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Continental Gold Drills Broad and High-Grade Intervals in Infill and Extensions of the Yaragua System at Buritica, Colombia

29.04.2015  |  Marketwired

TORONTO, ONTARIO--(Marketwired - Apr 29, 2015) - Continental Gold Ltd. (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 17 diamond drill-holes through the Yaraguá vein system at the Company's 100%-owned Buriticá project in Antioquia, Colombia. Drilling continues with the goal of upgrading Inferred resources into the Measured and Indicated categories under National Instrument 43-101 ("NI 43-101") guidelines, and delivering overall mineral resource growth. An updated mineral resource estimate for the Buriticá project remains on track for completion in late Q2 2015.

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

- Step-out drilling was successful in extending the Yaraguá system to the west and to depth whereas infill drilling, largely at high angles to the veins, focused on elevations around the Higabra tunnel.

- In western Yaraguá, step-out drilling extended a bulk mineralized zone discovered in BUSY291 (65.1 metres @ 10.4 g/t gold and 9 g/t silver, CNL News Release, November 12, 2012). New intercepts in this zone, located below the current Yaraguá mineral resource envelope, include:

  • 17.38 metres @ 10.8 g/t gold and 7 g/t silver (BUUY291D01, elevation of 614 metres);
  • 10.3 metres @ 6.2 g/t gold and 5 g/t silver (BUUY291D02, elevation of 640 metres);
  • 7.95 metres @ 4.7 g/t gold and 6 g/t silver (BUUY291D03, elevation of 537 metres); and
  • 21.15 metres @ 4.6 g/t gold and 4 g/t silver (BUUY291D05, elevation of 595 metres).

These drill-holes, along with BUSY291, are interpreted to outline a northeast-elongate zone, more than 100 metres in vertical extent and 25 x 40 metres in horizontal strike, open vertically in both directions and along strike to the southwest. Mineralization takes the form of moderately-dipping, sheeted gold-rich pyrite-Kspar veinlets, locally cross-cut by auriferous base-metal veins. This style of mineralization ("291-Style") is interpreted as relatively high-temperature "porphyry" style and may contribute further to more bulk style gold potential of Buriticá at depth.

- Elsewhere, drilling also intersected multiple veins below or outside of the current Yaraguá mineral resource envelope, extending the vertical extents of several Yaraguá vein families. In western Yaraguá, key intercepts include:

  • 0.5 metres @ 24.6 g/t gold and 20 g/t silver (BUUY291D01, elevation of 636 metres);
  • 5.25 metres @ 6.7 g/t gold and 22 g/t silver, including 1.25 metres @ 15.9 g/t gold and 80 g/t silver (BUUY291D01, elevation of 595 metres);
  • 1.6 metres @ 8.7 g/t gold and 5 g/t silver (BUUY291D03, elevation of 613 metres);
  • 0.5 metres @ 43.5 g/t gold and 15 g/t silver (BUUY291D03, elevation of 501 metres);
  • 0.65 metres @ 17.6 g/t gold and 3 g/t silver (BUUY291D04, elevation of 620 metres); and
  • 4.6 metres @ 9.9 g/t gold and 55 g/t silver, including 1.2 metres @ 27.6 g/t gold and 180 g/t silver (BUUY291D05, elevation of 581 metres);

and, in eastern Yaraguá:

  • 3.2 metres @ 15.3 g/t gold and 28 g/t silver (BUUY305, elevation of 1,081 metres); and
  • 2.6 metres @ 8.1 g/t gold and 6 g/t silver (BUUY309, elevation of 1,085 metres).

Most of the Yaraguá vein families remain open to depth and the grades encountered in this drilling are encouraging for future mineral resource growth.

- Infill drill-holes encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model for Yaraguá. Broad and/or high-grade intercepts in related master veins, in eastern Yaraguá, include:

  • 1.3 metres @ 71.2 g/t gold and 14 g/t silver (GEOMK17, MU10, elevation of 1,370 metres);
  • 6.1 metres @ 4.4 g/t gold and 29 g/t silver, including 1.2 metres @ 10.4 g/t gold and 21 g/t silver (GEOMK17, MU3, elevation of 1,278 metres);
  • 14.17 metres @ 5.6 g/t gold and 5 g/t silver, including 1.77 metres @ 24.5 g/t gold and 18 g/t silver (BUUY309, MU3, elevation of 1,025 metres);
  • 3.46 metres @ 9.0 g/t gold and 30 g/t silver (BUUY309, PRE, elevation of 1,023 metres);
  • 2.05 metres @ 66.3 g/t gold and 15 g/t silver (BUUY309, VNB, elevation of 1,018 metres);
  • 0.56 metres @ 21.6 g/t gold and 35 g/t silver (BUUY306, MUS, elevation of 1,099 metres);
  • 4.21 metres @ 12.3 g/t gold and 12 g/t silver, including 1.03 metres @ 31.9 g/t gold and 25 g/t silver (BUUY306, MU2, elevation of 1,073 metres); and
  • 0.57 metres @ 23.0 g/t gold and 62 g/t silver (BUUY306, PRE, elevation of 1,067 metres);

and, in central Yaraguá:

  • 1.0 metres @ 33.3 g/t gold and 107 g/t silver (BUUY304, MU2, elevation of 1,237 metres);
  • 0.55 metres @ 48.8 g/t gold and 30 g/t silver (BUUY307, MU2, elevation of 1,247 metres);
  • 1.7 metres @ 28 g/t gold and 8 g/t silver (BUUY307, MU4, elevation of 1,253 metres);
  • 2.45 metres @ 209 g/t gold and 52 g/t silver (BUUY307, VNBC1, elevation of 1,266 metres);
  • 8.25 metres @ 10.4 g/t gold and 15 g/t silver, including 1.0 metres @ 25.9 g/t gold and 26 g/t silver (BUUY307, VNC2 & SOF, elevation of 1,278 metres);
  • 2.9 metres @ 8.7 g/t gold and 6 g/t silver, including 1.15 metres @ 18.8 g/t gold and 10 g/t silver (BUUY313, MU, elevation of 1,218 metres);
  • 0.6 metres @ 36.4 g/t gold and 37 g/t silver (BUUY310, MU2, elevation of 1,167 metres);
  • 13.9 metres @ 5.3 g/t gold and 6 g/t silver, including 1.7 metres @ 11.2 g/t gold and 6 g/t silver (GEOMK14, MU4, elevation of 1,459 metres);
  • 2.45 metres @ 17.3 g/t gold and 13 g/t silver, including 1.3 metres @ 28.7 g/t gold and 11 g/t silver (GEOMK14, PRE, elevation of 1,447 metres);
  • 2.5 metres @ 11.6 g/t gold and 81 g/t silver, including 0.55 metres @ 43.9 g/t gold and 325 g/t silver (GEOMK14, VNAD, elevation of 1,340 metres);
  • 2.85 metres @ 12.5 g/t gold and 75 g/t silver (BUUY296, MUS1, elevation of 1,125 metres);
  • 4.5 metres @ 9.4 g/t gold and 22 g/t silver, including 1.5 metres @ 14.7 g/t gold and 6 g/t silver (BUUY296, VNE, elevation of 1,080 metres); and
  • 1.1 metres @ 20.1 g/t gold and 12 g/t silver (BUUY312, VNAD, elevation of 1,266 metres);

and, in western Yaraguá:

  • 1.28 metres @ 23.6 g/t gold and 9 g/t silver (BUUY291D01, VNB, elevation of 641 metres);
  • 2.12 metres @ 8.9 g/t gold and 35 g/t silver (BUUY291D02, FWV, elevation of 631 metres);
  • 1.25 metres @ 14.7 g/t gold and 19 g/t silver (BUUY291D03, VNB, elevation of 649 metres);
  • 1.75 metres @ 28.2 g/t gold and 25 g/t silver (BUUY291D04, MU11, elevation of 866 metres); and
  • 2.45 metres @ 14.2 g/t gold and 15 g/t silver (BUUY291D04, SOF, elevation of 693 metres).

- These and other intercepts will contribute to increased confidence levels of high-grade gold and silver mineral resources within master vein families covering large vertical and horizontal extents of the Yaraguá system. The grade X thicknesses of these veins in the 1,000-1,400-metre range of elevations are particularly encouraging as this is proximal to the main haulage developments proposed in the 2014 Preliminary Economic Assessment (the "PEA"), and also restricts the influence of areas within the Yaraguá system that were previously modelled as containing predominately low to medium precious metal grades.

"The 2014 drilling program at Yaraguá continues to achieve better results than anticipated from the May 2014 mineral resource estimate," commented Ari Sussman, President and CEO of Continental. "We look forward to completing an updated mineral resource estimate prior to the end of this quarter and are optimistic that our internal targets will be achieved in the study."

Details

Continental's 100%-owned, 59,285-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 PEA prepared in accordance with NI 43-101. This release documents the results of infill and extension drilling through the Yaraguá vein system. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1, 2, 3 and 4.

