Continental Gold Drills High-Grade Gold Over 1,200 Vertical Metres at Veta Sur and Confirms the Laurel System as a Major Discovery at Buriticá, Colombia
![Continental Gold Drills High-Grade Gold Over 1,200 Vertical Metres at Veta Sur and Confirms the Laurel System as a Major Discovery at Buriticá, Colombia](https://www.goldseiten.de/media/goldseiten-news.jpg)
TORONTO, May 02, 2018 (GLOBE NEWSWIRE) -- Continental Gold Inc. (TSX:CNL) (OTCQX:CGOOF) (“Continental” or the “Company”) is pleased to announce results from the initial seven diamond drill holes into the Veta Sur system and the Laurel target as part of its 2018 drilling program at its 100%-owned Buriticá project in Antioquia, Colombia. The Company currently has 14 diamond drill rigs in operation, working to increase and upgrade mineral resources to higher classification categories by testing for high-grade and broad mineralized zones within the mineral reserve and resource envelopes. In addition, high-impact targets along strike and below existing mineral resources, as well as grassroots targets proximal to existing and proposed infrastructure, are now being tested.
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“Without question, the results today confirm that the Veta Sur system, like the Yaraguá system to the immediate east, is world-class in size as we have not yet been able to define the limits of the sheeted veins system. Veta Sur, which has already been drilled over 1,100 metres of strike by 1,700 vertically, continues to expand with the discovery of new veins in the footwall northwest of the system at depth,” commented Ari Sussman, CEO. “Additionally, the Laurel system can now be confirmed as an important discovery, measured over 1,250 metres along strike by 1,250 metres vertically. A considerable amount of drilling will still need to take place at Laurel to prove up a mineral resource; however, with the discovery of high-grade visible gold in the system for the first time, we are prioritizing drilling to attack it aggressively.”
Laurel Target (referenced in Figures 1, 2 and 5)
Scout drilling of the greenfield Laurel target (“Laurel”) has confirmed that the potential exists for it to evolve into a third major high-grade vein system. Laurel is fortuitously located directly south of the Veta Sur system and a short distance south from the planned location of the Veta Sur ramp, which is currently under construction. The Laurel target has been sparsely traced by drilling and sampling over large dimensions measuring 1,285 metres along strike by 1,250 metres vertically and remains open in all directions for expansion.
High-grade results from drilling include:
- 1.65 metres @ 14.05 g/t gold and 11.4 g/t silver (BUSY374D03)
- 0.50 metres @ 59.20 g/t gold and 86.1 g/t silver (BUSY374D03)
- 1.55 metres @ 15.56 g/t gold and 15.9 g/t silver (BUSY374D03)
Given the close proximity of the Laurel target to the Veta Sur ramp currently under construction, the Company is prioritizing it for drilling as good potential exists for Laurel to be incorporated into the early years of the mine plan. A second diamond drill rig has arrived at site and is being set up to test for western extensions of the Laurel system over a myriad of vertical elevations with additional drilling currently in the planning phase.
Veta Sur System (referenced in Figures 1, 2, 3 and 4)
Seven diamond drill holes intersected the Veta Sur system (“Veta Sur”) at various elevations covering more than 1,100 vertical metres and once again proving that the system hosts excellent continuity of high-grade gold over large dimensions. Importantly, the system demonstrates clear metal zonation as depicted by the mineralogy with high-grades of gold and silver associated with zinc, lead and pyrite at shallow elevations, giving way at deeper elevations to gold, pyrrhotite and slightly elevated copper. This type of metal zonation suggests that the system is more proximal to a porphyry source at depth and deep drilling is planned to try and find a porphyry system.
