Continental Gold Provides a Feasibility Study Update and Drills 5.35 metres @ 51.7 g/t Gold, 52 g/t Silver at Buriticá, Colombia

 


 

Toronto, Ontario, December 17, 2015 ‑ Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) (“Continental” or the “Company”) is pleased to provide an update on the Feasibility Study (FS) for its 100%-owned Buriticá project located in Antioquia, Colombia. The FS, which is being managed by JDS Energy and Mining Inc., is considerably ahead of schedule and is now anticipated to be released in the second half of Q1 2016 versus prior guidance of late Q2 2016. JDS Energy and Mining Inc. will also be responsible for the mine plan and project construction planning, and M3 Engineering & Technology Corporation will be responsible for the process engineering and infrastructure design work.

“With the feasibility study nearing completion, we are preparing to move forward into detailed engineering,” commented Donald Gray, Chief Operating Officer of Continental. “We have assembled a strong, diverse team of leading industry professionals well-qualified to develop a comprehensive and executable plan; we are also pleased to be rapidly advancing the Buriticá project to a production decision in H2 2016.”

Additionally, the Company is pleased to announce results for the final 12 diamond drill-holes through the Veta Sur and Yaraguá vein systems in 2015. These results are not included in the most recent mineral resource estimate for the Buriticá project where the Company outlined significant growth in all mineral resource categories as follows (CNL News Release, June 24, 2015):

COMBINED YARAGUÁ AND VETA SUR MINERAL RESOURCES
above a 3 g/t gold cut-off, as at May 11, 2015
RESOURCE GRADES METAL
Category Tonnes (M) Gold g/t Silver g/t Gold Eq g/t Gold oz (M) Silver oz (M) Gold Eq oz (M)
Measured 0.89 19.0 55 19.9 0.54 1.58 0.57
Indicated 12.00 10.2 32 10.7 3.94 12.4 4.18
Total M & I 12.89 10.8 34 11.4 4.48 13.98 4.71
Inferred 15.6 9.0 29 9.5 4.5 14.7 4.8
Notes – Reported tonnage and grade figures have been rounded from raw estimates to reflect the order of accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. There have been no assumptions made as to metal prices or recoveries in this mineral resource estimate other than in gold equivalents that are calculated for GoldEq = Gold + Silver/60. M in Figures and Tables represents millions.

 

Drilling Highlights (referenced in Figures 1, 2, 3, 4 and 5)

  • Drilling across Yaraguá and Veta Sur was successful in infilling areas and elevation ranges amenable to potential development and mining of both vein systems. As well as confirming master vein continuity at grade-thicknesses similar to or better than in the current mineral resource model, drilling intersected significant mineralization in vein ‘halos” and also intersected some veins not included in the resource model.
  • In central and west-central Veta Sur, drilling intersected multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model in these areas. High-grade intercepts in related master veins include:
    • 7.0 metres @ 12.8 g/t gold and 11 g/t silver, including 2.4 metres @ 30.6 g/t gold and 16 g/t silver (BUSY373D01, VS34, elevation of 1,156 metres);
    • 8.58 metres @ 12.7 g/t gold and 19 g/t silver, including 1.76 metres @ 23.1 g/t gold and 26 g/t silver (BUUY314D01, VS34, elevation of 1,336 metres);
    • 1.6 metres @ 50.6 g/t gold and 43 g/t silver (BUUY314D03, VS43, elevation of 1,306 metres);
    • 1.6 metres @ 88.7 g/t gold and 36 g/t silver (BUUY314D03, VS41, elevation of 1,256 metres);
    • 11.65 metres @ 10.1 g/t gold and 16 g/t silver, including 3.35 metres @ 29.1 g/t gold and 32 g/t silver (BUUY314D03, VS26, elevation of 1,122 metres);
    • 5.35 metres @ 51.7 g/t gold and 52 g/t silver, including 2.4 metres @ 112.3 g/t gold and 102 g/t silver (BUUY314D04, VS41, elevation of 1,299 metres);
    • 3.7 metres @ 27.8 g/t gold and 27 g/t silver, including 1.45 metres @ 69.3 g/t gold and 62 g/t silver (BUUY314D04, VS39, elevation of 1,292 metres); and
    • 4.1 metres @ 11.5 g/t gold and 50 g/t silver, including 1.95 metres @ 20.4 g/t gold and 62 g/t silver (BUUY314D04, VS31, elevation of 1,263 metres).

