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Continental Gold Inc
Symbol CNL
Shares Issued 188,556,821
Close 2019-02-28 C$ 2.30
Market Cap C$ 433,680,688
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Continental drills 27.4 m of 9.04 g/t AuEq at Buritica

2019-03-01 07:06 ET - News Release

Mr. Paul Begin reports

CONTINENTAL GOLD EXPANDS BMZ2 WITH HIGH-GRADE INTERCEPTS OVER BROAD INTERVALS AT THE BURITICA PROJECT, COLOMBIA

Continental Gold Inc. has released additional high-grade assay results from 10 holes drilled into the Yaragua system as part of the exploration drilling program at its 100-per-cent-owned Buritica project in Antioquia, Colombia. The company plans to drill up to 73,500 metres in 2019, consisting of approximately 55,000 metres of capitalized definition drilling and approximately 18,500 metres of exploration-led infill drilling. Supporting information for results discussed in this release can be found in the associated table.

"With only 15 drill holes completed to date into our newly discovered BMZ2, we are off to an exciting start in outlining this new zone. Due to BMZ2 demonstrating excellent continuity and high grades over robust thicknesses, the company has prioritized both exploration and definition drilling for the zone on the belief that BMZ2 will ultimately be integrated into the early years of mining for the project," stated Ari Sussman, chief executive officer.

Ten diamond drill holes were completed in the eastern area of the Yaragua system, of which seven drill holes targeted BMZ2. Unfortunately, two holes (BUSY394 and BUSY396) were completed prior to receiving assay results leading to the Jan. 15, 2019, announcement of the discovery of BMZ2 and consequently were drilled too far north to intercept the zone. The five holes that intercepted BMZ2 all successfully encountered high-grade gold over robust thicknesses and extended the dimensions of the zone to 100 metres along strike by 225 metres vertically. BMZ2 remains open along strike to the east and at depth for future expansion. Two diamond drill rigs are now turning and assay results will be reported in due course.

Two diamond drill holes (BUSY385D03 and BUSY385D04) tested a section of the current mineral resource model approximately 200 metres below the elevation of the Higabra tunnel which intersected gold mineralization, including a best intersection of 6.10 metres at 7.78 g/t gold and 5.8 g/t silver (BUSY385D04).

Additionally, one diamond drill hole (BUSY403) deviated from its planned location approximately 75 metres east of BMZ2 and potentially discovered a new BMZ zone. Results include two broad lower-grade intervals and one high-grade interval of 9.25 metres at 7.62 g/t gold equivalent.

Assay results for all drill holes reported in this release are reported in the associated table.

                                                   DRILL HOLE RESULTS
  
Hole ID          From        To      Intercept interval*       Gold**       Silver**       Gold equivalent**
                  (m)       (m)                      (m)        (g/t)          (g/t)                   (g/t)

