Continental Gold Drills High-Grade Gold Over 1,200 Metres in the Veta Sur System at the Buriticá Project, Colombia

  • Drilling results in the Veta Sur system have intercepted high-grade gold over large dimensions measuring approximately 1,000 metres laterally by 1,200 metres vertically (see Figures 1, 2 and 3).
  • Step-out drill-holes to the west and below the Inferred resource extended high-grade gold mineralization beyond the mineral resource estimate block model boundaries with results as follows:
    • 4.00 metres @ 26.07 g/t gold equivalent (BUSY349D04, 615 metre-elevation, located 200 metres below the Inferred mineral resource estimate block model boundary in this area)
    • 2.00 metres @ 43.23 g/t gold equivalent (BUSY376D03, 1,106 metre-elevation, located 100 metres to the west along strike of the Inferred mineral resource estimate block model boundary in this area).
  • Infill drilling within the mineral resource estimate block model envelope, located at or near the elevation of the Higabra Tunnel, intercepted gold grades X widths that are generally higher than the corresponding estimate with key results as follows:
    • 3.65 metres @ 75.73 g/t gold equivalent (BUSY386D03, 1,120-metre elevation)
    • 2.55 metres @ 31.35 g/t gold equivalent (BUSY386D06, 1,041-metre elevation)
    • 4.20 metres @ 17.84 g/t gold equivalent (BUSY386D01, 1,175-metre elevation).
  • Infill drilling from the Veta Sur ramp targeting shallow elevations also intersected gold grades X widths that are generally more robust than the mineral resource estimate block model in these locations, with key results as follows:
    • 10.80 metres @ 9.46 g/t gold equivalent (BUUY429, 1,459-metre elevation)
    • 1.05 metres @ 80.74 g/t gold equivalent (BUUY413, 1,527-metre elevation)
    • 5.70 metres @ 7.39 g/t gold equivalent (BUUY423, 1,498-metre elevation)
    • 2.40 metres @ 15.52 g/t gold equivalent (BUUY411, 1,493-metre elevation).
  • The mineral resource estimate update for the Buriticá project is progressing on schedule for release in Q1 2019.

TORONTO, Jan. 22, 2019 /CNW/ – Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) (“Continental” or the “Company”) is pleased to announce additional high-grade assay results from fifteen holes drilled into the Veta Sur system as part of the exploration drilling program at its 100%-owned Buriticá project in Antioquia, Colombia. The Company presently has six underground definition drill rigs operating and anticipates adding up to three exploration rigs, with the first one expected to arrive in February 2019. As previously announced, 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. Supporting documentation for results discussed in this release can be found in Table 1 and Figures 1, 2 and 3.

Numerous assay results from the 2018 program are pending, including those testing Broad Mineralized Zone 1 (“BMZ1”) and the recently announced new BMZ2 discovery. Additionally, results are pending from a series of follow-up holes for a potentially new broad mineralized zone located approximately 150 metres west of BMZ1 in the Yaraguá system. The Company had previously announced assay results for one drill-hole testing this potential new target, which assayed high-grade gold averaging 37.55 metres @ 7.92 g/t gold and 8.7 g/t silver (DYR0050, 1,460-metre elevation) (see press release dated October 1, 2018).

“The final drill holes for 2018 into Veta Sur continue to confirm the sheer scale of this high-grade system. Our technical team strongly believes that the Veta Sur system will continue to grow both along strike and at depth, with high-grade gold intercepted at the western and deepest vertical margins of the modelled vein envelopes,” stated Ari Sussman, CEO.

