Continental Gold samples 30 m of 9.6 g/t Au at Buritica
CONTINENTAL GOLD SAMPLES 9.6 G/T GOLD AND 47 G/T SILVER OVER 30 METRES TRUE WIDTH IN THE VETA SUR CROSS-CUT, BURITICA, COLOMBIA Continental Gold Ltd. has released initial channel sampling results from both the main crosscut and drift accessing the Veta Sur vein system at the company's 100-per-cent-owned Buritica project in Antioquia, Colombia. Approximately 800 metres of total underground development accessing Veta Sur has been completed to date with development face dimensions averaging 3.5 metres X 3.5 metres. This underground development program has provided the Company with its first ever underground access into the Veta Sur deposit and is expected to be completed by the end of November 2014. Highlights (referenced in Figure 1 and Table 1) -- Initial results from systematic channel sampling of both the cross-cut and along Vein 62 and Vein 51 through the central Veta Sur system have ratified the locations and orientation of several veins in the current mineral resource model. -- Continuous channel sampling along the Veta Sur cross-cut intersected 18 veins and intervening mineralized material including, from the 180th metre of the cross-cut, a broad high-grade zone comprising: -- 30 metres (true horizontal width) @ 9.6 g/t gold and 47 g/t silver. This zone is significantly broader than the corresponding area of the current mineral resource model and the mine plan for the upcoming Preliminary Economic Assessment ("PEA"), scheduled for release in Q4 2014. -- In order to examine the continuity of mineralization along and between veins, approximately 117 metres of drifting along Vein 62 and Vein 51 has been completed to date. Systematic face sampling of this 3.5 X 3.5- metre drift, which mostly contains both veins, has outlined a laterally continuous, very high-grade zone, comprising: -- 3.15 metres (true horizontal width) @ 59.7 g/t gold and 139 g/t silver along 85 metres. High-grade mineralization remains open to the northeast and southwest where it will be tested in further development. -- Mineralization is generally present at both the northwestern and southeastern edges of sampled faces, suggesting that the true width of the zone may be broader than 3.15 metres presently outlined. This zone is significantly higher grade and broader than the current Measured and Indicated grades of the veins along this 85-metre segment where Vein 62 and Vein 51, combined, average 2.1 metres @ 27.3 g/t gold and 134 g/t silver in the current mineral resource estimate prepared in accordance with National Instrument 43-101 ("NI 43-101"). -- Mineralized structures between and with orientations differing from the main veins are common in underground developments. These features can lead to broadening of mineralized envelopes relative to the hard boundary vein domains employed in the current mineral resource model, which do not include such features. The additional mineralized structures are concentrated in areas that are proximal to contact zones between the andesitic intrusions, sediments and breccias. -- A series of short cross-cuts, to the northwest and southeast from the drift along Vein 62 and Vein 51, have commenced to assess the continuity of the bulk zone of mineralization discovered in the main cross-cut, as well as mineralization on the margins of the Vein 62 and Vein 51 zone. Short drifts from the main cross-cut, to assess the lateral continuity of other modelled veins, are also planned to commence shortly. -- A bulk sample of material blended from both the drift and the cross-cut will be processed through the pilot scale mill of the Yaragua mine for mining reconciliation purposes. Results will be released once they have all been received and compiled. "Continental's first underground sampling in the Veta Sur system has demonstrated the continuity of high-grade mineralization over widths greater than anticipated from the current mineral resource model and in provisional mine planning. The Veta Sur experience complements that from the Company's extensive development in the Yaragua system and is encouraging for potential mining at Buritica," commented Ari Sussman, CEO of Continental. Details Continental's 100%-owned, 62,425-hectare project, Buritica, 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 Yaragua and Veta Sur systems) are central to this land package. The Yaragua system has been drill-outlined along 1,100 metres of strike and 1,500 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 1,000+ metres of strike and 1,500 vertical metres. 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. See "About Continental Gold" below for a precis of updated mineral resource estimates for the Buritica project prepared in accordance with NI 43-101. This release documents the results of sampling of the first underground developments in upper parts of central Veta Sur. Significant new channel sampling results are listed below in Table I and are referenced in Figure 1. Table I: Underground Channel Sampling, Veta Sur ---------------------------------------------------------------------------- Average Length(i) width Gold Silver Elevation Segment (m) (m) (g/t) (g/t) (m) Veta Sur Cross-Cut 30.0 9.6 47 1690 including 3.12 61.1 164 Vein 62 and Vein 51 Drift 85 3.15 59.7 139 1690 including 4.0 681.7 304 and 2.9 105.4 302 ---------------------------------------------------------------------------- (i)Channel samples are taken continuously along the walls of the underground cross-cut and across the face of the underground drift. Faces are nominally spaced every 3 metres along the drift