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Press release from Marketwire

Continental Gold Drills 29.1 Metres at 23.7 g/t Gold and 185 g/t Silver at Buritica, Colombia

Monday, October 29, 2012

Continental Gold Drills 29.1 Metres at 23.7 g/t Gold and 185 g/t Silver at Buritica, Colombia06:30 EDT Monday, October 29, 2012TORONTO, 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. HighlightsVeta 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 Silver0.8 m @ 5.1 g/t Gold and 1,260 g/t SilverThe 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 SilverThis 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 Silver2.1 m @ 13.2 g/t Gold and 37 g/t SilverDrilling 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 modelBUSY281 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."DetailsContinental'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. Veta SurSignificant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.Table I: Drilling Highlights - Veta SurDrill-holeFrom (m)To (m)Interval (m)Gold (g/t)Silver (g/t)Zinc (%)Elevation (m)BUSY240212.00217.205.201.9340.22.911694224.00225.501.501.565.00.501686238.00240.502.501.3715.40.121674258.50259.601.101.5515.00.061657406.50411.004.500.1687.30.181532414.00415.001.000.1896.00.391525464.00464.500.500.82337.01.231483479.00480.601.601.1233.50.141470496.50497.551.050.6233.53.121455BUSY278213.50214.400.901.8146.85.511572299.70301.301.601.6917.10.051492401.45402.751.301.277.60.051393481.50483.001.502.0512.30.021318509.70511.001.305.656.00.181290529.50532.452.953.0112.60.121270541.65542.250.605.476.40.501261548.60551.703.103.3625.10.061252604.90606.001.105.2821.20.021200640.50641.501.003.304.20.051167649.80650.500.707.7416.70.111158894.80895.801.001.741.90.01929995.70996.300.602.017.90.078351038.001039.201.201.210.90.01795BUSY28118.0020.402.401.32123.51.70169323.5025.502.002.42112.82.71168685.0086.001.001.2512.70.041627144.55147.002.457.9911.70.051569217.00219.002.005.9136.40.121500241.35242.801.4512.6415.40.061476253.90254.750.854.3728.70.031460309.60312.703.101.392.20.011410323.60325.201.6011.3925.80.091396333.50334.501.002.372.80.031388401.00402.001.003.2610.80.031322410.60412.401.804.22204.70.101312431.60434.002.402.3327.60.251292458.20460.001.802.252.30.031266488.60493.004.407.7718.60.141236496.00497.001.0013.05110.30.181230510.50511.250.753.116.00.011216518.50520.001.502.755.60.091208539.20541.502.301.878.40.021187BUSY28574.5075.350.854.89236.73.39164583.6084.100.503.12308.00.371637101.20102.301.100.9954.40.071622166.50167.851.353.383.50.071565186.15187.000.851775.6668.80.461548202.15202.650.504.8975.90.241535235.00235.850.853.0034.70.541527237.20240.703.507.86188.70.671512incl.238.50239.300.8027.30788.52.481502241.90242.400.5012.8530.50.041497298.50299.501.004.03189.00.391452325.72326.650.933.128.20.161427BUSY291250.90252.001.101.24103.10.491542429.00431.402.405.8813.80.261381452.20454.001.803.864.10.041359538.80539.300.504.8310.20.171281549.00554.005.002.634.40.091268598.00601.003.006.986.50.031227603.00604.001.0011.955.70.081220708.80709.801.004.575.10.021127716.80718.691.896.0723.00.021118756.35756.850.505.8728.80.021088764.30766.001.702.465.50.011081772.00778.506.5049.7540.00.061058incl.774.00777.503.5089.2367.00.071056incl.774.00775.491.49109.62116.20.111056781.15784.002.852.105.70.021045882.30882.900.6012.303.70.01971BUSY296297.50299.401.900.3035.31.121644363.07365.902.831.6767.51.711590379.00379.800.801.0121.21.101576BUSY29962.5064.101.608.121210.03.741720100.10101.901.800.2595.50.661683161.40162.000.600.31248.00.651626180.50181.000.506.9010.10.031607211.00212.701.7015.07115.40.281577229.75231.001.252.5727.20.031560245.40246.701.303.617.80.051545253.65256.502.851.6722.00.071535301.50302.400.902.1710.90.131491319.30321.502.207.17282.50.191472335.15340.605.451.89329.50.261466incl.335.15335.950.805.061260.01.421466358.15361.002.851.486.60.021436377.70413.8036.1012.6233.10.251415incl.387.90390.052.1582.2538.50.021406and401.62408.506.8831.2470.01.171395418.00419.451.4516.6024.10.201378427.30429.201.902.9112.20.631370436.50438.802.304.939.20.041359461.30463.402.1013.2037.20.031337502.00505.003.005.2224.60.061296BUSY30019.5020.450.952.0597.75.66169123.0025.002.001.8938.91.48168633.3033.900.602.853.40.29167879.0079.500.500.57228.00.121635BUSY308145.25150.104.851.794.60.171658185.00214.1029.1023.66184.90.051622incl.197.60201.003.4067.23744.20.091611incl.198.85200.401.55123.441335.30.141610and209.60213.754.1575.20367.60.051601incl.209.60211.602.00107.74749.40.081601229.20230.601.402.1415.30.031584270.00270.600.607.187.20.061547291.85293.101.253.8523.50.171528304.65306.001.354.378.20.161517313.45314.000.5523.9081.51.261510316.50317.651.153.819.50.121506319.55321.541.993.496.10.171502332.80334.101.302.413.70.031492340.50341.300.8017.0265.50.591486361.50364.152.653.961.70.021466439.00439.800.801.568.30.411408533.00534.501.502.032.50.011322558.30559.000.702.4521.60.021301*Intercepts