Continental Gold Inc. (TSX:CNL) (OTCQX:CGOOF) is pleased to announce results from 14 diamond drill holes from its 2018 drilling program at its 100%-owned Buriticá project in Antioquia, Colombia. The Company currently has 12 diamond drill rigs in operation with an additional rig scheduled to start drilling over the next few days. The focus of the program is to increase and upgrade mineral resources to higher classification categories by testing for high-grade and broad mineralized zones within the mineral reserve and resource envelopes. In addition, high-impact targets along strike of existing mineral resources as well as grassroots targets proximal to existing and proposed infrastructure will be tested.
Details (referenced in Figures 1, 2, 3 and 4)
Two horizontal holes were drilled at a true angle to the Yaraguá system. The holes were planned to infill a section of the Murcielagos vein family located a mere 150 metres to the north from the end of the Higabra tunnel. The intercepts are located within the measured and indicated mineral resource envelope and will be sequenced for early mining upon the anticipated production start-up in 2020. Results from both drill holes may have identified potential new shoots of very high-grade gold on two different veins within the Murcielagos family with assay results as follows:
Importantly, these intercepts are running significantly higher than the current mineral resource block model estimate for this area on a grams X metre basis as follows:
(g X m)
(g X m)
(1) Represents difference between block model and drill hole on a grams x metre basis
As a result, two additional holes have been completed on this section (assays pending) to test for lateral continuity of the high-grade mineralization while a third drill hole is currently underway. Additional holes are planned in the short term to test for extensions to the lateral and vertical continuity of this potential new zone. Assay results for the three additional holes drilled are expected in the near-term and will be reported once compiled and verified.
Twelve shallowly dipping step-out holes were also drilled to the north from the Higabra tunnel at a near true angle to strike of the Yaraguá vein system, intersecting the system at approximately 100 metres below the elevation of the Higabra Tunnel. These holes successfully stepped out past a hard boundary constrained high-grade section of the mineral resource block model for both the Murcielagos and San Antonio vein packages into what has been previously modeled as sub-economic (0.3 – 1 g/t gold) inferred mineral resources. Highlights are as follows:
Ari Sussman, CEO, commented: “Although it’s early to draw too many conclusions based on only two drill holes, we are nonetheless excited about discovering a potential new high-grade shoot given how close it is located to our future plant, both in terms of elevation and distance. In the majority of past precedents at the Buriticá project, similar discoveries of new high-grade areas based on limited drilling have typically developed into shoots with robust lateral and vertical continuity. One of our key objectives going forward is to delineate the potential of this high-grade mineralization as it will possibly add high-grade ounces to our mineral resource inventory. After a sluggish start to drilling in 2018, we are firing on all cylinders and anticipate a steady stream of results on a go‑forward basis.”
Table 1: Assay Results
|11.80||12.40||0.60||5.04||14.0||1127||Outside of Model|
* Intercepts calculated at a composite 3 grams X metre gold equivalent (70:1 Au/Ag) for minimum intervals of 0.5 metres, with up to 20% internal dilution. True widths are estimated to be between 90-100%.
** Grades herein are reported as uncapped values.
Note: Drill holes designated “BUUY” were collared from underground.
Geological Description of the Buriticá Project
Continental’s 100%-owned, 70,678-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 1,100 metres of strike and 1,700 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.
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.
The Company utilizes a rigorous, industry-standard QA/QC program. HQ and NQ 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 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.
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. The technical report is 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 Inc. is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Formed in April 2007, the Company – led by an international management team with a successful track record of discovering and developing large high-grade gold deposits in Latin America – is focused on advancing its fully-permitted high-grade Buriticá gold project to production with first gold pour on track for H1 2020.
Photos accompanying this announcement are available at
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