Continental Gold Announces High-Grade Gold Channel Sampling Results from Stope Development Drifts at Buriticá Mine

Toronto based Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) has announced high-grade assay results from 12 stope development drifts as part of the underground construction at its 100%-owned Buriticá project in Antioquia, Colombia. Development of the Buriticá project remains on schedule, according to the mine, with first gold pour anticipated in the first half of 2020.

“It is a very exciting time for Continental Gold as we are now drifting along high-grade mineralization in both the Yaraguá and Veta Sur systems that we plan to mine by longitudinal long-hole stoping beginning in 2020,” stated Ari Sussman, CEO. “With underground development remaining well ahead of schedule, we are confident that extra time available for pre-production stope preparation will provide the company with a buffer of excess material to feed the plant on planned start-up of commercial production next year.”

A stope is the open space left in an underground mine developed from the removal of ore.

Assay results have been received for 10 stope development drifts in the Yaraguá system totaling 350 meters of lateral strike. Stopes will be designed to measure between 25 and 45 meters in length using an 18-metre sublevel spacing. Stope areas 1 through 4 are located along the access of the same development drift located in the central part of the Yaraguá system at an elevation of 1,444 meters. Stope areas 1 and 2 are located on the western portion of the development drift, with cumulative assay results for both stope areas as follows:

• 2.23 meters @ 16.95 g/t gold and 20.42 g/t silver along 78 meters (stope areas 1 and 2).

Stope areas 3 and 4 are located along the eastern-half of the development drift, with cumulative assay results for both stope drifts as follows:

• 2.2 meters @ 5.95 g/t gold and 8.77 g/t silver along 78 meters (stope areas 3 and 4)

Stope area 7, which is the most recently excavated stope drift, is located in the south-central part of the Yaraguá system at the lower elevation of the Higabra Tunnel at 1,177 meters. Continuous high-grade results have been demonstrated in sampling along the stope drift, with results as follows:

• 2.22 meters @ 11.11 g/t gold and 46.17 g/t silver along 26 meters (stope area 7).

Stope areas 8-12 are located in the central-west portion of the Yaraguá system at an elevation of 1,482 meters, with drift development completed on three different gold domains. Channel sampling results on these drifts demonstrate excellent grade continuity, with high-grade results as follows:

• 3.91 meters @ 8.06 g/t gold and 32.83 g/t silver along 33 meters (stope area 8)
• 2.22 meters @ 24.75 g/t gold and 47.39 g/t silver along 34 meters (stope area 9)
• 4.17 meters @ 16.17 g/t gold and 23.69 g/t silver along 46 meters (stope area 10)
• 2.23 meters @ 15.81 g/t gold and 28.16 g/t silver along 55 meters (stope areas 11 and 12).

Stope areas 5 and 6 have been designed along the access of the same drift in the western portion of the Veta Sur system at an elevation of 1,593 meters. As with the other drifts, excellent grade continuity along significant strike length has been demonstrated, with cumulative results for both stope drifts as follows:

• 2.24 meters @ 11.64 g/t gold and 70.24 g/t silver along 79 meters (stope areas 5 and 6).

Additional stope drifts at various elevations are currently being developed for both the Yaraguá and Veta Sur systems; once channel sampling assay results are received and evaluated, they will be released in a timely manner.

For reference, the mineral reserve estimate for the Buriticá project as announced on February 24, 2016 is as follows:

• Channel sampling results, being used for stope design for 12 areas currently being prepared for mine start-up in 2020, have returned high-grades of gold and silver, with results as follows:
  • 2.22 meters @ 24.75 g/t gold and 47.39 g/t silver along 34 meters
  • 4.17 meters @ 16.17 g/t gold and 23.69 g/t silver along 46 meters
  • 2.23 meters @ 15.81 g/t gold and 28.16 g/t silver along 55 meters
  • 3.91 meters @ 8.06 g/t gold and 32.83 g/t silver along 33 meters
  • 2.23 meters @ 16.95 g/t gold and 20.42 g/t silver along 78 meters
  • 2.24 meters @ 11.64 g/t gold and 70.24 g/t silver along 79 meters
  • 2.22 meters @ 11.11 g/t gold and 46.17 g/t silver along 26 meters

• The weighted average gold grade of the stope drifts measures 13.30 g/t gold or 58% higher than the proven and probable mineral reserve grade of 8.4 g/t gold for the Buriticá project.

• Remarkable continuity and consistent gold-grades were observed in all stope development drifts, with total drift sampling measuring 429 meters of strike length.

• Face channel sampling in the drifts often includes gold mineralization that extends beyond anticipated stope limits, indicating potential for mineralized over-break dilution during extraction.

• Lateral underground development for the project continues to be ahead of schedule, with 959 meters completed in February against a plan of 868 meters.

Notes: Based on cut-off grades of 3.8 g/t for Yaraguá and 4.0 g/t for Veta Sur, $950 per ounce gold price, and US$:COP exchange rate of 2,850. Rounding of some figures may lead to minor discrepancies in totals.Source: “Buriticá Project NI 43–101 Technical Report Feasibility Study, Antioquia, Colombia” dated March 29, 2016 with an effective date of February 24, 2016, led by independent consultants JDS Energy & Mining Inc.

Geological Description of the Buriticá Project Continental’s 100%-owned, 75,023-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 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.

Figure 1 – Stope Areas 1-4 located in the Central Portion of the Yaraguá System at 1,444 RL

Figure 2 – Stope Areas 5 and 6 located in the Western Portion of the Veta Sur System at 1,593 RL

Figure 3 – Stope Area 7 located in the South-Central Portion of the Yaraguá System at 1,177 RL

Figure 4 – Stope Area 8-12 located in the Central-west Portion of the Yaraguá System at 1,482 RL