October 29, 2012 06:30 ET
Continental Gold Drills 29.1 Metres at 23.7 g/t Gold and 185 g/t Silver at Buritica, Colombia
TORONTO, ONTARIO--(Marketwire - Oct. 29, 2012) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for nine diamond drill-holes from the Company's ongoing program at the Buriticá Project in Antioquia, Colombia. Seven drills are currently on site as part of the Company's Phase IV, minimum 100,000-metre diamond drill-program for 2012-2013.
Highlights
Veta Sur (Figures 1 and 2)
Drilling in BUSY291 and BUSY299 and previously announced BUSY231 (5.95 m @ 125.9 g/t Gold and 66 g/t Silver) are now interpreted to be a northern extension of the Veta Sur vein system. These veins are situated outside of the current mineral resource estimate block model prepared in accordance with NI 43-101 (the "resource model") as announced on October 1, 2012. BUSY291 has intersected the northern extension of the Veta Sur vein system with high-grade gold at depth, including: 6.5 m @ 49.8 g/t Gold and 40 g/t Silver, including 3.5 m @ 89.2 g/t Gold and 67 g/t Silver Shallower drilling in BUSY308 in central Veta Sur also encountered a broad intercept of high-grade gold, including: 29.1 m @ 23.7 g/t Gold and 185 g/t Silver, including 4.15 m @ 75.2 g/t Gold and 368 g/t Silver This interval is broader and higher grade than corresponding blocks in the current resource model. BUSY299 intersected the northern extension of Veta Sur vein system at a relatively shallow depth. These silver-rich intersections are located outside the resource model and include: 1.6 m @ 8.1 g/t Gold and 1,210 g/t Silver 0.8 m @ 5.1 g/t Gold and 1,260 g/t Silver The hole then drilled a broad intercept of high-grade gold with a result of:
36.1 m @ 12.6 g/t Gold and 33 g/t Silver, including 2.15 m @ 82.3 g/t Gold and 39 g/t Silver and 6.88 m @ 31.2 g/t Gold and 70 g/t Silver This hole then continued deeper and intersected the southern vein set in eastern Veta Sur with results including:
1.45 m @ 16.6 g/t Gold and 24 g/t Silver 2.1 m @ 13.2 g/t Gold and 37 g/t Silver Drilling in eastern Veta Sur extended some veins outside the resource model and also demonstrated grades higher than comparable areas of the current resource model. Significant intercepts include: BUSY285 intersected 0.85 m @ 1,775.7 g/t Gold and 69 g/t Silver and 0.8 m @ 27.3 g/t Gold and 789 g/t Silver, all of which are outside of the resource model BUSY281 intersected 1.45 m @ 12.6 g/t Gold and 15 g/t Silver "Drilling continues to deliver superb results in expanding the envelope at Veta Sur," commented Ari Sussman, CEO. "Development equipment is already at the location of both the proposed Veta Sur ramp and Yaraguá tunnel, with the first blast for both development faces anticipated to occur on schedule towards the end of November 2012."
Details
Continental's 100%-owned 28,920-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 900 metres of strike and 1,300 vertical metres, and partially sampled in underground developments. The Veta Sur system has been drill intersected along 570 metres of strike and 1,180 vertical metres. 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 updated mineral resource estimate for Buriticá. |