Mr. Ari Sussman reports
CONTINENTAL GOLD DRILLS 3.0 M @ 162.7 G/T GOLD, 41 G/T SILVER AND 33.68 M @ 6.2 G/T GOLD IN YARAGUA AND EXTENDS BOTH THE YARAGUA AND VETA SUR VEIN SYSTEMS LATERALLY AND VERTICALLY
Continental Gold Ltd. has released results for 20 diamond drill holes and 272 metres of underground channel sampling from the company's continuing program at its Buritica project in Antioquia, Colombia. Ten drills are currently on schedule to complete over 100,000 metres of surface and underground drilling on the project by the end of 2011.
Highlights
Yaragua system
- BUSY213 intersected three metres of 162.7 grams per tonne (g/t) gold and 41 g/t silver, the
deepest intercept to date in the Murcielagos family of veins. This and
other intersections in BUSY213, BUSY202 and BUSY219 have extended the
Murcielagos vein family up to 200 metres below the current resource
model in central Yaragua.
- Drilling in eastern Yaragua has extended the Murcielagos vein family and
several other veins farther to the east and to depth. All intercepts in
BUSY199 (including 1.5 metres at 21.6 g/t gold and eight g/t silver) and in
BUSY214 (including 1.5 metres at 62.0 g/t gold and seven g/t silver) are outside
the current resource model.
- Drilling in western Yaragua has extended the northern vein family
(including San Antonio at higher elevations) and the Murcielagos vein
family to west of the current resource model and these vein families
remain open along strike to the west and at depth. Significant
intercepts in BUSY204 include 7.72 metres at 14.7 g/t gold and 50 g/t silver
(San Antonio vein) plus 33.68 metres at 6.2 g/t gold (Murcielagos vein) and,
in BUSY215, 5.90 metres at 12.3 g/t gold and 125 g/t silver (San Antonio vein)
plus 1.62 metres at 30.3 g/t gold and 21 g/t silver (Murcielagos vein).
- Underground sampling on Level 2 in central-western Yaragua has
demonstrated high grades and grade continuity along significant strike
lengths of the Sofia vein (along 18 metres, 113.3 g/t gold, 60 g/t silver
over 1.97 metres average width), Hangingwall vein (along 148 metres, 16.0 g/t gold
and 23 g/t silver over 1.55 metres average width) and the Centena vein. These
grades are significantly higher than those for comparable locations in
the current resource model. Most interestingly, a Level 2 crosscut has
intersected the high-grade San Antonio vein 50 vertical metres below
Level 1. Portions of the exposed vein in the crosscut contain visible
gold inclusions. The company anticipates channel sampling assay results
from this crosscut in early 2012.
- BUSY217 is the first drill hole completed in the Yaragua South/La Mano
area and it intersected two high silver/gold veins including 2.5 metres at 0.2
g/t gold and 360 g/t silver. The company will commence an extensive
drilling campaign at La Mano in February, 2012.
Veta Sur system
- Drill holes BUSY207 and BUSY216 extended the Veta Sur system to the
northeast of, and at depth from, the current resource model. BUSY216
contained several substantial high-grade intercepts including 4.85 metres at
14.7 g/t gold and 59 g/t silver, 2.2 metres at 6.1 g/t gold and 174 g/t silver
and one metre of 27.2 g/t gold. BUSY207 intersected a high silver interval
including 2.7 metres at 1.9 g/t gold and 442 g/t silver.
- BUSY198 in central Veta Sur intersected several high-grade veins
(including 5.5 metres at 16.4 g/t gold and 25 g/t silver) with grades
comparable with those in similar locations in the resource model, but also
extended the mineralization past the resource model at depth. These deep
intersections may relate to vein sets intersected more than 200 metres
deeper in BUSY221.
- Mineralized intercepts in BUSY203, BUSY211 and BUSY218 all lie southwest
of the Veta Sur resource model and may relate to veins intersected up to
400 metres deeper in BUSY210.
"Drilling continues to yield positive surprises and indicates to us that the number of ounces of gold and silver at Buritica will continue to grow. Of particular interest are the high-grade intercepts at depth and also the apparent widening of mineralization to the west in the Yaragua system. These results will be followed up on once drilling resumes in January," commented Ari Sussman, chief executive officer.
