 18.9 g/t gold and 1,020 g/t silver (BUUY159, elevation of 1,387 metres);
  • 1.35 metres @ 11.4 g/t gold and 205 g/t silver (BUUY159, elevation of 1,373 metres);
  • 1.0 metres @ 7.2 g/t gold and 266 g/t silver (BUUY159, elevation of 1,334 metres);
  • 0.5 metres @ 13.6 g/t gold and 1,410 g/t silver (BUUY159, elevation of 1,248 metres);
  • 0.95 metres @ 26.4 g/t gold and 14 g/t silver (BUSY360, elevation of 1,208 metres); and
  • 0.7 metres @ 25.2 g/t gold and 64 g/t silver (BUSY355, elevation of 1,292 metres).

Several drill-holes extended several veins to higher elevations than in the current mineral resource model, with intercepts including:

  • 0.5 metres @ 14.8 g/t gold and 76 g/t silver (BUUY159, elevation of 1,680 metres);
  • 0.75 metres @ 13.6 g/t gold and 4 g/t silver (BUUY202, elevation of 1,699 metres);
  • 0.5 metres @ 15 g/t gold and 17 g/t silver (BUUY183, elevation of 1,696 metres); and
  • 4.15 metres @ 21.7 g/t gold and 19 g/t silver, including 0.5 metres @ 158.5 g/t gold and 62 g/t silver (BUUY194, elevation of 1,696 metres).

Drill intersections within the current Veta Sur mineral resource envelope are generally consistent with grade X thicknesses of comparable areas of the current mineral resource model. Some intercepts were of significantly higher grades and/or apparent thicknesses, including:

  • 3.05 metres @ 11 g/t gold and 14 g/t silver (BUUY159, elevation of 1,670 metres);
  • 2.75 metres @ 18.2 g/t gold and 52 g/t silver, including 1.1 metres @ 41.2 g/t gold and 93 g/t silver (BUUY159, elevation of 1,618 metres);
  • 1.7 metres @ 8 g/t gold and 7 g/t silver (BUSY360, elevation of 1,369 metres);
  • 0.6 metres @ 26.8 g/t gold and 12 g/t silver (BUSY360, elevation of 1,304 metres);
  • 0.65 metres @ 17.3 g/t gold and 374 g/t silver (BUUY202, elevation of 1,688 metres);
  • 9.85 metres @ 34.4 g/t gold and 111 g/t silver, including 1.13 metres @ 110.7 g/t gold and 236 g/t silver plus 1.0 metres @ 91.3 g/t gold and 261 g/t silver (BUUY202, elevation of 1,672 metres);
  • 0.8 metres @ 23.3 g/t gold and 336 g/t silver (BUUY202, elevation of 1,627 metres);
  • 0.5 metres @ 32.3 g/t gold and 11 g/t silver (BUUY202, elevation of 1,605 metres);
  • 6.15 metres @ 10.4 g/t gold and 21 g/t silver, including 0.55 metres @ 83.1 g/t gold and 5 g/t silver (BUUY183, elevation of 1,685 metres);
  • 4.75 metres @ 8.5 g/t gold and 100 g/t silver, including 1.75 metres @ 20.2 g/t gold and 255 g/t silver (BUUY183, elevation of 1,675 metres);
  • 1.93 metres @ 18.9 g/t gold and 106 g/t silver (BUUY173, elevation of 1,678 metres);
  • 0.83 metres @ 19.8 g/t gold and 47 g/t silver (BUSY355, elevation of 1,149 metres); and
  • 1.8 metres @ 9 g/t gold and 36 g/t silver (BUUY176, elevation of 1,615 metres).

To the south of the Veta Sur vein system, BUSY358 and BUSY360 intersected the eastern Laurel vein family at high elevations, with highlighted intercepts including:

  • 0.6 metres @ 7.4 g/t gold and 16 g/t silver (BUSY358, elevation of 1,665 metres); and
  • 0.5 metres @ 3.1 g/t gold and 162 g/t silver (BUSY360, elevation of 1,717 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 over 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 complete 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 "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated November 15, 2012 with an effective date of October 22, 2012, 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 October 1, 2012, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The combined Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% 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 commenced the construction of the access tunnel, which will initially provide access for underground drilling and eventually used for commercial production. A Phase V drill program is underway at the Buriticá project to further delineate the mineral 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, 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. 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, please click on the following link: http://media3.marketwire.com/docs/CGFig118.pdf

To view Figure 2, please click on the following link: http://media3.marketwire.com/docs/CGFig218.pdf

Contact:
Continental Gold Limited
+1.416.583.5610
info@continentalgold.com
www.continentalgold.com

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