calculated at 1 g/t gold + 30 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 30% and actual true width of the down-hole interval. BUSY291, drilled from the south through central Veta Sur made several intercepts to the south of and underneath the current resource model, including 3.0 m @ 7.0 g/t Gold and 7 g/t Silver at 598 m down-hole, and 1.0 m @ 12.0 g/t Gold and 6 g/t Silver from 603 m down-hole. Further north and deeper, BUSY291 confirmed the positions of several modeled veins before intersecting a broad high-grade interval of 6.5 m @ 49.8 g/t Gold and 40 g/t Silver from 772 m down-hole (1,058 m elevation), including 3.5 m @ 89.2 g/t Gold and 67 g/t Silver. This intercept appears to align with a high-grade intersection in BUSY231 (previously released) at 5.95 m @ 125.9 g/t Gold and 66 g/t Silver some 110 m to the northeast and 160 m higher in elevation and is interpreted to be a new high-grade vein set outside of the current resource model. This vein set appears to be silver-rich at elevations around 1,700 m. BUSY291 then continued drilling to the north into the Yaraguá system; assays for this portion of the hole are outstanding and are anticipated in short order.All intercepts in BUSY278 (also drilled from the south through central Veta Sur) are outside of the current resource model and will result in the extension of modeled veins to depth.BUSY308 and BUSY299 were drilled to the south through central and eastern Veta Sur. BUSY308 was targeted to clarify the plunge of a very high-grade subzone in central Veta Sur, intersecting a broad interval of high-grade, Stage II mineralization from 185 m down-hole, 29.1 m @ 23.7 g/t Gold and 185 g/t Silver, including 3.4 m @ 67.2 g/t Gold and 744 g/t Silver and 4.15 m @ 75.2 g/t Gold and 368 g/t Silver. This interval is substantially wider and also higher grade than corresponding interpretation in the current resource model. From 229 m to 341 m down-hole, BUSY308 intersected mineralized intervals generally consistent with the current resource model. At greater depths and further south, mineralized intercepts in BUSY308 are outside the current resource model but align with southern vein family intersections in BUSY278 and BUSY291. The latter intersections are at higher elevations and exhibit higher silver/gold than the southern BUSY308 intercepts.BUSY299 intersected high-grade silver (1.6 m @ 8.1 g/t Gold and 1,210 g/t Silver) at RL1, 720 m, outside the current resource model and potentially correlates with the high-grade veins intersected in BUSY291 at 660 m lower in elevation. Intercepts further down-hole (from 100 m to 336 m) were generally consistent with the resource model, but with higher silver/gold and included a high-grade silver-rich intercept (0.8 m @ 5.1 g/t Gold and 1,260 g/t Silver) at RL 1,466 m. Deeper and further south intersections exhibit higher gold/silver and high gold grades. The broad intercept from 377.7 m down-hole, 36.1 m @ 12.6 g/t Gold and 33 g/t Silver included several high-grade intervals including 2.15 m @ 82.3 g/t Gold and 39 g/t Silver (base metal-poor) and also 6.88 m @ 31.2 g/t Gold and 70 g/t Silver (base metal-rich). The thickness and grade of the broad intercept are better than predicted by the resource model in this area, as are additional mineralized intercepts further down-hole in BUSY299.BUSY281, BUSY285 and BUSY300 were drilled north to northwest to better outline mineralization in eastern Veta Sur. BUSY300 was lost prior to reaching its targets but intersected several high silver/gold veins at shallow depths outside of the current resource model.At shallow depths up to 86 m down-hole, BUSY281 intersected high silver/gold veins outside the resource model and aligned well with similar veins in BUSY299. Further down-hole, mineralized intercepts are generally consistent with the