Details
Continental's 100-per-cent-owned 29,329-hectare Buritica project contains several known areas of high-grade gold and silver mineralization and base-metal-carbonate-style mineralization (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 600 metres of strike and 600 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. Continental recently issued a National Instrument 43-101-compliant maiden resource estimate for parts of the Yaragua and Veta Sur systems.
Yaragua and Yaragua South
Significant new drill intercepts in the Yaragua system and Yaragua South are shown in the associated table.
DRILLING HIGHLIGHTS -- YARAGUA
From To Interval Gold Silver Zinc
Drill hole (m) (m) (1)(m) (g/t) (g/t) (ppm)
BUSY199 35.85 41.15 5.30 3.02 29.7 6,055
incl. 40.60 41.15 0.55 12.01 33.0 24,500
123.50 125.00 1.50 21.59 8.0 124
237.20 239.15 1.95 14.07 248.0 29,633
262.50 265.50 3.00 7.90 6.1 3,209
274.85 278.65 3.80 1.67 5.7 11,340
428.30 428.80 0.50 4.04 89.0 16,500
468.95 470.10 1.15 1.70 394.0 5,900
508.50 511.25 2.75 4.47 65.6 16,313
BUSY202 101.00 102.50 1.50 3.10 4.3 202
167.50 170.50 3.00 20.70 24.5 2,740
455.50 459.80 4.30 1.77 7.7 1,178
BUSY204 148.80 150.30 1.50 30.00 1.9 208
152.30 160.02 7.72 14.72 50.1 4,295
incl. 154.20 155.65 1.45 66.78 19.0 1,222
236.15 242.15 6.00 3.08 1.2 36
325.17 358.85 33.68 6.18 3.9 2,476
incl. 327.00 328.80 1.80 12.06 3.7 972
344.80 347.47 2.67 16.55 3.6 1,170
357.85 358.85 1.00 26.18 4.2 120
373.38 374.88 1.50 5.05 4.0 9,343
BUSY208 33.52 65.35 31.29 2.33 32.3 4,895
incl. 48.55 53.24 4.69 9.75 41.3 4,781
BUSY209 134.55 135.50 0.95 5.69 11.0 2,718
BUSY213 204.40 209.30 4.90 11.79 45.3 7,211
incl. 206.00 207.75 1.75 22.81 48.8 9,747
405.50 407.00 1.50 13.23 1.3 404
425.80 428.00 2.20 9.63 85.5 7,151
441.00 444.00 3.00 162.71 40.9 976
487.00 488.00 1.00 11.16 4.9 1,085
BUSY214 59.65 62.20 2.55 2.20 117.0 23,568
87.45 92.00 4.55 8.61 23.4 6,907
incl. 91.00 92.00 1.00 32.14 61.0 21,400
140.00 141.50 1.50 4.84 1.9 983
186.50 194.00 7.50 1.79 26.2 19,229
242.00 243.00 1.00 9.05 9.6 340
329.50 331.00 1.50 62.04 6.9 246
353.00 357.00 4.00 2.46 16.8 2,952
BUSY215 141.00 146.90 5.90 12.25 124.6 1,445
incl. 143.50 145.40 1.90 35.16 359.3 3,228
227.60 228.60 1.00 21.90 102.0 16,500
301.50 310.00 8.50 4.41 6.6 8,106
incl. 302.50 305.70 3.20 8.37 10.1 13,879
313.60 319.23 5.63 2.36 6.0 12,244
339.30 340.92 1.62 30.30 20.6 164
395.00 396.00 1.00 4.06 213.0 2,535
450.00 451.10 1.10 14.74 48.0 19,100
BUSY217 7.40 13.40 6.00 0.11 108.0 659
108.60 111.10 2.50 0.24 360.0 3,510
BUSY219 162.00 163.50 1.50 5.23 6.3 182
235.50 237.00 1.50 3.89 6.5 682
262.88 263.50 0.62 5.07 23.0 460
276.00 277.00 1.00 18.74 21.0 270
323.80 326.80 3.00 3.08 30.0 265
366.00 368.50 2.50 8.19 55.0 3,922
406.10 410.50 4.40 8.43 4.9 1,024
BUSY220 42.50 48.77 6.27 1.32 0.0 147
BUUY062 229.00 244.00 15.00 3.18 5.5 8,211
273.00 285.00 12.00 12.06 479.2 16,949
incl. 279.25 281.50 2.25 52.85 2,351.2 78,655
335.20 337.00 1.80 4.84 8.6 2,881
BUUY063 238 238.5 0.50 13.31 20.0 1,838
274.00 274.95 0.95 7.35 77.0 1,289
322.00 328.20 6.20 1.99 46.3 1,317
384.68 388.50 3.82 3.47 13.4 422
398.00 400.00 2.00 4.62 5.3 539
Notes
(1) Intercepts calculated at one g/t gold plus 0.03 g/t silver cut-off grades
with up to 20-per-cent internal dilution and generally tabulated if greater than
10 gram-metres gold equivalent. True widths not accurately known but
are generally between 0.3 metre and actual true width of downhole interval.
