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Continental Gold Drills High-Grade Gold Over 1,200 Metres in the Veta Sur System at the Buriticá Project, Colombia

  • Drilling results in the Veta Sur system have intercepted high-grade gold over large dimensions measuring approximately 1,000 metres laterally by 1,200 metres vertically (see Figures 1, 2 and 3).

  • Step-out drill-holes to the west and below the Inferred resource extended high-grade gold mineralization beyond the mineral resource estimate block model boundaries with results as follows:

  • Infill drilling within the mineral resource estimate block model envelope, located at or near the elevation of the Higabra Tunnel, intercepted gold grades X widths that are generally higher than the corresponding estimate with key results as follows:

  • Infill drilling from the Veta Sur ramp targeting shallow elevations also intersected gold grades X widths that are generally more robust than the mineral resource estimate block model in these locations, with key results as follows:

  • The mineral resource estimate update for the Buriticá project is progressing on schedule for release in Q1 2019.


TORONTO , Jan. 22, 2019 /CNW/ - Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce additional high-grade assay results from fifteen holes drilled into the Veta Sur system as part of the exploration drilling program at its 100%-owned Buriticá project in Antioquia, Colombia . The Company presently has six underground definition drill rigs operating and anticipates adding up to three exploration rigs, with the first one expected to arrive in February 2019 . As previously announced, the Company plans to drill up to 73,500 metres in 2019, consisting of approximately 55,000 metres of capitalized definition drilling and approximately 18,500 metres of exploration-led infill drilling. Supporting documentation for results discussed in this release can be found in Table 1 and Figures 1, 2 and 3.

Numerous assay results from the 2018 program are pending, including those testing Broad Mineralized Zone 1 ("BMZ1") and the recently announced new BMZ2 discovery. Additionally, results are pending from a series of follow-up holes for a potentially new broad mineralized zone located approximately 150 metres west of BMZ1 in the Yaraguá system. The Company had previously announced assay results for one drill-hole testing this potential new target, which assayed high-grade gold averaging 37.55 metres @ 7.92 g/t gold and 8.7 g/t silver (DYR0050, 1,460-metre elevation) (see press release dated October 1, 2018 ).

"The final drill holes for 2018 into Veta Sur continue to confirm the sheer scale of this high-grade system. Our technical team strongly believes that the Veta Sur system will continue to grow both along strike and at depth, with high-grade gold intercepted at the western and deepest vertical margins of the modelled vein envelopes," stated Ari Sussman , CEO.

Table I: Drill Hole Results










Hole ID

From
(m)

To
(m)

Intercept
Interval*
(m)

Gold**
(g/t)

Silver**
(g/t)

Gold
Equivalent**
(g/t)

Mid-Point
Elevation
(m)

