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Continental Gold Expands BMZ2 with High-Grade Intercepts Over Broad Intervals at the Buriticá Project, Colombia

  • Seven diamond drill-holes were completed to follow-up on the BMZ2 initial discovery announced on January 15, 2019 . High-grade gold intercepts over broad widths were encountered with key results as follows:
  • The BMZ2 discovery has been extended by approximately 25 metres laterally and up to 150 metres vertically and now covers an area measuring 100 metres laterally by 225 metres vertically. BMZ2 remains open both along strike and at depth.
  • Two diamond drill rigs have begun drilling to follow up on this promising new zone.
  • Underground development, which is advancing easterly towards the zone, is anticipated to reach BMZ2 by April 2019 , with definition drilling to begin shortly thereafter.
  • A single hole (BUSY403), which deviated from its planned target, intercepted high-grade gold over robust thickness approximately 75 metres east of BMZ2. Two lower-grade intervals over broad thicknesses were also encountered. Results are as follows:


TORONTO , March 1, 2019 /CNW/ - Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce additional high-grade assay results from 10 holes drilled into the Yaraguá system as part of the exploration drilling program at its 100%-owned Buriticá project in Antioquia, Colombia . 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 information for results discussed in this release can be found in Table 1 and Figures 1 and 2.

Figure 1 – Plan View of Drilling in Eastern Yaraguá System Primarily Targeting BMZ2 (CNW Group/Continental Gold Inc.)

"With only 15 drill holes completed to date into our newly-discovered BMZ2, we are off to an exciting start in outlining this new zone. Due to BMZ2 demonstrating excellent continuity and high grades over robust thicknesses, the Company has prioritized both exploration and definition drilling for the zone on the belief that BMZ2 will ultimately be integrated into the early years of mining for the Project," stated Ari Sussman , CEO.

Ten diamond drill holes were completed in the eastern area of the Yaraguá system, of which seven drill holes targeted BMZ2. Unfortunately, two holes (BUSY394 and BUSY396) were completed prior to receiving assay results leading to the January 15, 2019 announcement of the discovery of BMZ2 and consequently were drilled too far north to intercept the zone. The five holes that intercepted BMZ2 all successfully encountered high-grade gold over robust thicknesses and extended the dimensions of the zone to 100 metres along strike by 225 metres vertically. BMZ2 remains open along strike to the east and at depth for future expansion. Two diamond drill rigs are now turning and assay results will be reported in due course.

Two diamond drill holes (BUSY385D03 and BUSY385D04) tested a section of the current mineral resource model approximately 200 metres below the elevation of the Higabra Tunnel which intersected gold mineralization, including a best intersection of 6.10 metres @ 7.78 g/t gold and 5.8 g/t silver (BUSY385D04).

Additionally, one diamond drill hole (BUSY403) deviated from its planned location approximately 75 metres east of BMZ2 and potentially discovered a new BMZ zone.  Results include two broad lower-grade intervals and one high-grade interval of 9.25 metres @ 7.62 g/t gold equivalent

Assay results for all drill-holes reported in this release are reported in the table below:

