Continental Gold Discovers More High Grade Veins In Its Buriticá Mine

Toronto based Continental Gold Inc. (TSX:CNL, OTCQX:CGOOF) yesterday announced that systematic channel sampling of underground development for its mine in Buriticá, Colombia has resulted in the discovery of two high-grade veins in the Yaraguá system. Development of its 100%-owned mine outside the Antioquia town of Buriticá remains on schedule with mechanical completion of the mine anticipated prior to the end of Q1 2020. Supporting information for results discussed in this release can be found in Figures 1 and 2 below. All sampling widths reported in this article are horizontal meters.

Yaraguá System

• The Athena vein (Figure 1) was discovered in a cross-cut currently being developed as part of underground construction of the Buriticá mine. Subsequent to the discovery, development drifting was initiated along the vein from the cross-cut in both east and west directions. Assay results from systematic channel sampling have, to date, returned two intervals of very high-grade gold with results as follows:
  • 50 meters @ 60.9 g/t gold and 42 g/t silver at 2.64 meters width in the western side of the drift from the cross-cut.
  • 35 meters @ 26.37 g/t gold and 14 g/t silver at 2.65 meters width in the eastern side of the drift from the cross-cut.

• The Athena vein was intersected at an elevation of 1,190 meters and is situated between the Murcielagos and San Antonio master vein packages in the central portion of the Yaraguá system. High-grade mineralization remains open along the vein and underground drift development advancing in both the west and east directions. The Athena vein will also be targeted by definition drilling at various elevations both above and below the Higabra tunnel elevation.

• The Cassandra vein (Figure 2) was also discovered while sampling the walls of a separate cross-cut being developed through the Yaraguá system. Cassandra is a shallow-dipping vein situated between the San Antonio and HW veins and is one of a number of new shallow veins that are being outlined within this area. Drifting along the Cassandra vein was initiated with continuous high-grade gold being encountered as follows:
  • 135 meters @ 33.4 g/t gold and 24 g/t silver at 2.62 meters width.

• The Cassandra vein was intersected at an elevation of 1,175 meters within the San Antonio master vein package in the western portion of the Yaraguá system. This shallow dipping vein is one of a number of new veins that are being outlined through new underground development within this area. Previous exploration drilling was not orientated appropriately to identify veins with this geometry. Underground drift development continues to advance along the vein and additional results will be announced in due course.

• The Athena and Cassandra veins have been intersected near the elevation of the mine infrastructure in the Higabra valley. Drilling density at this elevation is relatively sparse and coincides with the lower limit of mineral resources in the Indicated category. The Company is confident that additional mineralized structures will be discovered with further underground development and drilling as sample density increases at these elevations and below.
• Face channel sampling in the drifts includes gold mineralization that extends beyond the width of the development drift, indicating additional potential for broader mineralization than currently reported.
• The Athena and Cassandra veins will be incorporated into the mine plan and the Company expects that it will be in a position to potentially begin mining the veins as early as Q4 2020.

“We are extremely enthusiastic with the discovery of bonanza-grade gold in the Athena and Cassandra veins. Importantly, both veins have already been developed along significant strike lengths and remain wide-open for expansion,” commented Ari Sussman, CEO. “Given that the Athena and Cassandra veins are located so close to our mining infrastructure in the Higabra valley, they will be sequenced into the early part of the production schedule with mining to begin as early as Q4 2020.”

Figure 1: Underground Channel Sampling Results from the Newly-Discovered Athena Vein in the Yaraguá System, Sublevel 1190

Figure 2: Underground Channel Sampling Results from the Cassandra Vein in the Western Portion of the Yaraguá System, Sublevel 1175

Geological Description of the Buriticá Project

Continental’s 100%-owned, 186,821-acre / 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 vein systems in these areas (the Yaraguá and Veta Sur systems) are central to this land package. The Yaraguá system has been drill-outlined along 1,350 meters of strike and 1,800 vertical meters and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 1,300+ meters of strike and 1,800 vertical meters 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.