These, and other infill intercepts with substantial grades X thicknesses, extend high-grade sub-domains in Veta Sur vein families (Figure 3) in areas and at elevations that are close to proposed development.

  • In central and west-central Yaraguá, drilling also encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model. Such intercepts in related master veins include:
    • 0.5 metres @ 68.7 g/t gold and 313 g/t silver (BUUY315, MU7, elevation of 1,252 metres);
    • 1.0 metres @ 32.1 g/t gold and 37 g/t silver (BUUY316, MU71, elevation of 1,213 metres);
    • 0.5 metres @ 132.0 g/t gold and 36 g/t silver (BUUY316, MU4, elevation of 1,229 metres);
    • 2.7 metres @ 58.9 g/t gold and 26 g/t silver, including 1.15 metres @ 127.0 g/t gold and 37 g/t silver (BUUY318, VNE31, elevation of 1,197 metres); and
    • 1.05 metres @ 29.5 g/t gold and 28 g/t silver (BUUY318, VNC18, elevation of 1,199 metres).

These and other infill intercepts extend higher grade sub-domains in many of the Yaraguá vein families (Figure 5) in areas and at elevations close to proposed developments at Yaraguá.

  • In both the Yaraguá and Veta Sur systems, drilling intersected precious metal mineralization on the margins of and between master veins and also veins outside of the current mineral resource envelopes. The latter intersections appear to be extensions of master veins and include:
    • 2.56 metres @ 5.0 g/t gold and 327 g/t silver, including 0.8 metres @ 11.5 g/t gold and 1,030 g/t silver (BUUY314D01, elevation of 1,182 metres); and
    • 0.54 metres @ 7.7 g/t gold and 369 g/t silver (BUUY314D01, elevation of 1,136 metres).

Vein intercepts between master veins include:

  • 3.55 metres @ 3.6 g/t gold and 7 g/t silver (BUUY314D01, elevation of 1,377 metres); and
  • 0.5 metres @ 6.2 g/t gold and 13 g/t silver (BUUY314D04, elevation of 1,409 metres).

Intercepts in the mineralized “halos” of master veins include:

  • 1.45 metres @ 8.0 g/t gold and 7 g/t silver (BUUY314D03, elevation of 1,210 metres);
  • 0.5 metres @ 7.8 g/t gold and 12 g/t silver (BUUY314D04, elevation of 1,402 metres); and
  • 5.25 metres @ 3.6 g/t gold and 5 g/t silver (BUUY318, elevation of 1,201 metres).

These and numerous other intercepts confirm and extend the utility of the Company’s (2015) estimation of mineralization on the margins of master veins. These “halo” models will be used to dilute vein resources to minimum potential mining widths and are particularly significant for areas where potential stopes may include mineralized material around one or more master veins. Such material had previously been assigned zero grades.

Details

Continental’s 100%-owned, 61,784-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. See “About Continental Gold” below for a précis of the 2015 mineral resource estimate prepared in accordance with Canadian National Instrument 43‑101 (“NI 43-101”). This release documents the results of infill drilling through the Yaraguá and Veta Sur vein systems. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1, 2, 3, 4 and 5.

