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Continental Gold Ltd
Symbol CNL
Shares Issued 127,179,758
Close 2015-01-28 C$ 2.10
Market Cap C$ 267,077,492
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Continental Gold drills 10.8 m of 56 g/t Au at Buritica

2015-01-29 06:53 ET - News Release

Mr. Ari Sussman reports

CONTINENTAL GOLD DRILLS BROAD AND HIGH-GRADE INTERVALS IN THE VETA SUR VEIN SYSTEM AT BURITICA, COLOMBIA

Continental Gold Ltd. has released results for 15 diamond drill holes through the Veta Sur vein system at the company's 100-per-cent-owned Buritica project in Antioquia, Colombia. Drilling continues with the goal of upgrading inferred resources into the measured and indicated categories under National Instrument 43-101 guidelines, and delivering overall robust mineral resource growth. The company recently released a preliminary economic assessment of the Buritica project. The 2014 PEA (entitled "Buritica Gold Project, NI 43-101 Technical Report Preliminary Economic Assessment, Antioquia, Colombia," and dated Dec. 22, 2014, with an effective date of Nov. 17, 2014) is preliminary in nature and includes inferred mineral resources that are considered to be too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty the 2014 PEA will be realized. Further, mineral resources are not mineral reserves and have not demonstrated economic viability.

Highlights:

  • Drilling was successful in infilling central sections of the Veta Sur vein system through 300 metres of vertical and 300 metres of lateral extents. The Veta Sur system was also extended to the north, southwest and to depth and remains open in these directions. Two of the drill holes, which were designed to infill Veta Sur, continued through the system to the northwest, encountering new veins. Additionally, these two holes then continued past the Veta Sur system and encountered the Yaragua vein system approximately 300 metres from the most westerly modelled vein family.
  • In central Veta Sur, drill holes encountered multiple vein families with grades times thicknesses that are substantially greater than those expected from the current mineral resource block model. Broad and/or high-grade intercepts and related master veins include:
    • 10.85 metres at 56.4 grams per tonne gold and 163 grams per tonne silver, including 2.55 metres at 108.1 grams per tonne gold and 320 grams per tonne silver (BUSY369D04, V42, elevation of 1,315 metres);
    • 9.75 metres at 26.4 grams per tonne gold and 91 grams per tonne silver, including 1.68 metres at 105.0 grams per tonne gold and 366 grams per tonne silver (BUSY369D07, V42, elevation of 1,324 metres);
    • 12.0 metres at 27.3 grams per tonne gold and 46 grams per tonne silver, including 1.35 metres at 142.8 grams per tonne gold and 195 grams per tonne silver (BUSY369D11, V42, elevation of 1,272 metres);
    • 0.6 metre at 116 grams per tonne gold and 109 grams per tonne silver (BUUY289D02, V34, elevation of 1,185 metres);
    • 14.2 metres at 12.2 grams per tonne gold and 17 grams per tonne silver, including 2.15 metres at 65.6 grams per tonne gold and 78 grams per tonne silver (BUUY289D02, V31, elevation of 1,152 metres);
    • 0.5 metre at 107.5 grams per tonne gold and 91 grams per tonne silver (BUUY289D03, V41, elevation of 1,237 metres);
    • 12.7 metres at 14.8 grams per tonne gold and 87 grams per tonne silver, including two metres at 74.9 grams per tonne gold and 468 grams per tonne silver (BUUY289D03, V31, elevation of 1,186 metres);
    • 1.18 metres at 97.4 grams per tonne gold and six grams per tonne silver (BUUY289D04, V34, elevation of 1,217 metres).
  • These and other intercepts in the 1,100-to-1,400-metre range of elevations will contribute to increased confidence levels of high-grade gold and silver mineral resources in master veins of central Veta Sur. The grades times thicknesses of these veins are encouraging for future development of an area that is close to mining and haulage development proposed in the 2014 PEA.
  • Elsewhere in central to western Veta Sur, drilling intersected multiple veins below or to the southwest of the current mineral resource envelope, significantly extending the lateral and vertical extents of northern vein families in this area. Key intercepts, in relation to the Veta Sur mineral resource envelope, include:
    • 5.75 metres at 18.6 grams per tonne gold and 31 grams per tonne silver, including 1.3 metres at 58.6 grams per tonne gold and 78 grams per tonne silver (BUSY369D09, elevation of 1,360 metres, below mineral resource envelope);
    • 0.5 metre at 2.7 grams per tonne gold and 903 grams per tonne silver (BUSY369D10, elevation of 1,176 metres, outside mineral resource envelope);
    • 1.2 metres at 4.7 grams per tonne gold and 853 grams per tonne silver (BUUY289D06, elevation of 1,170 metres, below mineral resource envelope);
    • 4.75 metres at 5.1 grams per tonne gold and 13 grams per tonne silver (BUUY289D06, elevation of 975 metres, outside mineral resource envelope). These and other extensions of the Veta Sur system shown in the table are all in proximity to mining development proposed in the 2014 PEA.
  • To the north and west of the current Veta Sur mineral resource envelope, two drill holes encountered multiple families of veins that are interpreted to represent as-yet unmodelled northern Veta Sur vein families and also far-western extensions of the Yaragua vein system. Significant intercepts include:
    • 1.6 metres at 7.4 grams per tonne gold and 41 grams per tonne silver (BUSY369D10, elevation of 1,081 metres);
    • 7.86 metres at 7.2 grams per tonne gold and 29 grams per tonne silver, including 2.14 metres at 19.1 grams per tonne gold and 77 grams per tonne silver (BUUY289D05, elevation of 762 metres);
    • 0.93 metre at 11.5 grams per tonne gold and two grams per tonne silver (BUUY289D05, elevation of 718 metres).

