Drill Hole BUUY320 Intersects 6.10 metres at 67.69 g/t gold and 136.8 g/t silver
TORONTO, ON – (Marketwired – October 2, 2017) – Continental Gold Inc. (TSX: CNL) (OTCQX: CGOOF) (“Continental” or the “Company”) is pleased to announce additional results from its 25,000-metre drilling program at its 100%-owned Buriticá project in Antioquia, Colombia. The Company presently has four diamond drill rigs in operation with four additional rigs scheduled to start drilling over the next few weeks. The focus of the program is to increase and upgrade mineral resources to higher classification categories by testing for high-grade and broad mineralized zones (“BMZ”) within the mineral reserve and resource envelopes and testing high-impact targets along strike of existing mineral resources as well as grassroots targets proximal to existing and proposed infrastructure. The Company remains well financed with approximately US$350 million of available liquidity as of August 31, 2017.
Highlights (referenced in Figures 1, 2 and 3)
“Our team continues to do excellent work targeting areas within the mineral reserves for high precious metal grades. In particular, we are extremely pleased with the results as the intercepts reported herein average almost 200% more precious metals than the current mineral resource block model estimate for the corresponding areas in the Yaraguá deposit,” commented Ari Sussman, CEO. “With the infill drilling campaign in this area complete, the drill will be mobilized to a new chamber to resume testing for broad mineralized zones and infilling other parts of the Yaraguá deposit.”
Details: Yaraguá Drill Results and Planned Trial Mining Stope
A fan of 10 underground diamond drill holes from a chamber located off a ramp in the Yaraguá vein system were completed, the results of which are reported in Table 1. Although the drill holes were not targeting a potential BMZ in the Yaraguá deposit, the precious metal grades and widths are in aggregate 193% higher than the current mineral resource block model estimate for this specific area of the Yaraguá deposit. Furthermore, the drilling successfully confirmed the continuity of the vein system.
In addition, the objective of the drilling program was also to infill the HW2 vein in this location of the Yaraguá deposit for the purpose of estimating a local area mineral resource prior to extracting a mechanized long-hole trial mining test stope (see Figure 1). The Company will release further details of the upcoming trial mining test in the near term.
* Intercepts calculated at a composite 1 g/t gold equivalent (70:1 Au/Ag) for minimum intervals of 0.5 metres, with up to 20% internal dilution. True widths are estimated to be between 75-100%.
** Grades herein are reported as uncapped values.
*** Certain drill holes went through narrow mined-out tunnels and, for those intersections, precious metal grades from either the May 2015 NP 43- 101 mineral resource block model or channel sampling results previously announced were incorporated into the overall interval. If neither were available, a grade of nil was assigned.
Note: Drill holes designated “BUUY” were collared from underground.
Figure 1 – Plan View of highlights of new drilling at the Yaraguá system showing the surface projection of veins in the current mineral resource estimate model on geology-topography and underground development. Line A-A’ refers to the cross section line for Figure 2 and line B-B’ refers to the long section line for Figure 3
Figure 2 – Cross Section A – A’ showing highlights of new underground drilling against modeled veins in the Yaraguá system
Figure 3 – Long Section B – B’ showing highlights of drilled intercepts in section
Geological Description of the Buriticá Project
Continental’s 100%-owned, 70,764-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 1,100 metres of strike and 1,700 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.
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.
The Company utilizes a rigorous, industry-standard QA/QC program. HQ and NQ core is sawn or split with one- half shipped to a sample preparation lab in Medellín 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 SGS Colombia S.A., a certified assay laboratory in Medellín, Colombia.
The Company does not receive assay results for drill holes in sequential order; however, all significant assay results are publicly reported. A listing of assay results to date for the Buriticá project is available on the Company’s website at www.continentalgold.com.
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 Inc. is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Formed in April 2007, the Company – led by an international management team with a successful track record of discovering and developing large high-grade gold deposits in Latin America — is focused on advancing its fully-permitted high-grade Buriticá gold project to production with first gold pour on track for early 2020. Additional details on Continental Gold’s suite of gold exploration properties are also available at www.continentalgold.com.
This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding timing of a production decision, advancing the Buriticá project, exploration results, potential mineralization, potential development of mine openings, potential improvement of mining dilution grades, increasing the drill program and amount of equipment 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.