Table I: Drilling Highlights

Hole ID From (m) To
(m)
Interval*
(m)
Gold
(g/t)
Silver
(g/t)
Zinc
(%)
Elevation
(m)
Vein **
BUSY373D 222.00 222.95 0.95 0.03 61.7 0.10 1569 VS185
280.85 281.60 0.75 0.64 28.6 0.12 1515 VS180
BUSY373D01 103.75 104.65 0.90 2.64 18.5 0.69 1415 VS160
107.65 108.15 0.50 1.46 15.0 0.47 1411 dilution
144.60 145.20 0.60 1.38 6.6 0.01 1379 between
157.70 158.20 0.50 5.98 36.4 0.83 1368 VS150
210.95 211.75 0.80 0.25 67.5 0.05 1321 VS120
249.45 250.20 0.75 1.13 2.3 0.01 1287 VS110
259.75 260.50 0.75 0.91 6.2 0.02 1278 VS90
375.90 383.90 8.00 6.06 5.3 0.02 1172 VS42
incl 380.80 383.40 2.60 12.63 6.3 0.04
391.15 391.65 0.50 36.40 64.3 1.09 1165 VS39
395.60 402.60 7.00 12.77 11.4 0.01 1156 VS34
incl 400.20 402.60 2.40 30.59 16.2 0.02
BUSY373D02 78.30 78.90 0.60 7.67 17.7 0.26 1425 VS160
80.35 80.90 0.55 2.99 25.5 1.00 1423 dilution
118.35 118.88 0.53 2.95 15.5 0.40 1393 VS150
121.95 122.54 0.59 1.26 10.3 0.15 1391 VS120
180.22 180.77 0.55 1.74 29.8 0.42 1346 VS110
196.70 197.88 1.18 1.37 7.6 0.11 1333 VS90
210.20 210.72 0.52 1.75 2.1 0.01 1323 VS65
252.59 253.10 0.51 1.62 2.4 0.05 1292 VS43
267.70 268.20 0.50 1.99 3.1 0.19 1281 VS41
280.10 282.25 2.15 7.72 46.9 0.90 1271 VS39
incl 280.10 280.95 0.85 16.35 104.0 2.27
296.57 297.25 0.68 1.34 6.0 0.01 1260 VS32
BUUY314D 140.00 140.50 0.50 1.42 38.5 0.04 1537 VS160
150.80 151.35 0.55 6.36 2.6 0.02 1528 VS150
190.25 192.60 2.35 4.81 9.1 0.16 1493 VS140
BUUY314D01 0.70 1.20 0.50 2.70 24.0 0.11 1479 VS130
27.90 28.40 0.50 4.81 36.8 1.31 1457 VS123
30.70 31.30 0.60 4.06 11.7 0.18 1455 VS120
36.70 37.20 0.50 2.58 6.0 0.31 1450 VS110
62.40 63.50 1.10 3.82 8.9 0.45 1429 VS90
66.49 67.61 1.12 2.02 10.4 0.31 1426 VS75
80.00 80.54 0.54 3.19 14.4 0.60 1416 VS70
102.92 103.47 0.55 6.96 6.1 0.17 1397 VS62
114.90 116.45 1.55 9.38 15.2 0.38 1387 VS51
118.80 119.85 1.05 7.13 14.1 0.28 1384 VS48
125.25 128.80 3.55 3.56 7.3 0.17 1377 between
132.35 133.35 1.00 7.34 56.1 0.09 1374 VS43
141.53 142.67 1.14 7.06 19.0 0.23 1366 VS42
152.55 153.12 0.57 2.76 4.3 0.11 1358 between
163.46 163.97 0.51 13.95 30.1 0.04 1349 VS41
165.94 166.50 0.56 5.60 6.2 0.07 1347 VS39
167.63 170.43 2.80 2.67 6.8 0.09 1344 dilution
172.25 180.83 8.58 12.70 19.0 0.14 1336 VS34
incl 172.25 174.05 1.80 19.62 32.6 0.07
