Continental Gold Drills 17.20 Metres @ 100.24 g/t Gold Equivalent in BMZ1 at Buriticá

  • Drilling continues to intercept high-grade gold over broad widths in Broad Mineralized Zone 1 (“BMZ1”).
  • DYR0089 intercepted the second highest grade X thickness interval of gold mineralization to date in BMZ1 as follows:
    • 17.20 metres @ 100.24 g/t gold equivalent, including a remarkable sub-interval of 0.60 metres @ 2,851.25 g/t gold equivalent (DYR0089).
  • Multiple additional definition drill-holes into BMZ1 intercepted high-grade gold over excellent thicknesses, with results as follows:
    • 40.75 metres @ 8.03 g/t gold and 10.7 g/t silver (DYR0090)
    • 9.80 metres @ 15.66 g/t gold and 29.9 g/t silver (DYR0092)
    • 10.60 metres @ 20.77 g/t gold and 22.9 g/t silver (DYR0098)
    • 14.00 metres @ 7.07 g/t gold and 3 g/t silver (DYR0093)
    • 30.60 metres @ 5.80 g/t gold and 7.5 g/t silver (DYR0097)
    • 5.84 metres @ 17.17 g/t gold and 22.4 g/t silver (DYR0088)
    • 4.95 metres @ 18.13 g/t gold and 12.2 g/t silver (DYR0105)
  • Definition drilling for BMZ1 continues to advance according to schedule and additional results will be reported in a timely manner.
  • Two drill holes were completed from a chamber in the central-southern portion of the Yaraguá system. Both holes intercepted thick intervals of gold mineralization south of BMZ1 beginning right at the drill-hole collars, with results as follows:
    • 17.80 metres @ 5.07 g/t gold and 11.1 g/t silver (DYR0068)
    • 21.40 metres @ 3.05 g/t gold and 10.3 g/t silver (DYR0069)
  • Given that this mineralization is significantly thicker than outlined in the current mineral resource estimate wire frames in this location, extensional drilling will be carried out in the near-term in order to better determine the tonnage potential for this area.

Toronto, Ontario, April 2, 2019 — Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) (“Continental” or the “Company”) is pleased to announce additional high-grade assay results from 15 holes drilled into the Yaraguá system as part of the infill and definition drilling program at its 100%-owned Buriticá project in Antioquia, Colombia. The Company plans to drill up to 73,500 metres in 2019, consisting of approximately 55,000 metres of capitalized definition drilling and approximately 18,500 metres of exploration-led infill drilling primarily targeting the BMZ.

“We continue to make excellent progress at our Buriticá project as we advance towards commercial production in 2020,” stated Ari Sussman, CEO. “With eight definition and two exploration drill rigs active on the property, we anticipate making positive progress in defining BMZ’s ahead of an updated mine plan prior to the commencement of production, discovering new mineralized areas in the eastern Yaraguá system and confirming production stope locations for mining.”

All drill-holes at least partially tested BMZ1, with each hole successfully intercepting high-grade gold mineralization within the zone. The highest-grade drill intercept (grade X thickness) achieved to date in BMZ1 was encountered on the western flank of the zone at a median elevation of 1,464 metres, assaying:

  • 17.20 metres @ 99.95 g/t gold and 21.6 g/t silver, including an ultra high-grade sub-interval of 0.60 metres @ 2,843.77 g/t gold and 560.9 g/t silver (DYR0089).

Outside of the high-grade sub-intercept in drill-hole DYR0089, the hole showed excellent continuity of low-grade mineralization along the length of the drill hole.

Due to short-hole definition drill patterning, seven of the holes only intercepted the southern part of the BMZ1 structure, with additional drilling planned for the northern half of the zone in due course.

Two holes were collared from a drill chamber located approximately 50 metres south of BMZ1 and intercepted thick intervals of moderate grade mineralization in the MU vein package family, with results as follows:

  • 17.80 metres @ 5.07 g/t gold and 11.1 g/t silver (DYR0068)
  • 21.40 metres @ 3.05 g/t gold and 10.3 g/t silver (DYR0069).

Additional drilling is planned in the near term to assess the potential of this area for bulk-style mining with moderate grade material.

