Continental Gold Drills 10.23m @ 44.76 g/t Au, 5.10m @ 84.92 g/t Au, and 6.1m @ 48.87 g/t Au and Expands the Vertical Extent of High Grade Intersections in Veta Sur to 470m Buritica Project, Colombia
Buritica Project, Colombia
TORONTO, ONTARIO -- (Marketwire) -- 05/04/11 -- Continental Gold Limited ('Continental' or the 'Company') (TSX: CNL) is pleased to announce results for 25 diamond drill-holes from the Company's ongoing program at its Buritica Project in Antioquia, Colombia. Over 56,000 metres of diamond drilling have been completed on the property to date and nine drills are currently working on a 50,000-metre surface and underground drill program for 2011.
Highlights
- Significant new drill intercepts on the Veta Sur system include:
10.23m @ 44.76 g/t Gold and 23.7 g/t Silver in BUSY-137
5.05m @ 40.72 g/t Gold and 48.8 g/t Silver and
5.10m @ 84.92 g/t Gold and 38.9 g/t Silver in BUSY-152
4.50m @ 45.66 g/t Gold and 40.6 g/t Silver in BUSY-155
14.50m @ 21.56 g/t Gold and 53.5 g/t Silver including
6.10m @ 48.87 g/t Gold and 109.5 g/t Silver in BUSY-158
BUSY-155 and BUSY-158 intersected nine and eight veins respectively in
the Veta Sur system and extended the depth of high-grade mineralization
an additional 100 metres to 470 vertical metres (Figure 1).
- Significant new drill results from the Yaragua system include:
3.80m @ 40.97 g/t Gold and 55.0 g/t Silver in BUSY-124 on the San
Antonio Vein
1.50m @ 81.60 g/t Gold and 9.8 g/t Silver on San Antonio and
5.00m @ 20.20 g/t Gold and 9.5 g/t Silver on the Sofia Vein in BUSY-154
1.00m @ 84.74g/t Gold and 39.0g/t Silver on Vein E in BUSY-156
Drilling has now blocked out the central part of the San Antonio vein
(one of the veins within the Yaragua system) at high grades over 250m
horizontally and 150m vertical extent. As well as extending potentially
economic grade-thicknesses in other parts on the Yaragua vein package,
drilling has resulted in the recognition of other gold- and silver-
bearing veins to the north and south of the main body of veins.
Details
Continental's 100%-owned, 14,000-hectare Buritica Project contains several known areas of high-grade vein 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 550 metres of strike and 600 vertical metres and partially sampled in underground developments. To the southwest of Yaragua (Figure 1), the Veta Sur system has been drill-intersected along 500 metres of strike and 470 vertical metres. Both systems are characterized by multiple veins and remain open along strike to the west and at depth. Planning has been finalized for a one kilometre decline tunnel at the 1200 metre elevation level which will provide drill access to test the deeper portion of both vein systems.
Veta Sur System
Table 1 presents summary results of eight drill-holes, which tested the 40-120m wide Veta Sur system of veins along its central 300 metres of strike extent. Figures 1 and 2 respectively show the intercepts in longitudinal section and plan view.
Drill-holes BUSY-137, -152, -144 and -155 targeted the central part the vein system (Figure 2). BUSY-137 cut nine veins including a 10.23m @ 44.76 g/t Au. The high grade intersections in BUSY-152 (5.05m @ 41.02 g/t Au and 5.1m @ 84.92 g/t Au) include bonanza grade samples, which expand the area of 100 g/t gold ('Au') values on two veins (Figure 1). Silver ('Ag') values and Ag:Au ratios are variable across the several veins in this central area. For example, BUSY-137 exhibits an intersection of 13.7m @ 4.29 g/t Au and 234 g/t Ag including 1.4m @ 24.53 g/t Au and 2176 g/t Ag, whereas adjacent veins exhibit lower Ag:Au. This variability may be due to the variable intensities of Stage 1- vs. Stage 2-style mineralization.