and 177.91 179.67 1.76 23.10 25.8 0.50
196.13 197.56 1.43 2.18 8.2 0.04 1323 VS32
200.70 201.75 1.05 3.27 7.8 0.12 1320 VS31
247.14 247.86 0.72 18.65 23.2 0.34 1283 VS28
304.65 305.26 0.61 9.73 2.7 0.07 1238 VS22
310.36 311.45 1.09 5.54 2.9 0.01 1234 VS20
348.70 349.25 0.55 1.26 283.0 1.87 1204 VS16
367.83 368.46 0.63 3.39 89.7 0.05 1189 outside
375.43 377.99 2.56 5.00 326.8 0.11 1182 outside
incl 375.43 376.23 0.80 11.50 1030.0 0.31
383.50 385.24 1.74 2.64 15.8 0.16 1176 outside
432.75 433.40 0.65 5.71 27.5 0.02 1138 outside
435.95 436.49 0.54 7.73 369.0 9.87 1136 outside
441.36 442.78 1.42 2.58 22.7 0.63 1132 C40
485.50 486.16 0.66 1.81 1.3 0.01 1098 C11
509.95 511.25 1.30 1.59 11.2 0.01 1079 SOF11
544.30 547.84 3.54 3.91 1.6 0.02 1051 SOF10
567.55 569.25 1.70 2.26 11.1 0.01 1035 HWV1
615.50 616.16 0.66 0.53 216.0 0.02 1001 SA12
661.16 661.70 0.54 4.66 5.4 0.01 967 VND10
677.80 679.87 2.07 2.00 14.9 0.02 955 VNAD9
BUUY314D02 9.60 10.20 0.60 4.56 17.6 0.15 1457 VS123
22.50 23.10 0.60 2.50 12.2 0.16 1447 VS120
40.08 40.60 0.52 9.49 7.2 0.07 1433 VS110
44.75 45.78 1.03 13.78 14.3 0.33 1429 VS90
58.80 59.30 0.50 2.20 4.9 0.11 1418 VS75
85.67 86.20 0.53 15.25 13.5 0.19 1396 VS62
95.50 96.00 0.50 28.20 24.9 0.66 1389 VS51
101.95 102.60 0.65 9.43 18.7 0.60 1383 VS48
BUUY314D03 28.55 29.75 1.20 2.47 10.3 0.28 1450 VS120
39.85 40.35 0.50 9.61 4.5 0.06 1440 VS110
41.80 42.90 1.10 3.48 9.7 0.47 1438 dilution
48.75 49.40 0.65 3.40 20.0 0.16 1432 between
83.25 83.95 0.70 16.05 16.2 0.44 1399 VS90
92.30 92.80 0.50 7.10 5.8 0.05 1391 VS75
95.50 96.00 0.50 8.40 12.6 0.31 1388 VS70
97.80 98.30 0.50 3.44 10.4 0.21 1386 VS65
107.30 108.45 1.15 1.96 4.9 0.06 1376 between
138.90 141.30 2.40 3.15 4.3 0.06 1346 VS62
154.00 157.30 3.30 3.60 9.0 0.17 1331 VS51
167.20 167.75 0.55 6.99 66.0 0.11 1320 VS48
181.65 183.25 1.60 50.60 42.6 1.90 1306 VS43
207.15 208.25 1.10 2.20 3.7 0.01 1283 VS42
232.50 233.20 0.70 4.02 3.7 0.04 1259 dilution
235.10 236.70 1.60 88.70 35.5 0.05 1256 VS41
238.10 239.74 1.64 8.01 20.1 0.07 1253 VS39
244.20 244.75 0.55 3.01 10.9 0.05 1248 between
248.10 248.60 0.50 4.46 10.5 0.02 1244 between
256.25 258.70 2.45 9.38 38.2 0.03 1235 VS34
260.45 264.35 3.90 5.14 26.6 0.02 1230 dilution
incl 260.45 261.50 1.05 9.70 50.9 0.02
265.60 269.00 3.40 9.28 27.6 0.02 1225 V32