BUSY385D03     144.15    145.40                     1.25         3.49           12.7                    3.66
               147.40    149.70                     2.30         2.92            4.2                    2.97
               250.40    250.90                     0.50         9.97            5.9                   10.05
               257.75    261.00                     3.25         2.32            2.1                    2.34
               264.90    270.50                     5.60         3.56            2.7                    3.59
               273.80    275.50                     1.70         2.25            7.7                    2.36
               310.70    313.05                     2.35         2.30            2.5                    2.33
               336.35    338.40                     2.05         2.87           17.2                    3.10
BUSY385D04     194.10    195.80                     1.70         6.13           57.7                    6.90
incl           194.10    194.75                     0.65        14.90          149.0                   16.89
               211.90    213.60                     1.70         8.06            3.8                    8.11
incl           213.00    213.60                     0.60        21.30            9.6                   21.43
               222.60    228.70                     6.10         7.78            5.8                    7.86
incl           222.60    223.65                     1.05        17.46           11.3                   17.62
and            228.00    228.70                     0.70        12.60           12.3                   12.76
               232.10    234.10                     2.00         3.18           12.5                    3.34
               292.00    300.50                     8.50         1.43           14.1                    1.62
BUSY394         25.95     29.35                     3.40         6.79           13.0                    6.96
incl            25.95     26.50                     0.55        25.30           10.2                   25.44
                91.50     92.10                     0.60        24.60            2.2                   24.63
                95.10     95.80                     0.70         6.53           57.3                    7.29
               171.80    172.30                     0.50        20.30            1.2                   20.32
               206.50    207.10                     0.60         9.59           52.4                   10.29
               229.80    231.60                     1.80         3.71            8.6                    3.82
               249.00    250.40                     1.40         3.09            2.4                    3.12
               291.90    295.05                     3.15         2.02            5.3                    2.09
               300.60    302.05                     1.45        12.46           41.2                   13.01
BUSY396         80.15     83.25                     3.10         1.93           35.3                    2.40
                91.30     93.30                     2.00         2.52           57.7                    3.28
               145.00    152.80                     7.80         1.28            4.2                    1.34
               169.30    170.30                     1.00         4.26            5.1                    4.32
               259.60    260.10                     0.50        14.00           21.8                   14.29
               282.00    284.20                     2.20         4.29            7.9                    4.39
               313.90    317.30                     3.40         1.16           61.8                    1.99
               338.80    340.95                     2.15         5.75            3.9                    5.80
BUSY397         77.00     78.40                     1.40        14.29           14.3                   14.48
incl            77.50     77.90                     0.40        37.90            6.9                   37.99
               129.20    131.30                     2.10         3.36           45.4                    3.97
               200.80    203.95                     3.15         2.14            7.2                    2.23
               241.50    242.20                     0.70        10.55           28.7                   10.93
               258.90    260.60                     1.70        28.79           73.6                   29.77
incl           260.10    260.60                     0.50        93.20          226.0                   96.21
               271.00    276.20                     5.20        17.94           31.0                   18.35
incl           271.60    272.30                     0.70        91.10           67.7                   92.00
BUSY398         58.30     70.40                    12.10        18.75           20.0                   19.02
incl            58.30     58.85                     0.55       350.00           74.8                  351.00
                75.55     81.50                     5.95         9.55           11.9                    9.70
incl            75.55     76.70                     1.15        20.72            9.4                   20.84
incl            80.00     80.50                     0.50        53.90           22.4                   54.20
                96.40    101.80                     5.40         2.17           78.1                    3.21
               114.00    115.60                     1.60         3.75            3.6                    3.80
               134.80    137.85                     3.05         2.40            5.8                    2.48
               150.10    165.40                    15.30         1.71            4.1                    1.77
               168.00    171.80                     3.80         2.57            8.2                    2.68
               203.20    204.25                     1.05         4.85           50.0                    5.51
               238.80    239.40                     0.60         8.59            8.7                    8.71
BUSY399        119.30    127.80                     8.50        17.71           68.9                   18.63
incl           124.40    125.65                     1.25       103.55          396.8                  108.84
               201.80    206.40                     4.60        28.17           14.9                   28.37
incl           201.80    202.35                     0.55       190.00           46.8                  190.62
               232.30    233.90                     1.60         4.98           11.2                    5.13
               277.70    285.90                     8.20         2.23           20.0                    2.50
incl           278.70    279.25                     0.55        11.35          114.0                   12.87
incl           285.40    285.90                     0.50        13.70           36.7                   14.19
               328.00    329.55                     1.55        17.15           71.9                   18.11
incl           328.00    328.50                     0.50        47.20          199.0                   49.85
BUSY400         45.30     46.80                     1.50         2.25           63.2                    3.10
                72.90     75.00                     2.10        20.43           61.4                   21.25
incl            72.90     73.90                     1.00        42.20          125.9                   43.88
                89.10     92.20                     3.10         2.36           12.8                    2.53
               123.55    125.75                     2.20         2.01            3.5                    2.06
               176.60    182.00                     5.40         3.14           38.6                    3.65
incl           181.40    182.00                     0.60        14.90            1.8                   14.92
               233.40    235.00                     1.60         3.16           18.6                    3.41
               247.60    249.10                     1.50         4.03            6.4                    4.12
               263.40    277.40                    14.00         2.17            2.1                    2.06
incl           276.20    276.70                     0.50        23.20           30.9                   23.61
               329.70    334.35                     4.65         2.38           17.8                    2.62
BUSY402         94.30     94.80                     0.50        13.45            5.2                   13.52
               110.45    112.00                     1.55         3.63            9.7                    3.76
               117.20    144.60                    27.40         8.57           35.1                    9.04
incl           117.70    118.20                     0.50       346.00           40.6                  346.54
incl           143.50    144.05                     0.55        21.00        1,300.0                   38.33
               177.70    178.25                     0.55         9.72            9.7                    9.85
               229.10    230.60                     1.50         5.37            5.6                    5.45
incl           229.10    229.60                     0.50        11.05           10.1                   11.18
               289.60    291.25                     1.65        13.84          137.9                   15.68
incl           290.65    291.25                     0.60        25.40          139.0                   27.25
               351.50    353.00                     1.50        11.55           31.0                   11.96
incl           351.50    352.00                     0.50        24.10           55.2                   24.84
BUSY403         77.80     82.00                     4.20         1.87            7.3                    1.97
               114.80    148.35                    33.55         1.08            2.4                    1.11
               171.25    180.50                     9.25         7.54            6.2                    7.62
incl           178.35    179.00                     0.65        30.80            6.0                   30.88
               203.35    229.50                    26.15         1.91            5.1                    1.97
incl           223.70    224.30                     0.60        28.10            3.4                   28.15
               245.25    248.55                     3.30         8.51           73.0                    9.48
               320.20    321.20                     1.00        12.90            1.6                   12.92

