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Press release from Marketwire

Continental Gold Announces High-Grade Sampling Results from Four Undrilled Targets at Its Buritica Project, Colombia

Thursday, February 28, 2013

Continental Gold Announces High-Grade Sampling Results from Four Undrilled Targets at Its Buritica Project, Colombia06:30 EST Thursday, February 28, 2013TORONTO, ONTARIO--(Marketwire - Feb. 28, 2013) -Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce the results of surface exploration that has outlined four new precious metal-mineralized systems at the Company's Buriticá Project in Antioquia, Colombia. These new prospects are outside of the future Higabra valley infrastructure site ("VIS"), where expansion and resource delineation drilling continues in the Yaraguá, Veta Sur, La Estera and San Agustin vein systems.HighlightsReferenced in Figures 1 and 2Three of the new prospects - Pinguro North, Pinguro and Obispo - are located 1 kilometre south, 3 kilometres south and 6 kilometres southeast of the VIS, respectively. Additionally, each of these prospects is situated to the east of the Tonusco fault. The Guarco-Pajarito prospect is 4 to 10 kilometres northwest of the VIS. Each prospect displays distinctive styles of mineralization, including precious metal-bearing vein systems, spatially related to andesitic/microdioritic intrusions similar to those at the Yaraguá and Veta Sur vein systems.In the Obispo area, northeast-trending and steeply-dipping vein systems have been mapped and partially sampled along approximately 3,500 metres of potential strike length. These veins and a distinct set of intersecting northwest trending veins occur over an elevation range of more than 500 metres and are open in all directions. The Obispo vein sets locally exhibit very high-grade precious metals, accompanied by low to moderate base-metal and high tellurium contents. Highlights of vein sampling include:Gold g/tSilver g/tZinc ppmBismuth ppmTellurium ppm188.50258.0304166.0>500.078.61106.025383.6270.170.09420.06453.5229.763.6292.027003.0234.245.8078.08010.6129.341.40436.025601.3>200.041.0355.015061.1159.237.38175.09842.5126.734.96227.014812.1131.731.85244.08621.6159.7The geochemical signature of Obispo mineralization is akin to Stage II mineralization in the Veta Sur vein system, but also exhibits highly anomalous vanadium contents, similar to bonanza-grade mineralization at the Porgera gold mine in Papua New Guinea and elsewhere.At Pinguro, soil geochemical work, geological mapping, and near-surface sampling have outlined a 1 square-kilometre area containing multiple families of veins. Two orientations of vein sets have been recognized - north-northwest-striking and east-northeast-striking and moderately southwest-dipping; the latter vein set having potential strike length of over 300 metres, and a vertical extent of more than 300 metres. Rock-chip sampling to date indicates that both vein orientations may exhibit high-grade gold mineralization and are base-metal rich, geochemically similar to Yaraguá Stage I mineralization. Highlights of vein sampling include: Gold g/tSilver g/tZinc ppmBismuth ppmTellurium ppm88.18630.0153110.95.253.6780.01560026.124.349.981.01920071.142.436.7330.0360413.58.728.3877.0212734.930.1Reconnaissance mapping and sampling has recognized several auriferous vein systems in the 1 square-kilometre Pinguro North area, located proximal to the site of proposed future development in the Higabra valley. The Guarco-Pajarito prospect displays broad areas of soil gold and copper anomalism. Within these areas, porphyry gold-copper and vein gold mineralization has been sampled in limited outcrop and by trenching. Auriferous vein systems exhibit low to moderate base-metal contents and are both shallowly and steeply dipping. Systematic sampling of one of the latter veins averaged 5.3 g/t gold and 33 g/t silver over an average width of 0.3 metres along 400 metres of strike length. The high-grade vein systems in the Pinguro and Obispo prospects will be drilled as soon as the required regulatory permits are in place, anticipated in Q2 2013. "Preliminary results from surface exploration are very encouraging and demonstrate further support that there are potentially multiple high-grade mineralized systems outside of the Yaraguá and Veta Sur vein systems," commented Ari Sussman, CEO. "We look forward to drill-testing all of these prospects as soon as possible, with Pinguro and Obispo up first."DetailsContinental's 100%-owned, 57,641-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 estimates for the Buriticá project prepared in accordance with National