and face composites average six length-weighted channel samples. Widths are true horizontal metres at 0 g/t gold cut-off grade. Veta Sur Cross-Cut The main underground cross-cut through the Veta Sur deposit is located at an elevation of 1,690 metres above sea level with approximately 255 metres completed to date. Eighteen veins have been observed in the crosscut and their locations and orientations accord well with corresponding areas outlined in the current mineral resource estimate prepared in accordance with NI 43-101. Narrow vein structures (veinlets), at different orientations to the northeast-southwest strike of the main veins in the current mineral resource model, have been observed in the cross-cut (and in the Vein 62 and Vein 51 drift). These narrow structures are generally not included in mineral resource modelling. However, in certain locations, these structures tend to swarm, resulting in mineralized structures of up to 5 g/t gold over reasonable widths situated between and contiguous with modeled veins, adding to the widths of mineralized envelopes around main veins. These locations are commonly in areas of intense fracturing, proximal to contact zones of the andesite intrusions with sediments and/or breccias. Continuous channel sampling has been undertaken along both the east and west walls of the cross-cut, with assay results to date outlined in Table I. Sampling from the 180th metre of the cross-cut (the location of the first main vein intersected in the cross-cut), has outlined a broad high-grade zone as follows: -- 30 metres (true horizontal width) @ 9.6 g/t gold and 47 g/t silver. This zone is significantly thicker than the corresponding area of the current mineral resource model and in the mine plan for the upcoming PEA, scheduled for release in Q4 2014. Additional channel sampling results for the balance of the cross-cut are outstanding. The bulk mineralized zone remains open to the southwest and northeast where it will be further tested by cross-cuts, commenced and planned, from the Vein 62 and Vein 51 drift. Short drifts from the main cross-cut will examine the continuity of high-grade veins within the mineralized zones. Vein 62 and Vein 51 Drift The Vein 62 and Vein 51 drift commenced at the 200-metre mark of the Veta Sur cross-cut, and approximately 120 metres of northeast/southwest development has been completed to date. This nominally 3.5 X 3.5-metre drift follows the path (in part) of both Vein 62 and Vein 51. Channel sampling across the development face every 3 metres has outlined a continuous zone of high-grade mineralization, averaging: -- 3.15 metres (true horizontal width) @ 59.7 g/t gold and 139 g/t silver along 85 metres. Mineralization is generally present at both the northwestern and southeastern edges of the sampled face, suggesting that the true width of the zone might extend past the 3.15 metres presently outlined. In addition, this zone is significantly higher grade than the current Measured and Indicated grades of the veins along this 85-metre long segment of the current mineral resource model, wherein Vein 62 and Vein 51, combined, average 2.1 metres @ 27.3 g/t gold and 134 g/t silver. The Vein 62 and Vein 51 mineralized zone remains open to both the northeast and southwest with channel sampling continuing until the completion of the drift later this year. The cross-cuts from the Vein 62 and Vein 51 drift will facilitate evaluation of mineralization on the margins of this zone. A bulk sample of material blended from both the drift and the cross-cut will be processed through the pilot scale mill at the Yaragua mine for mining reconciliation purposes. Results will be released once they are all received and compiled. Technical Information Vic Wall, PhD, special advisor to 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. Dr. Wall is a geologist with 35 years' experience in the minerals mining, consulting, exploration and research industries. Following a career in Australian and North American academes, he held senior positions in a number of multinational major and junior minerals companies. A Fellow of the Australian Institute of Geoscientists, Dr. Wall is Principal of Vic Wall & Associates, a Brisbane-based consultancy that provides geoscientific services to mineral companies and government agencies, worldwide. Channel samples are taken continuously along the walls of the underground cross-cut and across the face of the underground drift. Faces are nominally spaced every 3 metres along the drift, and face composites average six length-weighted channel samples. Widths are true horizontal metres at 0 g/t gold cut-off grade. The Company utilizes a rigorous, industry-standard QA/QC program. Rock samples are shipped to a sample preparation lab run by ALS Colombia Limited ("ALS") in Medellin, Colombia. Samples are then shipped for analysis to an ALS-certified assay laboratory in Lima, Peru. 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 ACME Analytical Laboratories in Vancouver, British Columbia and/or Inspectorate America Corp. in Reno, Nevada. Crush rejects and pulps are returned and stored in a secured storage facility for future assay verification. For additional technical information on the Buritica project, please refer to the Company's technical report (the "Technical Report") entitled "Independent Technical Report and Resource Estimate on the Buritica Gold Project 2013" dated June 25, 2014 with an effective date of December 31, 2013, prepared by Andrew J Vigar, BappSc Geo, FAusIMM, MSEG, and Martin Recklies, BappSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com