"Two thousand fourteen infill and extension drilling at Veta Sur continuously intersected superior results compared to the current mineral resource estimate," commented Ari Sussman, chief executive officer of Continental. "We look forward to the next mineral resource estimate for the Buritica project, anticipated in late Q2 2015, and expect to see growth in both the measured and indicated ounces."

Details

Continental's 100-per-cent-owned, 62,348-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 1,100 metres of strike and 1,700 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill outlined along over 1,000 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. This release documents the results of infill and extension drilling to the north and northwest through central Veta Sur. Significant new drill intercepts are listed in the table.

                                 DRILLING HIGHLIGHTS

                                Inter-
Hole ID        From       To     cept   Gold Silver   Zinc  Elevation     Vein
                 (m)      (m)      (m)  (g/t)  (g/t)    (%)        (m)

BUSY369D04   194.85   195.5      0.65   3.09   10.8   0.57      1,328       43
             199.95   210.8     10.85  56.38  163     1.32      1,315       42
incl         201.65   204.2      2.55 108.07  319.8   1.99
             213.3    214.42     1.12  21.21   13.2   0.02      1,311       41
             217.15   219.15     2      5.96   14.7   0.03      1,307       34
             222.45   230.55     8.1    4.11   12     0.09      1,296       32
             232.75   233.25     0.5    3.62   15.9   0.01      1,294        -
BUSY369D05   138.2    139.9      1.7   18.98  120.8   0.65      1,451      120
             298      299.25     1.25   3.29    6.6   0.05      1,301       42
             365.35   366        0.65  11.8    12.7   0.03      1,238       39
             378.65   379.35     0.7   10.9     5.9   0.08      1,226       34
             382.3    382.8      0.5   15.75   18.4   0.05      1,223       32
             385.05   386.72     1.67   3.62    4.6   0.04      1,219       32
             389.4    390        0.6    8.39    5.9   0.02      1,216       32
             396.6    398.05     1.45   2.79    8     0.04      1,209       31
             399      400.5      1.5   11.97  641.1   0.44      1,206       31
BUSY369D06    29.4     29.9      0.5   18.25   50.9   0.07      1,456      120
             124.55   125.65     1.1   14.64  178.1   0.17      1,370       51
             143.1    143.7      0.6    5.94    8.5   0.03      1,354       48
             208.3    208.9      0.6    6.74   23.3   0.02      1,295       42
             218.3    219        0.7   77.6    54.1   0.21      1,286       41
             229.7    230.2      0.5   17.7   156     1.69      1,276       39
BUSY369D07   138.75   148.5      9.75  26.4    91.2   0.64      1,324       42
incl         138.75   140.43     1.68 104.98  366     1.43
             149.9    153        3.1    3.52   10.2   0.02      1,320       41
             154.5    159.15     4.65  11.25   25.3   0.02      1,315       39
             178      178.6      0.6    1.2     1.1   0.09      1,298       34
             263      263.6      0.6    5.5     9.5   0.32      1,227       28
             275.5    276        0.5    2.71    9.8   0.01      1,216       26
             331.8    332.55     0.75   1.29    2.2   0.07      1,170       22
BUSY369D08    39.3     39.85     0.55   2.21   24     0.61      1,471      120
             130.3    133.8      3.5   33.78  110.6   0.27      1,397       42
incl         131.4    133.3      1.9   56.55  176.4   0.44
             148.65   149.65     1     24.37   36.5   0.04      1,385       41
             225      225.92     0.92   1.14    5.5   0.85      1,325       31
             244.8    245.35     0.55   5.52   60.8   0.25      1,310       30
             260.17   261.6      1.43   5.26    6.7   0.24      1,297       26
             274.35   274.85     0.5   53.9    56.8   2.36      1,287       24
             328      328.95     0.95   1.21    3.5   0.03      1,246       20