* Intercepts calculated for minimum intervals of 0.5 metre.
** Grades herein are reported as uncapped values. Gold equivalent in this release and table was calculated 
at Au:Ag ratio of 75:1 with no assumptions made for metallurgical recovery rates.
*** True widths intercepted modelled veins outside of the BMZs are estimated to be between 75 and 100 per
cent. In the BMZs, however, the zone consists of veins at various orientations so individual drill holes 
will intercept certain veins within the zone at up to true orthogonal angles and others at up to oblique 
angles.

Geological Description of the Buritica Project

Continental's 100-per-cent-owned, 75,023-hectare project, Buritica, 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 Yaragua and Veta Sur systems) are central to this land package. The Yaragua system has been drill outlined along 1,350 metres of strike and 1,800 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill outlined along 1,000-plus 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.

BMZ details

The BMZ consists of a group of modelled precious metal-bearing veins in the current mineral resource estimate block model with mineralization occurring between these veins, generally in the form of veinlets at oblique angles to strike. The majority of the mineralization between modelled veins is not in the current mineral resource estimate, providing potential upside both in terms of identifying significantly broader and more productive zones for mining and increased mineral resources. To date, the company has identified up to seven BMZ targets for testing and will systematically drill each target zone as underground mine development advances.

BMZ2 is a three-dimensional orebody interpretation and modelling with variability in width, thickness along a vertical extension. Additional core drilling is been planned to define its characteristics, such as gold/silver grades, geometry and vertical extension.

Technical information

Mauricio Castaneda, vice-president, exploration, of the company and a qualified person for the purpose of National Instrument 101, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release.

Reported intervals include minimum weighted averages of three g/t gold equivalent (1:75 Au/Ag) over core lengths of at least 1.0 metre. Assays are uncut except where indicated.

Besides rigorous chain-of-custody procedures, the company utilized a comprehensive quality control/quality assurance program for the channel samples. All quality control anomalies were addressed and/or corrected as necessary to assure reliable assay results; no material quality control issues were encountered in the course of the program. Crush rejects and pulps are kept and stored in a secured storage facility for future assay verification. Although historical correlation between analytical results from the company's internal laboratory and certified independent laboratories for gold and silver analysis have been within acceptable limits, the company's internal laboratory is neither independent nor certified under NI 43-101 guidelines, and, as such, channel sampling results in this release should only be taken by the reader as indicative of future potential.

For exploration and infill core drilling, the company applied its standard protocols for sampling and assay. HQ and NQ core is sawn or split, with one-half shipped to a sample preparation laboratory in Medellin run by ALS Colombia Ltd., 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 SA, a certified assay laboratory in Medellin, Colombia.

The company does not necessarily receive assay results for drill holes in sequential order; however, all significant assay results are publicly reported.

For information on the Buritica project, please refer to the technical report, prepared in accordance with NI 43-101, entitled "Buritica Project NI 43-101 Technical Report Feasibility Study, Antioquia, Colombia," and dated March 29, 2016, with an effective date of Feb. 24, 2016, led by independent consultants JDS Energy & Mining Inc. Additional information on the company's updated mineral resource estimate for the Buritica project, with an effective date of Jan. 26, 2019, and prepared by the company under the guidance and supervision of Ivor W.O. Jones, MSc, FAusIMM, CPgeo, PGeo (an independent qualified person under NI 43-101 guidelines), is available in the company release dated Jan. 30, 2019. The technical report and company release are available on SEDAR, on the OTCQX's website and on the company website.

About Continental Gold Inc.

Continental Gold is the leading large-scale gold mining company in Colombia and is presently developing its 100-per-cent-owned Buritica project in Antioquia. Buritica is one of the largest and highest-grade gold projects in the world and is being advanced utilizing best practices for mine construction, environmental care and community inclusion. Led by an international management team with a successful record of discovering, financing and developing large high-grade gold deposits in Latin America, the Buritica project is on schedule with first gold pour anticipated during the first half of 2020.

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