incl 265.60 266.75 1.15 20.06 40.6 0.02
270.95 271.45 0.50 58.60 342.0 0.13 1223 VS31
274.00 276.15 2.15 2.81 8.2 0.04 1219 dilution
280.10 281.60 1.50 13.87 23.6 0.03 1214 VS30
284.25 285.70 1.45 7.95 7.2 0.02 1210 dilution
305.15 305.70 0.55 4.71 4.8 0.01 1191 between
323.35 324.55 1.20 1.80 11.9 0.06 1173 between
359.20 359.70 0.50 3.61 4.9 0.03 1140 dilution
361.85 367.00 5.15 5.28 17.6 0.02 1134 VS28
incl 364.45 365.50 1.05 13.95 60.5 0.06
368.10 379.75 11.65 10.08 15.7 0.04 1122 VS26
incl 375.90 379.25 3.35 29.12 32.0 0.06
441.85 442.45 0.60 1.56 1.2 0.02 1063 VS24
628.00 629.75 1.75 2.02 0.8 0.01 894 VS16
BUUY314D04 15.20 16.40 1.20 3.49 8.2 0.61 1438 VS120
19.73 20.23 0.50 3.91 15.4 0.3 1434 VS110
41.15 41.65 0.50 6.01 12.5 0.32 1415 VS90
46.15 46.65 0.50 5.00 12.2 1.21 1410 between
47.85 48.35 0.50 6.21 12.9 0.82 1409 between
56.05 56.55 0.50 7.76 12.4 0.41 1402 dilution
57.60 59.20 1.60 15.75 8.8 0.5 1399 VS75
60.75 61.28 0.53 11.60 13.1 1.17 1397 VS70
69.90 70.45 0.55 16.05 6.3 0.01 1389 VS65
100.02 100.60 0.58 3.01 5.1 0.02 1362 VS51
114.10 114.60 0.50 2.32 6.6 0.16 1350 VS48
151.50 152.05 0.55 3.14 2.0 0.11 1316 VS43
153.50 155.00 1.50 18.61 38.6 0.6 1314 VS42
167.25 172.60 5.35 51.73 51.6 0.52 1299 VS41
incl 170.20 172.60 2.40 112.25 102.2 1.13
176.00 179.70 3.70 27.84 26.5 0.21 1292 VS39
incl 178.25 179.70 1.45 69.30 62.4 0.51
199.00 199.50 0.50 5.29 4.3 0.02 1274 VS34
202.17 203.50 1.33 5.44 4.2 0.01 1271 VS32
208.20 212.30 4.10 11.48 49.7 0.09 1263 VS31
incl 210.35 212.30 1.95 20.39 62.2 0.13
216.70 217.20 0.50 3.16 20.2 0.05 1258 VS30
253.20 253.80 0.60 4.00 1.8 0.01 1225 VS28
BUUY315 110.60 111.10 0.50 1.80 286.0 0.08 1222 MU9
154.30 155.30 1.00 1.67 12.4 0.44 1240 MU5
181.60 182.10 0.50 68.70 313.0 0.93 1252 MU7
189.00 189.80 0.80 6.72 2.2 0.06 1255 VNE30
220.60 222.80 2.20 2.20 11.6 0.77 1269 VNB19
238.35 239.00 0.65 5.05 2.1 0.02 1276 VNC18
248.70 249.85 1.15 1.67 6.7 0.30 1281 C11
325.00 326.10 1.10 12.65 353.0 1.49 1315 VND10
341.10 341.60 0.50 30.90 400.0 1.66 1322 VNAD9
405.30 405.80 0.50 1.38 9.0 0.19 1353 N20
BUUY316 24.00 24.67 0.67 1.67 1.5 0.03 1183 outside
110.22 110.72 0.50 3.28 2.2 0.01 1212 MU9
112.95 113.95 1.00 32.13 37.3 0.01 1213 MU71
152.60 153.32 0.72 20.60 7.0 0.42 1227 MU2
158.50 159.00 0.50 132.00 36.3 0.29 1229 MU4
