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
|Category||Tonnes (M)||Gold g/t||Silver g/t||Gold Eq g/t||Gold oz (M)||Silver oz (M)||Gold Eq oz (M)|
|Total M & I||12.89||10.8||34||11.4||4.48||13.98||4.71|
|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.|
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.
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.
Vein intercepts between master veins include:
Intercepts in the mineralized “halos” of master veins include:
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.
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
* 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:
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:
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:
Vein intercepts between master veins in Veta Sur include:
Intercepts in the mineralized “halos” of master veins include:
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.
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.
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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.
Figure 2 – Long section (Line C-D on Figure 1) showing highlights of new drilling against the 2015 Veta Sur mineral resource envelope.
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.
Figure 4 – Long section (Line C-D on Figure 1) showing highlights of new drilling against the 2015 Yaraguá mineral resource envelope.
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.