Mr. Ari Sussman reports
DRILLING AT CONTINENTAL GOLD'S BURITICA PROJECT DISCOVERS BMZ4, A NEW HIGH-GRADE AND BROAD MINERALIZED ZONE
Continental Gold Inc. has released high-grade assay results from the initial 12 holes drilled into BMZ4, a new discovery located in the easternmost part of the Yaragua system 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 drilling targeting broad mineralized zone (BMZ) targets. Supporting information for results discussed in this release can be found in the associated table.
Highlights:
- Twelve surface diamond drill holes were completed into the far east portion of the Yaragua system to test if a new broad mineralized zone (BMZ4) exists in this location. The target was generated on the hypothesis that the Tonusco fault, located at the eastern edge of the Yaragua system, is a fluid conduit for precious metal deposition in its vicinity and such deposition would specifically be pronounced at the junction where the Centena vein crosses the Murcielagos master vein family.
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The discovery hole, BUSY407, intercepted multiple continuous high-grade zones through the BMZ4 structure at an excellent angle to the geometry of the zone, with results including:
- 12.30 metres at 10.17 grams per tonne gold and 4.4 g/t silver (BUSY407);
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8.70 metres at 6.49 g/t gold and 57.2 g/t silver (BUSY407).
- Each hole sequentially drilled following the discovery hole (BUSY407) intercepted BMZ4 at or near perpendicular angles to the strike of the zone. Additionally, the majority of the holes intercepted more than one thick interval of remarkably continuous mineralization within the zone. Narrow bands of visible gold were also observed. Key results are as follows:
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15.50 metres at 7.03 g/t gold and 9.1 g/t silver (BUSY409);
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14.75 metres at 4.82 g/t gold and 15.4 g/t silver (BUSY410);
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5.65 metres at 18.69 g/t gold and 38.7 g/t silver (BUSY411);
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11.45 metres at 8.24 g/t gold and 17.3 g/t silver (BUSY412);
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5.10 metres at 17.32 g/t gold and 39.6 g/t silver (BUSY415);
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27.90 metres at 7.04 g/t gold and 7.5 g/t silver (BUSY416);
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7.55 metres at 7.66 g/t gold and 12.4 g/t silver (BUSY417).
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BMZ4, which is located approximately 60 metres east of BMZ2 in the eastern portion of the Yaragua system, has been intersected by drilling for more than 200 vertical metres and measures between 25 and 45 metres in thickness. Mineralization encountered in BMZ4 is expected to add new ounces to the multimillion-ounce global mineral resource inventory for the project. BMZ4 remains open at depth with extension drilling currently under way. Three diamond drill rigs are actively turning on this promising new discovery.
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In light of this new discovery, initially definition drilling will start into the very upper part of BMZ4 where underground development has been advancing in the upper eastern Yaragua area with a crosscut to the Murcielagos vein. The zone will be more intensively drilled as a ramp is developed deeper in this area and additional drill chambers constructed. The company expects to incorporate continuing results from BMZ4 into the mine plan and will be looking to design wider stopes with potential to use bulk-style mining, including transverse extraction using primary and secondary stopes.
"Discovering BMZ4 is an excellent outcome for the company and our geology team deserves credit for successfully proving the concept with drilling," commented Ari Sussman, chief executive officer. "BMZ4 continues to highlight the upside at Buritica as this discovery will ultimately add high-grade ounces to the global mineral resource inventory of the project. More importantly, we are hopeful that we will be able to successfully delineate new stopes in this area and be producing gold from the zone in 2020."
Details
Two diamond drill holes were completed in the easternmost area of the Yaragua system. The initial two holes, BUSY405 and BUSY406, were drilled too far east and consequently passed through the Tertiary dioritic intrusion host rock of the Yaragua system into the Tonusco fault before finally passing into Cretaceous basalt on the eastern side of the fault and out of the system. BUSY408 ran into technical difficulties and was abandoned shortly after coring reached 32 metres downhole. The remaining 10 drill holes (BUSY407 and BUSY409 to 417) all successfully intercepted high-grade gold over varying thicknesses in BMZ4 with drill intercepts over 200 vertical metres in elevation. BMZ4 remains open in high-grade mineralization at depth.
The majority of the drill holes intersected more than one continuous run of thicker mineralization; all broad intervals encountered demonstrated excellent continuity at one g/t gold or greater along the axis of the hole. Additionally, detailed core logging of holes indicates that the orientation of drilling was done at or near perpendicular angles to the strike of the mineralized structures of BMZ4.
