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

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TORONTO, ONTARIO--(Marketwired - Jul 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**

BUSY361D

336.50

337.00

0.50

0.38

335.0

0.84

1480

Laurel

354.00

354.60

0.60

0.12

66.3

0.64

1463

Laurel

366.70

367.20

0.50

0.04

76.3

0.03

1451

Laurel

373.80

374.30

0.50

5.21

7.3

1.52

1444

Laurel

402.00

402.50

0.50

4.65

14.7

0.35

1417

Laurel

463.70

464.20

0.50

2.18

53.0

0.06

1359

Laurel

480.00

481.90

1.90

5.57

40.1

0.08

1342

Laurel

485.30

487.25

1.95

1.37

67.2

0.11

1337

Laurel

495.60

503.60

8.00

1.68

11.1

0.01

1323

Laurel

517.15

518.30

1.15

2.52

209.2

0.70

1308

Laurel

525.20

527.70

2.50

1.45

7.2

0.01

1300

Laurel

570.00

574.90

4.90

4.76

18.4

0.10

1255

VSur

incl

571.00

572.18

1.18

14.39

48.5

0.31

VSur

578.00

578.50

0.50

17.60

252.0

0.09

1252

VSur

707.50

710.00

2.50

18.86

23.7

0.48

1130

VSur

incl

707.50

708.60

1.10

40.75

51.7

1.06

VSur

BUSY361D01

60.75

62.70

1.95

2.54

5.8

0.14

1368

Laurel

71.13

71.65

0.52

2.78

4.8

0.34

1360

Laurel

77.35

80.50

3.15

3.12

30.8

0.40

1352

Laurel

90.15

92.70

2.55

1.36

10.3

0.06

1341

Laurel

96.00

97.80

1.80

1.87

13.3

0.05

1336

Laurel

108.00

114.00

6.00

2.38

20.2

0.04

1322

Laurel

122.90

131.20

8.30

6.09

22.7

0.07

1306

Laurel

incl

130.00

131.20

1.20

23.95

35.6

0.03

Laurel

136.40

149.80

13.40

1.48

6.8

0.01

1290

Laurel

161.85

165.30

3.45

2.89

19.9

0.07

1276

VSur

198.50

199.00

0.50

4.98

12.0

0.39

1245

VSur

270.20

271.20

1.00

7.82

1.8

0.45

1181

VSur

281.45

283.30

1.85

2.93

9.7

0.03

1170

VSur

289.35

290.60

1.25

2.10

8.7

0.06

1164

VSur

309.95

310.45

0.50

2.13

4.5

0.08

1146

V130

400.00

401.30

1.30

2.70

0.8

0.01

1066

VSur

577.05

578.50

1.45

69.04

551.3

0.37

917

V31

580.00

581.50

1.50

3.93

4.4

0.01

915

VSur

601.90

603.00

1.10

1.36

2.9

0.01

897

Yar/MU1

631.00

632.80

1.80

1.01

1.4

0.01

873

Yar

BUSY361D02

24.20

24.75

0.55

0.99

262.0

1.59

1416

Laurel

64.65

65.80

1.15

1.19

2.7

0.27

1378

Laurel

85.95

86.45

0.50

3.41

52.5

0.60

1358

Laurel

91.35

91.95

0.60

3.19

22.4

0.03

1353

Laurel

92.45

98.15

5.70

2.06

31.5

0.09

1348

Laurel

101.65

127.95

26.30

2.97

36.5

0.04

1320

Laurel

131.48

132.05

0.57

3.51

8.5

0.05

1316

Laurel

142.65

143.15

0.50

8.47

77.3

0.44

1306

VSur

151.85

152.75

0.90

5.99

3.7

0.03

1298

VSur

158.80

159.75

0.95

3.85

7.1

0.27

1291

VSur

180.45

181.65

1.20

6.01

54.1

0.05

1271

VSur

208.55

209.05

0.50

4.45

11.5

0.05

1246

VSur

234.15

234.65

0.50

5.59

157.0

0.28

1222

VSur

255.95

257.15

1.20

3.33

1.2

0.02

1202

VSur

315.60

316.75

1.15

3.75

23.7

0.20

1147

VSur

331.15

333.85

2.70

4.57

11.6

0.05

1132

VSur

incl

331.65

332.65

1.00

10.31

24.7

0.06

VSur

661.80

663.53

1.73

3.66

10.9

0.01

830

V39

673.65

675.55

1.90

2.32

4.6

0.08

819

V34

698.75

703.05

4.30

11.52

31.4

0.07

794

V31

incl

701.15

703.05

1.90

23.69

63.7

0.13

V31

746.95

748.70

1.75

3.34

5.9

0.02

753

Yar/MU11

796.86

797.27

0.41

95.10

103.0

0.98

709

MU10

BUSY361D03

30.00

30.50

0.50

2.63

2.7

1.78

1413

Laurel

81.00

82.00

1.00

1.20

15.5

0.06

1366

Laurel

89.75

91.35

1.60

7.69

10.5

0.47

1357

Laurel

101.70

102.70

1.00

3.92

8.9

0.05

1347

Laurel

105.50

106.50

1.00

1.80

93.9

0.63

1343

Laurel

107.15

107.65

0.50

7.72

25.8

0.07

1342

Laurel

115.10

115.80

0.70

19.65

29.3

0.05

1335

Laurel

120.60

121.10

0.50

5.58

27.5

0.58