Table I: Drilling Highlights

HoleID From
(m)
To
(m)
Interval
*(m)
Gold
(g/t)
Silver
(g/t)
Zinc
(%)
Elevation
(m)
Vein**
BUUY291D 17.45 18.45 1.00 5.71 46.8 0.01 1159 outside
47.85 48.35 0.50 8.18 12.6 0.62 1137 outside
178.70 179.35 0.65 2.00 16.6 0.12 1040 outside
BUUY291D01 109.30 110.00 0.70 3.61 4.9 0.13 853 MU11
162.15 162.80 0.65 1.68 10.5 0.01 814 MU10
207.75 208.75 1.00 1.53 1.2 0.01 781 below
382.70 383.25 0.55 3.33 3.1 0.03 660 PRE
391.35 391.90 0.55 2.21 5.0 0.11 655 below
411.35 412.63 1.28 23.59 8.5 0.06 641 VNB
420.30 420.80 0.50 24.60 19.5 0.32 636 below
432.60 433.73 1.13 6.50 3.0 0.01 628 below
437.24 454.62 17.38 10.79 7.2 0.01 614 below
incl 438.57 440.30 1.73 24.56 6.2 0.01
and 446.13 447.32 1.19 28.15 6.8 0.01
465.97 469.66 3.69 3.11 7.9 0.01 604 below
473.00 473.77 0.77 3.79 1.3 0.01 602 below
479.00 484.25 5.25 6.67 21.9 0.01 595 below
incl 483.00 484.25 1.25 15.93 80.4 0.02 below
487.55 489.40 1.85 2.94 8.0 0.01 592 below
507.45 509.87 2.42 3.09 3.1 0.02 578 below
519.81 523.10 3.29 5.27 23.9 0.04 570 below
525.30 525.81 0.51 5.81 29.2 0.15 568 below
BUUY291D02 80.00 80.70 0.70 1.73 1.1 0.01 867 MU1
105.30 106.50 1.20 1.36 1.2 0.11 848 MU11
149.00 150.00 1.00 2.10 3.8 0.03 816 MU10
323.00 324.00 1.00 1.71 3.4 0.01 696 PRE
341.00 341.60 0.60 11.35 31.8 0.61 684 VNB
347.50 348.00 0.50 3.49 9.0 0.01 680 VNC
368.10 369.80 1.70 3.96 3.7 0.02 666 SOF
394.00 395.00 1.00 6.86 2.0 0.01 649 HWV
399.00 409.30 10.30 6.19 4.8 0.01 640 below
incl 399.70 401.80 2.10 13.16 6.5 0.01
411.80 412.30 0.50 3.81 10.7 0.39 638 dilution
416.00 418.05 2.05 2.90 10.5 0.08 635 dilution
422.00 424.12 2.12 8.88 35.0 0.79 631 FWV
469.55 470.60 1.05 1.59 14.5 0.11 602 VND
484.00 484.50 0.50 3.22 14.7 0.31 594 outside
495.70 497.50 1.80 1.96 7.9 0.02 586 outside
526.00 527.00 1.00 1.07 7.2 0.08 568 outside
BUUY291D03 191.25 191.80 0.55 4.10 20.2 0.01 683 PRE
230.15 232.00 1.85 2.42 11.8 0.01 653 dilution
236.75 238.00 1.25 14.72 19.4 0.58 649 VNB
240.45 241.90 1.45 3.54 4.0 0.01 646 below
260.20 261.70 1.50 6.75 30.3 0.39 631 below
265.40 265.90 0.50 4.03 31.0 0.09 627 below
275.00 275.50 0.50 4.20 8.1 0.01 620 below
283.40 285.00 1.60 8.71 4.5 0.01 613 below
294.70 295.50 0.80 16.50 11.2 0.01 605 below
318.70 319.70 1.00 4.32 1.2 0.01 587 below
335.35 336.40 1.05 1.40 10.6 0.09 575 below
365.70 366.25 0.55 7.78 76.5 0.13 553 below
380.65 388.60 7.95 4.65 6.1 0.03 537 outside
incl 382.00 383.70 1.70 11.67 10.6 0.02
400.20 400.70 0.50 4.12 18.0 0.18 528 outside
437.00 437.50 0.50 43.50 15.4 0.01 501 outside
BUUY291D04 88.95 90.70 1.75 28.16 25.1 0.02 866 MU11
209.80 211.00 1.20 1.29 11.8 0.00 779 below
286.00 287.00 1.00 1.21 3.0 0.01 725 PRE
325.70 327.35 1.65 1.46 9.5 0.16 698 VNB
332.35 334.80 2.45 14.19 15.3 0.05 693 SOF
357.80 358.10 0.30 6.71 16.5 0.66 677 HWV
384.90 386.40 1.50 23.65 2.2 0.01 659 SAV
392.00 393.00 1.00 4.65 9.1 0.02 655 dilution
397.80 403.05 5.25 2.12 6.7 0.07 649 dilution
410.35 411.35 1.00 13.30 105.3 0.86 643 FWV
421.50 423.10 1.60 2.97 13.7 0.08 636 dilution
439.25 439.75 0.50 7.95 38.4 2.02 626 VND
447.40 448.05 0.65 17.60 2.9 0.03 620 below
467.25 467.90 0.65 1.57 3.6 0.13 609 below
486.00 486.50 0.50 5.70 60.8 1.60 598 below
506.50 507.00 0.50 17.80 45.7 0.13 586 below
590.55 591.10 0.55 1.25 15.3 0.13 539 below
BUUY291D05 230.50 231.00 0.50 1.42 18.0 0.02 692 below
289.25 290.55 1.30 2.22 4.0 0.01 651 PRE
296.90 297.50 0.60 5.21 1.9 0.01 646 VNB
311.85 312.40 0.55 3.11 2.2 0.01 636 below
322.60 324.35 1.75 3.24 6.7 0.14 628 below