The first directionally drilled step-out hole in over three years into Veta Sur (BUUY349D02) successfully extended high-grade gold 300 metres below the deepest part of the inferred resource estimate above cut-off grade in the central portion of Veta Sur. Additionally, the same hole also stepped out at depth along strike and discovered multiple new high-grade veins with key highlights as follows:
- 3.10 metres @ 38.38 g/t gold and 57.3 g/t silver (BUUY349D02, elevation 635 metres above sea level (“ASL”); 200 metre extension below the lowest limit of the inferred mineral resource envelope above cut-off grade)
- 3.75 metres @ 51.39 g/t gold and 35 g/t silver (BUUY349D02, a new vein 20 metres to the northwest of the most northwesterly vein modeled at Veta Sur at an elevation of 501 metres ASL; 300 metres below the lowest limit of the inferred mineral resource envelope)
Drill holes BUSY374D01-03, intersected high-grade gold in the Veta Sur system within the inferred mineral resource envelope at elevations between 930-980 metres ASL as follows:
- 4.25 metres @ 28.35 g/t gold and 62.8 g/t silver (BUSY374D01)
- 10.05 metres @ 6.53 g/t gold and 37.3 g/t silver (BUSY374D02)
- 4.00 metres @ 22.44 g/t gold and 134.6 g/t silver (BUSY374D03)
Grades encountered in these three drill holes are generally much higher than the current inferred mineral resource estimate for this area of the block model with results as follows:
Hole ID | Intercept Interval* (m) | Gold** (g/t) | Silver** (g/t) | Vein | Block Model (g X m) | Drill Hole (g X m) | Difference(1) | |
BUUY374D01 | 4.25 | 28.35 | 62.8 | VS42+VS39 | 0.2 | 120 | 59,900% | |
BUUY374D02 | 10.05 | 6.53 | 37.3 | VS39+VS34 | 0.8 | 65.6 | 8,100% | |
BUUY374D03 | 4.00 | 22.4 | 51.1 | VS39 | 0.5 | 89.9 | 17,880% |
(1) Represents difference between block model and drill hole on a grams x metre basis
In the past, drill testing the depth potential of Veta Sur was limited due to lack of access. With underground development advancing at a productive rate and providing suitable drilling locations, the Company will be aggressive in looking to grow the mineral resources at Veta Sur over the balance of the year.
Infill drilling at much higher elevations from Veta Sur intersected grades that were generally in line with the mineral resource block model with significant results as follows:
- 3.30 metres @ 9.48 g/t gold and 104.9 g/t silver (BUUY368)
- 0.50 metres @ 100.5 g/t gold and 195 g/t silver (BUUY373)
Hole ID | From (m) | To (m) | Intercept Interval* (m) | Gold** (g/t) | Silver** (g/t) | Gold Equivalent** (g/t) | Mid-Point Elevation (m) | Vein |
BUUY349D | 506.10 | 506.60 | 0.50 | 6.80 | 22.8 | 7.13 | 840 | Laurel System |
BUUY349D01 | Not complete | |||||||
BUUY349D02 | 289.20 | 291.80 | 2.60 | 3.24 | 1.1 | 3.25 | 664 | VS62 |
incl | 289.20 | 289.85 | 0.65 | 7.37 | 3.3 | 7.42 | 665 | |
334.10 | 337.20 | 3.10 | 38.38 | 57.3 | 39.20 | 635 | VS43 | |
incl | 334.70 | 335.20 | 0.50 | 212.00 | 99.0 | 213.41 | 636 | |