Drill-holes BUSY-155 and BUSY-158 are the deepest to date in Veta Sur, penetrating the vein package to almost 500 metres below surface. Both drill-holes cut at least eight individual veins, intercepts in the respective holes being separated by up to 200m along strike (Figure 1). There are five intercepts in BUSY-155 between the 1240- and 1350-metre elevations, the deepest of which is 4.50m @ 45.45 g/t Au. BUSY-158 exhibits four significant intersections in this elevation range, among them contain 14.5m @ 21.56 g/t Au including 6.1m @ 48.87 g/t Au and 109.5 g/t Ag. Pyrrhotite occurs along with pyrite as part of the Stage1 assemblage in both drill-holes, but the Stage 2 -overprint, which is responsible for the bonanza gold grades, is strong in both holes and has now been seen over a vertical extent 470 vertical metres in the Veta Sur system.
The presence of thick, lower grade precious metal intercepts in the Veta Sur system (noted in the press release of March 22, 2011) is further documented in BUSY-137 (13.7m. @ 4.29 g/t Au and 234.0 g/t Ag), BUSY-144 (13m @ 4.88 g/t au and 21.7 g/t Ag) and BUSY-155 (19.60m @ 2.69 g/t Au and 13.1 g/t Ag). Given the widespread occurrence of this type of intercept, both at Veta Sur and in the Yaragua breccia, such areas may potentially support bulk underground mining in both systems.
Table 1 - Veta Sur Drilling Results
Hole ID From To Interval Gold Silver Zinc Elevation
(m) (m) (m) (g/t) (g/t) (ppm)
----------------------------------------------------------------------------
BUSY-109 203.90 204.55 0.65 11.43 11.0 375 1616
262.60 265.40 2.80 5.15 38.9 528 1566
BUSY-137 74.30 75.50 1.20 4.94 8.6 9205 1661
including 125.8 126.4 0.6 373.75 108 670
104.40 105.20 0.80 13.47 58.0 1636 1634
116.17 126.40 10.23 44.76 23.7 1961 1619
137.10 150.80 13.70 4.29 234.0 727 1595
including 147.45 148.85 1.40 24.53 2176.8 1957
165.90 170.20 4.30 3.05 18.9 553 1578
175.00 176.00 1.00 7.56 11.0 840 1570
184.50 185.50 1.00 20.47 16.0 900 1562
215.15 216.15 1.00 23.90 75.0 526 1534
BUSY-144 126.50 127.50 1.00 5.53 6.5 1450 1607
139.87 141.00 1.13 5.68 70.7 742 1594
148.50 150.00 1.50 18.77 3.3 211 1586
186.00 199.90 13.90 4.88 21.7 203 1546
258.00 269.75 11.75 4.51 38.4 2850 1473
BUSY-150 96.75 98.00 1.25 21.40 135.0 9558 1707
226.00 232.00 6.00 6.29 25.7 365 1605
337.70 339.00 1.30 6.49 2.2 377 1514
BUSY-152 147.30 152.35 5.05 40.72 48.8 504 1591
including 149.4 150.25 0.85 144.1 98 857
199.90 205.00 5.10 84.92 38.9 329 1542
including 202.00 203.00 1.00 313.21 132.0 568
253.00 256.00 3.00 5.02 7.0 113 1495
260.50 265.00 4.50 7.51 11.2 289 1486
285.90 289.75 3.85 5.70 33.8 1285 1464
302.40 303.50 1.10 7.01 57.5 243 1450
359.65 360.80 1.15 12.83 21.0 601 1397
BUSY-155 285.00 288.00 3.00 3.79 10.6 2853 1506
309.80 311.55 1.75 9.86 39.6 3494 1482
342.50 362.10 19.60 2.69 13.1 159 1449
including 359.20 362.10 2.90 6.09 23.6 149
366.00 379.00 13.00 7.89 20.3 2158 1427
including 369.00 373.00 4.00 17.56 45.2 4707
463.30 464.50 1.20 10.35 5.3 637 1335
491.00 493.00 2.00 4.65 80.5 5545 1308
502.00 503.00 1.00 24.59 26.0 3016 1298
522.10 525.00 2.90 8.23 7.2 439 1277
554.00 558.50 4.50 45.66 40.6 4079 1245
BUSY-158 186.80 187.80 1.00 7.23 85.0 6886 1553
209.00 210.65 1.65 9.97 51.0 19400 1533