345.15 348.95 3.80 2.42 2.4 0.01 612 below
352.85 374.00 21.15 4.58 4.0 0.01 595 below
incl 352.85 354.75 1.90 11.54 4.2 0.01
and 363.35 364.35 1.00 33.63 20.0 0.01
381.65 382.15 0.50 3.22 7.1 0.56 589 below
383.30 386.85 3.55 2.50 14.6 0.15 587 below
391.40 396.00 4.60 9.92 54.6 0.09 581 below
incl 391.90 393.10 1.20 27.62 180.1 0.28
412.00 413.95 1.95 8.45 18.2 0.03 569 below
415.20 415.80 0.60 3.55 9.2 0.08 568 below
429.20 429.70 0.50 2.71 6.7 0.01 559 below
461.80 462.30 0.50 4.97 7.1 0.01 538 below
500.35 500.85 0.50 1.83 1.2 0.00 514 below
570.70 571.20 0.50 2.13 5.2 0.01 473 below
641.95 643.00 1.05 2.10 3.3 0.01 434 below
BUUY296 98.80 101.65 2.85 12.50 75.1 1.39 1125 MUS1
105.80 107.80 2.00 14.79 22.4 0.38 1122 MU1
114.35 115.75 1.40 12.57 31.8 0.24 1118 MU11
133.67 134.50 0.83 4.24 13.1 0.03 1109 MU10
197.00 201.50 4.50 9.37 22.3 0.35 1080 VNE
incl 198.00 199.50 1.50 14.73 6.2 0.06
266.50 267.05 0.55 2.86 119.0 2.48 1053 HWV
285.80 287.30 1.50 4.15 21.0 0.26 1045 FWV
308.00 309.00 1.00 1.48 12.3 0.10 1037 VND
BUUY304 1.70 3.00 1.30 1.00 0.5 0.01 1177 outside
87.05 87.60 0.55 0.96 3.7 0.15 1204 below
175.00 177.10 2.10 2.17 10.1 0.02 1233 MU
188.40 189.40 1.00 33.33 106.6 0.15 1237 MU2
193.45 193.95 0.50 36.60 22.6 0.68 1239 MU5
206.45 207.40 0.95 3.26 1.6 0.01 1243 MU4
221.50 222.00 0.50 4.52 19.4 0.14 1248 VNE
227.95 235.35 7.40 3.79 8.5 0.05 1252 PRE
236.85 238.15 1.30 6.20 6.5 0.03 1253 VNB
248.95 249.45 0.50 4.28 6.2 0.28 1257 VNBC
250.40 251.85 1.45 8.32 3.9 0.10 1258 CBV
255.15 260.90 5.75 5.50 23.6 0.26 1261 VNC
270.80 272.10 1.30 2.81 4.8 0.08 1264 VNC1
279.35 280.40 1.05 3.43 82.3 0.31 1267 SOF
281.90 284.10 2.20 3.52 11.2 0.46 1268 HWV
373.80 374.40 0.60 3.49 24.6 0.04 1298 dilution
376.20 376.70 0.50 5.60 130.0 2.62 1298 VNA
395.70 396.20 0.50 2.98 26.5 0.11 1305 dilution
441.90 442.45 0.55 1.72 2.6 0.19 1320 N24
463.20 464.50 1.30 9.53 48.7 0.47 1327 N25
467.65 468.25 0.60 5.18 26.3 0.01 1328 dilution
BUUY305 5.50 6.00 0.50 0.04 101.0 0.03 1170 outside
126.00 126.50 0.50 8.51 11.8 1.42 1143 MUS3
158.50 159.60 1.10 1.22 3.5 0.44 1135 MUS31
177.00 179.30 2.30 1.24 3.8 0.82 1131 below
184.05 187.00 2.95 1.88 10.3 1.08 1129 below
218.00 219.00 1.00 2.29 7.6 0.69 1122 below
223.75 224.30 0.55 3.39 2.7 0.22 1121 below
257.50 258.80 1.30 2.24 13.8 0.21 1114 MUS
270.30 276.70 6.40 1.17 31.2 0.49 1110 MU11
295.00 296.00 1.00 2.86 15.4 0.65 1107 MU
311.10 311.70 0.60 1.21 308.0 1.63 1103 below
329.00 329.50 0.50 2.73 13.4 1.24 1100 below
340.30 343.50 3.20 1.50 3.2 0.34 1098 below
374.00 376.50 2.50 2.66 11.0 0.83 1092 below
381.30 382.45 1.15 5.13 4.3 0.38 1090 SOF
401.00 401.50 0.50 2.86 3.4 0.10 1087 HWV
417.00 421.80 4.80 7.25 20.0 7.69 1084 SAV
incl 419.00 420.50 1.50 11.65 21.5 8.72
431.30 434.50 3.20 15.31 28.0 21.32 1081 below
incl 431.85 432.90 1.05 30.22 38.6 16.90
439.70 440.20 0.50 5.55 6.5 0.23 1080 VND
442.00 442.50 0.50 4.07 117.0 6.07 1080 VNAD
459.30 463.80 4.50 2.38 26.9 0.58 1077 dilution
467.65 469.20 1.55 6.69 23.8 1.91 1076 VNA
470.85 471.50 0.65 5.61 6.9 0.83 1075 dilution
474.60 476.85 2.25 2.02 3.8 0.64 1074 N10
501.10 502.20 1.10 1.62 18.0 6.04 1070 N15
BUUY306 151.32 151.82 0.50 9.02 4.7 0.01 1115 below
155.45 155.97 0.52 2.10 4.7 0.18 1114 below
191.67 192.23 0.56 21.60 34.5 0.08 1099 MUS
217.24 219.12 1.88 1.64 2.0 0.04 1089 MU11
240.85 242.30 1.45 1.51 1.6 0.01 1081 MAR
252.24 253.48 1.24 2.76 8.8 0.02 1077 MIC
258.62 262.83 4.21 12.31 11.9 0.03 1073 MU2
incl 260.35 261.38 1.03 31.88 25.1 0.03
273.28 273.84 0.56 6.63 64.3 0.15 1069 MU3
