Continental Gold Inc. (TSX:CNL) (OTCQX:CGOOF) is pleased to announce high-grade assay results for 11 diamond drill-holes drilled into the eastern portion of the Yaraguá system at its 100%-owned Buriticá project located in western 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 exploration drilling targeting broad mineralized zone targets. Supporting information for results discussed in this release can be found in Table 1 and Figures 1 and 2.
“Although still at a relatively early stage, BMZ4 is proving up to be an exciting new discovery and we have outlined a continuous vertical zone on the eastern margin of the Yaraguá system, a location which at present hosts no mineral resources or reserves, yet is located within 50 metres of existing underground development. We anticipate incorporating BMZ4 into future mine plans and will be looking to design wider stopes with potential to use bulk-style mining, including transverse extraction using primary and secondary stopes,” commented Ari Sussman, CEO. “With 10 rigs currently in operation, we will remain very active during the final stretch of our on-schedule construction targeting first gold pour in H1 2020.”
Assay results for all drill-holes reported in this release are reported in the table below:
Table I: Drill Hole Results
|*||Vein intercepts calculated at a composite 2.4 metre grams per tonne gold for minimum intervals of 0.5 metres, with generally no more than 10% internal dilution with the exception of the high-grade interval in DYR0289 where true width approximates 50%.|
|**||Grades herein are reported as uncapped values.|
|***||Mineralization intercepted within BMZ4 is generally estimated to be within 70-100% of true widths.|
Table II: Buriticá Mineral Resource Estimate
|Buriticá Mineral Resource Statement effective January 30, 2019
(based on a cut-off grade of 3 grams per tonne gold)
|1.||Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.|
|2.||The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading the Inferred Mineral Resource to an Indicated or Measured Mineral Resource category.|
|3.||Contained metal and tonnes figures in totals may differ due to rounding.|
|4.||Gold equivalent grades and ounces was calculated at silver/gold ratio of 60:1. This formula is consistent with the May 11, 2015 Mineral Resource Estimate and is produced for comparative purposes only.|
|5.||Mineral Resources have been prepared to a minimum 1 metre mining width.|
|6.||Source: Company Technical Report entitled “NI 43‐101 Buriticá Mineral Resource 2019‐01, Antioquia, Colombia” dated March 18, 2019 with an effective date of January 30, 2019, led by independent consultants Ivor Jones Pty Ltd.|
Geological Description of the Buriticá Project
Continental’s 100%-owned, 75,583-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.
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.
BMZ4 is a three-dimensional orebody interpretation and modelling with variability in width, thickness along a vertical extension. Additional core drilling is been planned to define its characteristics, such as gold/silver grades, geometry and geomechanical properties.
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 in Eastern Yaraguá (CNW Group/Continental Gold Inc.)
Figure 2: Cross section A-A’ of drilling in Eastern Yaraguá (CNW Group/Continental Gold Inc.)
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