Continental Gold Drills and Samples High-Grade Gold and Silver in the Veta Sur System at Buriticá, Colombia

TORONTO, ONTARIO--(Marketwired - Oct 30, 2013) - Continental Gold Ltd. (TSX:CNL) (OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 13 diamond drill-holes and surface and underground sampling from the Veta Sur and northern La Estera systems as part of the Company's ongoing exploration program at the Buriticá project in Antioquia, Colombia. Drilling continues on site with the goal of delivering robust mineral resource growth and upgrading inferred resources into the measured and indicated categories under National Instrument 43-101 ("NI 43-101") guidelines.

Highlights (referenced in Figures 1 and 2)

• All drill-holes were successful in extending and infilling vein families in the Veta Sur system.
  
  
• Twelve drill-holes intersected a series of veins located north of the current NI 43-101 block model for the Veta Sur system. These yet unmodeled veins are northeast to southwest striking with dimensions of over 350 metres lateral strike by over 1,000 metres of vertical extent, with the veins remaining open to the northeast along strike and to depth. Select intercepts from a northeast to southwest direction include:
  
  
  • 0.5 metres @ 101.5 g/t gold and 20 g/t silver (BUUY149, elevation of 1,133 metres);
  • 2.5 metres @ 12 g/t gold and 37 g/t silver (BUSY353, elevation of 563 metres);
  • 3.3 metres @ 38.7 g/t gold and 9 g/t silver (BUSY357, elevation of 1,010 metres);
  • 0.53 metres @ 129 g/t gold and 11 g/t silver (BUSY357, elevation of 1,033 metres);
  • 5.0 metres @ 27.4 g/t gold and 21 g/t silver (BUSY351, elevation of 1,253 metres);
  • 2.5 metres @ 0.7 g/t gold and 526 g/t silver (BUUY163, elevation of 1,595 metres); and
  • 1.02 metres @ 12.8 g/t gold and 42 g/t silver (BUUY155, elevation of 1,620 metres).
• Three drill-holes (BUSY351, BUSY352 and BUSY357) intersected a series of veins located just south of the current NI 43-101 block model for the Veta Sur system. Additionally, drill-hole BUSY354 and channel sampling of the Veta Sur ramp intersected additional veins much further south of the current mineral resource block model and are interpreted to represent a greater than 150-metre step-out along strike of the Laurel vein system within the La Estera Area. Highlighted intercepts include:
  
  
  • 0.5 metres @ 32.5 g/t gold and 64 g/t silver (BUSY357, elevation of 1,347 metres);
  • 1.2 metres @ 18.3 g/t gold and 1,868 g/t silver (BUSY354, elevation of 1,687 metres);
  • 1.3 metres @ 28.9 g/t gold and 4 g/t silver (BUSY354, elevation of 1,667 metres);
  • 1.5 metres @ 16.9 g/t gold and 286 g/t silver (Veta Sur ramp, elevation of 1,684 metres); and
  • 1.2 metres @ 4.4 g/t gold and 1,915 g/t silver (Veta Sur ramp, elevation of 1,678 metres).
• Elsewhere, several drill-holes extended veins within the Veta Sur mineralized envelope to greater depths than the current mineral resource model, with intercepts including:
  
  
  • 0.58 metres @ 77.3 g/t gold and 3 g/t silver (BUSY344, elevation of 702 metres);
  • 2.1 metres @ 30.2 g/t gold and 20 g/t silver (BUSY357, elevation of 1,283 metres); and
  • 2.1 metres @ 33.9 g/t gold and 8 g/t silver (BUUY149, elevation of 1,343 metres);

whereas several drill-holes and near-surface sampling extended veins to higher elevations than in the current mineral resource model, with intercepts including:

• 1.05 metres @ 79.8 g/t and 280 g/t silver (BUUY167, elevation of 1,697 metres);
• 4.1 metres @ 65.1 g/t gold and 54 g/t silver (BUUY180, elevation of 1,697 metres); and
• 1.02 metres @ 53.8 g/t gold and 62 g/t silver (Surface sample, elevation of 1,721 metres).

"Since announcing the first Veta Sur assay results for 2013 on July 9^th, both infill and step-out results have exceeded expectations", commented Ari Sussman, CEO. "With an October 31, 2013 cut-off date for final assays ahead of our next mineral resource update in late 2013 or early 2014, we are excited about the potential for infill growth of both measured and indicated resources and overall growth in all categories combined."