163.00 163.50 0.50 9.70 17.7 0.45 1230 MU5
174.10 177.32 3.22 1.83 7.7 0.34 1235 MU6
187.25 188.10 0.85 2.81 15.6 0.06 1239 MU7
207.50 209.70 2.20 8.49 3.8 0.05 1246 PRE20
227.20 228.00 0.80 14.35 37.7 0.18 1252 VNB19
238.90 240.60 1.70 10.23 4.6 0.29 1256 VNC18
254.00 255.10 1.10 1.37 20.4 2.24 1261 C11
265.70 268.00 2.30 4.92 4.2 0.14 1265 SOF10
296.50 298.42 1.92 8.98 21.5 1.58 1276 HWV1
301.00 301.50 0.50 9.14 22.2 0.09 1277 SA12
BUUY317 98.50 99.00 0.50 11.20 8.1 0.18 1162 MU71
137.20 137.70 0.50 3.18 13.0 0.41 1158 MU51
156.50 157.05 0.55 17.65 15.8 0.08 1157 MU7
159.50 160.00 0.50 8.09 3.4 0.01 1157 VNE30
162.55 166.50 3.95 4.65 5.0 0.03 1156 VNE31
incl 163.85 164.90 1.05 8.67 5.0 0.02
173.70 174.75 1.05 2.73 15.6 0.09 1156 PRE20
215.80 216.30 0.50 4.34 129.0 0.32 1153 C20
242.45 243.50 1.05 5.46 41.8 0.48 1152 SOF10
248.50 249.00 0.50 2.90 12.4 1.22 1152 HWV1
251.20 251.70 0.50 6.00 8.5 0.02 1152 NWSE3
253.00 254.80 1.80 7.49 7.7 0.04 1152 HWV2
261.75 262.90 1.15 1.35 3.1 0.01 1152 SA12
286.63 287.13 0.50 3.79 2.2 0.02 1151 FWV11
321.90 322.50 0.60 1.75 12.8 0.05 1152 VNA8
BUUY318 96.70 97.40 0.70 2.19 2.5 0.01 1187 MU71
128.50 129.00 0.50 1.48 14.2 0.14 1191 MU2
156.75 157.50 0.75 1.50 1.9 0.01 1195 MU6
163.90 164.40 0.50 7.33 161.0 0.62 1196 MU7
172.15 172.65 0.50 6.33 9.3 0.04 1196 VNE30
176.45 179.15 2.70 58.94 25.9 0.25 1197 VNE31
incl 176.45 177.60 1.15 126.97 37.4 0.17
183.50 184.10 0.60 16.80 7.5 0.43 1198 PRE20
185.30 191.75 6.45 3.09 4.4 0.10 1198 VNB19
193.15 196.70 3.55 2.17 5.0 0.09 1199 dilution
197.80 198.30 0.50 4.21 7.3 0.33 1199 CB18
200.45 201.50 1.05 29.52 28.2 0.62 1199 VNC18
205.70 206.25 0.55 15.25 18.9 0.08 1200 C40
208.75 214.00 5.25 3.64 4.5 0.13 1201 dilution
215.90 216.50 0.60 4.06 2.8 0.06 1201 C30
217.30 217.90 0.60 8.16 4.5 0.04 1201 C20
221.00 221.60 0.60 2.54 1.5 0.01 1201 between
238.15 238.65 0.50 3.24 49.1 0.13 1203 C11
241.30 242.80 1.50 2.90 56.8 0.08 1203 C10
244.35 244.88 0.53 2.96 142.0 1.19 1204 SOF11
251.85 252.45 0.60 3.12 27.9 0.21 1204 SOF10
263.70 264.25 0.55 2.12 4.5 0.04 1205 HWV1
291.43 291.93 0.50 1.96 0.9 0.07 1208 HWV2
305.45 305.95 0.50 8.91 12.0 0.07 1209 SA12
308.95 309.65 0.70 10.10 15.6 0.04 1209 FWV11
312.56 313.70 1.14 4.43 69.7 0.54 1210 VND10
356.70 357.25 0.55 0.92 7.2 0.02 1213 VNAD9