and | 336.55 | 337.20 | 0.65 | 9.98 | 132.0 | 11.87 | 635 | |
372.10 | 372.80 | 0.70 | 10.75 | 6.8 | 10.85 | 613 | VS39 | |
377.90 | 378.40 | 0.50 | 20.90 | 22.7 | 21.22 | 609 | VS34 | |
443.40 | 447.00 | 3.60 | 3.13 | 3.0 | 3.17 | 568 | Unmodeled Vein | |
448.40 | 448.90 | 0.50 | 5.02 | 22.1 | 5.34 | 566 | Unmodeled Vein | |
533.25 | 537.00 | 3.75 | 3.05 | 5.2 | 3.13 | 515 | VS16 | |
545.80 | 547.20 | 1.40 | 2.33 | 2.0 | 2.36 | 509 | Northwest of Model | |
548.90 | 549.50 | 0.60 | 5.47 | 1.2 | 5.49 | 507 | Northwest of Model | |
559.45 | 563.20 | 3.75 | 51.39 | 35.0 | 51.89 | 501 | Northwest of Model | |
incl | 560.90 | 562.20 | 1.30 | 141.00 | 89.8 | 142.28 | 500 | |
and | 559.45 | 560.15 | 0.70 | 8.06 | 12.5 | 8.24 | 501 | |
613.20 | 615.45 | 2.25 | 3.36 | 1.6 | 3.39 | 469 | Northwest of Model | |
incl | 614.85 | 615.45 | 0.60 | 6.45 | 1.7 | 6.47 | 469 | |
637.45 | 639.00 | 1.55 | 2.57 | 1.6 | 2.59 | 455 | Northwest of Model | |
BUSY374D | 182.50 | 183.50 | 1.00 | 3.96 | 4.6 | 4.03 | 1240 | Laurel System |
211.10 | 211.60 | 0.50 | 4.03 | 17.7 | 4.28 | 1226 | Laurel System | |
348.65 | 349.55 | 0.90 | 5.05 | 1.9 | 5.08 | 1160 | Laurel System | |
367.50 | 368.60 | 1.10 | 7.11 | 3.8 | 7.16 | 1152 | Laurel System | |
BUSY374D01 | 241.85 | 242.35 | 0.50 | 14.65 | 22.0 | 14.96 | 1009 | Laurel System |
286.80 | 287.30 | 0.50 | 29.60 | 21.6 | 29.91 | 999 | Laurel System | |
303.10 | 303.70 | 0.60 | 3.78 | 77.0 | 4.88 | 995 | Laurel System | |
308.30 | 310.10 | 1.80 | 8.36 | 204.2 | 11.28 | 994 | VS185 | |
incl | 309.50 | 310.10 | 0.60 | 23.00 | 529.0 | 30.56 | 994 | |
396.20 | 398.20 | 2.00 | 4.34 | 17.1 | 4.59 | 974 | VS170 | |
incl | 397.20 | 397.70 | 0.50 | 8.58 | 26.4 | 8.96 | 974 | |
420.60 | 421.10 | 0.50 | 10.95 | 7.5 | 11.06 | 970 | VS160 | |
496.00 | 496.50 | 0.50 | 5.22 | 4.3 | 5.28 | 957 | VS120 | |
517.30 | 517.80 | 0.50 | 14.95 | 13.0 | 15.14 | 954 | VS90 | |
536.10 | 537.20 | 1.10 | 6.75 | 5.1 | 6.83 | 951 | VS62 | |
540.70 | 541.80 | 1.10 | 3.83 | 8.6 | 3.95 | 950 | ||
556.00 | 556.70 | 0.70 | 9.47 | 4.1 | 9.53 | 948 | VS48 | |
564.85 | 569.10 | 4.25 | 28.35 | 62.8 | 29.25 | 947 | VS42+VS39 | |
incl | 566.20 | 567.90 | 1.70 | 68.32 | 139.1 | 70.31 | 947 | |
593.90 | 594.40 | 0.50 | 5.95 | 7.0 | 6.05 | 944 | VS34 | |
BUSY374D02 | 137.10 | 140.50 | 3.40 | 3.76 | 9.1 | 3.89 | 1028 | Laurel System |
255.20 | 255.70 | 0.50 | 4.21 | 10.3 | 4.36 | 996 | Laurel System | |
292.40 | 293.20 | 0.80 | 3.51 | 0.05 | 3.51 | 986 | Laurel System | |
309.00 | 310.45 | 1.45 | 20.10 | 0.9 | 20.11 | 982 | VS185 | |
327.20 | 329.10 | 1.90 | 13.76 | 7.2 | 13.86 | 977 | VS180 | |
incl | 327.20 | 327.70 | 0.50 | 46.90 | 16.1 | 47.13 | 977 | |
333.50 | 334.45 | 0.95 | 3.77 | 5.6 | 3.85 | 975 | VS170 | |
397.20 | 398.30 | 1.10 | 30.03 | 15.3 | 30.25 | 961 | VS160 | |
incl | 397.20 | 397.70 | 0.50 | 51.60 | 27.6 | 51.99 | 961 | |
537.95 | 548.00 | 10.05 | 6.53 | 37.3 | 7.06 | 935 | VS39+VS34 | |
incl | 541.30 | 542.00 | 0.70 | 12.20 | 97.0 | 13.59 | 936 | |