Table I: Drill Hole Results

Hole ID From
(m)
To
(m)
Intercept
Interval* (m)
Gold**
(g/t)
Silver**
(g/t)
Gold
Equivalent**
(g/t)
Mid-Point
Elevation
(m)
Vein
DYR0068 0.00 17.80 17.80 5.07 11.1 5.22 1475 MU
incl 17.30 17.80 0.50 64.74 30.0 65.14 1471  
  39.15 41.00 1.85 3.48 8.6 3.60 1459 new
  47.60 50.95 3.35 2.95 24.9 3.28 1454 PRE
  74.00 76.00 2.00 8.37 6.7 8.46 1441 SOF
incl 75.60 76.00 0.40 20.44 13.5 20.62 1441  
  112.00 118.50 6.50 3.21 6.4 3.29 1422 BMZ1
incl 117.40 117.70 0.30 21.40 21.4 21.69 1421  
  124.10 127.70 3.60 3.36 2.6 3.39 1416 SA
incl 124.10 124.50 0.40 21.70 3.8 21.75 1418  
  133.90 135.10 1.20 25.25 158.8 27.37 1412 NW
incl 134.80 135.10 0.30 92.72 619.4 100.98 1412  
DYR0069 0.00 21.40 21.40 3.05 10.3 3.18 1469 MU
incl 12.35 12.70 0.35 13.30 21.6 13.59 1473  
  43.20 58.35 15.15 2.20 8.3 2.31 1449 PRE
incl 52.65 52.85 0.20 11.21 50.0 11.88 1452  
  62.00 65.00 3.00 1.40 6.4 1.48 1446 new
  109.75 115.50 5.75 3.80 23.6 4.12 1420 HW
incl 109.75 110.00 0.25 20.28 157.8 22.38 1423  
  119.00 127.00 8.00 4.01 5.9 4.08 1415 SA+NW
incl 123.85 124.15 0.30 35.19 24.4 35.52 1416  
DYR0084 53.00 61.00 8.00 4.58 21.2 4.86 1464 HW
incl 55.80 56.60 0.80 20.00 63.5 20.85 1464  
  65.95 68.55 2.60 4.86 22.6 5.16 1461 SA
incl 67.00 67.90 0.90 10.64 50.8 11.32 1461  
DYR0088 4.18 6.40 2.22 2.55 14.7 2.75 1480 New
  30.70 32.20 1.50 3.59 6.7 3.68 1473 SOFH
  33.55 39.20 5.65 1.51 4.0 1.56 1471 SOF
  47.00 63.50 16.50 1.24 3.1 1.28 1464 BMZ1
  64.16 70.00 5.84 17.17 22.4 17.47 1463 HW
incl 66.30 67.00 0.70 71.00 45.7 71.61 1464  
and 69.40 70.00 0.60 55.60 125.1 57.27 1463  
  70.66 87.50 16.84 1.39 3.2 1.44 1458 BMZ1
DYR0089 4.30 7.00 2.70 6.80 66.2 7.68 1479 New
incl 6.10 7.00 0.90 15.80 35.7 16.28 1479 New
  11.20 12.70 1.50 7.12 13.8 7.30 1477 New
incl 11.90 12.70 0.80 12.30 24.7 12.63 1477  
  18.80 27.60 8.80 0.99 3.0 1.03 1472 BMZ1
incl 19.60 19.80 0.20 10.29 11.5 10.44 1475  
  32.60 65.75 33.15 1.09 3.5 1.13 1459 BMZ1
  50.00 67.20 17.20 99.95 21.6 100.24 1464 BMZ1
incl 66.00 66.60 0.60 2843.77 560.9 2851.25 1459  
  67.80 89.00 21.20 0.68 4.0 0.73 1451 BMZ1
  90.00 94.00 4.00 2.09 6.4 2.17 1450 SA
DYR0090 11.60 28.90 17.30 1.54 3.9 1.60 1469 BMZ1
  29.10 69.85 40.75 8.03 10.7 8.17 1468 BMZ1