Instrument 43-101 ("NI 43-101"). This news release documents the initial results of Continental's surface exploration work in the broader Buriticá project, in areas spatially separated and distinct from Yaraguá, Veta Sur and other prospects drilled to-date. Systematic exploration, involving ridge-and-spur soil geochemistry, geological mapping and rock-chip sampling has been undertaken in several areas of Continental's tenements judged to be prospective in light of earlier stream sediment geochemistry and geological and geophysical settings. The prime outcome of this work has been the discovery of four precious-metal mineralized systems. Three of the new prospect areas are to the east of the Tonusco fault (Figure 1) - Pinguro North and Pinguro are, respectively, 1 and 3 kilometres to the south, and Obispo is 6 kilometres to the southeast, of the VIS. The Guarco-Pajarito prospect is 4 to 10 kilometres to the northwest of the central Buriticá project area (Figure 2). Each of the prospects displays distinctive styles of mineralization, including precious metal-bearing vein systems, spatially related to andesitic/microdiortic intrusions similar to those in the central project area.Obispo Vein Target In this area, northeast-trending, steeply-dipping vein systems have been outlined and partially sampled along approximately 3,500 metres of potential strike length (Figure 1). These vein sets and an intersecting set of northwest-trending veins occur over an elevation range of more than 500 metres and are open in all directions. The Obispo vein system is localized in a radiometric anomaly, which corresponds to phyllicly-altered late Cretaceous tonalitic pluton containing inclusions and lenses of Cretaceous metasediments that are intruded by the pluton. Small bodies of Tertiary andesite porphyry crop out in the mineralized area. The Obispo vein sets locally exhibit very high-grade precious metals, accompanied by low to moderate base-metal and high tellurium contents. Highlights of channel-chip and soil sampling are listed in Table I and outlined in Figure 1.Table I: Vein Sampling Highlights, ObispoSampleIDGold g/tSilver g/tZinc ppmLead ppmCopper ppmArsenic ppmBismuth ppmAntimony ppmTellurium ppmVanadium ppmS907814188.50258.0304371590106166.06>500.014890426178.61106.02538323915146523.6225270.114090419870.09420.0645271515985953.5822229.7176390419663.6292.02700371316165663.0211234.242790416445.8078.0801136414163080.6220129.310590746241.40436.02560521048706871.31150>200.0153*90416241.0355.01506474015682331.1879159.218690418337.38175.0984222910153202.5336126.720190418434.96227.01481324711572572.1298131.710790417831.85244.08622686572931.6809159.759990606129.6816.0384148441280.21926.07190418822.92160.03612235752322.2118135.587490415721.97329.0118650117719530.9971159.911990414821.8633.094529039042871.5146107.044190416321.18149.0509290312552660.836676.022890604920.1033.0845409617303950.2186620.846390419118.7382.072916362791471.013264.919090415313.51123.04337838872200.433673.912390415910.0547.0212838340620.310257.72399041619.5830.0390299416400.619272.91119041779.3776.05927661662421.210334.85479041468.18129.01770312615072080.7678127.63069060708.04137.06472585932591.348163.85099060377.886.23275343164940.1504.92909042047.54184.03798059892500.925737.57009041676.78113.06242105865691.1368102.97559041695.51176.06913502796961.146284.33669074585.4931.92938631552850.88126.81509071485.47238.09011212242292.7146553.512909060535.1213.034026833691565.8744.113259060054.2275.073124911961801.414613.0469041763.7260.0114111864121780.812829.03189060073.1813.0248440763630.2351.11939041973.1151.051532625861881.18411.12609060083.036.6128152616482230.3778.12289071462.7711.924390246540.446.4489060452.2714.0982751914660.1526.741929041662.2742.0707659361410.59621.52039041652.2657.0480869407291.026845.12139041991.98106.026517844081190.5409.3729074711.902.9116516011400.02110.14789074701.683.8150473210800.02240.14019041751.5116.043224675390.8297.32819041601.355.22189723454670.120111.91609060481.2965.013067201881471.449614.885S9078101.1716.53341521369834.415.74439041741.089.26841264161420.5304.1699060061.0111.0488812592070.1361.3117*Rock-chip/ channel and soil samples (designated SampleID) above 1 g/t gold. Sample true widths average 0.32 metres. Background vanadium values average 50 ppm.The geochemical signature is akin to Stage II mineralization in the Veta Sur system, but also exhibits highly anomalous vanadium contents, similar to bonanza grade mineralization at the Porgera gold mine in Papua New Guinea and elsewhere.Pinguro Vein Target (Figure 1)The Pinguro prospect is located in a 1 square-kilometre area containing multiple