TORONTO, ONTARIO — (Marketwire) — 02/12/13 — Continental Gold Limited (TSX: CNL)(OTCQX: CGOOF) („Continental“ or the „Company“) is pleased to announce results for ten diamond drill-holes in the Yaragua vein system, including two holes which confirmed the discovery of a new vein system called San Agustin. These results are part of the Company-s ongoing exploration program at the Buritica Project in Antioquia, Colombia. Seven drills are currently on site as part of the Company-s Phase IV, minimum 95,000-metre diamond drill program for 2013.
Highlights
San Agustin Vein Target (Figures 1 and 2)
Some 500 metres further east, high-grade intercepts in the southern San Agustin vein families include:
Yaragua Vein System (Figures 1 and 2)
These results represent substantial extensions mainly to the Vein A and Vein D packages, the most northerly in the Yaragua vein system. In conjunction with the results from BUSY324, BUSY329 and other drilling, these vein packages are interpreted as exhibiting strike lengths of more than 550 metres, depth extents of more than 700 metres and open in all directions.
„We are quite excited about making a new discovery at San Agustin. We are very encouraged that our first two drill-holes in San Agustin produced multiple veins at significant depths which correlate well with artisanal workings up to elevations above 900 metres. A dedicated diamond-drill rig has already been secured for this target and will begin turning in April in order to test the system at shallower depths and we are hopeful the grades and thicknesses will improve. In addition, drilling in Yaragua continues to impress with long intervals at high-grades outside of the current mineral resource model,“ commented Ari Sussman, CEO.
Details
Continental-s 100%-owned, 57,641-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 National Instrument 43-101 („NI 43-101“). This release documents the results of infill and extension drilling of the Yaragua vein systems and the first drilling results to the north of this system called the San Agustin area.
Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.
Two long drill-holes, BUSY324 and BUSY329, collared in the Yaragua south area, transected the western Yaragua vein system and continued northwards into the San Agustin area. The more shallowly inclined of these, BUSY329, penetrated to 400 metres north of the Yaragua system (Figure 1).
In Yaragua south, both drill-holes intersected several high silver/gold veins; intercepts include BUSY324, from 131.7 metres down-hole, 0.4 metres @ 3.5 g/t gold and 681 g/t silver and BUSY329, from 137.6 metres, 0.4 metres @ 0.4 g/t gold and 477 g/t silver, at elevations above 1,600 metres.
Further north and at greater depths, both drill-holes transected the Yaragua mineral resource envelope, generally encountering vein grades and thicknesses similar to those of the current mineral resource model. Drill-hole intercepts exhibiting substantially greater apparent thicknesses and/or higher grades than the current mineral resource model include:
Significant intercepts in the northern Yaragua vein families, below or to the north of the current mineral resource envelope include:
Further northwards, in the western San Agustin area, BUSY324 and BUSY329 both intersected multiple vein families through a broad range of elevations (Table I) and in the case of BUSY329, up to 400 metres north of the Yaragua vein system (Figure 1). High-grade intercepts in central and northern San Agustin vein families include:
Surface sampling by Continental (Figure 1) and widespread recent informal mining activity in the western San Agustin area are consistent with vertical extents for some the San Agustin vein families of up to 900 metres and the vein systems are open to depth, as well as to the west and east.
BUSY329, to the north of the end-hole of BUSY324 (Figure 1) intersected a broad zone of low grade gold and copper mineralization, from 1,126 metres down-hole, 113 metres @ 1.2 g/t gold and 0.1% copper. This mineralization is associated with fracture-controlled bioitite +/-Kfeldspar alteration and resembles mineralization encountered deep in BUSY291. The gold-copper mineralization is partly overprinted by veinlets with elevated gold and lead-zinc contents (responsible for the higher grade intervals listed in Table I) and related phyllic alteration.
Two fans, each of four drill-holes, transected the central and northern Yaragua vein families in eastern Yaragua, the more westerly drill fan continuing northwards into the eastern San Agustin area.
Within the Yaragua mineral resource envelope, drill-holes generally encountered vein grades and thicknesses similar to those of the current mineral resource model. Drill-hole intercepts exhibiting substantially greater apparent thicknesses and/or higher grades than the current mineral resource model include:
Drill-holes in both fans in eastern Yaragua extended several of the northern vein sets to depth and/or along strike. Intercepts outside of the current mineral resource model include:
These results represent substantial extensions mainly to the Vein A and Vein D packages, the most northerly in the Yaragua system. In conjunction with the results from BUSY324, BUSY329 and other drilling, these vein packages are interpreted as exhibiting strike lengths of more than 550 metres, depth extents of more than 700 metres and are open in all directions.
Further to the north, drill-holes in the more westerly fan intersected several vein families in the eastern San Agustin area (Figure 1); high-grade intercepts include:
High-grade surface samples (Figure 1) and informal mining activity in eastern San Agustin are consistent with vertical extents of these vein families of over 500 metres and the vein systems are open to depth as well as to the west and east. Geological mapping and numerous informal mine workings are interpreted to indicate that some parts of the San Agustin vein system may extend to the western San Agustin area (including intercepts in BUSY324 and BUSY329 and surface sampling in this area). Further drilling is required to evaluate the potential 600 metres strike length and large vertical extent of the San Agustin system.
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.
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: (2).pdf.
To view figure 2, „Long Section of Yaragua, Showing New Drilling Highlights Against the Outline of the October 2012 Mineral Resource Envelope,“ please visit the following link: (3).pdf.
Contacts: Continental Gold Limited Nisha Hasan Director, Investor Relations +1.416.583.5611
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