and | 542.60 | 543.10 | 0.50 | 26.00 | 154.0 | 28.20 | 936 | |
and | 546.00 | 546.50 | 0.50 | 51.90 | 117.0 | 53.57 | 935 | |
557.30 | 558.00 | 0.70 | 6.09 | 5.7 | 6.17 | 934 | VS31 | |
565.80 | 566.50 | 0.70 | 24.40 | 13.4 | 24.59 | 932 | VS30 | |
568.55 | 569.20 | 0.65 | 9.75 | 7.1 | 9.85 | 932 | ||
BUSY374D03 | 60.20 | 60.70 | 0.50 | 4.15 | 66.1 | 5.09 | 1035 | Laurel System |
99.20 | 100.70 | 1.50 | 2.11 | 3.3 | 2.16 | 1023 | Laurel System | |
incl | 100.20 | 100.70 | 0.50 | 4.93 | 6.0 | 5.02 | 1022 | Laurel System |
107.75 | 108.55 | 0.80 | 3.68 | 5.9 | 3.76 | 1020 | Laurel System | |
169.95 | 171.10 | 1.15 | 1.91 | 19.0 | 2.18 | 1002 | Laurel System | |
180.60 | 181.10 | 0.50 | 4.17 | 6.5 | 4.26 | 1000 | Laurel System | |
185.20 | 185.80 | 0.60 | 9.25 | 13.6 | 9.44 | 999 | Laurel System | |
210.15 | 210.65 | 0.50 | 6.27 | 9.1 | 6.40 | 992 | Laurel System | |
215.70 | 217.35 | 1.65 | 14.05 | 11.4 | 14.21 | 991 | Laurel System | |
incl | 215.70 | 216.25 | 0.55 | 11.80 | 6.6 | 11.89 | 991 | Laurel System |
and | 216.85 | 217.35 | 0.50 | 33.20 | 27.8 | 33.60 | 991 | Laurel System |
219.00 | 219.50 | 0.50 | 6.16 | 9.6 | 6.30 | 990 | Laurel System | |
226.40 | 227.45 | 1.05 | 6.10 | 4.1 | 6.16 | 989 | Laurel System | |
235.25 | 235.75 | 0.50 | 59.20 | 86.1 | 60.43 | 987 | Laurel System | |
239.45 | 241.00 | 1.55 | 15.56 | 15.9 | 15.79 | 986 | Laurel System | |
incl | 239.45 | 240.00 | 0.55 | 40.30 | 30.9 | 40.74 | 986 | Laurel System |
278.10 | 278.60 | 0.50 | 10.80 | 4.7 | 10.87 | 978 | VS185 | |
incl | 292.10 | 292.80 | 0.70 | 4.83 | 6.0 | 4.92 | 975 | |
339.00 | 339.55 | 0.55 | 4.00 | 1.9 | 4.03 | 966 | VS170 | |
362.10 | 362.60 | 0.50 | 8.91 | 3.5 | 8.96 | 962 | VS160 | |
497.65 | 501.65 | 4.00 | 22.44 | 134.6 | 24.37 | 934 | VS39 | |
incl | 498.85 | 500.55 | 1.70 | 47.63 | 296.4 | 51.86 | 934 | |
and | 499.35 | 499.95 | 0.60 | 65.80 | 250.0 | 69.37 | 934 | |
503.15 | 505.75 | 2.60 | 5.52 | 18.1 | 5.78 | 933 | VS34 | |
incl | 503.15 | 503.65 | 0.50 | 19.95 | 74.2 | 21.01 | 933 | |
506.25 | 507.85 | 1.60 | 8.09 | 4.4 | 8.15 | 932 | ||
incl | 506.85 | 507.35 | 0.50 | 12.85 | 6.0 | 12.94 | 932 | |
519.60 | 520.20 | 0.60 | 6.76 | 6.8 | 6.86 | 930 | VS32 | |
521.70 | 522.20 | 0.50 | 4.18 | 8.6 | 4.30 | 929 | VS31 | |
BUUY368 | 81.70 | 82.60 | 0.90 | 4.23 | 0.9 | 4.24 | 1630 | VS170 |
198.40 | 201.70 | 3.30 | 9.48 | 104.9 | 10.98 | 1581 | VS75+VS70 | |
incl | 198.40 | 200.05 | 1.65 | 17.32 | 195.4 | 20.12 | 1582 | |
and | 199.50 | 200.05 | 0.55 | 44.70 | 532.0 | 52.30 | 1581 | |
202.35 | 204.25 | 1.90 | 3.60 | 35.3 | 4.11 | 1579 | VS65 | |
219.75 | 220.25 | 0.50 | 10.55 | 17.0 | 10.79 | 1573 | VS48 | |
230.65 | 231.85 | 1.20 | 3.39 | 58.6 | 4.22 | 1569 | VS43 | |
234.20 | 238.00 | 3.80 | 3.58 | 15.0 | 3.79 | 1567 | VS42+VS41 | |
241.85 | 242.35 | 0.50 | 10.30 | 34.1 | 10.79 | 1565 | VS39 | |
BUUY372 (Stopped short of target) | 87.60 | 88.20 | 0.60 | 5.40 | 4.7 | 5.47 | 1619 | VS170 |
122.30 | 122.80 | 0.50 | 4.30 | 33.5 | 4.78 | 1601 | VS150 | |