*     Intercepts calculated at 1 g/t gold + 50 g/t silver cut-off grades for minimum intervals of 0.5 metres, with up to 30% internal dilution. True widths not accurately known but generally are more than 80% of the down-hole interval for Yaraguá drill-holes and 40-70% for Veta Sur drill-holes. Drill-holes designated “BUUY” were collared from underground, and drill-holes designated “BUSY” were collared at surface. Holes directionally-drilled from “mother holes” (BUUYDxxx or BUSYDxxx) are designated BUUYxxxDxx or BUSYxxxDxx), as the case may be.

**    Intercepts in vein domains are respectively nominated by vein code (e.g. VNC) whereas other intercepts are designated as below or outside of the current Buriticá mineral resource envelope. Dilution is defined as mineralization around the margins of modelled vein domains. Intercepts with grades X thicknesses apparently substantially greater than for the corresponding vein domains in the current mineral resource block model are also highlighted in bold.

Infill and extension drilling of the Veta Sur system comprised two drill-fans, drill-holes respectively targeting west-central and central Veta Sur (Figures 1 and 2). Two drill-holes continued into western Yaraguá (Figure 1). Drill-holes from the Higabra tunnel targeted the central and west-central Yaraguá system (Figures 1 and 4).

In central and west-central Veta Sur, drilling intersected multiple vein families with grades X thicknesses that are commonly significantly greater than those expected from the current mineral resource block model in these areas. These intercepts in related master veins are highlighted in Table 1 and include:

  • 7.0 metres @ 12.8 g/t gold and 11 g/t silver, including 2.4 metres @ 30.6 g/t gold and 16 g/t silver (BUSY373D01, VS34, elevation of 1,156 metres);
  • 8.58 metres @ 12.7 g/t gold and 19 g/t silver, including 1.76 metres @ 23.1 g/t gold and 26 g/t silver (BUUY314D01, VS34, elevation of 1,336 metres);
  • 1.6 metres @ 50.6 g/t gold and 43 g/t silver (BUUY314D03, VS43, elevation of 1,306 metres);
  • 1.6 metres @ 88.7 g/t gold and 36 g/t silver (BUUY314D03, VS41, elevation of 1,256 metres);
  • 11.65 metres @ 10.1 g/t gold and 16 g/t silver, including 3.35 metres @ 29.1 g/t gold and 32 g/t silver (BUUY314D03, VS26, elevation of 1,122 metres);
  • 5.35 metres @ 51.7 g/t gold and 52 g/t silver, including 2.4 metres @ 112.3 g/t gold and 102 g/t silver (BUUY314D04, VS41, elevation of 1,299 metres);
  • 3.7 metres @ 27.8 g/t gold and 27 g/t silver, including 1.45 metres @ 69.3 g/t gold and 62 g/t silver (BUUY314D04, VS39, elevation of 1,292 metres); and
  • 4.1 metres @ 11.5 g/t gold and 50 g/t silver, including 1.95 metres @ 20.4 g/t gold and 62 g/t silver (BUUY314D04, VS31, elevation of 1,263 metres).

These, and other infill intercepts with substantial grades X thicknesses, extend high grade sub-domains in Veta Sur vein families (Figure 3) in areas and at elevations that are close to proposed development.

Elsewhere, drill intercepts in master veins were generally around the grades X thicknesses expected from the current mineral resource block model for Veta Sur (Figure 3), adding further confidence to this model.

In central and west-central Yaraguá, drilling also encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model. Such intercepts in related master veins are highlighted in Table 1 and include:

  • 0.5 metres @ 68.7 g/t gold and 313 g/t silver (BUUY315, MU7, elevation of 1,252 metres);
  • 0.5 metres @ 30.9 g/t gold and 400 g/t silver (BUUY315, VNAD9, elevation of 1,322 metres);
  • 1.0 metres @ 32.1 g/t gold and 37 g/t silver (BUUY316, MU71, elevation of 1,213 metres);
  • 0.5 metres @ 132.0 g/t gold and 36 g/t silver (BUUY316, MU4, elevation of 1,229 metres);
  • 2.7 metres @ 58.9 g/t gold and 26 g/t silver, including 1.15 metres @ 127.0 g/t gold and 37 g/t silver (BUUY318, VNE31, elevation of 1,197 metres); and
  • 1.05 metres @ 29.5 g/t gold and 28 g/t silver (BUUY318, VNC18, elevation of 1,199 metres).

These and other infill intercepts extend higher grade sub-domains in many of the Yaraguá vein families (Figure 5) in areas and over elevation ranges (1,100-1,300 metres) that are close to proposed development in Yaraguá.

Other drill intercepts in master veins were generally around the grades X thicknesses expected from the current mineral resource block model for Yaraguá (Figure 5), adding further confidence to this model.

In both the Yaraguá and Veta Sur systems, drilling intersected precious metal mineralization on the margins of and between master veins and also veins outside of the current mineral resource envelopes (Table 1). The latter intersections appear to be extensions of master veins and include:

  • 2.56 metres @ 5.0 g/t gold and 327 g/t silver, including 0.8 metres @ 11.5 g/t gold and 1,030 g/t silver (BUUY314D01, elevation of 1,182 metres); and
  • 0.54 metres @ 7.73 g/t gold and 369.0 g/t silver (BUUY314D01, elevation of 1,136 metres).