(2) Vein correlation uncertain.
Drilling at Yaragua has focused on and has been successful in:
- Extending the system to the east and south outside of the current
resource model;
- Better defining the central part of the vein system (see also Level 2
tunnel sampling, below);
- Extending the system to the west of the current resource model.
BUSY199 and BUSY214 intersected high-grade gold mineralization to the east of previous drilling in the Yaragua system, demonstrating that the system is open to the east and at depth. All intercepts in both holes are outside the current resource model and although vein correlations are uncertain, several of the main vein families may extend to the Tonusco fault in the east at potentially economic grade thicknesses. The deep intercepts in BUSY214 (including from 329.5 metres downhole, 1.5 metres at 62 g/t gold) are the most easterly drilled to date in Yaragua and are at up to 200 metres below Level 3 underground mine development. Mineralized intercepts in BUSY199 generally align well with those at shallower depths in BUSY189 (including 8.1 metres at 137.5 g/t gold and 24 g/t silver), demonstrating the continuity of several of the northerly (for instance, vein A) and southerly (Murcielagos) vein families between RL 1,500 metres to RL 1,150 metres. A previously unknown silver-rich vein was encountered in BUSY199 (from 468.95 metres downhole, 1.15 metres at 1.7 g/t gold, 394 g/t silver), showing that silver-rich mineralization extends to deep elevations in the Yaragua system.
Two fans of drill holes from underground (BUUY062 and BUUY063), plus surface-collared drill holes (BUSY202, BUSY209, BUSY213 and BUSY219), tested the southern and central vein families at depth in the sparsely drilled central Yaragua area. BUSY213 encountered several high-grade intercepts in the Murcielagos vein family, including from 441.0 metres downhole, three metres at 162.7 g/t gold and 41 g/t silver, the deepest intersection of the Murcielagos vein to date and 200 metres below the current resource model for this vein. This intercept and several others in BUSY202, BUSY209 and BUSY219 auger well for higher-grade resources in the Murcielagos vein family below the previous underground developments on this vein family. BUSY219 also intersected an auriferous vein south of Murcielagos.
BUUY062 and BUUY063 each intersected several broad intervals of gold-silver mineralization, which included high-grade veins. The high-grade intercept in BUUY062 (which included 2.25 metres at 52.9 g/t gold and 2,351 g/t silver, from 279.25 metres downhole) appears to represent the Sofia vein, whereas the high-grade intercept in BUUY063 appears to be vein B. In both cases, these intercepts are higher grade than the current resource model predicts in this area. The other intercepts in these drill holes are not as of yet modelled veins.
Four holes (BUSY204, BUSY208, BUSY215 and BUSY220) were collared from a pad at relatively high elevation in western Yaragua and were drilled to examine extensions of the main vein families to the west of the current resource model. BUSY208 and BUSY220 both encountered thick intervals of low-grade gold mineralization (65 metres of 0.5 g/t gold and 67 metres of 0.6 g/t gold from surface, respectively) before being abandoned in a fault zone. BUSY208 intersected vein D (4.69 metres at 9.8 g/t gold and 41 g/t silver) within this package as well. BUSY204 and BUSY215 continued to greater depths intersecting several vein sets below and to the west of the Diatreme fault on the western margins of the current resource model. The intercepts of the San Antonio vein in BUSY215 (5.9 metres at 12.3 g/t gold and 125 g/t silver) and below this in BUSY204 (7.72 metres at 14.7 g/t gold and 50 g/t silver) at relatively high elevations and to west of this high-grade vein on levels 0 and 1, are particularly encouraging. Both drill holes also encountered good gold grades in the Murcielagos family veins, outside of the current resource model in western Yaragua. The Murcielagos veins and the San Antonio vein have now been outlined along 600 metres and 550 metres of strike length, respectively, and remain open along strike to the west, east and at depth.