281.43 282.00 0.57 23.00 61.7 0.07 1067 PRE
292.59 293.09 0.50 11.75 179.0 0.94 1063 VNB
299.70 300.35 0.65 3.07 17.2 0.01 1060 VNC
311.29 312.10 0.81 2.30 3.7 0.02 1056 dilution
313.67 316.37 2.70 2.52 6.6 0.30 1055 SOF
331.39 332.97 1.58 1.50 0.7 0.06 1049 HWV
414.95 415.53 0.58 1.02 3.2 0.04 1022 VNAD
452.52 453.03 0.51 1.85 36.7 1.64 1011 N10
BUUY307 88.69 89.30 0.61 8.66 19.0 1.54 1213 below
105.50 106.55 1.05 1.14 12.4 0.04 1219 MUS1
167.00 168.00 1.00 3.58 3.5 0.03 1242 MU
183.50 184.05 0.55 48.80 29.8 0.15 1247 MU2
186.20 186.70 0.50 2.62 161.0 0.26 1248 MU5
198.00 199.70 1.70 28.02 8.3 0.32 1253 MU4
204.00 205.80 1.80 7.86 8.3 0.07 1255 VNE
212.20 213.20 1.00 4.51 5.4 0.07 1258 PRE
220.00 220.50 0.50 3.42 4.9 0.08 1260 VNB
230.00 230.55 0.55 3.03 21.5 0.10 1264 VNBC
232.50 233.00 0.50 10.40 25.2 0.15 1265 CBV
234.55 237.00 2.45 208.95 52.2 0.08 1266 VNBC1
241.00 243.00 2.00 3.53 3.8 0.04 1268 dilution
248.50 250.40 1.90 6.68 7.1 0.08 1271 VNC
252.90 253.40 0.50 4.77 5.4 0.17 1272 VNC1
262.50 270.75 8.25 10.37 14.8 0.51 1278
incl 262.50 263.50 1.00 25.86 25.9 0.70 VNC2
and 265.80 266.90 1.10 20.30 37.1 0.33 SOF
274.30 276.50 2.20 3.88 13.3 0.21 1280 HWV
278.80 282.00 3.20 2.72 10.4 0.20 1282 SAV
302.00 302.50 0.50 6.59 114.0 3.42 1289 FWV
324.10 325.40 1.30 9.68 102.5 2.01 1297 VNAD
BUUY309 43.65 44.18 0.53 2.91 1.5 0.32 1149 below
128.60 130.50 1.90 1.85 1.1 0.01 1104 below
165.10 167.70 2.60 8.11 5.5 0.11 1085 below
184.22 185.42 1.20 8.15 16.5 0.16 1076 MUS
212.96 213.55 0.59 13.65 10.2 0.03 1061 MU1
214.55 216.72 2.17 2.05 24.5 0.13 1060 MU11
226.14 227.23 1.09 2.22 5.3 0.17 1055 MU10
230.23 231.50 1.27 2.24 2.8 0.04 1053 below
232.94 233.60 0.66 5.98 2.6 0.02 1052 MU
243.63 245.34 1.71 4.58 2.2 0.04 1046 below
263.45 265.09 1.64 1.65 2.5 0.03 1037 MAR
267.05 268.00 0.95 3.85 1.5 0.02 1035 MIC
269.56 270.06 0.50 15.60 8.3 0.02 1034 CENT
275.93 290.10 14.17 5.59 4.5 0.02 1025 MU3
incl 286.79 288.56 1.77 24.54 17.5 0.02
292.54 296.00 3.46 8.98 30.3 0.01 1023 PRE
304.45 306.50 2.05 66.26 15.0 0.04 1018 VNB
314.06 314.56 0.50 11.05 625.0 1.54 1014 VNC
429.90 430.62 0.72 0.72 86.3 0.36 965 VNA
432.40 432.94 0.54 4.71 14.5 0.58 964 below
471.58 472.64 1.06 1.30 17.1 0.64 950 N15
BUUY310 83.68 85.00 1.32 1.17 2.0 0.03 1169 MUS1
95.83 97.55 1.72 4.51 8.6 0.04 1169 MUS1
113.20 114.25 1.05 4.08 2.5 0.09 1168 MU1
123.80 124.44 0.64 5.12 3.2 0.19 1168 MU11
145.00 145.55 0.55 2.29 4.5 0.20 1167 MU10
168.15 168.75 0.60 36.40 37.0 0.17 1167 MU2
175.40 177.40 2.00 1.53 2.6 0.02 1166 MU4
238.10 238.80 0.70 1.83 5.9 0.04 1166 HWV
255.00 255.80 0.80 5.43 76.7 0.53 1166 SAV
257.65 258.15 0.50 3.27 18.2 0.19 1166 FWV
307.75 308.30 0.55 8.84 46.0 0.77 1165 VNAD
327.80 329.10 1.30 0.84 110.0 0.26 1165 VNA
333.15 334.30 1.15 1.76 3.5 0.12 1164 CENT
387.93 389.12 1.19 2.98 64.5 0.01 1163 N24
BUUY312 7.30 7.88 0.58 1.32 1.6 0.06 1178 outside
83.60 84.15 0.55 3.65 5.1 0.03 1201 MUS1
136.50 137.05 0.55 9.45 6.7 0.58 1216 MU11
146.60 147.60 1.00 1.73 9.3 0.28 1220 MU10
163.00 163.90 0.90 2.58 4.0 0.05 1225 MU
177.00 178.10 1.10 1.60 2.4 0.22 1229 MU2
184.35 185.65 1.30 2.22 2.9 0.03 1231 MU4
210.00 211.30 1.30 2.08 4.4 0.09 1239 VNBC
267.60 268.10 0.50 3.99 25.0 0.54 1257 SAV
272.50 273.00 0.50 7.17 174.0 1.40 1259 FWV
278.60 279.35 0.75 14.60 3.3 0.14 1261 VND
294.70 295.80 1.10 20.08 11.9 0.06 1266 VNAD
309.90 311.10 1.20 1.71 3.1 0.04 1271 VNA
340.60 341.50 0.90 0.95 8.8 0.02 1281 CENT
BUUY313 96.60 97.62 1.02 9.97 17.2 0.18 1199 MUS1
110.60 111.17 0.57 0.12 120.0 0.02 1202 MUS