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
BUUY349D04 66.15 66.65 0.50 52.20 13.7 52.40 781 VS180
94.60 95.10 0.50 7.93 2.0 7.96 761 VS170
314.50 318.50 4.00 25.86 16.0 26.07 615 VS62
incl 317.50 318.00 0.50 164.50 58.8 165.28 615
416.75 419.35 2.60 4.05 4.0 4.10 547 VS32
462.70 463.20 0.50 8.64 7.4 8.74 517 VS30
510.20 510.75 0.55 10.70 44.9 11.30 486 VS22
BUUY411 160.00 163.60 3.60 8.56 3.8 8.61 1551 VS150
incl 161.70 162.40 0.70 36.50 7.4 36.60 1552
181.80 183.00 1.20 3.82 37.1 4.31 1539 VS140
243.60 245.60 2.00 3.11 21.8 3.40 1500 VS120
255.20 257.60 2.40 15.32 14.9 15.52 1493 VS110
incl 255.20 255.80 0.60 45.10 32.2 45.53 1494
307.95 309.25 1.30 4.22 30.6 4.63 1461 VS65
348.80 349.40 0.60 10.05 24.6 10.38 1437 VS43
359.10 360.30 1.20 5.36 9.7 5.49 1430 VS42
BUUY413 157.20 159.10 1.90 7.73 60.0 8.53 1563 VS140
incl 158.50 159.10 0.60 21.50 115.0 23.03 1563
186.60 187.20 0.60 13.20 16.0 13.41 1547 VS130
198.00 199.10 1.10 3.66 20.1 3.93 1541 VS123
200.10 201.80 1.70 3.02 5.3 3.09 1539 VS123
222.60 223.65 1.05 80.35 29.1 80.74 1527 VS120
237.75 238.35 0.60 20.80 49.6 21.46 1519 VS110
304.10 305.80 1.70 0.74 184.1 3.19 1483 VS51
324.40 324.90 0.50 6.59 388.0 11.76 1473 VS48
327.55 330.40 2.85 1.87 75.6 2.88 1470 VS43
BUUY415 169.00 169.50 0.50 7.94 22.9 8.25 1544 VS140
187.35 187.85 0.50 12.50 16.8 12.72 1532 VS130
BUUY419 187.10 190.00 2.90 1.67 8.9 1.79 1544 VS120
272.00 273.70 1.70 7.29 14.0 7.48 1495 VS48
incl 273.20 273.70 0.50 20.60 34.8 21.06 1495
BUUY423 180.60 181.60 1.00 8.58 14.3 8.77 1535 VS140
incl 181.10 181.60 0.50 14.90 19.3 15.16 1535
197.30 204.15 6.85 2.62 12.0 2.78 1520 VS130
incl 203.10 203.60 0.50 19.00 50.8 19.68 1520
224.90 228.40 3.50 1.37 5.4 1.44 1504 VS123_H
232.80 238.50 5.70 7.12 20.5 7.39 1498 VS123_V
incl 232.80 233.35 0.55 56.80 118.0 58.37 1500
275.80 277.00 1.20 13.87 29.8 14.27 1472 VS110
incl 276.30 276.80 0.50 31.80 63.6 32.65 1472
280.40 281.50 1.10 6.01 19.0 6.26 1469 VS90
293.80 294.30 0.50 8.35 7.1 8.44 1460 VS90
325.10 328.70 3.60 2.55 9.6 2.68 1438 VS65
351.60 354.15 2.55 1.16 32.1 1.58 1421 VS51
BUUY429 185.60 188.70 3.10 4.79 12.2 4.96 1518 VS123
incl 188.10 188.70 0.60 19.50 31.2 19.92 1518
228.50 230.10 1.60 3.10 12.6 3.27 1489 VS90
246.40 248.50 2.10 4.61 11.9 4.76 1477 VS65
263.65 274.45 10.80 9.17 21.5 9.46 1459 VS62
incl 264.65 265.15 0.50 98.70 115.0 100.23 1465
and 265.65 266.20 0.55 34.40 31.6 34.82 1464
281.20 288.10 6.90 1.85 9.3 1.98 1450 VS48
293.70 294.20 0.50 9.73 27.3 10.09 1445 VS43
300.00 301.50 1.50 6.29 10.5 6.43 1440 VS42
305.80 306.80 1.00 11.31 9.5 11.43 1437 VS41
BUSY376D02 393.60 394.60 1.00 10.42 31.5 10.83 1047 VS110
incl 393.60 394.10 0.50 14.95 24.5 15.28 1047
BUSY376D03 285.25 287.25 2.00 38.04 389.3 43.23 1106 VS110
incl 285.25 286.25 1.00 53.35 502.0 60.04 1107
294.60 297.10 2.50 3.43 17.3 3.66 1097 VS110
BUSY386D 111.80 113.35 1.55 6.38 5.5 6.46 1703 New_Vein
406.00 407.90 1.90 5.22 43.3 5.80 1450 VS180
incl 407.40 407.90 0.50 18.55 131.0 20.30 1450
489.40 491.20 1.80 3.10 7.3 3.20 1380 VS170
497.90 498.90 1.00 9.32 21.3 9.60 1374 VS160
incl 497.90 498.40 0.50 17.60 40.9 18.15 1374
