Continental Gold Inc. (TSX:CNL) (OTCQX:CGOOF) is pleased to announce additional high-grade assay results from underground channel sampling and nine holes drilled into the Yaraguá system as part of the underground mine construction and exploration drilling program at its 100%-owned Buriticá 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 infill drilling. Additionally, the Company has a significant backlog of drill holes being assayed, and the results are pending and will be reported in due course. Lastly, an updated NI 43-101 mineral resource estimate for the Buriticá project remains on schedule and is expected to be completed prior to the end of Q1 2019.

Ari Sussman, Chief Executive Officer of the Company, stated: “Yesterday, the Company received numerous queries of concern from our shareholders questioning whether our largest shareholder, Newmont Mining, would remain engaged with Continental Gold after its merger with Goldcorp. Newmont has unequivocally confirmed that it ‘remains supportive of Continental and the continued development of the Buriticá project’.”

“Additionally, I would like to personally congratulate our geology and mine development teams for working together in discovering BMZ2. While it may be very early days in assessing this new discovery, we are excited nonetheless as it offers similar tonnage and grade potential to BMZ1, which has already been drill-traced over 400 metres vertically and remains open at depth. Being able to potentially mine two broad, high-grade and large tonnage zones, alongside high-grade yet narrow individual veins, will only serve to enhance the mine and increase operations flexibility. On the basis of the discovery of BMZ2, our mine development team has begun drift towards the zone and anticipates reaching it in April 2019.”

Detail Summary (see Table 1 and Figures 1, 2, 3 and 4)

Nine diamond drill holes were completed from three different locations targeting the eastern extension of the Yaraguá system. Six holes were collectively drilled from two different surface pads, while three were drilled from an underground chamber.

Based on reinterpretation of the geological model using recently updated lithological and block models as well as assay data from previous drilling, a location for the BMZ2 target was generated. Seven new diamond drill holes covering approximately 100 vertical metres were designed to test the target, resulting in a new discovery. Key results are as follows:

• 20.10 metres @ 9.02 g/t gold and 7.9 g/t silver, including 1.70 metres @ 30.72 g/t gold and 17.3 g/t silver and 0.5 metres @ 129.50 g/t gold and 42.8 g/t silver (BUSY391, 1,339-metre elevation)
• 8.70 metres @ 9.13 g/t gold and 14.4 g/t silver, including 0.75 metres @ 66.70 g/t gold and 96.9 g/t silver (BUSY390, 1,380-metre elevation)
• 10.05 metres @ 5.97 g/t gold and 105.6 g/t silver, including 0.70 metres @ 57.9 g/t gold and 1,425 g/t silver (BUSY393, 1,346-metre elevation)
• 37.95 metres @ 3.11 g/t gold and 10 g/t silver, including 0.5 metres @ 35.6 g/t gold and 4.5 g/t silver (BUUY410, 1,421-metre elevation)
• 23.65 metres @ 3.20 g/t gold and 27.7 g/t silver, including 2.15 metres @ 14.52 g/t gold and 17.6 g/t silver (BUUY412, 1,436-metre elevation)

These intercepts into the BMZ2 new discovery not only confirm its presence, but also that it hosts high-grade gold over robust widths. While it is still early days towards understanding the potential of this new discovery, the Company is optimistic that additional drilling may result in a zone, which is similar to BMZ1 further to the west, that covers 440 vertical metres and remains open for depth expansion. If proven by future drilling, BMZ2 could introduce additional mine plan flexibility and greatly increase production flexibility for future mining.

Based on core inspection and subsequent refinement of the model, the Company believes that BMZ2 extends further south than where the drilling tested. As a result, three subsequent holes (BUSY397, BUSY398 and BUSY399) were completed into what is interpreted to be the central part of the zone; assay results for these drill holes are pending and will be reported on in due course.