families of auriferous veins, outlined by soil geochemical work, geological mapping and near-surface rock-chip sampling. Two orientations of vein sets have been recognized, north-northwest-striking and east-northeast-striking and moderately southwest-dipping, the latter vein sets with potential strike lengths of over 300 metres, vertical extents of potentially more than 300 metres and open in all directions. Country rocks are mainly Cretaceous metabasalts and metasediments locally intruded by andesitic bodies. Limited rock-chip sampling indicates that both vein orientations may exhibit high-grade, gold-silver mineralization. Highlights of vein channel sampling are included in Table II and outlined in Figure 1 along with gold-anomalous soil samples. Table II: Vein Sampling Highlights, PinguroSampleIDGold g/tSilver g/tZinc ppmLead ppmCopper ppmArsenic ppmBismuth ppmAntimony ppmTellurium ppmVanadium ppm90602088.18630.01531173001069629910.916435.227190601453.6780.01560022168277426.13424.313290413249.981.019200662588190271.127842.414390602536.7330.03604115574126513.5108.736990601528.3877.0212740384186634.95430.19490413311.6156.07372232128643417.345310.31109060218.6315.080211293306303.8711.11279041347.8895.036791405113934.72850.5439041296.2330.024201063495568.81192.91589041043.66108.0546913712052721.41111.1479060222.794.7616821641491.770.62839041282.707.01716456031141.9261.22749071251.932.24032326400.0660.21199041051.738.321221271711400.7240.1266*Rock-chip/ channel above 1 g/t gold. Sample true widths average 0.41 metres. Sampling to date indicates that most of the Pinguro gold-silver veins are base-metal rich and geochemically similar to Yaraguá Stage I mineralization.Pinguro North Vein Target (Figure 1) Reconnaissance mapping and sampling has recognized several auriferous vein systems in the 1 square-kilometre Pinguro North area, close to the VIS. Three sets of vein orientations have been observed over a 400-metre range of elevations, but the lateral extents of the vein systems remain to be clarified. Country rocks are mainly Cretaceous metabasalts and metasediments intruded in some areas by Tertiary andesitic bodies. Sampling to date (Table III and Figure 1) has indicated mainly base-metal poor, gold+/-silver bearing veins. One carbonate-rich vein sample has a 1,445 g/t silver grade. A vein sample in the northeast of the area, assaying 1.77 g/t gold and 18 g/t silver, exhibits highly anomalous tellurium and vanadium contents similar to the geochemical signature of mineralization in the Obispo prospect further east.Table III: Rock-chip Sampling Highlights, Pinguro NorthSampleIDGold g/tSilver g/tZinc ppmLead ppmCopper ppmArsenic ppmBismuth ppmAntimony ppmTellurium ppmVanadium ppm9069843.5815.79781532518-0.012491.11569060313.369.0341454420-0.04433.27819069852.789.927244125110-0.01447.21139069912.703.675121795060.01632.04169069962.622.3576110512-0.01481.23039069942.576.5628115384-0.01313.83299071642.3835.266115616052200.011260.42659074571.7718.1454981140.015310.216909069891.712.26056678204-0.01401.02409069901.713.757782237-0.01571.73559069211.712.37441194-0.01101.77229069991.687.546764221-0.01363.03389069331.580.764826412-0.01980.22319069441.390.842623236-0.01280.52829069951.395.99371792590.01373.33889074141.340.32717137-0.01110.31019074531.319.17929374490.04590.83389069971.288.046569281-0.01266.94379074541.079.712821651940.02820.92199069831.014.86419385188-0.01890.71659071660.111445.043358178302880-0.015630-0.139*Rock-chip/ channel above 1 g/t gold-equivalent (Au + Ag/50 g/t). Sample true widths average 0.52 metres.Guarco-Pajarito Vein Target (Figure 2)The Guarco-Pajarito prospects are located 4 to 10 kilometres to the northwest and west-northwest respectively of the Yaraguá vein system.The Guarco area exhibits extensive areas of soil gold and also copper-gold anomalism spatially associated with microdiorite intrusions. The latter anomalies (>500 ppm copper) are up to 200 and 500 metres in extent and overlie porphyry gold-copper style mineralization evidenced by quartz-magnetite stockworks and weak potassic alteration. Higher grade (0.5 g/t to 6.47 g/t) gold-in-soil anomalies occur within, and also separated from the broad gold and copper anomalies. Mapping and limited rock chip sampling of outcrop, trenches and artisanal workings (Table IV and Figure 2) indicate that the higher grade anomalies are associated with vein and sheeted-vein style gold mineralization (channel samples are up to 5.6 g/t gold), variably enriched in copper, zinc and arsenic. Both shallowly and steeply dipping vein sets have been observed but strike and vertical extents remain unknown. The geochemical