127.60 128.10 0.50 4.20 12.3 0.03 1206 MU11
153.50 155.40 1.90 2.87 10.2 0.35 1213 MU10
171.35 174.25 2.90 8.74 6.3 0.06 1218 MU
incl 173.10 174.25 1.15 18.79 10.2 0.09
178.00 178.50 0.50 8.81 17.4 1.51 1219 MU5
186.15 186.70 0.55 6.50 6.5 0.26 1222 MU4
188.85 189.90 1.05 3.64 8.3 0.15 1222 VNE
193.00 194.50 1.50 6.04 7.7 0.34 1224 PRE
199.75 201.15 1.40 3.07 4.9 0.05 1225 VNB
204.70 205.20 0.50 20.20 26.6 0.40 1227 VNBC
213.90 215.25 1.35 3.46 5.7 0.06 1229 CBV
235.85 237.80 1.95 5.45 28.9 0.70 1236 VNC1
264.10 264.70 0.60 4.41 3.3 0.21 1244 HWV
268.65 270.10 1.45 3.98 9.1 0.32 1246 SAV
321.00 321.50 0.50 1.13 4.5 0.34 1262 VNA
349.75 350.25 0.50 1.74 10.5 0.03 1272 dilution
381.90 382.50 0.60 5.10 149.0 0.44 1283 N24
GEOMK14 11.60 15.60 4.00 4.00 7.5 0.25 1497 MU
16.65 23.20 6.55 2.13 2.1 0.07 1492 dilution
28.50 31.00 2.50 3.13 4.5 0.12 1487 MU2
51.60 53.00 1.40 1.58 4.7 0.66 1471 MU5
55.60 69.50 13.90 5.33 5.7 0.57 1459 MU4
incl 64.50 66.20 1.70 11.24 6.0 0.46
79.60 81.00 1.40 2.62 4.4 0.58 1451 VNE
83.55 86.00 2.45 17.30 13.2 1.76 1447 PRE
incl 84.70 86.00 1.30 28.72 11.2 0.99
93.00 94.50 1.50 2.48 4.1 0.18 1441 VNB
102.00 104.85 2.85 2.85 1.6 0.07 1434 VNBC
107.00 108.40 1.40 6.15 2.9 0.13 1431 CBV
146.95 147.75 0.80 7.08 3.8 0.16 1403 VNC2
151.50 152.00 0.50 28.00 57.3 2.73 1399 SOF
188.80 189.65 0.85 3.46 4.2 0.46 1373 FWV
203.00 204.40 1.40 1.46 4.3 0.50 1362 VND
230.60 231.75 1.15 2.41 14.6 0.12 1343 NWSE
234.00 236.50 2.50 11.58 81.1 0.19 1340 VNAD
incl 234.00 234.55 0.55 43.90 325.0 0.03
324.00 324.55 0.55 2.91 19.1 0.16 1278 CENT
345.00 345.63 0.63 3.03 22.9 0.03 1264 N24
GEOMK17 0.00 2.20 2.20 1.93 12.8 0.08 1667 above
160.60 161.90 1.30 4.12 0.8 0.01 1527 MUS2
234.00 234.64 0.64 2.55 13.7 0.52 1463 MUS21
277.00 278.30 1.30 1.70 14.9 1.99 1425 MUS
280.40 282.03 1.63 1.27 9.5 1.06 1422 MU1
302.10 302.70 0.60 4.21 20.7 1.36 1403 MU11
306.00 308.00 2.00 2.33 8.0 1.50 1399 dilution
311.70 316.10 4.40 2.45 5.3 0.46 1392 dilution
334.90 336.70 1.80 3.45 12.2 0.79 1374 dilution
339.90 341.20 1.30 71.22 13.8 0.41 1370 MU10
345.50 346.85 1.35 3.25 3.5 0.06 1365 dilution
424.50 428.00 3.50 1.49 3.3 0.07 1295 MU
435.15 435.65 0.50 4.26 9.2 0.05 1288 MU4
441.40 447.50 6.10 4.36 29.0 0.62 1278 MU3
incl 443.80 445.00 1.20 10.37 21.4 0.03
453.50 454.20 0.70 10.85 3.4 0.44 1272 PRE
458.40 460.20 1.80 1.49 1.3 0.05 1267 VNB
491.40 492.00 0.60 2.07 11.3 0.14 1239 VNC
539.00 543.70 4.70 1.49 2.4 0.08 1195 CENT
550.10 552.60 2.50 2.83 5.7 0.17 1187 CENT
572.70 573.40 0.70 1.19 3.0 0.02 1169 FWV
* 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 between 70% of the down-hole interval and near true width (for GEOMK14, GEOMK17 and BUUY291D-D05, about 50%). 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 envelopes. Dilution is defined as new mineralization outside 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 Yaraguá comprised four fans (for 15 underground drill-holes) drilled from chambers set up in the Higabra Valley tunnel, at elevations around 1,170 metres (Figures 1 and 2). Drill-holes in three of the fans were broadly north-directed and shallowly-inclined to achieve very high angle intersections with master vein sets through most of the Yaraguá vein families. Two holes (GEOMK14 and GEOMK17) were drilled from surface, primarily for geotechnical purposes, but also infilled parts of the Yaraguá system at higher elevations than the underground holes were targeting. Five holes (BUUY291D01-D05) were directionally drilled off of BUUY291D, deep into western Yaraguá.