In addition to the discovery of BMZ2, all nine diamond drill holes successfully intercepted high-grade gold-bearing veins at various elevations covering more than 580 metres. All vein intercepts resulted in significantly higher grades than in the current mineral resource block model and remain open for expansion at depth and along strike to the east towards the projection of the Tonusco fault and at depth. Key results are as follows:

• 1.00 metres @ 215 g/t gold and 58.6 g/t silver (BUSY385D02, 1,168-metre elevation, MUS30 vein)
• 10.70 metres @ 7.09 g/t gold and 65.3 g/t silver, including 0.5 metres @ 19.25 g/t gold and 26.8 g/t silver (BUSY385D02, 980-metre elevation, MU4, MU5 and MU6 veins)
• 1.30 metres @ 94.91 g/t gold equivalent (BUSY391, 1,247-metre elevation, MU6 vein).

Subsequent to the Company’s October 16, 2018 announcement of sampling results taken across the axis of development tunnels in the Yaraguá system, drifting has continued along the HW vein and the San Antonio vein, as well as a new drift along a NWSE vein as shown in Figure 4. Significantly higher grades and wider exposures continue to be encountered to the southwest along the HW vein, which has been extended 9 metres for a total length along the drift of 46 metres. Additionally, development to the east in the San Antonio and HW vein drifts continues to expose remarkably continuous high-grade gold over robust widths. East in San Antonio, significant mineralization has been extended 10 metres for a total length along the drift of 30 metres. East in the HW vein, significant mineralization has been extended 11 metres for a total length along the drift of 50 metres. Additionally, the Company has been drifting along a NWSE mineralized corridor and, to date, has exposure to high-grade mineralization along the drift for a total of 33 metres. The Company will continue preparing the areas for mining as well as further advancing the drifts. Results from the HW vein and the San Antonia vein include:

• 4.17 metres @ 16.17 g/t gold and 23.69 g/t silver along 46 metres (west drift on HW vein)
• 3.66 metres @ 9.40 g/t gold and 16.41 g/t silver along 50 metres (east drift on HW vein)
• 4.01 metres @ 15.56 g/t gold and 30.12 g/t silver along 30 metres (east drift on San Antonio vein)
• 3.91 metres @ 8.06 g/t gold and 32.83 g/t silver along 33 metres (northwest drift in NWSE vein).

The results from the HW vein are significantly higher grades with wider exposures than the mineral resource estimate block model as follows:

Assay results for all drill-holes reported in this release are reported in the table below:

Table I: Drill Hole Results

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 1,000+ 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.

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.

Technical Information

Mauricio Castañeda, Vice-President, Exploration of 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.

Underground development along the veins was sampled by trained crews under the direct supervision of mine geologists. The sampling consisted of channel samples that were taken by hammer and chisel across the full width of the face every 3 metres along strike, or along the rib of the drift continuously at selected locations. Distinct geological zones were sampled separately (vein separate from wall rock), with minimum-maximum horizontal sample widths of 0.2 to 1.0 metres. The widths of the channels were adjusted so that each sample weighed between approximately 2 to 8 kilograms. Sample locations were measured from a surveyed control point. Duplicate channel samples were collected with a frequency of one every 25 samples. Bar code tags were inserted into the individual sample bags by the geologist, including duplicates which were numbered in sequence with the primary samples. The bags were then secured with a cable tie and transported out of the mine by the sampling crew to a secure staging area on surface using a procedure supervised by the Mine Geologist and Chief Geologist. Channel samples were prepared and analyzed at Continental’s Yaraguá mine laboratory at Buriticá, Colombia. Blanks, field duplicates from each heading, pulp duplicates, check assays and analysis of results using industry-accepted best practices and certified reference standards are inserted into the sample stream to monitor laboratory performance. Channel samples were analyzed using a 50-gram gold fire assay with gravimetric finish. All silver values were determined by four acids digestion and atomic absorption method.

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 receive assay results for drill holes in sequential order; however, all significant assay results are publicly reported.

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.