The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Continental Gold Drills 4.5 Metres at 20.3 g/t Gold and 102 g/t Silver in the Deepest Intersection in the Yaragua System to Date, Demonstrating over 1,300 Vertical Metres of Mineralization

Monday, June 04, 2012

Continental Gold Drills 4.5 Metres at 20.3 g/t Gold and 102 g/t Silver in the Deepest Intersection in the Yaragua System to Date, Demonstrating over 1,300 Vertical Metres of Mineralization06:30 EDT Monday, June 04, 2012TORONTO, ONTARIO--(Marketwire - June 4, 2012) -Continental Gold Limited ("Continental" or the "Company") (TSX:CNL)(OTCQX:CGOOF) is pleased to announce assay results for nine diamond drill-holes from the Yaragua system at the Buriticá project in Antioquia, Colombia. Ten drills are currently on site as part of the Company's Phase III diamond drill program budgeted for 2012. HighlightsDrilling in the southern vein families has demonstrated that the Yaragua system exhibits more than 1,300 metres of vertical extent and is still open at depth and along strike. A high-grade intercept of 4.5 m @ 20.3 g/t Gold and 102 g/t Silver, including 1.65 m @ 49.2 g/t Gold and 262 g/t Silver in drill-hole BUSY258 is approximately 650 metres vertically below the deepest point of the National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate and is an approximate 500 metre step-out vertically in the Yaragua system. High-grade results in eastern Yaragua indicate that these vein intersections have substantial depth and strike continuity. Significant intercepts in BUSY255 include:16.75 m @ 38.8 g/t Gold and 43 g/t Silver, including 3.1 m @ 109.6 g/t Gold and 121 g/t Silver and 1.35 m @ 206.5 g/t Gold and 198 g/t Silver 8.0 m @ 19.2 g/t Gold and 515 g/t Silver, including 3.45 m @ 36.8 g/t Gold and 1,080 g/t Silver 8.0 m @ 12.6 g/t Gold and 48 g/t SilverDrill-holes BUSY255, BUSY258, BUSY259 and BUSY262 also intersected veins of the Murcielagos South and Yaragua South vein families, extending their known strike and depth extents. Highlights include:4.19 m @ 2.0 g/t Gold and 427 g/t Silver, including 1.5 m @ 2.9 g/t Gold and 1,132 g/t Silver (BUSY258, Yaragua South) 1.15 m @ 49.7 g/t Gold and 30 g/t Silver (BUSY262, Murcielagos South) 10.1 m @ 5.4 g/t Gold and 18 g/t Silver, including 2.15 m @ 12.5 g/t Gold and 26 g/t Silver (BUSY255, Murcielagos South)All significant intercepts reported above are outside the boundaries of the current NI 43-101 compliant mineral resource estimate model. "Significantly extending the vertical dimension of high-grade mineralization in the Yaragua system is an exciting accomplishment and highlights the untapped growth potential of our resource," commented Ari Sussman, CEO. "There is a large back-log of samples in the lab presently, including lateral and vertical step-out holes at Veta Sur, lateral step-out holes at Yaragua and exploratory holes into both the La Mano and La Estera geochemical targets. We anticipate that this back-log will relieve itself in short order and results will become available in a more timely fashion." Details Continental's 100%-owned 29,185-hectare project, Buriticá, contains several known areas of high-grade gold and silver mineralization, of carbonate base metal ("Stage I") variably overprinted by texturally and chemically distinctive high-grade ("Stage II") mineralization. The two most extensively explored of these areas (the Yaragua system and the Veta Sur system) are central to this land package. The Yaragua system has been drill-outlined along 650 metres of strike and 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 550 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. A maiden NI 43-101 compliant mineral resource estimate for the Yaragua and Veta Sur systems at the Buriticá project yielded combined measured and indicated mineral resources of 1,110,000 tonnes of mineralized material containing 630,000 ounces of gold grading 17.8 g/t Gold, 1,500,000 ounces of silver grading 42 g/t Silver, and 18,700,000 pounds of zinc grading 0.8% Zinc. The inferred mineral resource is 6,900,000 tonnes of mineralized material containing 2,500,000 ounces of gold grading 11.4 g/t Gold, 9,500,000 ounces of silver grading 43 g/t Silver and 88,000,000 pounds of zinc grading 0.6% Zinc. Yaragua Significant new drill intercepts are tabulated below in Table I and are referenced in Figures 1 and 2.Table I: Drilling Highlights - YaraguaDrill-holeFrom (m)To (m)IntervalGold (g/t)Silver (g/t)Zinc (%)Elevation (m)BUSY25233.0035.302.303.007.10.141486125.50131.005.502.705.80.111400178.00178.600.603.6934.01.001353215.00218.503.502.3814.70.061320221.00221.500.506.6319.00.701313230.40232.151.7514.4558.213.181303264.40264.900.50123.5235.00.141273BUSY25586.4086.800.4035.4740.03.421509125.40126.401.007.782.70.011472155.25158.303.053.0828.60.811445159.75162.803.056.8229.10.881441171.80181.9010.105.4117.51.591430incl.176.10178.252.1512.5025.53.351425186.50187.000.509.0738.01.791416274.00274.450.458.88260.08.101335324.45332.458.0012.5847.90.341287incl.330.00332.052.0537.37126.30.531281343.45355.8512.406.5755.10.691269incl.344.50345.801.3023.75243.30.751261354.60355.851.2516.07208.00.571255359.50360.901.404.38169.30.621250388.00396.008.0019.16515.32.081227incl.390.55394.003.4536.751080.04.571218399.60400.801.2074.15139.00.291210404.60413.508.903.4714.40.041206442.90459.6516.7538.8443.10.021180incl.442.90446.003.10109.61120.80.521177453.65455.001.35206.52198.41.001170483.00485.002.002.404.10.131144502.30502.700.406.9553.00.071126536.80537.200.400.42327.00.451095BUSY25832.7033.701.000.60287.01.93173140.0042.002.001.1634.01.181723121.00122.001.002.686.40.281645233.00237.194.192.01426.52.021535incl.234.85236.351.502.881131.54.441534269.30270.000.7027.507.80.561501274.90278.003.101.5814.70.201495449.40449.800.408.6270.00.491326561.00562.001.003.523.20.011217626.00626.460.4610.13207.00.0511541152.501154.001.502.944.50.016441176.401176.870.4753.3348.00.026211191.581192.000.429.1736.00.016061292.451293.020.876.7924.00.025081356.001360.504.5020.29102.00.18445incl.1356.001357.651.6549.19262.00.464451379.101380.201.105.7229.00.03423BUSY259122.00123.001.004.381.10.011472165.00165.500.508.8912.01.011430214.22222.758.532.8724.40.291383325.10330.004.902.2320.60.391275359.00359.400.4011.907.90.391244390.40395.304.9010.257.50.731214incl.390.40392.301.9024.2714.20.821214408.00420.6012.602.114.40.531191BUSY262109.30111.302.004.3948.41.551484183.35200.0016.652.246.01.151411202.00204.802.804.0524.00.331395222.00223.501.503.326.50.181379271.00272.001.007.4334.01.821332303.10305.502.402.6316.90.941301329.00330.151.1549.7329.80.761276384.00393.009.002.494.60.891223405.30419.3014.003.8822.80.391203incl.415.00419.304.306.0629.50.591193583.90587.003.107.1628.30.071038BUUY06611.4014.002.603.9231.10.411488incl.11.4012.000.6014.4662.00.61148870.5075.004.502.8416.50.82144378.5079.501.002.3314.31.89143781.5084.503.002.137.50.691432104.50107.503.001.618.82.621417137.50140.002.501.462.00.261390153.50154.000.504.6636.02.321379276.00277.001.000.5183.00.321284BUUY069112.30113.401.103.662.70.181456125.10125.500.4048.2593.01.431451166.20167.201.008.9591.00.111436BUUY070106.00107.201.2012.3118.20.851423166.70167.801.106.3850.01.041381201.85202.851.009.46612.07.841356BUUY071142.30145.503.201.443.70.231357202.98205.002.021.135.81.301300217.00222.005.004.429.10.501284399.40401.001.601.645.10.111110*Intercepts calculated at 1 g/t Gold + 30 g/t Silver cut-off grades with up to 20% internal dilution and generally tabulated if greater than 10 gram*metres gold equivalent. True widths not accurately known but generally are between 30% and actual true width of the down-hole interval. Drilling in southern, central and eastern Yaragua targeted lateral and depth extensions of the vein systems. All nine drill-holes intersected multiple gold and silver mineralized intervals which included high-grade intercepts. In southern Yaragua, deep drill-hole BUSY258 - deviating southwards from its planned path - cut extensions of the Yaragua South and Murcielagos South vein families over a substantial strike length and depth range. Intercepts below 1,150 metres down-hole are the deepest yet encountered in the Buriticá project. The high-grade intersection (4.5 m @ 20.3 g/t Gold and 102 g/t Silver, including 1.65 m @ 49.2 g/t Gold and 262 g/t Silver, from 1,356 metres down-hole at the 445 metre-elevation level) is particularly significant, occurring more than 1,100 metres vertically below the surface expression of the Murcielagos South veins and demonstrating that the Yaragua mineralized system has a vertical extent of more than 1,300 metres and is open at depth. The deep mineralization is characterized by low base metal content and moderate silver-to-gold ratio. BUSY258 intercepts, further up-hole and 200-300 metres further to the west in the Yaragua South vein family, exhibit higher base metal content and a commonly higher silver-to-gold ratio. Such intercepts contain high-grade silver values - for example 4.2 m @ 2 g/t Gold and 427 g/t Silver, including 1.5 m @ 2.9 g/t Gold and 1,132 g/t Silver, from 233 metres down-hole. All intercepts in BUSY258 are outside of the current NI 43-101 compliant mineral resource estimate model. BUSY255, BUSY259, BUSY262 and BUUY066 mainly tested the Yaragua South, Murcielagos South and Murcielagos vein families to the east of the path of BUSY258. High-grade intersections below the 1,287 metre-elevation level in BUSY255 are in the Murcielagos vein family. The five main vein sets intersected exhibit both moderate silver-to-gold ratio (for example, from 442.9 metres down-hole, 16.75 m @ 38.8 g/t Gold and 43 g/t Silver, including 3.1 m @ 109.6 g/t Gold and 121 g/t Silver and 1.35 m @ 206.5 g/t Gold and 198 g/t Silver) and high silver-to-gold ratio (for example, from 388.0 metres down-hole, 8.0 m @ 19.2 g/t Gold and 515 g/t Silver, including 3.45 m @ 36.8 g/t Gold and 1,080 g/t Silver). Further up-hole, between elevation levels of 1,335 metres and 1,430 metres, BUSY255 intersected solid grades in the Murcielagos South vein family (including, from 