124.70 | 125.20 | 0.50 | 3.87 | 14.6 | 4.08 | 1600 | VS140 | |
165.20 | 165.90 | 0.70 | 8.45 | 7.7 | 8.56 | 1579 | VS123 | |
172.50 | 173.00 | 0.50 | 4.12 | 90.5 | 5.41 | 1576 | VS120 | |
194.00 | 194.50 | 0.50 | 3.83 | 20.2 | 4.12 | 1565 | VS110 | |
BUUY373 | 112.50 | 113.50 | 1.00 | 23.12 | 3.4 | 23.16 | 1612 | VS170 |
incl | 113.00 | 113.50 | 0.50 | 45.60 | 3.5 | 45.65 | 1612 | |
130.50 | 132.10 | 1.60 | 1.96 | 5.5 | 2.04 | 1604 | VS160 | |
198.00 | 198.50 | 0.50 | 100.50 | 195.0 | 103.29 | 1575 | VS120 |
* Intercepts calculated at a composite 2 grams X metre gold equivalent (70:1 Au/Ag) for minimum intervals of 0.5 metres, with up to 20% internal dilution. True widths are estimated to be between 80-100%.
** Grades herein are reported as uncapped values.
Note: Drill holes designated “BUUY” were collared from underground.
Geological Description of the Buriticá Project
Continental’s 100%-owned, 70,678-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.
Management Appointment
The Company is pleased to announce the appointment of Luis German Meneses as Country Manager, responsible for the management and administration of the Company’s Colombia operations. Mr. Meneses is the former Executive Vice-President and COO of Cerrejón, Colombia’s largest private coal producer and exporter and one of the largest integrated mining companies in the world, with mine-railway-port and marketing operations. With over 37 years of senior management experience, he led operations and business teams in Colombia and North America, including as Vice-President, Operations with Intercor (a subsidiary of ExxonMobil that merged into what is now the current Cerrejón).
Technical Information
Mauricio Castañeda, Vice-President, Exploration of the Company and a qualified person for the purpose of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43‑101”), has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release.
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.
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 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 fully-permitted high-grade Buriticá gold project to production with first gold pour on track for H1 2020. Additional details on Continental Gold’s suite of gold exploration properties are also available at www.continentalgold.com.
For further information, please contact:
Paul Begin
Chief Financial Officer
Continental Gold Inc.
+1.416.583.5610
info@continentalgold.com
www.continentalgold.com
Forward-Looking Statements
This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the Laurel system, timing of a production decision, advancing the Buriticá project, exploration results, potential mineralization, potential development of mine openings, potential improvement of mining dilution grades, increasing the drill program and amount of equipment 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.
Photos accompanying this announcement are available at
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