incl 29.60 30.60 1.00 41.33 10.9 41.48 1469  
and 37.80 38.30 0.50 36.54 41.7 37.10 1466  
and 68.50 69.00 0.50 381.00 361.1 385.82 1453  
DYR0091 6.33 8.00 1.67 2.70 7.3 2.80 1478 New
  14.54 67.60 53.06 1.96 3.8 2.02 1461 BMZ1
incl 50.30 51.00 0.70 26.30 13.0 26.47 1457  
  66.90 67.60 0.70 11.36 5.1 11.43 1449 HW
DYR0092 3.30 5.60 2.30 3.98 6.2 4.06 1480 New
  54.25 59.70 5.45 2.62 14.2 2.81 1459 HW
  64.00 73.80 9.80 15.66 29.9 16.06 1455 BMZ1
incl 65.70 66.60 0.90 114.88 161.7 117.04 1457  
and 70.00 70.30 0.30 33.18 164.0 35.37 1455  
and 71.10 72.00 0.90 21.12 58.0 21.89 1455  
DYR0093 9.45 20.00 10.55 5.44 8.5 5.56 1471 New
incl 10.10 10.95 0.85 26.61 9.8 26.74 1475  
and 17.76 18.15 0.39 16.84 11.8 17.00 1470  
  25.85 30.70 4.85 2.76 12.4 2.92 1463 New
  35.25 36.13 0.88 4.63 2.3 4.66 1460 New
  57.90 76.55 18.65 2.05 2.6 2.08 1435 BMZ1
  66.00 80.00 14.00 7.07 3.0 7.11 1436 BMZ1
incl 77.50 78.35 0.85 72.57 12.0 72.73 1435  
DYR0094 59.70 75.50 15.80 4.08 7.6 4.18 1435 BMZ1
incl 63.28 63.50 0.22 23.36 49.2 24.02 1439  
  76.80 85.90 9.10 1.30 8.5 1.42 1425 BMZ1
DYR0096 0.00 1.60 1.60 4.18 8.4 4.29 1480 New
incl 0.30 0.58 0.28 12.36 12.1 12.52 1480  
  14.90 16.90 2.00 9.13 25.9 9.47 1468 New
incl 15.65 16.10 0.45 15.12 29.7 15.52 1469  
  49.70 56.60 6.90 1.77 4.3 1.83 1439 BMZ1
  57.27 62.10 4.83 3.42 7.5 3.52 1435 BMZ1
  73.00 81.00 8.00 5.32 7.9 5.43 1424 BMZ1
incl 73.60 73.90 0.30 99.50 63.0 100.34 1426  
DYR0097 36.60 67.20 30.60 5.80 7.5 5.90 1442 BMZ1
incl 49.20 49.80 0.60 126.00 22.9 126.31 1444  
and 54.20 55.10 0.90 25.47 24.5 25.79 1440  
  68.00 76.85 8.85 1.01 2.6 1.04 1424 BMZ1
  77.44 82.40 4.96 2.29 5.2 2.36 1420 SA
  82.85 93.00 10.15 1.55 2.8 1.58 1413 BMZ1
DYR0098 33.35 68.00 34.65 1.21 3.2 1.25 1487 BMZ1
  68.40 79.00 10.60 20.77 22.9 21.08 1492 BMZ1
incl 68.40 69.00 0.60 82.17 68.3 83.09 1490  
and 71.25 71.70 0.45 253.17 146.7 255.13 1491  
DYR0100 0.90 6.39 5.49 1.86 7.0 1.95 1482 New
  18.45 22.85 4.40 3.47 5.3 3.54 1484 SOF
incl 19.26 19.50 0.24 27.69 15.0 27.89 1484  
  42.18 67.84 25.66 2.31 3.9 2.36 1487 BMZ1
incl 42.18 43.00 0.82 31.97 6.1 32.05 1486  
  77.00 79.50 2.50 4.14 6.9 4.23 1490 HW
  83.50 86.00 2.50 6.85 16.0 7.06 1491 SA
  86.85 93.20 6.35 1.07 3.4 1.11 1492 BMZ1
 