             387.7    388.95     1.25   0.81   24.8   0.45      1,202    below
             398.45   398.95     0.5    2.33    5     0.2       1,194       10
BUSY369D09    59.8     60.3      0.5    2.84   28.7   0.09      1,470      120
             100      100.5      0.5    0.77   21.5   0.31      1,436       90
             185.95   191.7      5.75  18.63   31.3   0.24      1,360    below
incl         185.95   187.25     1.3   58.55   77.5   0.57
             193.3    194        0.7    6.63   15.8   0.21      1,358    below
             200.6    201.1      0.5    3      34.2   0.16      1,352    below
             204.7    205.65     0.95   1.67   20.5   0.2       1,349       39
BUSY369D10   103.2    103.8      0.6    1.25   20.8   0.15      1,478      110
             170.15   175.65     5.5    9.75  107.6   0.26      1,424       48
incl         171.3    174        2.7   18.78  102.8   0.49      1,425
             183.2    183.7      0.5    4.1    45     0.43      1,417       43
             199.5    200        0.5   21.2    37.1   0.37      1,405       42
             202.2    202.7      0.5   14.1   165     0.09      1,403       41
             214      214.5      0.5    2.54   29.8   0.04      1,394       39
             230.1    230.6      0.5    2.47   34.1   0.44      1,382       34
             324.55   325.9      1.35   4.25    6.7   0.09      1,311    below
             380.1    386.7      6.6    2.17  135.5   0.3       1,267    below
             468.55   470.35     1.8    1.21   97.3   1.14      1,209    below
             517.55   518.05     0.5    2.69  903     1.48      1,176  outside
             555.7    556.25     0.55   5.16   11.8   0.02      1,150  outside
             617      619.25     2.25   3.66    8.8   0.01      1,108  outside
             657      658.6      1.6    7.36   40.7   0.24      1,081  outside
             771      772.9      1.9    3.77   20.7   0.05      1,006  outside
             771      772.9      1.9    3.77   20.7   0.05      1,006  outside
             875.05   875.55     0.5    0.97   31.9   1.92        939  outside
             982.45   983.45     1      1.01    0.5   0           869  outside
BUSY369D11    17.9     18.7      0.8    1.74   24.6   3.6       1,528  outside
              87.15    87.65     0.5    4.24   18.2   0.06      1,468      120
             126.15   126.7      0.55   1.31    4.3   0.32      1,432       90
             247.2    248        0.8    1.39    3.3   0.05      1,319       43
             285.9    297.9     12     27.28   46     0.26      1,272       42
incl         286.6    287.95     1.35 142.81  194.7   0.22
             305.52   306.32     0.8    3.77    3.4   0.03      1,264       39
             313      315.6      2.6   11.17   18.7   0.19      1,256       34
             618.06   618.8      0.74  20.8    48.8   0.06        971       20
             646.92   647.45     0.53  12.25    6.8   0.01        944    below
BUUY289D     178.6    179.15     0.55   1.34    4     0.09      1,489  outside
             223.9    224.55     0.65   1.07    0.9   0.03      1,447  outside
             241.95   242.7      0.75   1.06    7.2   0.12      1,430  outside
             256.45   257.15     0.7    2.21    3.5   0.03      1,416  outside
             260.95   261.6      0.65   3.37   10.5   0.16      1,412  outside
BUUY289D01     0        0.5      0.5   10.35   37.8   0.05      1,350      120
              14.55    15.15     0.6    2.93   10.7   0.12      1,337      110
              42       42.5      0.5    3.74    6.2   0.03      1,313    below
              82.05    83.4      1.35   2.81    3.3   0.01      1,277       65
             138.4    140        1.6   42.85   27     0.35      1,226       42
             143.5    144        0.5    4.12   40.1   0.21      1,222        -
             147.95   148.95     1      8.43   46.4   0.03      1,218       41
             180.9    181.65     0.75   7.19    8.9   0.04      1,189        -
             185      186.7      1.7   26.77   26.8   0.01      1,185       39
             192.05   192.55     0.5   28.3    64.7   0.09      1,180       34