BUSY386D01 31.95 34.05 2.10 3.20 6.3 3.29 1344 VS150
87.70 91.85 4.15 2.00 6.4 2.08 1299 VS140
110.15 110.70 0.55 7.74 6.2 7.82 1285 VS130
252.00 256.20 4.20 17.59 18.9 17.84 1175 VS42+VS41
incl 252.00 252.60 0.60 77.80 100.0 79.13 1178
and 255.65 256.20 0.55 28.10 17.1 28.33 1175
277.70 281.10 3.40 16.08 14.3 16.27 1157 VS39
incl 277.70 278.20 0.50 82.70 66.3 83.58 1159
293.70 294.80 1.10 41.64 78.0 42.68 1147 VS32
BUSY386D02 5.00 7.00 2.00 3.09 4.7 3.15 1347 VS160
49.35 49.85 0.50 13.60 13.0 13.77 1313 VS150
71.20 71.75 0.55 12.45 21.3 12.73 1295 VS140
73.55 75.10 1.55 3.22 6.7 3.31 1293 VS140
86.70 87.70 1.00 6.24 10.3 6.38 1283 VS140
90.95 94.80 3.85 8.88 9.0 9.00 1277 VS130
incl 94.30 94.80 0.50 38.80 58.8 39.58 1277 VS130
274.50 275.50 1.00 4.62 13.8 4.80 1129 VS43
313.60 316.15 2.55 15.06 74.6 16.05 1096 VS39
incl 313.60 314.15 0.55 27.70 63.0 28.54 1097
and 315.55 316.15 0.60 29.40 228.0 32.44 1096
318.85 319.45 0.60 6.98 8.1 7.09 1093 VS34
BUSY386D03 19.70 21.40 1.70 3.98 8.8 4.09 1352 VS160
71.80 74.05 2.25 3.28 5.1 3.35 1308 VS150
87.45 88.00 0.55 12.90 16.8 13.12 1297 VS140
109.00 110.65 1.65 3.28 5.0 3.35 1278 VS130
247.10 247.70 0.60 96.40 145.0 98.33 1165 VS48
286.90 287.45 0.55 13.65 53.4 14.36 1132 VS39
298.90 302.55 3.65 72.00 280.0 75.73 1120 VS34
incl 301.00 301.50 0.50 132.00 245.0 135.27 1120
334.40 335.40 1.00 24.73 54.3 25.45 1092 VS32
BUSY386D04 32.70 39.85 7.15 2.58 4.8 2.65 1342 VS160
94.50 96.10 1.60 7.37 9.1 7.49 1296 VS140
116.20 118.50 2.30 4.65 5.2 4.72 1278 VS130
incl 116.70 117.20 0.50 15.05 14.1 15.24 1278
316.20 317.80 1.60 9.31 8.8 9.43 1127 VS39
incl 316.70 317.20 0.50 24.40 19.3 24.66 1127
BUSY386D06 1.20 2.60 1.40 3.67 3.0 3.71 1283 VS140
7.80 8.85 1.05 4.00 7.3 4.10 1278 VS130
85.90 87.50 1.60 3.54 3.5 3.59 1211 VS90
144.20 146.40 2.20 13.41 47.9 14.05 1157 VS48
incl 144.20 144.70 0.50 38.40 63.0 39.24 1158
216.90 218.50 1.60 18.86 61.0 19.68 1091 VS39
incl 216.90 217.50 0.60 49.20 154.0 51.25 1092
261.60 262.60 1.00 6.03 21.5 6.31 1051 VS34
271.05 273.60 2.55 29.08 170.7 31.35 1041 VS32
incl 272.10 273.60 1.50 45.47 274.3 49.12 1041

* Intercepts calculated for minimum intervals of 0.5 metres.
** 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 the Veta Sur System

Figure 2 – Cross Section A-A’ of Drilling into the Veta Sur System

Figure 3 – Long Section B-B’ of Drill Results Overlaying the Mineral Resource Envelope

Geological Description of the Buriticá Project
Continental’s 100%-owned, 75,023-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 1,350 metres of strike and 1,800 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.

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.

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 laboratory in Medellín run by ALS Colombia Limited (“ALS”), 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 necessarily 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 “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 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, an updated mineral resource estimate and mine plan and commercial production; 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.