Continental Gold Inc. (TSX:CNL) (OTCQX:CGOOF) is pleased to announce additional high-grade assay results from six holes drilled into the Yaraguá vein system as part of the exploration drilling program at its 100%-owned Buriticá project in Antioquia, Colombia. The Company is currently operating six underground definition drill rigs and one exploration drilling rig. As previously announced, 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 Table 1 and Figures 1 and 2.
“The discovery of BMZ3 is an important milestone for the Buriticá Project as it delivers another potential bulk mineable zone to our mine-planning group ahead of anticipated first gold pour in H1 2020,” said Ari Sussman, CEO. “With the construction of the Buriticá mine continuing on schedule at a brisk pace, excitement and momentum are growing rapidly with our employees and the Buriticá community.”
Interpretation of the newly-discovered breccia hosted BMZ3, which is located approximately 150 metres west of BMZ1 in the Yaraguá system, began after a single definition drill-hole intercepted high-grade gold over bulk mineable widths averaging 37.55 metres @ 7.92 g/t gold and 8.7 g/t silver (DYR0050, 1,460-metre elevation) (see Company release dated October 1, 2018). Consequently, a series of six exploration holes were drilled to test for BMZ3 potential with four of the holes intercepting high-grade gold over bulk mineable widths, one hole intercepting lower-grade gold over potentially bulk mineable widths (BUUY416: 20.80 metres @ 4.02 g/t gold and 4.1 g/t silver) and one hole (BUUY424) stopping short of the target due to technical difficulties. Key results from BMZ3 are as follows:
Drilling results announced in this release have intercepted high-grade gold over significant dimensions measuring approximately 300 metres laterally by 300 metres vertically.
The Company also anticipates receiving additional assay results shortly for recently completed drill-holes into the BMZ2 discovery announced on January 15, 2019. Results will be reported once they are compiled and interpreted.
Table I: Drill Hole Results
|*||Intercepts calculated for minimum intervals of 0.5 metres.|
|**||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.|
Geological Description of the Buriticá Project
Continental’s 100%-owned, 75,023-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 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 1,300+ 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.
BMZ3 consists of a group of modelled precious metal-bearing vein domains that interlope within an intrusive breccia with pervasive hydrothermal alteration (quartz, sericite and pyrite), resulting in a fracturally controlled zone of mineralization. As a result, bulk mineralization is pervasive in this zone albeit at somewhat lower grades than the individual modeled veins presenting potential for more productive mineable zones. 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.
Mauricio Castañeda, Vice-President, Exploration of the Company and a Qualified Person for the purpose of Canadian National Instrument 43‑101 (“NI 43‑101”), 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 3 g/t gold equivalent (1:75 Au/Ag) over core lengths of at least 1.0 metres. 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 historic 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 Medellín run by ALS Colombia Limited (“ALS”), 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 S.A., a certified assay laboratory in Medellín, 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 Buriticá project, please refer to the technical report, prepared in accordance with NI 43‑101, entitled “Buriticá Project NI 43–101 Technical Report Feasibility Study, Antioquia, Colombia” and dated March 29, 2016 with an effective date of February 24, 2016, led by independent consultants JDS Energy & Mining Inc. Additional information on the Company’s updated mineral resource estimate for the Buriticá project, with an effective date of January 26, 2019 and prepared by the Company under the guidance and supervision of Mr. Ivor W.O. Jones, M.Sc., FAusIMM, CPgeo, P.Geo (an independent Qualified person under NI 43-101 guidelines), is available in the Company release dated January 30, 2019. The technical report and Company release are 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 is the leading large-scale gold mining company in Colombia and is presently developing it’s 100% owned Buriticá project in Antioquia. Buriticá 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 Buriticá project is on schedule with first gold pour anticipated during the first half of 2020.
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