TORONTO, ONTARIO — (Marketwired) — 04/03/13 — Continental Gold Limited (TSX: CNL)(OTCQX: CGOOF) („Continental“ or the „Company“) is pleased to announce results for 11 diamond drill-holes and near-surface sampling in the La Estera and Yaragua areas, as part of the Company-s ongoing exploration program at the Buritica Project in Antioquia, Colombia. Ten drills are currently on site as part of the Company-s Phase IV, minimum 95,000-metre diamond drill program for 2013.
Highlights
La Estera Area (Figures 1 and 2)
Yaragua Vein System (Figures 1 and 3)
These and other results add further definition to extensions of the Vein A, Vein AD and Vein D packages, the most northerly in the Yaragua vein system.
Otherwise, BUUY101 intersected veins with grades and thicknesses generally consistent with the current mineral resource model until terminating in the Yaragua South area with vein intersections outside of the current mineral resource envelopes.
„Step-out drilling along strike and at depth and surface sampling continues to deliver encouraging results in the La Estera area,“ commented Ari Sussman, CEO. „Drilling at Yaragua continues to increase the confidence level in the mineral resource estimate and encounter mineralization outside of the current resource envelope. We are excited that our exploration program has recently increased with the addition of three new drill rigs as part of our Phase IV drill program. Our aim is to continue to drill the Yaragua and Veta Sur vein systems and to aggressively test the new exploration targets in 2013.“
Details
Continental-s 100%-owned, 57,588-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 two most extensively explored of these areas, the Yaragua and Veta Sur systems, 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 intersected along 570 metres of strike and 1,180 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 and extension drilling of the Yaragua vein system and also results of additional drilling and near surface sampling in the La Estera area to the south of the Yaragua and Veta Sur vein systems.
La Estera Area
Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.
Four holes were drilled to clarify the distribution of mineralization in the La Estera area. The most westerly of these is south-drilled BUSY323, which intersected (from 314.5 to 441 metres down-hole, Table I) several veins, mainly with relatively high silver/gold. These vein sets are interpreted to represent extensions, at high elevations (1,500-1,600 metres above sea-level), of the Veta Sur system, some 300 metres to the southwest of the current Veta Sur resource envelope (Figure 1). Deep intersections (850 and 828 metres above sea-level) with high gold/silver in north-drilled BUSY332 may also be extensions of the Veta Sur system (Figure 2).
BUSY332 encountered a high silver/gold vein at an elevation of 1,400 metres (Table I), extending the La Estrella vein system 50 metres to the west of previous intersections, whereas BUSY333 intersected the La Estrella system at an elevation of 784 metres above sea-level, around 1,000 metres below surface mineralization in this system. The La Estrella system remains open to the east.
Further down-hole, BUSY332 intersected multiple veins in the Laurel family, extending this vein system approximately 200 metres to the west of previous drilling. High-grade intercepts include:
Both of these intercepts are sulphide-rich, the former exhibiting moderate zinc and lead contents, the latter exhibiting low base-metal values but abundant pyrrhotite plus pyrite, similar to other deep intercepts at the Buritica project.
BUSY333 and BUSY338 are interpreted to have intersected the Laurel vein family 400-500 metres to the east of and at higher elevations than in BUSY332, with high-grade intercepts including:
These drilling results are consistent with a lateral extent of the Laurel vein family of more than 500 metres and vertical extents of 500-1,000 metres, open at depth and to the east and west. Demonstration of the continuity of individual vein sets within the Laurel vein family requires more closely spaced drilling and the vein family appears to contain both circa east-west and north-south striking gold-silver vein mineralization.
Surface sampling in and nearby Rampa Sur, the decline advancing towards the Veta Sur vein system, encountered previously unknown gold-silver vein mineralization in the northeastern La Estera area located south of the Yaragua vein system. Sampling highlights are summarized in Table II (below) and referenced in Figures 1 and 2.
Vein sets exhibit both high and low gold/silver and are steeply dipping with circa east-northeast and also north-northwest strikes. The surrounding area is largely undrilled, but is geochemically anomalous in gold, silver and zinc. Further work is required to establish vein extents and continuity.
In the southeastern La Estera area, BUSY330 intersected several broad intervals of base metal-rich, gold-silver mineralization including:
These intercepts appear to exhibit both circa east-west and north-south vein orientations and contribute further to the view that the vicinity of the La Mano vein system may contain areas of potentially bulk mineable mineralization.
Assays of samples from narrow openings on an east-west trending, high-grade vein in the La Mano vein family are tabulated below. Together with BUSY319 (see December 13, 2012 news release), these results confirm a minimum strike length of 150 metres for this vein, which remains open laterally and at depth.
Yaragua Vein System
Significant new drill intercepts are listed below in Table IV and are referenced in Figures 1 and 3.
In eastern Yaragua, four drill-holes transected the central and northern vein families. Intercepts to the north of the current Yaragua mineral resource envelope include:
These and previous drilling results add further definition to extensions of the Vein A, Vein AD and Vein D packages, the most northerly in the Yaragua vein system.
The eastern Yaragua drill-holes otherwise intersected veins with grades and thicknesses generally consistent with the current mineral resource model. Drill-hole intercepts exhibiting substantially greater apparent thicknesses and/or higher grades than in the current resource model include:
BUUY101, drilled southwards through the central and southern Yaragua vein families into Yaragua South, encountered intercepts in the VNB, VNE and Murcielagos vein packages with apparent grade and thicknesses substantially greater than those in the current mineral resource model, including:
Otherwise, BUUY101 intersected veins with grades and thicknesses generally consistent with the current mineral resource model. The drill-hole terminated in the Yaragua South area with vein intersections at 1,377 metres (0.5 metres @ 7.9 g/t gold and 4 g/t silver) and also 1,365 metres above sea-level, outside of the Yaragua and Veta Sur mineral resource envelopes.
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. Core is sawn in half with one-half shipped to a sample preparation lab in Medellin run by ALS Colombia Limited („ALS“) in Colombia. 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 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.
An animation video providing an overview of the Buritica project and the exploration potential is available in the following link: . Please note that any future production decision will be based on the positive outcome of a pre-feasibility study in 2014.
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, exploration and mine development plans, and timing of the commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
Differences in Reporting of Resource Estimates
This press release was prepared in accordance with Canadian standards, which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms „inferred mineral resources“, „indicated mineral resources“, „measured mineral resources“ and „mineral resources“ used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the „CIM“) Standards on Mineral Resources and Mineral Reserves (the „CIM Standards“). The CIM Standards differ significantly from standards in the United States. While the terms „mineral resource“, „measured mineral resources“, „indicated mineral resources“, and „inferred mineral resources“ are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. „Inferred mineral resources“ have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of „contained ounces“ in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute „reserves“ by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.
To view Figure 1 – Plan View of New Drilling Highlights, Showing the Surface Projection of Veins in the October 2012 Mineral Resource Model on Geology-Topography, please visit the following link: .
To view Figure 2 – Long Section of the La Estera Area and Yaragua Vein System, Showing New Drilling Highlights, Near-Surface Sampling Results and Interpreted Vein Families, please visit the following link: .
To view Figure 3 – Long Section of the Yaragua Vein System, Showing New Drilling Highlights, Against the October 2012 Mineral Resource Envelope, please visit the following link: .
Contacts: Continental Gold Limited Nisha Hasan Director, Investor Relations +1.416.583.5611
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