             200.65   201.35     0.7    8.32    5.8   0.02      1,172        -
             205.25   205.75     0.5   12.2    21.1   0.02      1,168       32
             218      218.6      0.6    2.3    13.1   0.06      1,157        -
             222.6    229        6.4   11.24   13     0.06      1,148       31
incl         225.45   227.4      1.95  33.02   33     0.16
             268.15   268.8      0.65   7.34   21.5   1.68      1,113    below
             281.15   281.75     0.6    1.22    2.4   0.65      1,101    below
             306.6    308.45     1.85   1.31   24.6   0.03      1,078       24
BUUY289D02    26       26.55     0.55   1.17    5.3   0.08      1,312       90
              63.2     64        0.8    9.89    8.7   0.02      1,279    below
              92.5     93.25     0.75   1.73    2.6   0.01      1,253       48
             116.85   118.1      1.25  36.74   56.9   1.13      1,231       42
             119.1    121.1      2     11.81   25.6   0.15      1,229       42
             124.2    124.9      0.7   16.5    40.4   0.03      1,225       41
             137.25   138        0.75   2.72   19.9   0.02      1,214        -
             161.4    164        2.6    8.29   13.3   0.09      1,191       39
             170.4    171        0.6  116     109     0.22      1,185       34
             180.75   181.9      1.15   8.26    6.8   0.01      1,175        -
             183.2    183.9      0.7   17.5    10.8   0.02      1,174       32
             185.5    186        0.5   14.65   71.9   0.04      1,172       32
             187.5    190.5      3      7.56    8.3   0.01      1,168       32
             195.2    209.4     14.2   12.22   17.3   0.03      1,152       31
incl         200.6    202.75     2.15  65.56   78.2   0.01
             213.5    214        0.5   14.5    11.8   0.28      1,148       30
             226.5    227        0.5    4.43    3.6   0.13      1,136    below
             239      242.6      3.6    5.75  140.6   0.2       1,123    below
             244.5    245.5      1      1.94  183.8   0.29      1,121    below
             252      253.2      1.2    1.53   11     0.07      1,114    below
             267.7    268.2      0.5    1.79   14.8   0.02      1,101       24
BUUY289D03    33.3     34        0.7    1.04   28.5   0.08      1,431  outside
              52       52.5      0.5    3.73   11.5   0.81      1,414  outside
             115      115.5      0.5    3.19    4.5   0.04      1,357      120
             124.5    125        0.5    1.78    7.5   0.13      1,349      110
             177      178        1      5.69    3.1   0.01      1,303       65
             215.5    216        0.5    3.3     7.5   0.01      1,270       43
             248      248.5      0.5   16.5    14.6   0.04      1,242       42
             253.5    254        0.5  107.5    91.1   0.13      1,237       41
             260      260.5      0.5   64.4     8.7   0.02      1,231       39
             263.55   264.15     0.6   14.85   25.8   0.06      1,228       34
             265.5    266        0.5    6.07   10.7   0.09      1,227       34
             299      300.3      1.3    5.85    5.4   0.04      1,197       32
             301      313.7     12.7   14.83   87.1   0.07      1,186       31
incl         305.7    307.7      2     74.9   468.3   0.26
             330.45   331        0.55   9.3    10.6   0.2       1,171       30
             478.25   479.2      0.95   2.52    8.2   0.01      1,044       20
BUUY289D04    49.23    49.73     0.5    9.03   38     0.47      1,348      110
              60.25    60.9      0.65   1.05    3.9   0.05      1,339       90
             133.55   134.06     0.51   2.48    9.1   0.02      1,279       48
             183.5    185.16     1.66   2.17    5.4   0.21      1,239       41
             196.31   197.44     1.13  10.84   10.3   0.03      1,229       39
             199.29   203.31     4.02   2.51   14     0.05      1,225        -
             211.76   212.94     1.18  97.4     5.5   0.02      1,217       34
             414.18   414.8      0.62   1.57    2.1   0.01      1,064    below