1330

Laurel

122.33

124.00

1.67

3.14

12.7

0.13

1327

Laurel

142.00

143.00

1.00

5.12

5.9

0.02

1310

Laurel

150.30

151.50

1.20

1.28

10.8

0.01

1302

Laurel

154.50

155.00

0.50

5.43

34.8

0.02

1299

Laurel

176.10

176.70

0.60

3.18

10.1

0.70

1279

Laurel

181.40

182.00

0.60

3.56

3.5

0.02

1274

Laurel

184.40

185.70

1.30

1.37

63.0

0.12

1271

Laurel

190.10

190.60

0.50

2.26

69.8

0.04

1266

Laurel

222.90

223.60

0.70

1.13

2.4

0.04

1236

VSur

233.90

234.95

1.05

0.49

120.9

0.11

1226

VSur

251.00

251.70

0.70

5.21

2.6

0.03

1210

VSur

280.70

295.80

15.10

1.55

12.4

0.03

1171

VSur

302.10

303.70

1.60

2.34

5.7

0.05

1163

VSur

306.80

307.50

0.70

6.16

29.6

0.03

1160

VSur

309.80

310.90

1.10

1.69

7.1

0.04

1157

VSur

313.80

314.30

0.50

3.26

7.7

0.03

1153

VSur

318.10

319.00

0.90

1.74

5.8

0.03

1149

VSur

332.35

338.30

5.95

1.96

11.0

0.05

1132

VSur

341.00

342.00

1.00

1.65

5.4

0.01

1129

VSur

395.00

395.85

0.85

1.30

3.2

0.01

1080

VSur/V130

506.00

507.10

1.10

1.69

0.5

0.01

982

VSur

556.10

557.20

1.10

1.93

2.7

0.01

938

V48

589.80

590.70

0.90

0.91

7.1

0.01

908

V41

627.60

632.70

5.10

7.91

26.8

0.01

871

V34

incl

627.60

629.00

1.40

13.81

58.3

0.02

V34

643.00

644.00

1.00

1.73

10.0

0.01

861

Vsur

649.90

651.30

1.40

5.94

15.0

0.01

855

Vsur

673.00

676.00

3.00

1.28

6.0

0.06

833

Vsur

699.00

699.50

0.50

2.97

5.8

0.02

812

Vsur

BUSY362

262.00

262.80

0.80

2.69

0.8

0.05

1522

Laurel

348.80

350.80

2.00

2.90

8.7

0.04

1437

VSur/V180

368.20

369.20

1.00

1.96

206.1

0.03

1419

VSur

684.05

684.35

0.30

231.00

80.6

0.08

1115

VSur

781.39

782.65

1.26

1.86

2.2

0.02

1020

VSur

817.91

818.92

1.01

1.02

2.9

0.01

985

VSur

853.05

854.00

0.95

1.44

0.8

0.01

951

VSur

BUSY363

6.00

7.00

1.00

1.92

6.8

0.01

1705

VSur/V140

33.70

34.35

0.65

1.28

2.9

0.39

1682

V130

53.90

54.40

0.50

1.47

24.8

0.09

1666

V125

95.70

99.70

4.00

218.67

25.1

0.07

1629

VSur

incl

97.40

99.70

2.30

377.27

34.2

0.07

VSur

112.85

113.40

0.55

1.13

466.0

0.24

1618

V110

119.20

120.30

1.10

0.46

53.1

0.04

1612

V90

154.90

155.50

0.60

1.88

13.2

0.08

1583

V62

190.15

192.50

2.35

6.48

21.7

0.09

1553

V43

incl

191.40

192.50

1.10

11.80

33.6

0.12

V43

193.75

195.00

1.25

4.22

30.7

0.06

1551

V42

212.30

213.10

0.80

1.27

1.7

0.19

1536

V41

224.90

225.50

0.60

0.99

41.8

0.48

1526

V39

351.60

352.90

1.30

1.81

3.0

0.06

1424

Yar/MU10

390.25

391.00

0.75

11.30

4.7

0.11

1394

MU2

498.74

499.25

0.51

1.32

16.7

0.03

1309

VNB

568.00

575.00

7.00

3.95

5.5

0.11

1250

HWV

incl

568.00

569.10

1.10

11.40

6.0

0.02

HWV

601.10

602.10

1.00

0.13

97.4

0.15

1228

SAV

627.45

628.00

0.55

0.98

4.1

0.21

1208

FWV

667.70

668.20

0.50

1.94

9.6

0.01

1177

VNAD

681.50

682.00

0.50

1.98

13.0

0.01

1166

VNA

686.67

687.20

0.53

2.24

21.6

0.02

1162

Yar

BUSY364

470.35

470.88

0.53

2.25

12.7

0.44

1719

Vsur

479.35

479.95

0.60

29.40

15.8

0.86

1707

Vsur

484.05

484.85

0.80

2.64

5.1

0.32

1700

Vsur

499.62

500.13

0.51

2.70

8.4

0.10

1676

Vsur

547.30

548.00

0.70

3.09

6.0

0.10

1610

Vsur

592.50

593.00

0.50

2.61

6.1

0.04

1561

Vsur

601.10

605.60

4.50

2.22

6.5

0.06

1541

Vsur

610.36

611.40

1.04

19.15

6.9

0.03

1536

Vsur

614.00

615.35

1.35

3.24

4.2

0.20

1533

Vsur

616.50

617.00

0.50

5.47

7.9

0.02

1529

Vsur

619.70

620.20

0.50

331.00

93.0

0.40

1525

Vsur

HoleID

m
From

m
To

Inter-
cept
Inter-
val*

Au
(g/t)

Ag
(g/t)

Zn
(%)

Inter-
cept
RL (m)

