Continental Gold Inc. (TSX:CN) (OTCQX:CGOOF) is pleased to announce assay results for four diamond drill holes at its 100% owned Buriticá project in Antioquia, Colombia. Assay results reported herein are for the initial exploration holes drilled into the northeastern portion of the Yaraguá system targeting the Centena vein family.
The Company currently has 11 diamond drill rigs operating as part of its 73,500-metre definition and exploration drill program for 2019. Construction of the Buriticá project was 67% complete as of May 31, 2019 and remains on schedule for first gold pour in H1 2020.
Highlights (Referenced in Figures 1 and 2 and Image 1)
Comparison between 2019 Block Model and Drill Hole on a grams/ton x metre (true width) Basis
(g/t x m)
(g/t x m)
|(1)||Intercepts calculated at a composite 3-gram x metre gold equivalent (70:1 Au/Ag) for minimum intervals of 0.5 metres, with up to 30% internal dilution. True widths are estimated to be between 65-100%.|
|(2)||Grades herein are reported as uncapped values.|
|(3)||Drill hole grams/ton x metres are gold values calculated at the true width in order to make a comparison with the existing block model.|
“Our strategy of drill-testing targets that have potential for being incorporated into the first three years of mine life at Buriticá has yielded excellent results in 2019. With the recent discovery of BMZ4 and assay results from drilling of the Centena Vein yielding, on a weighted average basis, greater than a 500% higher grade of gold than the mineral resource block model in the corresponding locations, we have plenty to look forward to in the coming months,” commented Ari Sussman, CEO.
Details and Assay Table
Centena is a northwest-to-southeast high-grade master vein with a continuous strike of more than 800 metres, which crosses the majority of the east-west trending Yaraguá master vein system. The intersection of the Centena vein with the Yaraguá vein system typically results in zones of higher-grade gold and silver over wider intervals. Broad mineralized zones (BMZ) are typically developed at the intersection of the NW (Centena and NW veins) and EW (Yaraguá) vein systems. Due to difficult topography limiting the Company’s ability to drill the northern portion of the Yaraguá system, significant potential exists for discovery of new east-west trending veins along the intersection with the Centena vein. With underground development rapidly advancing, new areas are being installed for further drilling to the north and the potential exists for new mineralization to be incorporated into the early years of a revised mine plan for the Yaraguá system.
Table 1: Assay Results
|Note: Drill holes designated “BUUY” were collared from underground. CNT refers to the Centena Vein.|
|* Intercepts calculated at a composite 3-gram x metre gold equivalent (70:1 Au/Ag) for minimum intervals of 0.5 metres, with up to 30% internal dilution.|
|True widths are estimated to be between 65-100%.|
|** Grades herein are reported as uncapped values.|
Geological Description of the Buriticá Project
Continental’s 100%-owned, 75,604-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.
David J Reading, M.Sc., FIMM, the special advisor to Continental and an independent Qualified Person as defined under Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Mr. Reading has over 35 years’ experience in the mining industry covering all stages of mine development, including exploration, feasibility, financing, construction and operations. He has an MSc in Economic Geology and is a Fellow of the Institute of Materials, Minerals and Mining.
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.
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.
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.
Figure 1 – Plan View of Drilling Targeting the Centena Vein in the Yaraguá System (CNW Group/Continental Gold Inc.)
Figure 2 – Cross Section A-A’ Through the Centena Vein in the Yaraguá System (CNW Group/Continental Gold Inc.)
Image 1 – Visible Gold in BUUY434 in the Centena Vein; 97-97.5 metres @ 582 g/t Gold and 159 g/t Silver (CNW Group/Continental Gold Inc.)
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