Vein

BUUY349D04

66.15

66.65

0.50

52.20

13.7

52.40

781

VS180


94.60

95.10

0.50

7.93

2.0

7.96

761

VS170


314.50

318.50

4.00

25.86

16.0

26.07

615

VS62

incl

317.50

318.00

0.50

164.50

58.8

165.28

615



416.75

419.35

2.60

4.05

4.0

4.10

547

VS32


462.70

463.20

0.50

8.64

7.4

8.74

517

VS30


510.20

510.75

0.55

10.70

44.9

11.30

486

VS22

BUUY411

160.00

163.60

3.60

8.56

3.8

8.61

1551

VS150

incl

161.70

162.40

0.70

36.50

7.4

36.60

1552



181.80

183.00

1.20

3.82

37.1

4.31

1539

VS140


243.60

245.60

2.00

3.11

21.8

3.40

1500

VS120


255.20

257.60

2.40

15.32

14.9

15.52

1493

VS110

incl

255.20

255.80

0.60

45.10

32.2

45.53

1494



307.95

309.25

1.30

4.22

30.6

4.63

1461

VS65


348.80

349.40

0.60

10.05

24.6

10.38

1437

VS43


359.10

360.30

1.20

5.36

9.7

5.49

1430

VS42

BUUY413

157.20

159.10

1.90

7.73

60.0

8.53

1563

VS140

incl

158.50

159.10

0.60

21.50

115.0

23.03

1563



186.60

187.20

0.60

13.20

16.0

13.41

1547

VS130


198.00

199.10

1.10

3.66

20.1

3.93

1541

VS123


200.10

201.80

1.70

3.02

5.3

3.09

1539

VS123


222.60

223.65

1.05

80.35

29.1

80.74

1527

VS120


237.75

238.35

0.60

20.80

49.6

21.46

1519

VS110


304.10

305.80

1.70

0.74

184.1

3.19

1483

VS51


324.40

324.90

0.50

6.59

388.0

11.76

1473

VS48


327.55

330.40

2.85

1.87

75.6

2.88

1470

VS43

BUUY415

169.00

169.50

0.50

7.94

22.9

8.25

1544

VS140


187.35

187.85

0.50

12.50

16.8

12.72

1532

VS130

BUUY419

187.10

190.00

2.90

1.67

8.9

1.79

1544

VS120


272.00

273.70

1.70

7.29

14.0

7.48

1495

VS48

incl

273.20

273.70

0.50

20.60

34.8

21.06

1495


BUUY423

180.60

181.60

1.00

8.58

14.3

8.77

1535

VS140

incl

181.10

181.60

0.50

14.90

19.3

15.16

1535



197.30

204.15

6.85

2.62

12.0

2.78

1520

VS130

incl

203.10

203.60

0.50

19.00

50.8

19.68

1520



224.90

228.40

3.50

1.37

5.4

1.44

1504

VS123_H


232.80

238.50

5.70

7.12

20.5

7.39

1498

VS123_V

incl

232.80

233.35

0.55

56.80

118.0

58.37

1500



275.80

277.00

1.20

13.87

29.8

14.27

1472

VS110

incl

276.30

276.80

0.50

31.80

63.6

32.65

1472



280.40

281.50

1.10

6.01

19.0

6.26

1469

VS90


293.80

294.30

0.50

8.35

7.1

8.44

1460

VS90


325.10

328.70

3.60

2.55

9.6

2.68

1438

VS65


351.60

354.15

2.55

1.16

32.1

1.58

1421

VS51

BUUY429

185.60

188.70

3.10

4.79

12.2

4.96

1518

VS123

incl

188.10

188.70

0.60

19.50

31.2

19.92

1518



228.50

230.10

1.60

3.10

12.6

3.27

1489

VS90


246.40

248.50

2.10

4.61

11.9

4.76

1477

VS65


263.65

274.45

10.80

9.17

21.5

9.46

1459

VS62

incl

264.65

265.15

0.50

98.70

115.0

100.23

1465


and

265.65

266.20

0.55

34.40

31.6

34.82

1464



281.20

288.10

6.90

1.85

9.3

1.98

1450

VS48


293.70

294.20

0.50

9.73

27.3

10.09

1445

VS43


300.00

301.50

1.50

6.29

10.5

6.43

1440

VS42


305.80

306.80

1.00

11.31

9.5

11.43

1437

VS41

BUSY376D02

393.60

394.60

1.00

10.42

31.5

10.83

1047

VS110

incl

393.60

394.10

0.50

14.95

24.5

15.28

1047


BUSY376D03

285.25

287.25

2.00

38.04

389.3

43.23

1106

VS110

incl

285.25

286.25

1.00

53.35

502.0

60.04

1107



294.60

297.10

2.50

3.43

17.3

3.66

1097

VS110

BUSY386D

111.80

113.35

1.55

6.38

5.5

6.46

1703

New Vein


406.00

407.90

1.90

5.22

43.3

5.80

1450

VS180

incl

407.40

407.90

0.50

18.55

131.0

20.30

1450



489.40

491.20

1.80

3.10

7.3

3.20

1380

VS170


497.90

498.90

1.00

9.32

21.3

9.60

1374

VS160

incl

497.90

498.40

0.50

17.60

40.9

18.15

1374


BUSY386D01

31.95

34.05

2.10

3.20

6.3

3.29

1344

VS150


87.70

91.85

4.15

2.00

6.4

2.08

1299

VS140


110.15

110.70

0.55

7.74

6.2

7.82

1285

VS130


252.00

256.20

4.20

17.59

18.9

17.84

1175

VS42+VS41

incl

252.00

252.60

0.60

77.80

100.0

79.13

1178


and

255.65

256.20

0.55

28.10

17.1

28.33

1175



277.70

281.10

3.40

16.08

14.3

16.27

1157

VS39

incl

277.70

278.20

0.50

82.70

66.3

83.58

1159



293.70

294.80

1.10

41.64

78.0

42.68

1147

VS32

BUSY386D02

5.00

7.00

2.00

3.09

4.7

3.15

1347

VS160


49.35

49.85

0.50

13.60

13.0

13.77

1313

VS150


71.20

71.75

0.55

12.45

21.3

12.73

1295

VS140


73.55

75.10

1.55

3.22

6.7

3.31

1293

VS140


86.70

87.70

1.00

6.24

10.3

6.38

1283

VS140


90.95

94.80

3.85

8.88

9.0

9.00

1277

VS130

incl

94.30

94.80

0.50

38.80

58.8

39.58

1277

VS130


274.50

275.50

1.00

4.62

13.8

4.80

1129

VS43


313.60

316.15

2.55

15.06

74.6

16.05

1096

VS39

incl

313.60

314.15

0.55

27.70

63.0

28.54

1097


and

315.55

316.15

0.60

29.40

228.0

32.44

1096



318.85

319.45

0.60

6.98

8.1

7.09

1093

VS34

BUSY386D03

19.70

21.40

1.70

3.98

8.8

4.09

1352

VS160


71.80

74.05

2.25

3.28

5.1

3.35

1308

VS150


87.45

88.00

0.55

12.90

16.8

13.12

1297

VS140


109.00

110.65

1.65

3.28

5.0

3.35

1278

VS130


247.10

247.70

0.60

96.40

145.0

98.33

1165

VS48


286.90

287.45

0.55

13.65

53.4

14.36

1132

VS39


298.90

302.55

3.65

72.00

280.0

75.73

1120

VS34

incl

301.00

301.50

0.50

132.00

245.0

135.27

1120



334.40

335.40

1.00

24.73

54.3

25.45

1092

VS32

BUSY386D04

32.70

39.85

7.15

2.58

4.8

2.65

1342

VS160


94.50

96.10

1.60

7.37

9.1

7.49

1296

VS140


116.20

118.50

2.30

4.65

5.2

4.72

1278