Vein
system
/Vein**

636.50

637.20

0.70

1.83

6.4

0.02

1503

V130

715.00

716.50

1.50

4.85

9.5

0.02

1337

V110

733.50

734.65

1.15

12.78

30.4

0.47

1323

VSur

833.20

833.70

0.50

0.74

70.9

0.04

1251

V48

909.00

911.40

2.40

12.75

54.5

0.05

1193

V39

incl

909.00

910.00

1.00

19.50

119.5

0.11

V39

942.80

943.50

0.70

2.80

8.8

0.01

1169

V34

955.00

955.50

0.50

26.70

73.4

0.24

1161

V31

BUSY366D

504.75

506.05

1.30

2.75

7.1

0.01

1273

VSur

531.60

532.10

0.50

2.52

8.1

0.03

1247

VSur

559.50

560.60

1.10

9.38

383.9

0.47

1219

VSur

612.45

612.95

0.50

3.36

8.6

0.05

1166

VSur

627.00

627.50

0.50

2.11

2.6

0.40

1152

VSur

716.70

717.50

0.80

1.10

1.6

0.04

1063

VSur

813.13

813.65

0.52

11.45

8.1

0.03

967

VSur

852.13

852.77

0.64

3.62

4.3

0.01

928

VSur

988.60

989.75

1.15

2.02

6.2

0.02

793

VSur

1166.50

1167.00

0.50

1.43

2.3

0.01

617

VSur

BUSY367D

186.00

186.50

0.50

0.16

54.6

0.02

1589

Laurel

213.40

214.10

0.70

2.60

1.9

0.11

1562

Laurel

BUSY367D01

37.00

37.70

0.70

6.77

8.3

0.17

1260

Laurel

43.50

44.70

1.20

1.16

2.7

0.19

1254

Laurel

83.35

85.50

2.15

26.28

121.1

0.10

1216

Laurel

incl

83.35

84.45

1.10

50.53

231.9

0.19

Laurel

146.50

147.30

0.80

1.10

9.5

0.07

1158

VSur

219.00

219.60

0.60

2.32

7.1

0.04

1091

VSur

268.80

269.30

0.50

26.20

27.6

0.04

1045

VSur

290.70

291.30

0.60

3.58

16.3

0.15

1024

VSur

300.15

300.65

0.50

1.57

9.8

0.05

1016

VSur

399.60

400.10

0.50

2.16

6.9

0.01

924

V125

406.70

407.30

0.60

1.06

1.6

0.02

918

VSur

426.60

427.85

1.25

1.44

3.0

0.01

899

VSur

453.10

454.30

1.20

2.67

4.8

0.00

875

VSur

608.20

609.40

1.20

7.12

11.2

0.01

734

VSur

614.80

615.30

0.50

7.70

29.6

0.03

728

V39

640.00

641.00

1.00

1.63

6.5

0.01

705

V34

650.40

651.40

1.00

19.25

16.5

0.02

696

V31

666.20

667.95

1.75

2.54

5.9

0.01

681

VSur

763.80

765.40

1.60

3.95

5.4

0.01

594

VSur

839.00

841.40

2.40

16.09

140.1

0.12

528

VSur

incl

839.00

840.20

1.20

27.85

274.7

0.19

VSur

BUUY208

15.00

15.60

0.60

10.60

87.1

0.71

1697

VSur/V70

24.90

27.65

2.75

1.71

9.2

0.10

1688

V65

35.05

42.50

7.45

40.04

170.0

0.85

1677

V51

incl

38.40

41.25

2.85

99.75

406.4

1.58

V51

48.35

49.00

0.65

4.04

50.4

0.07

1671

V48

57.00

58.35

1.35

1.42

8.2

0.19

1664

V43

79.55

80.40

0.85

4.11

227.4

0.62

1647

V39

90.00

90.50

0.50

2.96

15.6

0.53