These step-out holes extended a bulk mineralized zone discovered in BUSY291 (65.1 metres @ 10.4 g/t gold and 9 g/t silver, (CNL News Release, November 12, 2012). New intercepts in this zone, below the current Yaraguá mineral resource envelope (Figures 2 and 4), include:

  • 17.38 metres @ 10.8 g/t gold and 7 g/t silver (BUUY291D01, elevation of 614 metres);
  • 10.3 metres @ 6.2 g/t gold and 5 g/t silver (BUUY291D02, elevation of 640 metres);
  • 7.95 metres @ 4.7 g/t gold and 6 g/t silver (BUUY291D03, elevation of 537 metres); and
  • 21.15 metres @ 4.6 g/t gold and 4 g/t silver (BUUY291D05, elevation of 595 metres).

These drill-holes, along with BUSY291, are interpreted to outline a northeast-elongate zone, over 100 metres in vertical extent and 25 x 40 metres in the horizontal, open to depth, upwards and to the southwest. Mineralization takes the form of moderately-dipping, sheeted gold-rich pyrite-Kspar veinlets with high lead/zinc but base-metal-poor, chemically and morphologically distinct from and locally cross-cut by auriferous base-metal veins. Selvages around the pyritic veinlets exhibit potassic, biotite-stable alteration. This mineralization ("291-Style") is interpreted as an apparently relatively high-temperature, "porphyry" style and may contribute further to more bulk style gold potential of Buriticá at depth.

Elsewhere, drilling also intersected multiple veins below or outside of the current Yaraguá mineral resource envelope (Table 1), extending the vertical extents of several Yaraguá vein families. In western Yaraguá, key intercepts include:

  • 0.5 metres @ 24.6 g/t gold and 20 g/t silver (BUUY291D01, elevation of 636 metres);
  • 5.25 metres @ 6.7 g/t gold and 22 g/t silver, including 1.25 metres @ 15.9 g/t gold and 80 g/t silver (BUUY291D01, elevation of 595 metres);
  • 1.6 metres @ 8.7 g/t gold and 5 g/t silver (BUUY291D03, elevation of 613 metres);
  • 0.8 metres @ 16.5 g/t gold and 11 g/t silver (BUUY291D03, elevation of 605 metres);
  • 0.5 metres @ 43.5 g/t gold and 15 g/t silver (BUUY291D03, elevation of 501 metres);
  • 0.65 metres @ 17.6 g/t gold and 3 g/t silver (BUUY291D04, elevation of 620 metres);
  • 0.5 metres @ 17.8 g/t gold and 46 g/t silver (BUUY291D04, elevation of 586 metres); and
  • 4.6 metres @ 9.9 g/t gold and 55 g/t silver, including 1.2 metres @ 27.6 g/t gold and 180 g/t silver (BUUY291D05, elevation of 581metres);

and, in eastern Yaraguá:

  • 3.2 metres @ 15.3 g/t gold and 28 g/t silver, including 1.05 metres @ 30.2 g/t gold and 39 g/t silver (BUUY305, elevation of 1,081 metres); and
  • 2.6 metres @ 8.1 g/t gold and 6 g/t silver (BUUY309, elevation of 1,085 metres).

Most of the Yaraguá vein families remain open to depth and the grades encountered in this drilling are encouraging for future mineral resource growth.

Infill drill-holes encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected (Table 1) from the current mineral resource block model for eastern, central and western Yaraguá (Figures 1, 2 and 3). Broad and/or high-grade intercepts in related master veins, in eastern Yaraguá, include:

  • 1.3 metres @ 71.2 g/t gold and 14 g/t silver (GEOMK17, MU10, elevation of 1,370 metres);
  • 6.1 metres @ 4.4 g/t gold and 29 g/t silver, including 1.2 metres @ 10.4 g/t gold and 21 g/t silver (GEOMK17, MU3, elevation of 1,278 metres);
  • 14.17 metres @ 5.6 g/t gold and 5 g/t silver, including 1.77 metres @ 24.5 g/t gold and 18 g/t silver (BUUY309, MU3, elevation of 1,025 metres);
  • 3.46 metres @ 9 g/t gold and 30 g/t silver (BUUY309, PRE, elevation of 1,023 metres);
  • 2.05 metres @ 66.3 g/t gold and 15 g/t silver (BUUY309, VNB, elevation of 1,018 metres);
  • 0.56 metres @ 21.6 g/t gold and 35 g/t silver (BUUY306, MUS, elevation of 1,099 metres);
  • 4.21 metres @ 12.3 g/t gold and 12 g/t silver, including 1.03 metres @ 31.9 g/t gold and 25 g/t silver (BUUY306, MU2, elevation of 1,073 metres);
  • 0.57 metres @ 23 g/t gold and 62 g/t silver (BUUY306, PRE, elevation of 1,067 metres); and
  • 4.8 metres @ 7.3 g/t gold and 20 g/t silver, including 1.5 metres @ 11.7 g/t gold and 22 g/t silver (BUUY305, SAV, elevation of 1,084 metres);

and, in central Yaraguá:

  • 1.0 metres @ 33.3 g/t gold and 107 g/t silver (BUUY304, MU2, elevation of 1,237 metres);
  • 0.5 metres @ 36.6 g/t gold and 23 g/t silver (BUUY304, MU5, elevation of 1,239 metres);
  • 0.55 metres @ 48.8 g/t gold and 30 g/t silver (BUUY307, MU2, elevation of 1,247 metres);
  • 1.7 metres @ 28 g/t gold and 8 g/t silver (BUUY307, MU4, elevation of 1,253 metres);
  • 2.45 metres @ 209.0 g/t gold and 52 g/t silver (BUUY307, VNBC1, elevation of 1,266 metres);
  • 8.25 metres @ 10.4 g/t gold and 15 g/t silver, including 1.0 metres @ 25.9 g/t gold and 26 g/t silver and 1.1 metres @ 20.3 g/t gold and 37 g/t silver (BUUY307, VNC2 and SOF, elevation of 1,278 metres);
  • 2.9 metres @ 8.7 g/t gold and 6 g/t silver, including 1.15 metres @ 18.8 g/t gold and 10 g/t silver (BUUY313, MU, elevation of 1,218 metres);
  • 0.5 metres @ 20.2 g/t gold and 27 g/t silver (BUUY313, VNBC, elevation of 1,227 metres);
  • 0.6 metres @ 36.4 g/t gold and 37 g/t silver (BUUY310, MU2, elevation of 1,167 metres);
  • 13.9 metres @ 5.3 g/t gold and 6 g/t silver, including 1.7 metres @ 11.2 g/t gold and 6 g/t silver (GEOMK14, MU4, elevation of 1,459 metres);
  • 2.45 metres @ 17.3 g/t gold and 13 g/t silver, including 1.3 metres @ 28.7 g/t gold and 11 g/t silver (GEOMK14, PRE, elevation of 1,447 metres);
  • 2.5 metres @ 11.6 g/t gold and 81 g/t silver, including 0.55 metres @ 43.9 g/t gold and 325 g/t silver (GEOMK14, VNAD, elevation of 1,340 metres);
  • 2.85 metres @ 12.5 g/t gold and 75 g/t silver (BUUY296, MUS1, elevation of 1,125 metres);
  • 4.5 metres @ 9.4 g/t gold and 22 g/t silver, including 1.5 metres @ 14.7 g/t gold and 6 g/t silver (BUUY296, VNE, elevation of 1,080 metres);
  • 0.75 metres @ 14.6 g/t gold and 3 g/t silver (BUUY312, VND, elevation of 1,261 metres); and
  • 1.1 metres @ 20.1 g/t gold and 12 g/t silver (BUUY312, VNAD, elevation of 1,266 metres);

plus, in western Yaraguá:

  • 1.28 metres @ 23.6 g/t gold and 9 g/t silver (BUUY291D01, VNB, elevation of 641 metres);
  • 2.12 metres @ 8.9 g/t gold and 35 g/t silver (BUUY291D02, FWV, elevation of 631 metres);
  • 1.25 metres @ 14.7 g/t gold and 19 g/t silver (BUUY291D03, VNB, elevation of 649 metres);
  • 1.75 metres @ 28.2 g/t gold and 25 g/t silver (BUUY291D04, MU11, elevation of 866 metres); and
  • 2.45 metres @ 14.3 g/t gold and 15 g/t silver (BUUY291D04, SOF, elevation of 693 metres).

These and other intercepts will contribute to increased confidence levels of high-grade gold and silver mineral resources within master vein families through large vertical and horizontal extents of the Yaraguá system. The grade X thicknesses of these veins in the 1,000-1,400-metre range of elevations are particularly encouraging as this is proximal to the main haulage developments proposed in the PEA and also restricts the influence of areas within Yaraguá that were previously modelled as containing predominately low to medium precious metal 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 PEA (entitled "Buritica Gold Project, NI 43-101 Technical Report Preliminary Economic Assessment, Antioquia, Colombia", and dated December 22, 2014 with an effective date of November 17, 2014), led by M3 Engineering and Technology of Tucson, Arizona, with contributions from other independent consultants including NCL Ingeneria y Construccion SPA, which was responsible for the underground mine plan for the Buriticá project. The PEA is preliminary in nature and includes inferred mineral resources that are considered to be too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty the PEA will be realized. Further, mineral resources are not mineral reserves and have not demonstrated economic viability. The PEA 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 Ltd. is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production. On November 17, 2014, the Company announced the PEA, the results of which included an 18-year mine life based on 20,055,000 tonnes grading 7.80 g/t gold and 19.35 g/t silver, resulting in 4,777,000 ounces of recovered gold and 7,088,000 ounces of recovered silver, and utilized the May 2014 mineral resource estimate prepared in accordance with NI 43-101. The PEA concludes an after-tax net present value at a 5% discount of $1.08 billion and an after-tax internal rate of return of 31.5% on an initial capital cost of $390.3 million with a payback of 2.8 years.

With a goal of being the newest large-scale hard rock gold producer in Colombia, Continental has achieved major advances in recent times and anticipates completing environmental permitting in 2015. A Phase VII drill program is underway at the Buriticá project to further delineate mineral resources and drill new target zones identified within its concessions.

Additional details on the Buriticá project, including the PEA, and the rest of Continental's suite of gold exploration properties are 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 the estimation of mineral resources, results of the PEA, advancing the Buriticá project, exploration results, potential mineralization, potential development of mine openings, potential improvement of mining dilution grades, timing of an updated mineral resource estimate, 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.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/cnl0429fig1.pdf.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/cnl0429fig2.pdf.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/cnl0429fig3.pdf.

To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/cnl0429fig4.pdf.



Contact

Continental Gold Ltd.
+1.416.583.5610
info@continentalgold.com
www.continentalgold.com


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