characteristics, associated alteration and morphology of the mineralization is consistent with moderate to high temperature styles compatible with their intrusion proximal character and the deeper erosion levels inferred for the Guarco area.Gold and copper soil anomalism is less extensive in the Pajarito area, where mineralization sampled to date (Table IV and Figure 2) appears to be of vein styles, channel samples including 10.1 g/t gold, 9.5 g/t gold and 44 g/t silver. Both steeply and shallowly-dipping vein sets have been observed in outcrop, trenches and artisanal workings. Systematic sampling of one of a family of veins with Yaraguá orientations averaged 5.3 g/t gold and 33 g/t silver over an average width of 0.3 metres along 400 metres of strike length.Table IV: Sampling Highlights, Guarco-PajaritoSampleIDGold g/tSilver g/tZinc ppmLead ppmCopper ppmArsenic ppmBismuth ppmAntimony ppm906219P10.101.82310119080.118.4215392P9.5044.2------215393P7.7043.8------S9052366.471.61611131420.50.6903113P6.113.5157162515860.133.3215388P6.0029.3------9025795.556.397761930251-2.011.0S903263P4.711.093617530.00.6215389P4.7048.0------906221P3.701.06013154210.122.5215390P3.3052.7------903065P3.2637.0116024328311852.053.0215395P3.2012.5------215396P2.7022.2------2250612.521.622098950.72.69062762.331.77161023110.22.2903105P2.1511.0272412522280.5117.4906335P1.414.6161014441018.90.31.59066261.340.528718530.70.99063071.270.856692750.11.4*Rock chip/ channel (Pajarito samples labeled SampleIDP) and soil samples (designated SampleID) above 1 g/t gold-equivalent (Au + Ag/50 g/t) Sample true widths average 0.8 metres.Further work will be undertaken to clarify potentially bulk tonnage and vein system drill targets in the Guarco-Pajarito area. 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. Reconnaissance soil samples are taken at regular intervals along ridges and spurs and mostly comprise 2-3 kilograms of Zone C soils. Where exposure permits rock chip sampling is undertaken in channels across the apparently mineralised entities and their wall rocks, assay samples typically greater than 2 kilograms mass. Soil and rock samples are 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. Gold is fire-assayed with instrumental & gravimetric finishes on 30gram aliquots, other elements by instrumental finishes on the products of four-acid digestions, overlimits values re-assayed by element specific methods. 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. Crush rejects and pulps are returned and stored in a secured storage facility for future assay verification. For additional technical information on the Buriticá project, please refer to the Company's technical report (the "Technical Report") entitled "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated November 15, 2012 with an effective date of October 22, 2012, 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 International 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 combined 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 newest hard rock gold producer in Colombia, Continental has commenced the construction of the access tunnel, which will initially provide 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 StatementsThis 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, and 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 EstimatesThis 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. The term "resource" does not equate to the term "reserves." Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. 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. The requirements of NI 43-101 for identification of "reserves" are also not the same as those of the SEC, and reserves reported by the Company in compliance with NI 43-101 may not qualify as "reserves" under SEC standards. 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 Pinguro North, Pinguro, and Obispo Prospects, Showing Highlights of Surface Sampling, Inferred Vein Domains on Geology-topography and the Yaraguá and Veta Sur Vein Systems with Related Proposed Infrastructure" please visit the following link: http://media3.marketwire.com/docs/Figure1_cnl02282013.pdf. To view "Figure 2 - Plan view of the Guarco-Pajarito Prospects, Showing Highlights of Surface Sampling, Inferred Vein Domains on Geology-topography and the Yaraguáand Veta Sur Vein Systems with Related Proposed Infrastructure" please visit the following link: http://media3.marketwire.com/docs/Figure2_cnl02282013.pdf. FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Continental Gold LimitedNisha HasanDirector, Investor Relations+1.416.583.5611info@continentalgold.comwww.continentalgold.com