Details

Continental's 100%-owned, 58,773-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-outlined along 700 metres of strike and 1,300 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 NI 43-101. This release documents the results of extension and infill drilling and surface sampling of the Veta Sur system and, to the south of this, underground sampling and drilling in the Veta Sur ramp area. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.

Table I: Drilling Highlights

* Intercepts calculated at 1 g/t gold + 50 g/t silver cut-off grades for minimum intervals of 0.4 metres, with up to 30% internal dilution. True widths not accurately known but generally are between 30% and near true width (e.g. BUUY147 and BUUY164) of the down-hole interval. Drill-holes designated "BUUY" were collared from underground, and drill-holes designated "BUSY" were collared at surface.

Four holes were drilled into northeastern Veta Sur: BUSY357 was drilled from the south of Veta Sur and transecting the entire system; BUSY344 and BUSY353 were drilled from the north and intersected Veta Sur approximately 100 metres along strike to the northeast at lower elevations; and BUUY149 was drilled from a pad in central Veta Sur to the northeast and intersected mineralization at higher elevations. High-grade intercepts, over a 550-metre vertical extent, include:

• 2.5 metres @ 12 g/t gold and 37 g/t silver (BUSY353, elevation of 563 metres);
• 1.83 metres @ 35.8 g/t gold and 49 g/t silver (BUSY344, elevation of 818 metres);
• 0.53 metres @ 129 g/t gold and 11 g/t silver (BUSY357, elevation of 1,033 metres);
• 3.3 metres @ 38.7 g/t gold and 9 g/t silver, including 2.2 metres @ 57.3 g/t gold and 12 g/t silver (BUSY357, elevation of 1,010 metres);
• 1.0 metres @ 18.7 g/t gold and 33 g/t silver (BUSY357, elevation of 1,008 metres);
• 0.5 metres @ 101.5 g/t gold and 20 g/t silver (BUUY149, elevation of 1,133 metres); and
• 0.5 metres @ 22.3 g/t gold and 8 g/t silver (BUUY149, elevation of 1,128 metres).

All intercepts are outside of the current Veta Sur mineral resource envelope and represent the previously unmodeled northern Veta Sur vein families, which remain open to the northeast and to depth. Mineralization is base metal-poor and it is encouraging that high-grade gold values occur within this style of mineralization over such a range of depths.

The northern Veta Sur vein family was cut by eight other drill-holes (BUUY147, BUUY164, BUUY180, BUUY167, BUUY163, BUUY155, BUSY351 and BUSY352) up to 250 metres further southwest (Figure 1), with mostly silver-rich intercepts at relatively high elevations. BUSY351, however, intersected the following broad, high-grade gold interval at lower elevations:

• 5.0 metres @ 27.4 g/t gold and 21 g/t silver, including 1.1 metres @ 113.1 g/t gold and 68 g/t silver (elevation of 1,253 metres).

Eight drill-holes (BUSY357, BUSY352, BUSY351, BUUY164, BUUY180, BUUY167, BUUY163 and BUUY155) also encountered the most northerly vein families yet drilled in Veta Sur over a strike extent of 300 metres and vertical range of 800 metres (Figures 1 and 2). Intercepts include:

• 2.5 metres @ 0.7 g/t gold and 526 g/t silver (BUUY163, elevation of 1,595 metres);
• 0.5 metres @ 0.5 g/t gold and 1,460 g/t silver (BUUY167, elevation of 1,618 metres); and
• 1.02 metres @ 12.8 g/t gold and 42 g/t silver (BUUY155, elevation of 1,620 metres).

Elsewhere, several drill-holes extended parts of the Veta Sur mineralized envelope to greater depths than the current mineral resource model, with intercepts including:

• 0.58 metres @ 77.3 g/t gold and 3 g/t silver (BUSY344, elevation of 702 metres);
• 2.1 metres @ 30.2 g/t gold and 20 g/t silver (BUSY357, elevation of 1,283 metres);
• 1.68 metres @ 11 g/t gold and 16 g/t silver (BUSY357, elevation of 1,239 metres); and
• 2.1 metres @ 33.9 g/t gold and 8 g/t silver (BUUY149, elevation of 1,343 metres).