327.50 331.50 4.00 5.28 146.8 6476 1420
391.50 406.00 14.50 21.56 53.3 380 1355
including 394.00 400.10 6.10 48.87 109.5 650
435.00 438.40 3.40 18.41 21.6 180
441.90 444.50 2.60 11.15 37.9 742 1321
455.00 459.30 4.30 3.16 20.3 1225 1314
470.50 472.50 2.00 17.22 16.3 535 1301
(a) True widths not known but estimated at 50% or higher of the quoted
intercept
(b) Grades are uncut and an external grade cutoff of 1.0 g/t Au used to
determine intersection thickness and grade
(c) BUSY- sequence drilled from the surface, BUUY- sequence from
underground
(d) Holes BUSY-113, BUSY-123 and BUSY-135 were lost above target depth
(e) Awaiting final assays for BUSY-111, 151, 157
Several drill holes showed high Ag/Au and good silver grades to the north and south of the main body of Veta Sur (Figure 1 and Table 2). These (and previously released) intercepts are interpreted to indicate silver-rich vein systems of substantial strike length and depth extents, but of (as yet) unknown continuity. On the basis of soil geochemical anomalies these vein systems are expected to be increasingly prominent to the southwest of Veta Sur.
Table 2 - Veta Sur margin areas
Hole ID From To Interval Gold Silver Zinc Elevation
(m) (m) (m) (g/t) (g/t) (ppm)
----------------------------------------------------------------------------
BUSY-109 134.0 135.0 1.0 0.42 221.0 518 North VS
BUSY-137 23.80 25.30 1.50 3.17 651.0 22100 South VS
BUSY-152 322.95 324.50 1.55 0.90 155.6 55200 North VS
331.40 332.65 1.25 2.45 264.6 7245 1422
425.0 426.0 1.0 2.56 193.0 1659 1377
BUSY-155 67.20 68.4 1.2 2.77 392.0 55200 North VS
(a) True widths not known but estimated at 40% or higher of the quoted
intercept
(b) Grades are uncut and an external grade cutoff of 2.0 g/t Au gold-
equivalent used to determine intersection thickness and grade
Yaragua Vein System
New drill results in the Yaragua area are summarized in Table 2 and shown in plan view in Figure 2.
BUSY-124, -149, -154 and -156 were drilled to plug gaps in drilling of the upper central part of the Yaragua system, targeting the San Antonio and more northerly vein packages. San Antonio vein intercepts in BUSY-124 (3.80m @ 40.97 g/t Au and 55 g/t Ag) and BUSY- 124 (1.50m @ 81.60 g/t Au and 9.8 g/t Ag) are both at higher elevations than tunnels sampled on San Antonio, (CNL Press release, February, 2011) confirming extensions of this high grade vein toward the surface.
BUSY-124, -154 and -156 intersected several vein sets to the immediate south of San Antonio vein encountering potentially economic grade-thicknesses in the HW and Sofia veins (including 5.0m @ 20.2 g/t Au and 9.5 g/t Ag) in the latter.
To the north of the San Antonio vein these drill-holes also encountered potentially economic grade-thicknesses in the FW and D veins (including 2.0m @ 32.32 g/t Au and 71.5 g/t Ag in the latter, BUSY 154). BUSY-156 intersected 1.0m @ 84.74 g/t Au and 39.0 g/t Ag in the newly interpreted Vein E, to the north of Vein D. Further to the east, BUSY-132 and BUSY-145 also intersected Vein E, indicating this vein has at least 150-metre strike length. BUSY-145 and BUSY-154 showed near-collar intercepts indicative of a vein north of Vein E, but had poor recoveries in these intervals.