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 2019

BUSY385D03

144.15

145.40

1.25

3.49

12.7

3.66

1071

MU


147.40

149.70

2.30

2.92

4.2

2.97

1068

MU_H


250.40

250.90

0.50

9.97

5.9

10.05

994

New


257.75

261.00

3.25

2.32

2.1

2.34

987

SA_H


264.90

270.50

5.60

3.56

2.7

3.59

980

SA


273.80

275.50

1.70

2.25

7.7

2.36

976

SA_H


310.70

313.05

2.35

2.30

2.5

2.33

950

CNT_H


336.35

338.40

2.05

2.87

17.2

3.10

933

New

BUSY385D04

194.10

195.80

1.70

6.13

57.7

6.90

1021

New

incl

194.10

194.75

0.65

14.90

149.0

16.89

1021



211.90

213.60

1.70

8.06

3.8

8.11

1009

SA_H

incl

213.00

213.60

0.60

21.30

9.6

21.43

1008



222.60

228.70

6.10

7.78

5.8

7.86

1000

SA

incl

222.60

223.65

1.05

17.46

11.3

17.62

1002


and

228.00

228.70

0.70

12.60

12.3

12.76

998



232.10

234.10

2.00

3.18

12.5

3.34

995

CNT_H


292.00

300.50

8.50

1.43

14.1

1.62

950

New

BUSY394

25.95

29.35

3.40

6.79

13.0

6.96

1418

D2+SA

incl

25.95

26.50

0.55

25.30

10.2

25.44

1420



91.50

92.10

0.60

24.60

2.2

24.63

1369

VNE


95.10

95.80

0.70

6.53

57.3

7.29

1367



171.80

172.30

0.50

20.30

1.2

20.32

1307

CNT


206.50

207.10

0.60

9.59

52.4

10.29

1280

D303


229.80

231.60

1.80

3.71

8.6

3.82

1261

NW_H


249.00

250.40

1.40

3.09

2.4

3.12

1247

NW


291.90

295.05

3.15

2.02

5.3

2.09

1213

MU_H


300.60

302.05

1.45

12.46

41.2

13.01

1208

MU

BUSY396

80.15

83.25

3.10

1.93

35.3

2.40

1373

VNE


91.30

93.30

2.00

2.52

57.7

3.28

1365

VNE_H


145.00

152.80

7.80

1.28

4.2

1.34

1317

D303


169.30

170.30

1.00

4.26

5.1

4.32

1302

CNT


259.60

260.10

0.50

14.00

21.8

14.29

1229

NW


282.00

284.20

2.20

4.29

7.9

4.39

1210

MU


313.90

317.30

3.40

1.16

61.8

1.99

1183

D303


338.80

340.95

2.15

5.75

3.9

5.80

1165

D4

BUSY397

77.00

78.40

1.40

14.29

14.3

14.48

1382

VNE

incl

77.50

77.90

0.40

37.90

6.9

37.99

1382



129.20

131.30

2.10

3.36

45.4

3.97

1342

D303


200.80

203.95

3.15

2.14

7.2

2.23

1289

NW_H


241.50

242.20

0.70

10.55

28.7

10.93

1261

NW


258.90

260.60

1.70

28.79

73.6

29.77

1248

MU_H

incl

260.10

260.60

0.50

93.20

226.0

96.21

1248



271.00

276.20

5.20

17.94

31.0

18.35

1237

BMZ2

incl

271.60

272.30

0.70

91.10

67.7

92.00

1239


BUSY398

58.30

70.40

12.10

18.75

20.0

19.02

1386

BMZ2

incl

58.30

58.85

0.55

350.00

74.8

351.00

1395



75.55

81.50

5.95

9.55

11.9

9.70

1379

BMZ2

incl

75.55

76.70

1.15

20.72

9.4

20.84

1381


incl

80.00

80.50

0.50

53.90

22.4

54.20

1378



96.40

101.80

5.40

2.17

78.1

3.21

1365

D2


114.00

115.60

1.60

3.75

3.6

3.80

1351

D2


134.80

137.85

3.05

2.40

5.8

2.48

1334

D2


150.10

165.40

15.30

1.71

4.1

1.77

1313



168.00

171.80

3.80

2.57

8.2

2.68

1308

CNT


203.20

204.25

1.05

4.85

50.0

5.51

1284

MU


238.80

239.40

0.60

8.59

8.7

8.71

1257

NW

BUSY399

119.30

127.80

8.50

17.71

68.9

18.63

1343

BMZ2

incl

124.40

125.65

1.25

103.55

396.8

108.84

1345



201.80

206.40

4.60

28.17

14.9

28.37

1285

BMZ2

incl

201.80

202.35

0.55

190.00

46.8

190.62

1287



232.30

233.90

1.60

4.98

11.2

5.13

1264

D303


277.70

285.90

8.20

2.23

20.0

2.50

1227

NW

incl

278.70

279.25

0.55

11.35

114.0

12.87

1231


incl

285.40

285.90

0.50

13.70

36.7

14.19

1227



328.00

329.55

1.55

17.15

71.9

18.11

1196

D303