1639

V34

104.90

106.60

1.70

3.29

13.6

0.06

1627

V32

107.60

109.10

1.50

6.92

18.4

0.20

1625

V32

120.70

121.25

0.55

21.90

8.1

0.02

1616

V31

138.85

139.40

0.55

0.33

76.7

0.13

1602

V30

177.40

178.00

0.60

0.27

100.0

0.12

1572

V24

200.40

200.90

0.50

0.69

18.1

4.82

1554

V22

208.70

209.20

0.50

1.36

1280.0

1.04

1548

V20

247.00

248.40

1.40

0.55

168.8

0.49

1519

V16

BUUY228D

2.00

3.00

1.00

12.48

16.6

2.74

1696

Laurel

25.00

25.50

0.50

19.40

70.6

2.98

1677

Laurel

55.00

55.50

0.50

6.19

335.0

0.22

1651

Laurel

185.60

186.10

0.50

0.29

65.8

0.61

1538

Laurel

196.20

197.50

1.30

0.94

16.3

4.31

1529

Laurel

216.00

217.70

1.70

1.94

10.7

0.33

1511

Laurel

225.00

226.00

1.00

1.07

1.5

0.01

1504

Laurel

253.05

253.80

0.75

0.04

158.0

0.04

1480

Laurel

294.80

296.20

1.40

0.86

51.1

0.39

1443

VSur

299.07

299.60

0.53

1.36

103.0

0.17

1440

VSur

300.60

301.80

1.20

3.50

4.4

0.08

1438

VSur

342.10

342.80

0.70

1.05

2.5

0.08

1402

VSur

355.60

356.80

1.20

1.78

5.9

0.02

1390

VSur

390.20

391.40

1.20

1.63

89.2

0.24

1360

VSur

395.35

396.50

1.15

1.98

5.4

0.01

1355

VSur

419.60

420.15

0.55

1.81

8.1

0.01

1334

VSur

BUUY249D

38.70

39.30

0.60

1.93

8.7

2.12

1660

Laurel

115.55

116.10

0.55

0.61

73.0

2.06

1585

Laurel

133.85

134.40

0.55

1.29

80.5

0.99

1567

Laurel

148.30

150.10

1.80

0.76

82.6

2.61

1551

Laurel

200.15

201.30

1.15

0.04

59.5

0.03

1501

Laurel

254.55

255.30

0.75

3.59

12.8

0.14

1447

Laurel

290.30

293.70

3.40

1.58

2.6

0.02

1410

Laurel

348.90

350.20

1.30

2.58

2.6

0.09

1354

Laurel

355.40

355.90

0.50

3.38

42.6

1.36

1348

Laurel

361.00

364.00

3.00

1.26

16.4

0.71

1340

Laurel

391.15

391.70

0.55

1.60

18.3

0.15

1312

Laurel

407.70

409.60

1.90

11.29

64.8

1.66

1295

Laurel

416.17

416.85

0.68

21.30

48.6

0.38

1288

Laurel

419.55

420.10

0.55

3.09

17.5

1.54

1284

VSur

437.55

438.45

0.90

1.73

11.3

0.79

1266

VSur

456.80

458.00

1.20

2.45

19.3

0.42

1247

VSur

518.50

519.00

0.50

0.60

302.0

0.53

1186

VSur

BUUY249D01

50.80

52.00

1.20

1.18

0.2

0.01

1085

Laurel

82.80

83.35

0.55

3.65

30.7

0.04

1056

Laurel

164.75

165.50

0.75

2.13

0.9

0.01

984

VSur

453.05

454.30

1.25

3.14

12.4

0.01

740

VSur

474.25

474.75

0.50

3.87

4.5

0.01

723

Yar/MU11

489.35

489.90

0.55

1.14

7.6

0.01

710

Yar

500.25

500.92

0.67

21.40

38.2

0.02

701

Yar

507.93

