TORONTO, ONTARIO — (Marketwired) — 10/03/13 — Continental Gold Limited (TSX: CNL)(OTCQX: CGOOF) („Continental“ or the „Company“) is pleased to announce results for 28 diamond drill-holes and underground sampling in the Yaragua and San Agustin vein systems, as part of the Company-s ongoing exploration program at the Buritica project in Antioquia, Colombia. Eight drill rigs are currently on site as part of the Company-s Phase IV diamond drill program for 2013-2014, with the goal of delivering robust mineral resource growth and upgrading inferred resources into the measured and indicated categories under National Instrument 43-101 („NI 43-101“) guidelines.
Highlights (referenced in Figures 1 and 2)
Yaragua Vein System
San Agustin Vein System
„Our investment in exploration and drilling continues to deliver results and we look forward to delivering a revised mineral resource estimate near the end of the year,“ commented Ari Sussman, CEO.
Details
Continental-s 100%-owned, 58,773-hectare project, Buritica, 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 Yaragua and Veta Sur systems, the two most extensively explored of these areas, are central to this land package. The Yaragua 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 precis of the updated mineral resource estimates for the Buritica project prepared in accordance with NI 43-101. This release documents the results of infill drilling and underground sampling of the upper Yaragua vein system and also extension drilling into, and underground sampling of, the San Agustin vein systems to the north of the Yaragua vein system.
Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.
Drilling was largely from underground developments in western, central and eastern Yaragua. Most holes were drilled to the north to infill the central and northern Yaragua vein families and longer holes also tested for the southern and central vein packages in the San Agustin area. A series of short horizontal holes were drilled in central Yaragua mainly to examine areas between the main Yaragua vein families.
BUUY170 was drilled southwards below the Diatreme Fault in western Yaragua and intersected two intervals of high-grade gold:
These (approximately true-width) intercepts are substantially higher grade and thicker than VNC and VNBC vein domains at the western-most edge of the current mineral resource block model.
BUUY120 was also drilled into western Yaragua, above the Diatreme Fault. Several intercepts in the central and northern Yaragua vein families were significantly higher grade or thicker than in comparable areas of vein domains in the current mineral resource model. Such intercepts include:
The most northerly intercept in BUUY120 (from 154.5 metres down-hole, 0.8 metres @ 6.1 g/t gold and 33 g/t silver) is in the San Agustin area and outside of the current mineral resource envelope.
A fan of drill-holes (BUUY122, BUUY128, BUUY135, BUUY143, BUUY150 and BUUY152) examined the central and northern vein families in central Yaragua and several of these drill-holes continued into the southern San Agustin vein system. Intercepts of significantly higher grade or thickness than in comparable areas of vein domains in the current Yaragua mineral resource model include:
Intercepts listed in Table I for BUUY122 (from 218 metres, down-hole), BUUY128 (from 285.5 metres, down-hole), BUUY135 (from 334.5 metres, down-hole), BUUY143 (from 197.45 metres, down-hole) and BUUY152 (from 169.5 metres, down-hole) are outside of and to the north of the current mineral resource envelope. These intercepts, in the southern San Agustin vein families, include:
Intercepts from a series of short, horizontal drill-holes (BUUY127, BUUY129, BUUY131, BUUY132, BUUY136, BUUY139, BUUY141, BUUY145, BUUY148, BUUY151, BUUY156, BUUY158 and BUUY161) in central Yaragua are listed in Table I. These drill-holes were mostly aimed at examining between the main vein families for additional veins and more disseminated mineralization, intersecting mainly low-grade or narrow mineralization. Where the short holes intersected veins included in the current mineral resource model, intercepts were similar in grades and thicknesses to model values, except for BUUY156 intercepts in the Murcielagos vein family which intersected:
Drilling in eastern Yaragua (BUUY119, BUUY123, BUUY125, BUUY133, BUUY144 and BUUY153) focused on infilling the central and northern Yaragua vein families and clarifying the southern San Agustin vein systems to the north of Yaragua. Grades and apparent thicknesses of intercepts were generally similar to those of the current mineral resource model, although BUUY125 encountered higher grades and/or thicknesses in several vein domains, including:
Intercepts listed in Table I for BUUY123 (from 186 metres, down-hole), BUUY125 (from 312 metres, down-hole), BUUY133 (from 261.2 metres, down-hole), BUUY144 (from 175.2 metres, down-hole) and BUUY153 (from 169.5 metres, down-hole) are outside of and to the north of the current mineral resource envelope. These intercepts, in Yaragua extensions and San Agustin vein families, include:
Underground channel sampling demonstrated continuity of high grades of gold and silver over significant strike lengths of northerly vein families in the upper Yaragua vein system (Table II). Although sampling was limited by the narrow tunnel widths, grade and/or thicknesses of sampled vein segments are typically greater than those in the current mineral resource model.
BUSY344 was drilled from the north in western San Agustin and encountered the most northerly vein families yet drilled in the San Agustin area, including:
Further to the south, from 226.8 to 725.8 metres down-hole (Table I), BUSY344 intersected several families of veins in the central to southern San Agustin areas. Intercepts exhibited both high and low silver to gold ratios, including:
100 to 200 metres further east of and at elevations 500 metres higher than this BUSY344 intercept, the Company sampled 780 metres of shallow tunnels in the central western San Agustin area. 23 of 85 samples returned grades better than 3 g/t gold and/or 100 g/t silver, in both main vein orientations. Highlights of this sampling (for true widths averaging 0.5 metres, limited by narrow tunnel widths) are presented in Table III.
In view of the results of underground sampling and drilling in this release and previously-announced drilling and surface sampling, it appears that the southern and central San Agustin vein families have strike lengths in excess of 600 metres and are open to the east, west and to depth.
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 Medellin 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 Buritica project is available on the Company-s website at .
For additional technical information on the Buritica project, please refer to the Company-s technical report (the „Technical Report“) entitled „2012 Mineral Resource Estimate of the Buritica 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 , on the OTCQX at and on the Company website at .
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 Buritica gold project to production. On October 1, 2012, the Company announced an updated mineral resource estimate for the Buritica 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 IV drill program is underway at the Buritica project to further delineate the mineral resource and drill new target zones identified within its concessions.
Additional details on the Buritica project and the rest of Continental-s suite of gold exploration properties are available at .
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.
Figure 1 – Plan View of new drilling and underground sampling highlights, showing the surface projection of veins in the October 2012 Yaragua mineral resource model on geology-topography can be viewed here:
Figure 2 – Long Section, Yaragua-San Agustin, showing new drilling and underground sampling highlights against the outlines of the October 2012 Yaragua mineral resource envelope can be viewed here:
Contacts: Continental Gold Limited +1.416.583.5610
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