171.8 metres down-hole, 10.1 m @ 5.4 g/t Gold and 18 g/t Silver) and also in the Yaragua South vein sets, between elevation levels of 1,441 metres and 1,509 metres. BUSY259 intersected the Murcielagos family veins below the 1,214 metre-elevation level (including, from 390.4 metres down-hole, 4.9 m @ 10.3 g/t Gold and 8 g/t Silver) and also the Murcielagos South and Yaragua South vein families, the latter above the 1,275 metre-elevation level. BUSY262 encountered moderate grades in four veins of the Yaragua South family (between elevations of 1,484 metres and 1,379 metres), a high-grade intercept in the Murcielagos South vein family (from 329 metres down-hole, 1.15 m @ 49.7 g/t Gold and 30 g/t Silver) and broad intercepts of moderate grades in the Murcielagos vein family (between elevations of 1,223 metres and 1,038 metres). BUSY255, BUSY259 and BUSY262 demonstrate the substantial vertical and lateral continuity of the southern vein families in eastern Yaragua. The high grades of the Murcielagos intercepts are particularly encouraging and consistent with other deep intercepts elsewhere in this vein system. The significant intercepts of the southern vein families in all of these drill-holes and also in BUSY258 are all outside the boundaries of the current NI 43-101 compliant mineral resource estimate model. BUUY066 intersected moderate widths and grades in the Murcielagos (RL 1,488 metres), Murcielagos South (elevations between 1,443 metres and 1,432 metres), and Yaragua South (elevations between 1,417 metres and 1,379 metres) vein families and, further down-hole and to the south, a high Ag/Au vein. BUSY252 in eastern Yaragua intersected five veins of the Murcielagos family at relatively shallow depths. High-grade intercepts further down-hole (1.75 m @ 14.5 g/t Gold and 58 g/t Silver, from 230.4 metres and 0.5 m @ 123.5 g/t Gold and 35 g/t Silver, from 264.4 metres, respectively) represent Vein B and Vein C. These intercepts are outside of the current NI 43-101 compliant mineral resource estimate model. BUUY069, BUUY070 and BUUY071 were drilled into a sparsely-tested part of central Yaragua clarifying vein continuity through this area. Highlights of these drill-holes included an intersection in BUUY069 (0.4 m @ 48.3 g/t Gold and 93 g/t Silver, from 125.1 metres down-hole) of the San Antonio vein and, in BUUY070, high-grade gold-silver in Vein AD (1.0 m @ 9.5 g/t Gold and 612 g/t Silver, from 201.85 metres down-hole). 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, and verified 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 an industry-standard QA/QC program. HQ and NQ diamond drill-core is sawn in half with one-half shipped to a sample preparation lab in Medellín run by SGS Colombia. 100% of BQ diameter drill samples are shipped. Samples are then shipped for analysis to SGS-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 ACME laboratories in Vancouver, Canada and/or Inspectorate Labs in Reno, Nevada. For additional technical information on the Buriticá project, please refer to the Company's technical report entitled "Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated October 24, 2011 as amended November 23, 2011, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com and on the Company website at www.continentalgold.com. About Continental Gold Limited Continental Gold Limited 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 in 2015. With a goal of being the first modern-day gold producer in Colombia, Continental will commence construction of an underground ramp in H2 2012, initially providing access for underground drilling and eventually used for commercial production in 2015. A Phase III drill program is also underway at the Buriticá project to further delineate the mineral resource and drill new target zones identified within its concession. Additional details on the Buriticá project and 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, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and 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, 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, as well as those factors discussed in the section entitled "Risks of the Business" in the Company's most recent Annual Information Form and other regulatory filings which are posted on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by applicable securities law.Differences in Reporting of Mineral 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 mineral 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 mineral 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 - Plan View of New Drilling Highlights", please visit the following link: http://media3.marketwire.com/docs/fig1_plan_view.pdf To view "Figure 2 - Longitudinal Section of Yaragua", please visit the following link: http://media3.marketwire.com/docs/fig2_logitudinal_section.pdf FOR FURTHER INFORMATION PLEASE CONTACT: Paul BeginContinental Gold LimitedChief Financial Officer+1.416.583.5610info@continentalgold.comwww.continentalgold.com