BUSY-119 was drilled from the south in a previously undrilled area in the eastern Yaragua system (Figure 2), targeting and intersecting the Murcielagos family of veins below Level 3 sampling and development. The drill-hole intersected several other veins including a very high silver variant (0.6m @ 3.31 g/t Au and 574 g/t Ag). The deepest auriferous intercept in BUSY-119 was around 1170m elevation, indicating that the Yaragua vein system has a vertical extent of more than 400m in the eastern part of the system.
BUSY-116, some 400m west of BUSY-119, also intersected potentially economic grade- thicknesses in the Murcielagos vein family. This was at higher elevations and to the west of Level 1 development in this vein family, as well as being to the west of the Diatreme Fault zone.
BUSY-116 also cut several veins to the south of the Murcielagos family, including 1.0m @ 22.92 g/t Au and 12 g/t Ag as well as two intercepts of high Ag/Au (from 52m, 1.0m @ 0.1 g/t Au, 72 g/t Ag and from 72m, 0.8m @ 1.01 g/t and 91 g/t Ag). These veins appear to correlate with high silver veins in BUUY-45 and -46, further to the east and at lower elevations. Three relatively high Ag/Au intercepts in BUSY-119 (from 1.5m, 3m @ 2.78 g/t Au and 33.0 g/t Ag,; from 50.0m, 0.95m @ 4.41 g/t Au and 214.0 g/t Ag; from 69.5m 1.50m @ 3.89 g/t Au and 21.0 g/t Ag) may also be part of what is interpreted to be a silver-rich vein system to the south of the main Yaragua system with potentially 500m of strike length.
For much of the rest of 2011, drill emphasis at Yaragua will be on the eastern 300 metres of the system eastward to the Tonusco Fault. Upgrades to underground infrastructure on Levels 1 and 3 will permit the addition of a second underground drill which will help test a 300m (strike) x 300m (vertical) segment of the Yaragua corridor.
Table 3 - Yaragua System Drilling Results
Hole ID From To Interval Gold Silver Zinc Vein
(m) (m) (m) (g/t) (g/t) (ppm) Family
----------------------------------------------------------------------------
BUSY-116 35.00 36.00 1.00 22.92 12 3004 New
181.30 182.50 1.20 5.92 85.5 16212 Murcielagos
258.45 259.00 0.55 40.76 13 1946 Murcielagos
276.50 281.50 5.00 6.01 3.7 10.94 Murcielagos
BUSY-119 112.50 114.00 1.50 11.95 36.0 8851 Murcielagos
129.50 131.50 2.00 4.10 25.8 1486 Murcielagos
290.50 291.10 0.60 3.39 574.0 37800 Vein B
300.00 301.9 1.90 3.36 97.1 108 Vein C
334.20 335.50 1.30 5.84 8.8 146 Sofia
447.0 448.10 0.40 7.75 11.0 6500 HW Vein
BUSY-124 87.00 93.00 6.00 7.18 14.5 12276 FW Vein
94.50 98.30 3.80 40.97 55.0 14372 San Antonio
BUSY-132 19.10 22.10 3.00 4.31 4.8 394 Vein E
106.40 108.35 1.95 3.28 35.9 2070 FW Vein
BUSY-145 65.05 68.00 2.95 4.57 13.1 3861 Vein E
135.15 135.75 0.60 60.44 253.0 226000 San Antonio
BUSY-149 62.49 67.98 5.49 6.54 8.0 516 Vein D
228.90 230.90 2.00 3.51 3.6 1152 Vein B?
BUSY-154 120.00 122.00 2.00 32.32 71.5 1035 Vein D
123.50 125.00 1.50 9.35 4.5 2467 FW Vein
129.50 131.00 1.50 81.60 9.8 2914 San Antonio
190.50 195.50 5.00 20.20 9.5 4461 Sofia Vein
BUSY-156 23.00 24.00 1.00 84.74 39.0 1315 Vein E
42.68 45.72 3.04 5.03 19.0 507 Vein D?
67.00 68.50 1.50 6.05 16.0 1963 FW Vein
102.00 105.6 3.16 3.68 35.1 1205 San Antonio?