Three diamond rigs are now actively drilling BMZ4 and will continue to test the depth extension potential of the zone. Additionally, drilling from underground development recently excavated close to BMZ4 will allow more intensive definition drilling to commence shortly. Finally, results from the intensive definition drilling will allow the company's mine planning team to begin preliminary designs for BMZ4 in order to assess the potential for mining the zone early in the production schedule. A particular focus in this work will be to evaluate the potential to use bulk-style mining, including transverse extraction using primary and secondary stopes.
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)
BUSY405 29.50 39.50 10.00 2.23 4.6 2.29
44.20 48.00 3.80 7.79 10.3 7.93
incl. 46.00 46.60 0.60 25.90 10.8 26.04
BUSY406 36.90 38.40 1.50 2.60 31.5 3.02
BUSY407 56.15 58.70 2.55 2.91 2.9 2.95
75.95 77.50 1.55 3.39 1.7 3.41
84.40 96.70 12.30 10.17 4.4 10.23
incl. 84.40 84.95 0.55 21.90 2.3 21.93
and 90.50 91.05 0.55 58.80 19.8 59.06
and 94.00 94.60 0.60 44.60 10.2 44.74
98.55 101.90 3.35 2.07 1.3 2.09
103.10 110.70 7.60 3.00 3.8 3.05
incl. 107.80 108.40 0.60 11.50 3.8 11.55
112.50 114.75 2.25 3.06 3.7 3.11
122.60 124.40 1.80 8.27 2.2 8.30
136.50 140.40 3.90 4.08 7.1 4.18
149.15 154.35 5.20 1.49 8.4 1.60
155.50 165.60 10.10 4.03 14.1 4.22
incl. 159.35 160.35 1.00 10.30 7.8 10.40
174.20 179.75 5.55 1.50 11.1 1.65
193.00 201.70 8.70 6.49 57.2 7.25
incl. 195.70 197.45 1.75 19.03 191.6 21.58
BUSY409 73.80 89.30 15.50 7.03 9.1 7.15
incl. 74.80 75.30 0.50 22.90 13.7 23.08
and 88.70 89.30 0.60 49.40 20.4 49.67
89.85 93.80 3.95 1.56 5.0 1.62
98.30 99.80 1.50 7.52 13.3 7.70
BUSY410 80.20 81.20 1.00 16.63 22.6 16.93
179.40 185.90 6.50 5.43 3.0 5.47
incl. 179.40 180.00 0.60 22.00 11.5 22.15
and 185.40 185.90 0.50 34.60 6.9 34.69
218.30 221.80 3.50 4.17 2.2 4.20
incl. 221.20 221.80 0.60 10.00 0.8 10.01
266.95 281.70 14.75 4.82 15.4 5.03
incl. 271.40 272.00 0.60 31.20 7.9 31.31
302.70 306.40 3.70 9.60 59.0 10.39
incl. 304.80 306.40 1.60 15.34 100.3 16.68
BUSY411 91.20 96.70 5.50 4.15 7.2 4.24
incl. 93.00 93.50 0.50 24.10 3.2 24.14
112.50 118.15 5.65 18.69 38.7 19.20
incl. 115.65 116.65 1.00 47.45 146.0 49.40
and 117.15 117.65 0.50 80.60 78.4 81.65
121.30 126.50 5.20 2.26 3.4 2.31
134.70 148.00 13.30 5.71 10.7 5.85
incl. 136.30 137.60 1.30 21.42 5.8 21.50
and 141.75 142.25 0.50 13.20 32.8 13.64
157.10 163.50 6.40 4.08 35.5 4.55
incl. 162.50 163.00 0.50 12.05 78.1 13.09
BUSY412 160.00 161.10 1.10 3.29 6.6 3.38
183.90 194.80 10.90 3.50 7.1 3.60
incl. 193.15 193.70 0.55 15.20 19.3 15.46
and 194.30 194.80 0.50 24.90 19.1 25.15
205.85 206.35 0.50 18.25 9.7 18.38
211.55 219.60 8.05 2.05 2.6 2.09
230.95 242.40 11.45 8.24 17.3 8.47
incl. 233.10 235.25 2.15 37.80 19.6 38.06
and 234.20 234.70 0.50 146.00 10.9 146.15
254.00 257.30 3.30 7.13 5.4 7.20
incl. 254.50 255.00 0.50 24.20 17.3 24.43
269.80 271.90 2.10 3.12 12.4 3.28
BUSY413 72.40 76.20 3.80 1.92 3.4 1.96
96.00 102.50 6.50 3.66 10.0 3.79
incl. 101.50 102.00 0.50 23.80 42.8 24.37
112.60 118.60 6.00 5.39 10.6 5.53
incl. 112.60 113.20 0.60 12.90 27.0 13.26
and 114.25 115.50 1.25 12.23 8.3 12.34
122.30 137.70 15.40 3.48 19.7 3.74
incl. 129.50 130.00 0.50 11.00 51.0 11.68
and 130.50 131.00 0.50 14.55 37.1 15.04
BUSY414 58.20 58.90 0.70 4.40 0.7 4.41