             419.53   420.48     0.95   1.11    1.2   0         1,060    below
             492.9    494        1.1    2.31   68.8   0.96      1,009    below
             549.7    551.25     1.55   1.9     6.3   0.01        971  outside
             581.72   582.33     0.61   1.16    2.3   0.05        951  outside
             607.1    608.14     1.04   6.8    17.6   0.01        935  outside
BUUY289D05    17.12    17.65     0.53   6.5    16     0.39      1,347      110
              41.65    42.3      0.65   2.97   32.8   0.14      1,326       90
             110.9    111.46     0.56   9.56    6.5   0.02      1,267       48
             122.9    123.4      0.5    1.85    8.1   0.01      1,257       43
             159.02   159.6      0.58   2.45    5     0.01      1,227    below
             174.9    175.5      0.6    2.99   13.9   0.08      1,214    below
             183.1    183.6      0.5   20      27.5   0.02      1,208       39
             188.9    191.8      2.9   12.46   17.6   0.2       1,201       34
             219      219.89     0.89   3.02    1.2   0.01      1,178       31
             469.65   470.25     0.6    0.99    2.6   0.01        979    below
             591.4    592        0.6    1.15    3.7   0.06        886  outside
             651.4    654.12     2.72   4       6.6   0.02        841  outside
             697.5    698.64     1.14   3.72   10.7   0.05        808  outside
             701.4    703.08     1.68   4.65    5.1   0.06        805  outside
             733.18   733.9      0.72   1.16    3.5   0.03        783  outside
             756.56   764.42     7.86   7.21   29.1   0.28        762  outside
incl         756.56   758.7      2.14  19.08   76.8   0.95
             766.08   769.13     3.05   1.86    9.6   0.01        759  outside
             773.94   774.63     0.69   2.53   33.8   0.78        754  outside
             783.17   784.17     1      5.23    6.1   0           748  outside
             792.05   792.92     0.87   2.98    3.3   0.01        742  outside
             811.07   811.72     0.65   6.83   49.5   0.28        728  outside
             816.5    817.46     0.96   5.55    0.5   0           725  outside
             826.41   827.34     0.93  11.45    1.6   0           718  outside
             834.6    835.5      0.9    8.28    5.8   0           712  outside
             859.36   860.7      1.34   1.4     3.6   0.17        695  outside
             866.98   867.86     0.88   1.64    1.5   0.01        690  outside
BUUY289D06     0        1.45     1.45   2.2    20     0.11      1,326    below
              39.3     40.5      1.2    5.04    2.8   0.02      1,293    below
              50.25    52.3      2.05   4.83    3.7   0.01      1,284       48
              58       58.6      0.6   53.9     4.8   0.01      1,278       43
             145.32   146.43     1.11  20.95   15.4   0.05      1,209       39
             157.2    157.7      0.5   11.25   17.3   0.14      1,200       34
             197      198.2      1.2    4.73  853     0.15      1,170    below
             199.4    200        0.6    2.37   61.9   0.02      1,169    below
             293.75   294.75     1      1.31    4.1   0.03      1,098  outside
             346      346.7      0.7    3.52    9.6   0.01      1,061  outside
             376.7    378        1.3    7.42   31.1   0.02      1,039  outside
             447.2    449.05     1.85   3.47    5.9   0.04        989  outside
             456.3    458.7      2.4    3.3    14.9   0.03        982  outside
             460.85   462.85     2      2.09   21.1   0.02        979  outside
             463.55   468.3      4.75   5.09   12.9   0.05        975  outside
             473.7    479        5.3    1.73    7.4   0.03        968  outside
             484.6    487.2      2.6    3.82    7     0.04        962  outside
             588.7    589.5      0.8    2.03    3.6   0.01        895  outside
             602.5    604.2      1.7    5.43    2.9   0.01        886  outside
             618.2    619        0.8    2      75.9   0.03        876  outside
             627.25   627.8      0.55   2.29   17.3   0.01        871  outside