resource model, although two intersections (1.45 m @ 12.6 g/t Gold and 15 g/t Silver from 241.35 m down-hole and 1.6m @ 11.4 g/t Gold and 26 g/t Silver from 323.6 m down-hole) represent extensions of modelled veins.All mineralized intercepts in BUSY285 fall outside of the current resource model. Drilling results from surface to 102 m down-hole have a high silver/gold veins. The intercept of 0.85 m @ 1,775.7 g/t Gold and 69 g/t Silver from 186.15 m down-hole is characterized by abundant visible gold and represents the highest gram/metre drilled to-date in eastern Veta Sur. The extents of this high-grade subzone are yet to be established and will be part of follow up drilling. Further down-hole and to the north, BUSY285 intersected six other vein sets with moderate to high silver/gold, including 3.5 m @ 7.9 g/t Gold and 189 g/t Silver from 237.2 m down-hole and 1 m @ 4.0 g/t Gold and 189 g/t Silver from 298.5 m down-hole.BUSY240 drilled in southwestern Veta Sur encountered (to 260 m down-hole) several veins with high silver/gold, which may correlate with high-grade gold veins drilled 1,000 m deeper in BUSY210 (previously released). The more northerly intercepts in BUSY240 (0.5 m @ 0.8 g/t Gold and 337 g/t Silver from 464 m down-hole) are outside the current resource model, but may correlate with Veta Sur vein families intersected 500 m deeper in BUSY221 (previously released) and 400 m deeper and 300 m to the northeast in BUSY291.BUSY296, drilled 300 m further southwest from BUSY240, also intersected a family of high silver/gold veins. It is not yet clear whether these veins are an extension of the Veta Sur system or relates to the Northern La Estera mineralization.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 scientific and 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. Core is sawn in half with one-half shipped to a sample preparation lab in Medellín run by ALS Colombia Limited ("ALS") in Colombia. 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 ACME Analytical Laboratories in Vancouver, British Columbia and/or Inspectorate America Corp. in Reno, Nevada.The Company does not receive assay results for drill-holes in sequential order; however, all assay results are publicly-reported. A complete listing of assay results to date for the Yaraguá and Veta Sur Systems is available on the Company's website at www.continentalgold.com.For additional technical information on the Buriticá project, please refer to the Company's technical report (the "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, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.About Continental Gold 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. On October 1, 2012, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% zinc. In August 2012, Continental achieved an important milestone, receiving formal approval for the modification of its existing Environmental Impact Assessment. The amendment allows the Company to build a six-kilometre switchback road and begin underground development by constructing a one-kilometre access tunnel. With a goal of being the first modern-day gold producer in Colombia, Continental will commence the construction of the access tunnel in H2 2012, initially providing access for underground drilling and eventually used for commercial production. A Phase IV drill program is underway at the Buriticá project to further delineate the mineral resource and drill new target zones identified within its concessions.Additional details on the Buriticá project 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, 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 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. 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 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, "Plan View of new drilling highlights, also showing the surface projection of veins in the October 2012 mineral resource model", please visit the following link: http://media3.marketwire.com/docs/CNL26figure1.pdf. To view figure 2, "Longitudinal section of Veta Sur drilling highlights and the current mineral resource model", please visit the following link: http://media3.marketwire.com/docs/CNL26figure2.pdf.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Continental Gold LimitedNisha HasanDirector, Investor Relations+1.416.583.5611info@continentalgold.comwww.continentalgold.com