incl

328.00

328.50

0.50

47.20

199.0

49.85

1197


BUSY400

45.30

46.80

1.50

2.25

63.2

3.10

1401

D2


72.90

75.00

2.10

20.43

61.4

21.25

1378

VNE

incl

72.90

73.90

1.00

42.20

125.9

43.88

1379



89.10

92.20

3.10

2.36

12.8

2.53

1364

D303


123.55

125.75

2.20

2.01

3.5

2.06

1336

D303


176.60

182.00

5.40

3.14

38.6

3.65

1290

CNT

incl

181.40

182.00

0.60

14.90

1.8

14.92

1290



233.40

235.00

1.60

3.16

18.6

3.41

1246

MU_H


247.60

249.10

1.50

4.03

6.4

4.12

1235

MU


263.40

277.40

14.00

2.17

2.1

2.06

1211

NW

incl

276.20

276.70

0.50

23.20

30.9

23.61

1212



329.70

334.35

4.65

2.38

17.8

2.62

1164

D303

BUSY402

94.30

94.80

0.50

13.45

5.2

13.52

1354

VNE


110.45

112.00

1.55

3.63

9.7

3.76

1339



117.20

144.60

27.40

8.57

35.1

9.04

1321

BMZ2

incl

117.70

118.20

0.50

346.00

40.6

346.54

1333


incl

143.50

144.05

0.55

21.00

1300.0

38.33

1310



177.70

178.25

0.55

9.72

9.7

9.85

1279

D303


229.10

230.60

1.50

5.37

5.6

5.45

1232

CNT

incl

229.10

229.60

0.50

11.05

10.1

11.18

1233



289.60

291.25

1.65

13.84

137.9

15.68

1178

SA

incl

290.65

291.25

0.60

25.40

139.0

27.25

1177



351.50

353.00

1.50

11.55

31.0

11.96

1122

MU

incl

351.50

352.00

0.50

24.10

55.2

24.84

1123


BUSY403

77.80

82.00

4.20

1.87

7.3

1.97

1369

D303


114.80

148.35

33.55

1.08

2.4

1.11

1310

New


171.25

180.50

9.25

7.54

6.2

7.62

1285

New

incl

178.35

179.00

0.65

30.80

6.0

30.88

1283



203.35

229.50

26.15

1.91

5.1

1.97

1239

New

incl

223.70

224.30

0.60

28.10

3.4

28.15

1243



245.25

248.55

3.30

8.51

73.0

9.48

1223

D2


320.20

321.20

1.00

12.90

1.6

12.92

1158

NW


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 75:1 with no assumptions made for metallurgical recovery rates.

*** 

True widths intercepted modelled veins outside of the BMZs are estimated to be between 75-100%. In the BMZs, however, the zone consists of veins at various orientations so individual drill holes will intercept certain veins within the zone at up to true orthogonal angles and others at up to oblique angles.

 

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 1,300+ 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.

BMZ2 is a three-dimensional orebody interpretation and modelling with variability in width, thickness along a vertical extension. Additional core drilling is been planned to define its characteristics, such as gold/silver grades, geometry and vertical extension.

Technical Information

Mauricio Castañeda, Vice-President, Exploration of the Company and a Qualified Person for the purpose of Canadian National Instrument 43‑101 ("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. Additional information on the Company's updated mineral resource estimate for the Buriticá project, with an effective date of January 26, 2019 and prepared by the Company under the guidance and supervision of Mr. Ivor W.O. Jones , M.Sc., FAusIMM, CPgeo, P.Geo (an independent Qualified person under NI 43-101 guidelines), is available in the Company release dated January 30, 2019 . The technical report and Company release are 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 and first gold pour; 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 2 – Cross Section A-A’ of Drilling into BMZ2 (CNW Group/Continental Gold Inc.)

SOURCE Continental Gold Inc.


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