VS130

incl

116.70

117.20

0.50

15.05

14.1

15.24

1278



316.20

317.80

1.60

9.31

8.8

9.43

1127

VS39

incl

316.70

317.20

0.50

24.40

19.3

24.66

1127


BUSY386D06

1.20

2.60

1.40

3.67

3.0

3.71

1283

VS140


7.80

8.85

1.05

4.00

7.3

4.10

1278

VS130


85.90

87.50

1.60

3.54

3.5

3.59

1211

VS90


144.20

146.40

2.20

13.41

47.9

14.05

1157

VS48

incl

144.20

144.70

0.50

38.40

63.0

39.24

1158



216.90

218.50

1.60

18.86

61.0

19.68

1091

VS39

incl

216.90

217.50

0.60

49.20

154.0

51.25

1092



261.60

262.60

1.00

6.03

21.5

6.31

1051

VS34


271.05

273.60

2.55

29.08

170.7

31.35

1041

VS32

incl

272.10

273.60

1.50

45.47

274.3

49.12

1041


*  

Intercepts calculated for minimum intervals of 0.5 metres.

**  

Grades herein are reported as uncapped values. Gold equivalent in this release and table was calculated at Au:Ag ratio of 1:75 with no assumptions made for metallurgical recovery rates.

 

Geological Description of the Buriticá Project

Continental's 100%-owned, 75,023-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 1,350 metres of strike and 1,800 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. 

BMZ Details

The BMZ consists of a group of modelled precious metal-bearing veins in the current mineral resource estimate block model with mineralization occurring between these veins, generally in the form of veinlets at oblique angles to strike. The majority of the mineralization between modelled veins is not in the current mineral resource estimate, providing potential upside both in terms of identifying significantly broader and more productive zones for mining and increased mineral resources. To date, the Company has identified up to seven BMZ targets for testing and will systematically drill each target zone as underground mine development advances.

Technical Information

Mauricio Castañeda, Vice-President, Exploration of 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.

Reported intervals include minimum weighted averages of 3 g/t gold equivalent (1:75 Au/Ag) over core lengths of at least 1.0 metres. Assays are uncut except where indicated.

Besides rigorous chain-of-custody procedures, the Company utilized a comprehensive quality control/quality assurance program for the channel samples. All quality control anomalies were addressed and/or corrected as necessary to assure reliable assay results; no material quality control issues were encountered in the course of the program. Crush rejects and pulps are kept and stored in a secured storage facility for future assay verification. Although historic correlation between analytical results from the Company's internal laboratory and certified independent laboratories for gold and silver analysis have been within acceptable limits, the Company's internal laboratory is neither independent nor certified under NI 43-101 guidelines and, as such, channel sampling results in this release should only be taken by the reader as indicative of future potential.

For exploration and infill core drilling, the Company applied its standard protocols for sampling and assay. HQ and NQ core is sawn or split with one-half shipped to a sample preparation laboratory in Medellín run by ALS Colombia Limited ("ALS"), 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 necessarily receive assay results for drill holes in sequential order; however, all significant assay results are publicly reported.

For information on the Buriticá project, please refer to the technical report, prepared in accordance with NI 43‑101, entitled "Buriticá Project NI 43–101 Technical Report Feasibility Study, Antioquia, Colombia " and dated March 29, 2016 with an effective date of February 24, 2016 , led by independent consultants JDS Energy & Mining Inc. The technical report 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 is the leading large-scale gold mining company in Colombia and is presently developing it's 100% owned Buriticá project in Antioquia. Buriticá is one of the largest and highest-grade gold projects in the world and is being advanced utilizing best practices for mine construction, environmental care and community inclusion. Led by an international management team with a successful record of discovering, financing and developing large high-grade gold deposits in Latin America, the Buriticá project is on schedule with first gold pour anticipated during the first half of 2020. Additional details on Continental Gold's suite of gold exploration properties are also 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: timing of drill results, an updated mineral resource estimate and mine plan and commercial production; advancing the Buriticá project; exploration results; potential mineralization; potential development of mine openings; potential improvement of mining dilution grades; reducing start-up risks; 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 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" that may be 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.

Figure 1 – Plan View of Drilling in the Veta Sur System (CNW Group/Continental Gold Inc.)
Figure 2 – Cross Section A-A’ of Drilling into the Veta Sur System (CNW Group/Continental Gold Inc.)


Figure 3 – Long Section B-B’ of Drill Results Overlaying the Mineral Resource Envelope (CNW Group/Continental Gold Inc.)

SOURCE Continental Gold Inc.


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