BUSY215 encountered a high silver/gold vein and a high-grade gold vein south of the Murcielagos vein family. Both veins align with other drill intercepts in Yaragua South.
BUSY217, the first drill hole to be completed under a large soil geochemical anomaly in the Yaragua South/La Mano area, intersected two vein sets with high silver/gold, the more southerly of these veins assaying 2.5 metres at 0.2 g/t gold and 360 g/t silver from 108.6 metres downhole.
Central-west Yaragua: Level 2 tunnel sampling
Channel sampling of the Sofia, Hangingwall and Centena veins averaged three metres spacing and 1.9 metres across the back of the drifts on Level 2. The strike lengths of sampled segments totalled 272 metres. The average widths tabulated in the associated table approximate true horizontal widths and represent the assay intervals at zero and three g/t gold cut-off grades. In areas of wider veins, splits or where development is off vein, mineralization may extend into the walls of the underground openings; hence, the stated widths are the absolute minimum with additional evaluation required to clarify if mineralization continues into the wall rock.
YARAGUA LEVEL 2 TUNNEL SAMPLING
0 g/t Au cut-off Three g/t Au cut-off
Average Average
RL (i) Length width Au Ag Zn width Au Ag Zn
Segment (m) (m) (m) (g/t) (g/t) (%) (m) (g/t) (g/t) (%)
Sofia vein set
1 1,445 18 1.97 113.26 60.2 0.48 1.05 210.26 109.0 0.71
Hangingwall vein set
1 1,442 148 1.55 15.96 23.1 0.55 0.43 55.92 75.7 1.51
Centena vein set
1 1,442 82 1.94 8.08 46.2 0.96 0.56 26.10 142.5 2.58
2 1,441 24 2.05 6.96 143.6 0.75 0.70 19.03 405 2.02
Note
(i) RL denotes the average elevation of the drift samples.
Grades are uncut and the average widths are true (but locally minimum)
horizontal.
The Level 2 sampling is about 50 vertical metres below Level 1 sampling and demonstrates the strong vertical continuity of high grades in the vein sets as well as continuity of grade along strike in central Yaragua. Gold and silver grades in each vein set on Level 2 are comparable with or higher than those estimated from drilling in the current resource model, thus confirming that the resource model for Central Yaragua is conservative.
A crosscut driven to the north from Level 2 development on the Hangingwall vein intersected the San Antonio vein about 55 vertical metres below a very high-grade segment of this vein on Level 1. The new Level 2 intercept is both relatively thick and assay results are awaited but the vein mineralogy is consistent with high gold and silver grades, with visible gold observed.
Veta Sur
Significant new drill intercepts in the Veta Sur system are shown in the associated table.
DRILLING HIGHLIGHTS FROM THE VETA SUR SYSTEM
Interval
From To (i) Gold Silver Zinc RL
Drill hole (m) (m) (m) (g/t) (g/t) (ppm) (m)
BUSY198 160.50 161.30 0.80 4.93 92.0 2,031 1,571
252.00 253.50 1.50 25.98 6.8 812 1,481
278.00 279.00 1.00 11.26 22.0 5,968 1,456
317.50 318.50 1.00 9.68 21.0 9,166 1,420
322.20 323.50 1.30 26.44 13.0 2,024 1,412
342.25 356.00 13.75 8.61 14.7 2,888 1,390
incl. 347.50 353.00 5.50 16.38 25.2 4,884 1,385
364.50 375.50 11.00 3.72 15.0 1,278 1,371
incl. 373.70 374.10 0.40 22.91 138.0 1,915 1,363
422.50 430.00 7.50 3.90 8.9 546 1,310
443.50 446.50 3.00 3.04 17.5 247 1,295
449.50 451.00 1.50 7.74 6.4 875 1,287
462.50 464.00 1.50 5.90 15.0 2,051 1,276
475.00 476.50 1.50 6.45 22.0 657 1,262
496.50 503.50 7.00 6.00 21.6 316 1,241
532.00 535.00 3.00 11.06 43.7 864 1,207
BUSY203 354.35 354.90 0.55 3.07 33.0 47,800 1,542
496.70 499.20 2.50 2.63 37.0 7,124 1,408
526.15 526.70 0.55 8.69 31.0 4,271 1,380
BUSY205 110.35 111.40 1.05 0.50 57.0 185 1,634
274.50 277.40 2.90 2.89 38.0 13,510 1,492
BUSY207 304.50 310.20 5.70 1.39 216.0 823 1,505
incl. 304.50 307.20 2.70 1.87 442.2 1,134 1,505
330.50 333.74 3.24 2.22 36.6 426 1,480
451.50 454.50 3.00 2.96 4.2 34 1,371