* Intercepts calculated for minimum intervals of 0.3 metres. Drill holes reported are between 75-100% true widths. Internal dilution within reported intervals generally conforms with proposed mine plan parameters.
** Grades herein are reported as uncapped values.
*** Gold equivalent in this release and table was calculated at Au:Ag ratio of 1:75 with no assumptions made for metallurgical recovery rates.

Figure 1 – Plan View of Drilling in BMZ1 and Other Areas in the Yaraguá System

Figure 2 – Long Section A-A’ of Drilling into BMZ1 and Other Areas in the Yaraguá System

Geological Description of the Buriticá Project
Continental’s 100%-owned, 75,583-hectare project, Buriticá, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style variably overprinted by texturally and chemically distinctive high-grade 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 1,350 metres of strike and 1,800 vertical metres and partially sampled in underground developments. The Veta Sur system has been drilled along 1,300+ 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.

BMZ Details
The BMZ consists of a group of modelled precious metal-bearing veins in the current mineral resource estimate block model with mineralization occurring between these veins, generally in the form of veinlets at oblique angles to strike. The majority of the mineralization between modelled veins is not in the current mineral resource estimate, providing potential upside both in terms of identifying significantly broader and more productive zones for mining and increased mineral resources. To date, the Company has identified up to seven BMZ targets for testing and will systematically drill each target zone as underground mine development advances. BMZ1 encompasses a matrix of the east-west trending FW, San Antonio and HW veins as well as a package of a NW SE vein and subsidiary veinlets.

Technical Information
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.

Reported intervals include minimum weighted averages of 3 g/t gold equivalent (1:75 Au/Ag) over core lengths of at least 1.0 metres. Assays are uncut except where indicated.

Besides rigorous chain-of-custody procedures, the Company utilized a comprehensive quality control/quality assurance program for the channel samples. All quality control anomalies were addressed and/or corrected as necessary to assure reliable assay results; no material quality control issues were encountered in the course of the program. Crush rejects and pulps are kept and stored in a secured storage facility for future assay verification. Although historic correlation between analytical results from the Company’s internal laboratory and certified independent laboratories for gold and silver analysis have been within acceptable limits, the Company’s internal laboratory is neither independent nor certified under NI 43-101 guidelines and, as such, channel sampling results in this release should only be taken by the reader as indicative of future potential.

For exploration and infill core drilling, the Company applied its standard protocols for sampling and assay. 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.

For stope definition core drilling, the Company applied its standard protocols for sampling and assay. The HQ3 samples were full core and provided sample widths between 0.2 to 1.0 metres weighing approximately 2 to 8 kilograms. Custody of the Samples were transferred at the mine site to Actlabs Colombia using rigorous chain-of-custody procedures. Full-core HQ3 samples are prepped and analyzed at Actlabs Colombia’s ISO 9001 accredited assay in Medellín, Colombia. The remainder of crushed rejects and pulps are stored in a secured storage facility for future assay verification. Blanks, pulps duplicates, coarse duplicates and purchased certified reference standards are inserted into the sample stream to monitor laboratory performance. A portion of the samples are periodically check-assayed at ALS Peru’s ISO 9001 accredited assay laboratory in Lima, Peru.

The Company does not receive assay results for drill holes in sequential order; however, all significant assay results are publicly reported.

For information on the Buriticá project, please refer to the technical report, prepared in accordance with NI 43–101, entitled “NI 43‐101 Buriticá Mineral Resource 2019‐01, Antioquia, Colombia” and dated March 18, 2019 with an effective date of January 30, 2019, led by independent consultants Ivor Jones Pty Ltd. 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 is the leading large-scale gold mining company in Colombia and is presently developing it’s 100% owned Buriticá project in Antioquia. Buriticá is one of the largest and highest-grade gold projects in the world and is being advanced utilizing best practices for mine construction, environmental care and community inclusion. Led by an international management team with a successful record of discovering, financing and developing large high-grade gold deposits in Latin America, the Buriticá project is on schedule with first gold pour anticipated during the first half of 2020. Additional details on Continental Gold’s suite of gold exploration properties are also available at www.continentalgold.com.

Forward-Looking Statements
This press release contains or refers to forward-looking information under Canadian securities legislation—including statements regarding: timing of drill results and first gold pour; advancing the Buriticá project; exploration results; potential mineralization; potential development of mine openings; potential improvement of mining dilution grades; reducing start-up risks; 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.