510.00

2.07

7.60

24.3

0.06

694

Yar

incl

508.45

508.95

0.50

27.60

48.2

0.02

Yar

523.05

523.60

0.55

3.44

23.2

0.01

683

Yar

555.85

556.40

0.55

1.72

2.1

0.01

656

Yar

BUUY249D02

83.70

84.60

0.90

2.33

3.2

0.04

1046

Laurel

102.50

103.60

1.10

1.15

0.2

0.01

1029

Laurel

140.80

141.30

0.50

5.03

14.0

0.52

998

VSur

400.00

400.60

0.60

6.63

12.6

0.28

783

VSur

403.75

404.30

0.55

3.22

1.3

0.01

780

VSur

441.50

442.70

1.20

1.49

1.2

0.03

749

V43

456.35

469.80

13.45

7.96

25.3

0.05

728

V34

incl

456.35

458.40

2.05

30.46

100.0

0.04

V34

476.85

477.40

0.55

7.65

3.5

0.01

721

V31

494.00

494.50

0.50

5.18

11.8

0.10

708

VSur

497.37

498.50

1.13

2.65

1.3

0.00

705

VSur

516.25

518.60

2.35

1.70

7.5

0.02

690

Yar/MU1

BUUY270

16.25

16.90

0.65

1.34

6.3

0.13

1519

Yar/MU11

51.90

52.40

0.50

3.93

4.1

0.02

1537

MUS

110.30

111.15

0.85

4.17

5.3

0.35

1565

Yar

126.00

126.50

0.50

1.88

536.0

1.05

1572

VSur

144.50

145.00

0.50

1.12

21.5

0.50

1581

VSur

147.55

148.15

0.60

42.60

8.4

0.69

1582

VSur

168.00

169.00

1.00

0.79

27.5

0.19

1592

V110

210.00

211.50

1.50

8.54

6.8

0.03

1611

V123

223.30

225.50

2.20

2615.41

388.2

2.20

1617

VSur

incl

223.80

225.00

1.20

4730.00

701.0

3.96

VSur

and

225.00

225.50

0.50

154.00

16.8

0.08

VSur

BUUY273

22.85

23.85

1.00

1.10

15.4

0.10

1522

Yar/MU11

82.10

82.60

0.50

0.20

217.0

0.82

1551

VSur

91.60

94.60

3.00

1.62

69.8

0.68

1557

V42

114.00

114.87

0.87

56.50

669.0

0.74

1567

V43

117.80

126.00

8.20

5.12

19.8

0.60

1572

V48

incl

121.60

124.05

2.45

12.51

54.4

1.08

V48

131.00

132.00

1.00

1.67

616.5

2.54

1576

V51

142.00

142.60

0.60

1.51

21.9

3.66

1581

VSur

191.50

192.00

0.50

0.21

718.0

0.14

1605

V62

213.00

213.60

0.60

0.41

122.0

0.32

1616

V65

223.50

226.50

3.00

5.47

101.6

0.80

1622

V70

incl

223.50

224.50

1.00

15.70

216.5

2.22

V70

230.75

231.80

1.05

3.27

113.6

0.24

1625

VSur

237.10

237.70

0.60

6.87

84.6

1.24

1627

V75

239.00

239.50

0.50

1.52

924.0

0.87

1628

V75

240.40

240.90

0.50

5.45

138.0

0.49

1629

VSur

255.00

255.60

0.60

4.72

10.3

0.08

1636

VSur

303.00

303.50

0.50

4.74

3.2

0.56

1659

V110

311.00

311.50

0.50

3.41

62.0

3.23

1663

VSur

320.10

322.80

2.70

3.33

16.1

0.22

1668

VSur

*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

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