161.30 162.80 1.50 7.30 4.1 4445 HW
170.50 172.00 1.50 6.84 13.0 16000 Sofia
BUUY-55 52.50 55.00 2.50 3.71 4.3 58.71 Vein B
128.0 128.70 0.70 5.72 32 263 Vein C
189.50 192.60 3.10 8.10 8.4 5384 FW Vein
(a) True widths not known but estimated at 50% or higher of the quoted
intercept
(b) Grades are uncut and an external grade cutoff of 1.0 g/t Au used to
determine intersection thickness and grade
(c) BUSY- sequence drilled from the surface, BUUY- sequence from
underground
(d) Low core recovery in intercepts in BUSY-149
Other Areas
BUSY-115, 121, and 148 were drilled 50 to 100 metres southwest of the established Veta Sur vein system in an area exhibiting anomalous zinc, silver and gold in soils and partly underlain by Cretaceous siliciclastic metasediments. Mineralised intercepts in these drill- holes exhibit high Ag/Au and high zinc contents, typically in the range 0.5 - 3.0 g/t Au with 10-50 g/t Ag and 1-5% Zn. From 297.5 m, BUSY-115 intercepted 0.7m of 2.42 g/t Au, 81g/t Ag and 27300 ppm. Zn, whereas BUSY-121 intersected 0.17 g/t Au, 132 g/t Ag over 0.7m from 392.5m.
BUSY-135 and -143 were drilled a further 150 metres to the southwest of the above drill-holes (Figure 1) and also encountered mineralization with high Ag/Au. BUSY-135 intersected 139 g/t Ag over 1.3m from 34.5m and 156 g/t Ag over 2.4m from 58.5m.
The above sets of holes demonstrate silver-rich vein systems with substantial vertical extents in this southern area. It is not yet clear whether these vein systems represent high -silver extensions of the Veta Sur system or whether the main auriferous Veta Sur veins lie to north of the silver-rich system.
BUSY-123 was intended to test a gold-silver-zinc soil anomaly underlain by Cretaceous siliclastic sediments in the La Mano area. However, drilling conditions were difficult, core recoveries were low and the hole was lost above target depth. The area is currently undergoing infill soil sampling and trenching and will be re-drilled on different orientations and with different equipment later in the year.
BUSY-147 and -153 were geotechnical drill-holes designed to test the geo-mechanical characteristics of the rock mass along the proposed path of the 1200 level tunnel in preparation for the Q3 2011 start of this opening. For the most part these drill-holes intersected weakly altered and mineralized material.
Technical Information
The results of the Company's drilling program have been reviewed, verified and compiled by Vice President Exploration, Stuart Moller P.Geol., a qualified person for the purpose of NI 43-101. Mr. Moller has over 30 years of mineral exploration experience and is a Licensed Professional Geologist in the Province of British Colombia and a Fellow of the Society of Exploration Geologists.
The company utilizes an industry-standard QA/QC 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. 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 and/or Inspectorate Labs in Reno.
About Continental Gold Limited
Continental Gold Limited (TSX: CNL) is an advanced-stage exploration company with nine gold projects covering 124,450 hectares in Colombia. Spearheaded by a management team with over 40 years of exploration and mining experience in South America, the Company has begun an aggressive exploration program on its extensive portfolio of properties with a focus on its flagship high-grade gold project, Buritica. Additional details on the Buritica project and the rest of Continental Gold's suite of gold exploration properties is available at www.ContinentalGold.com.
Forward-Looking Statements
This press release contains or refers to forward-looking information, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions, and is based on current expectations that involve a number of business risks and uncertainties. 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.
To view Figure 1 - Longitudinal Section of Veta Sur System, please visit the following link: http://media3.marketwire.com/docs/cgoof0504fig1.pdf.
To view Figure 2 - Plan View of New Drilling, please visit the following link: http://media3.marketwire.com/docs/cgoof0504fig2.pdf.
Contacts:
Continental Gold Limited
Elina Chow
Director, Investor Relations
1.416.583.5611
info@continentalgold.com
www.continentalgold.com