(i) Intercepts calculated at cut-off grades of one gram per tonne gold plus 50 
grams per tonne silver for minimum intervals of 0.5 metre, with up to 30-per-
cent internal dilution. True widths not accurately known but generally are 
between 30 per cent of the downhole interval and near true width. Drill holes 
designated BUUY were collared from underground, and drill holes designated 
BUSY were collared at surface. Holes directionally drilled from mother holes 
(BUUYDxxx or BUSYDxxx) are designated BUUYxxxDxx or BUSYxxxDxx, as the case 
may be.
(ii) Intercepts in vein domains are respectively nominated by vein code (for
example, V34) whereas other intercepts are designated as below or outside of
the current Veta Sur mineral resource envelopes. 

Eight holes (BUSY369D04 to BUSY369D11, inclusive) and a further six holes (BUUY289D01 to BUUY289D06, inclusive) were respectively deviated and directionally drilled from mother holes BUSY369D and BUUY289D, to the south of Veta Sur. The deviated holes were drilled to the north and northwest across the Veta Sur system, infilling central areas of the mineral resource envelope as well as targeting potential extensions to depth. Holes drilled to the northwest also targeted potential southwest extensions of the deeper Veta Sur and far western Yaragua systems.

In central Veta Sur, drill holes encountered multiple vein families over 300 metres of vertical and lateral extents with apparent grades times thicknesses generally comparable with or significantly greater than those expected from the current mineral resource block model. Broad and/or high-grade intercepts and related master veins include:

  • 10.85 metres at 56.4 grams per tonne gold and 163 grams per tonne silver, including 2.55 metres at 108.1 grams per tonne gold and 320 grams per tonne silver (BUSY369D04, V42, elevation of 1,315 metres);
  • 0.7 metre at 77.6 grams per tonne gold and 54 grams per tonne silver (BUSY369D06, V41, elevation of 1,286 metres);
  • 9.75 metres at 26.4 grams per tonne gold and 91 grams per tonne silver, including 1.68 metres at 105 grams per tonne gold and 366 grams per tonne silver (BUSY369D07, V42, elevation of 1,324 metres);
  • 12.0 metres at 27.3 grams per tonne gold and 46 grams per tonne silver, including 1.35 metres at 142.8 grams per tonne gold and 195 grams per tonne silver (BUSY369D11, V42, elevation of 1,272 metres);
  • 0.6 metre at 116.0 grams per tonne gold and 109 grams per tonne silver (BUUY289D02, V34, elevation of 1,185 metres);
  • 14.2 metres at 12.2 grams per tonne gold and 17 grams per tonne silver, including 2.15 metres at 65.6 grams per tonne gold and 78 grams per tonne silver (BUUY289D02, V31, elevation of 1,152 metres);
  • 0.5 metre at 107.5 grams per tonne gold and 91 grams per tonne silver (BUUY289D03, V41, elevation of 1,237 metres);
  • 12.7 metres at 14.8 grams per tonne gold and 87 grams per tonne silver, including two metres at 74.9 grams per tonne gold and 468 grams per tonne silver (BUUY289D03, V31, elevation of 1,186 metres);
  • 1.18 metres at 97.4 grams per tonne gold and six grams per tonne silver (BUUY289D04, V34, elevation of 1,217 metres).

These and other intercepts in the 1,100-to-1,400-metre range of elevations will contribute to increased confidence levels of high-grade gold and silver mineral resources in master veins of central Veta Sur. The grade times thicknesses encountered are particularly encouraging for potential mining in an area that is close to main haulage development proposed in the 2014 PEA.

Elsewhere in central to western Veta Sur, drilling intersected multiple veins below or to the southwest of the current mineral resource envelope, substantially extending the lateral and vertical extents of northern vein families in this area. Key intercepts and their relationships to the Veta Sur mineral resource envelope include:

  • 5.75 metres at 18.6 grams per tonne gold and 31 grams per tonne silver, including 1.3 metres at 58.6 grams per tonne gold and 78 grams per tonne silver (BUSY369D09, elevation of 1,360 metres, below mineral resource envelope);
  • 0.5 metre at 2.7 grams per tonne gold and 903 grams per tonne silver (BUSY369D10, elevation of 1,176 metres, outside mineral resource envelope);
  • 1.2 metres at 4.7 grams per tonne gold and 853 grams per tonne silver (BUUY289D06, elevation of 1,170 metres, below mineral resource envelope);
  • 4.75 metres at 5.1 grams per tonne gold and 13 grams per tonne silver (BUUY289D06, elevation of 975 metres, outside mineral resource envelope).

These and other extensions of the Veta Sur system shown in the table are all in proximity to mining development proposed in the 2014 PEA.

To the north and west of the current Veta Sur mineral resource envelope, two drill holes (BUSY369D10 (from 517 metres downhole) and BUUY289D05 (from 700 metres downhole)) encountered multiple families of veins that are interpreted to represent as-yet unmodelled northern Veta Sur vein families, and also the farthest yet-drilled western extensions of the Yaragua vein system. Significant intercepts include:

  • 1.6 metres at 7.4 grams per tonne gold and 41 grams per tonne silver (BUSY369D10, elevation of 1,081 metres);
  • 7.86 metres at 7.2 grams per tonne gold and 29 grams per tonne silver, including 2.14 metres at 19.1 grams per tonne gold and 77 grams per tonne silver (BUUY289D05, elevation of 762 metres);
  • 0.93 metre at 11.5 grams per tonne gold and two grams per tonne silver (BUUY289D05, elevation of 718 metres).

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 a rigorous, industry-standard quality assurance/quality control program. HQ and NQ core is sawn or split with one-half shipped to a sample preparation lab in Medellin run by ALS Colombia Ltd. in Colombia, 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 ACME Analytical Laboratories in Vancouver and/or Inspectorate America Corp. in Reno, Nev.

The company does not receive assay results for drill holes in sequential order; however, all significant assay results are publicly reported. A listing of assay results to date for the Buritica project is available on the company's website.

For additional information on the Buritica project, please refer to the 2014 PEA, led by M3 Engineering and Technology of Tucson, Ariz., with contributions from other independent consultants, including NCL Ingeneria y Construccion SPA, which was responsible for the underground mine plan for the project. The 2014 PEA is available on SEDAR, on the OTCQX website and on the company website.

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