Vein intercepts between master veins in Veta Sur include:

  • 3.55 metres @ 3.6 g/t gold and 7 g/t silver (BUUY314D01, elevation of 1,377 metres); and
  • 0.5 metres @ 6.2 g/t gold and 13 g/t silver (BUUY314D04, elevation of 1,409 metres).

Intercepts in the mineralized “halos” of master veins include:

  • 1.45 metres @ 8.0 g/t gold and 7 g/t silver (BUUY314D03, elevation of 1,210 metres, Veta Sur);
  • 0.5 metres @ 7.8 g/t gold and 12 g/t silver (BUUY314D04, elevation of 1,402 metres, Veta Sur); and
  • 5.25 metres @ 3.6 g/t gold and 5 g/t silver (BUUY318, elevation of 1,201 metres, Yaraguá).

These and numerous other intercepts confirm and extend the utility of the Company’s (2015) estimation of mineralization on the margins of master veins. Such “halo” models will be used to dilute vein resources to minimum potential mining widths and are particularly significant for areas where potential stopes may include mineralized material around one or more master veins. Such material had previously been assigned zero grades.

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 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 additional information on the Buriticá project, please refer to the Company’s NI 43-101 technical report (the “Technical Report”) entitled “Independent Technical Report and Resource Estimate on the Buriticá Gold Project 2015” dated August 7, 2015, with an effective date of May 11, 2015, led by independent consultants Mining Associates Limited. 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 high-grade Buriticá gold project to production. On June 24, 2015, the Company announced an updated mineral resource estimate for the Buriticá project, prepared in accordance with NI 43-101, based on 271,003 metres of drilling and sampling (as at May 11, 2015). This estimate covers the Yaraguá and Veta Sur vein systems, with a combined Measured mineral resource of 0.89 million tonnes of mineralized material containing 0.54 million ounces of gold grading 19 g/t gold, 1.58 million ounces of silver grading 55 g/t silver, and 13.4 million pounds of zinc grading 0.7% zinc, and a combined Indicated mineral resource of 12 million tonnes of mineralized material containing 3.94 million ounces of gold grading 10.2 g/t gold, 12.4 million ounces of silver grading 32 g/t silver, and 112.6 million pounds of zinc grading 0.4% zinc. The combined Inferred mineral resource is 15.6 million tonnes of mineralized material containing 4.5 million ounces grading 9.0 g/t gold, 14.7 million ounces of silver grading 29 g/t silver and 91 million pounds of zinc grading 0.3% zinc. Additional details on the Buriticá project and the rest of Continental’s suite of gold exploration properties are available at www.continentalgold.com.

For further information, please contact:

Paul Begin
Chief Financial Officer
Continental Gold Inc.
+1.416.583.5610
info@continentalgold.com
www.continentalgold.com

Forward-Looking Statements

This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding timing and completion of a feasibility study, timing of a production decision, the estimation of mineral resources, advancing the Buriticá project, exploration results, potential mineralization, potential development of mine openings, potential improvement of mining dilution grades, 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 of 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” 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 highlights of new drilling in the Veta Sur and Yaraguá systems, showing the surface projection of veins in the current (2015) mineral resource model on geology-topography and underground developments. Lines A-B and C-D respectively refer to the long section lines for Figure 2 and Figure 4. Lines G-H and E-F respectively refer to the cross section lines for Figure 3 and Figure 5.

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Figure 2 – Long section (Line C-D on Figure 1) showing highlights of new drilling against the 2015 Veta Sur mineral resource envelope.

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Figure 3 – Cross section (Line G-H on Figure 1) showing highlights of new drilling against the grades of master veins in the 2015 Veta Sur mineral resource envelope.

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Figure 4 – Long section (Line C-D on Figure 1) showing highlights of new drilling against the 2015 Yaraguá mineral resource envelope.

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Figure 5 – Cross section (Line E-F on Figure 1) showing highlights of new drilling against the grades of master veins in the 2015 Yaraguá mineral resource envelope.

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