495.90 498.50 2.60 2.38 5.0 308 1,332
BUSY211 370.50 371.00 0.50 1.53 2.4 724 1,524
457.10 457.70 0.60 1.05 3.1 571 1,440
510.50 511.50 1.00 1.31 3.7 650 1,390
BUSY216 177.85 182.70 4.85 14.67 58.6 6,362 1,642
incl. 181.40 182.70 1.30 45.50 144.8 3,996 1,632
197.65 198.70 1.05 6.83 28.0 2,243 1,620
226.50 228.00 1.50 11.39 3.0 530 1,596
232.51 234.30 1.79 6.24 55.2 1,432 1,591
242.00 244.20 2.20 6.13 173.7 4,598 1,583
249.48 251.70 2.22 0.76 357.0 705 1,576
286.30 287.30 1.00 27.16 6.4 3,028 1,547
BUSY218 423.60 427.60 4.00 1.44 15.3 885 1,484
Note
(i) Intercepts calculated at one g/t gold plus 0.03 g/t silver cut-off grades
with up to 20-per-cent internal dilution and generally tabulated if greater than 10
gram-metres gold equivalent. True widths not accurately known but
generally between 0.3 and 0.7 metre of downhole interval.
Drilling at Veta Sur has extended the system to the northeast, to the southwest and to depth outside of the current resource model.
BUSY207 and BUSY216, drilled across northeast Veta Sur, both intersected several vein sets to the northeast of and at greater depths than the extents of the current resource model. The latter drill hole exhibits a number of high-grade intercepts (including 4.85 metres at 14.7 g/t gold and 59 g/t silver from 177.85 metres downhole and also two high silver/gold intervals: from 242.0 metres, 2.2 metres at 6.1 g/t gold and 174 g/t silver plus from 249.48 metres, 2.22 metres at 0.8 g/t gold and 357 g/t silver) which appear to align with drill intercepts to the southwest. A deeper intercept in BUSY216 (one metre at 27.2 g/t gold and six g/t silver) appears to be a newly discovered vein. BUSY207 intersected a silver-rich vein (including 2.7 metres at 1.9 g/t gold and 442 g/t silver). This vein and others in BUSY207 may be fault separated from intercepts in BUSY216.
BUSY198 drilled in central Veta Sur intersected several high-grade veins (including from 347.5 metres, 5.5 metres at 16.4 g/t gold and 25 g/t silver) in locations and with grades comparable with the current resource model. However intercepts downward from RL 1,350 metres are below the current resource model and the deepest of these intercepts (from RL 1,241 metres and RL 1,207 metres) may align with intersections more than 200 metres deeper in hole BUSY221.
BUSY205, drilled southward from central Veta Sur, intersected two new veins, with high and moderate silver/gold, respectively, the latter vein being the most southerly discovered to date in the Veta Sur area.
Mineralized intercepts in BUSY203, BUSY211 and BUSY218 exhibit moderate to high silver/gold and all lie to the southwest of the current resource model. Some of these intercepts may relate to veins intersected at RLs up to 400 metres deeper in drill hole BUSY210. Further drilling is required to establish potential vein continuity over more than 900 vertical metres in southwestern Veta Sur.
Technical information
Dr. Vic Wall, PhD, special adviser to the company and a qualified person for the purpose of National Instrument 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 an industry-standard QA/QC (quality assurance/quality control) program. HQ and NQ diamond drill core is sawn in half with one-half shipped to a sample preparation lab in Medellin run by SGS Colombia. One hundred per cent 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, Nev.
For additional technical information on the Buritica project, please refer to the company's technical report entitled Mineral resource estimate of the Buritica gold project, Colombia, dated Oct. 24, 2011 as amended Nov. 23, 2011, prepared by Andrew J. Vigar, BAppSc, Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC, Geo, MAIG, each of Mining Associates Pty. Ltd., available on SEDAR and on the company's website.
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