Several drill-holes and near-surface sampling extended several veins to higher elevations than in the current mineral resource model, with intercepts including:

• 1.05 metres @ 79.8 g/t gold and 280 g/t silver (BUUY167, elevation of 1,697 metres);
• 4.1 metres @ 65.1 g/t gold and 54 g/t silver, including 1.7 metres @ 131 g/t gold and 66 g/t silver (BUUY180, elevation of 1,697 metres);
• 1.4 metres @ 34.8 g/t gold and 19 g/t silver (BUUY163, elevation of 1,628 metres); and
• 1.02 metres @ 53.8 g/t gold and 62 g/t silver (surface sample, elevation of 1,721 metres).

Drill intersections within the current mineral resource envelope are generally consistent with grade X thicknesses of comparable areas of the current mineral resource model. Some intercepts were of significantly higher grades and/or apparent thicknesses, including:

• 14.7 metres @ 21.4 g/t gold and 50 g/t silver, including 1.65 metres @ 59.6 g/t gold and 112 g/t silver and 1.2 metres @ 108.7 g/t gold and 49 g/t silver (BUSY351, elevation of 1,354 metres);
• 1.3 metres @ 17.5 g/t gold and 85 g/t silver (BUSY352, elevation of 1,293 metres);
• 3.5 metres @ 19.2 g/t gold and 29 g/t silver (BUUY147, elevation of 1,716 metres);
• 3.1 metres @ 15.8 g/t gold and 34 g/t silver (BUUY149, elevation of 1,545 metres);
• 1.25 metres @ 6.2 g/t gold and 821 g/t silver (BUUY149, elevation of 1,414 metres); and
• 5.5 metres @ 9.1 g/t gold and 13 g/t silver (BUUY149, elevation of 1,225 metres).

Four drill-holes - BUSY357, BUSY352, BUSY351 and, 150 metres further east, BUSY354 - all intersected multiple veins south of the Veta Sur mineral resource envelope (Figure 1). Highlighted intercepts include:

• 0.5 metres @ 32.5 g/t gold and 64 g/t silver (BUSY357, elevation of 1,347 metres);
• 1.2 metres @ 18.3 g/t gold and 1,868 g/t silver (BUSY354, elevation of 1,687 metres);
• 1.3 metres @ 28.9 g/t gold and 4 g/t silver (BUSY354, elevation of 1,667 metres); and
• 6.0 metres @ 7.4 g/t gold and 88 g/t silver (BUSY354, elevation of 1,638 metres).

These intercepts in BUSY354 are interpreted to represent eastern extensions of the Laurel vein family of the La Estera Area, 150 metres further northeast than previous drill intersections.

Table II: Channel sampling highlights - Veta Sur ramp and access road plus near-surface, Veta Sur (referenced in Figure 1)

* Channel samples were taken across vein domains and as such approximate true horizontal widths. Intercepts were calculated at 1 g/t gold + 50 g/t silver cut-off grades.

Mapping and sampling of the eastern half of the Veta Sur ramp and nearby access road has revealed gold and silver-rich vein networks, with dominantly ENE- and also NNW strikes, hosted mainly by metasediments. The veins are zinc-rich and typically exhibit high Ag/Au, with some high grades of gold and silver (Table II). Some samples to east of BUSY354 (Figure 1) may correlate with the Laurel vein family of the La Estera 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. HQ core is sawn or split with one-half shipped to a sample preparation lab in Medellín run by ALS Colombia Limited ("ALS") 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, British Columbia and/or Inspectorate America Corp. in Reno, Nevada.

The Company does not receive assay results for drill-holes in sequential order; however, all significant assay results are publicly reported. A complete listing of assay results to date for the Buriticá project is available on the Company's website at www.continentalgold.com.

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 at www.otcmarkets.com and on the Company website at www.continentalgold.com.

About Continental Gold

Continental Gold Ltd. 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 Statements

This 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, and exploration and mine development plans, 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 Estimates

This 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. 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. 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.

Figure 1 - Plan View of new drilling, underground and surface sampling highlights, showing the surface projection of veins in the October 2012 Veta Sur mineral resource model on geology-topography can be viewed here: http://media3.marketwire.com/docs/907667fig1.pdf.

Figure 2 - Long Section, Veta Sur, showing new drilling highlights against the outlines of the October 2012 Veta Sur mineral resource envelope can be viewed here: http://media3.marketwire.com/docs/907667fig2.pdf.