198.50 199.60 1.10 3.66 1.5 3.68
202.40 202.90 0.50 2.80 211.0 5.81
222.70 224.20 1.50 4.19 5.7 4.28
251.00 252.20 1.20 2.97 18.6 3.24
265.30 265.80 0.50 7.58 13.8 7.78
290.00 295.30 5.30 4.73 4.8 4.79
incl. 290.00 290.50 0.50 25.30 3.8 25.35
BUSY415 27.50 32.60 5.10 17.32 39.6 17.89
incl. 28.00 28.50 0.50 25.80 6.9 25.90
and 30.50 32.10 1.60 41.10 107.0 42.63
90.50 91.00 0.50 24.20 1.4 24.22
104.50 113.10 8.60 5.03 12.4 5.21
incl. 109.90 110.40 0.50 15.50 5.3 15.58
and 112.60 113.10 0.50 23.90 13.8 24.10
121.00 122.60 1.60 3.14 7.4 3.24
129.00 135.40 6.40 4.40 3.8 4.46
incl. 132.35 132.90 0.55 25.70 2.4 25.73
148.95 151.25 2.30 3.18 19.2 3.45
157.55 159.20 1.65 3.66 13.0 3.84
164.85 170.75 5.90 4.25 22.4 4.57
incl. 168.00 168.70 0.70 11.55 31.5 12.00
190.50 193.20 2.70 3.70 7.8 3.81
BUSY416 75.10 87.30 12.20 5.11 10.9 5.27
incl. 81.00 82.00 1.00 43.05 20.0 43.34
90.40 91.60 1.20 4.01 4.3 4.07
100.20 128.10 27.90 7.04 7.5 7.15
incl. 109.50 110.00 0.50 41.00 24.1 41.34
and 113.20 114.00 0.80 35.00 7.3 35.10
and 117.40 118.10 0.70 41.50 3.5 41.55
133.00 140.60 7.60 3.85 33.7 4.33
incl. 139.10 139.65 0.55 12.15 73.7 13.20
BUSY417 55.30 55.80 0.50 5.94 3.2 5.99
69.65 70.15 0.50 77.20 49.8 77.91
228.50 230.85 2.35 4.67 5.0 4.74
incl. 230.20 230.85 0.65 14.20 1.5 14.22
235.20 236.20 1.00 4.02 11.4 4.18
266.00 273.55 7.55 7.66 12.4 7.83
incl. 268.20 268.70 0.50 81.90 4.3 81.96
278.00 291.20 13.20 3.69 33.6 4.17
incl. 287.40 287.90 0.50 12.95 146.0 15.04
and 290.00 290.60 0.60 30.50 58.8 31.34
297.85 299.00 1.15 3.06 17.9 3.32
319.25 319.75 0.50 7.67 38.3 8.22
* Intercepts calculated at a composite 4.8-gram-by-metre gold equivalent for minimum
intervals of 0.5 metre, with generally no more than 10-per-cent internal dilution.
** Grades herein are reported as uncapped values. Gold equivalent in this release
and table was calculated at Au:Ag ratio of 1:75 with no assumptions made for
metallurgical recovery rates.
*** True widths for intercepts of modelled veins outside of the BMZs are estimated
to be between 75 and 100 per cent. Mineralization intercepted with BMZ4 is generally estimated
to be within 70 to 100 per cent of true widths.
Geological description of the Buritica project
Continental's 100-per-cent-owned, 75,583-hectare project, Buritica, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style variably overprinted by texturally and chemically distinctive high-grade 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 drilled along over 1,300 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.
BMZ4 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 geomechanical properties.
Technical information
Mauricio Castaneda, vice-president, exploration, of the company and a qualified person for the purpose of Canadian National Instrument 43-101, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release.
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.
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 "NI 43-101 Buritica Mineral Resource 2019-01, Antioquia, Colombia," and dated March 18, 2019, with an effective date of Jan. 30, 2019, led by independent consultants Ivor Jones Pty. Ltd. The technical report is available on SEDAR, on the OTCQX and on the company's 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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