Continental Gold Announces Sampling Results From Additional Drilling: More High Grade Gold & Silver

Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) has announced high-grade channel sampling assay results from six development drifts being prepared as part of the underground construction at its Buriticá project in Antioquia, Colombia. Development of the Buriticá project remains on schedule with mechanical completion anticipated in Q1 2020.

Highlights

• New channel sampling results from underground development drifts being evaluated for stope design in the Yaraguá system have returned high grades of gold and silver over significant strike lengths. Results are as follows:
  • 38 meters @ 14.18 g/t gold and 32.22 g/t silver at 3.6 meters width
  • 24 meters @ 15.6 g/t gold and 21.4 g/t silver at 2.5 meters width
  • 58 meters @ 8.13 g/t gold and 13.45 g/t silver at 2.66 meters width
  • 41 meters @ 12.2 g/t gold and 44.3 g/t silver at 2.4 meters width
  • 80 meters @ 9.73 g/t gold and 41.3 g/t silver at 2.6 meters width
  • 22 meters @ 11.1 g/t gold and 11.2 g/t silver at 2.6 meters width
• The weighted average gold grade for these mineralized intervals is 11.17 g/t gold over 263 meters strike length.
• Development drifts continue to be well-mineralized along the entire strike length where channel sampling results have been reported.
• Face channel sampling in the drifts includes gold mineralization that extends beyond the width of the development drift, indicating potential for broader mineralization than currently reported. Short distance bazooka drilling is underway to assess this potential.
• 40 stopes are currently in various stages of preparation for production in 2020.

“The project continues to advance on schedule with mechanical completion expected in Q1 2020. We continue to be pleased with the continuity of the high-grade gold being encountered over significant distances,” commented Ari Sussman, CEO (above). “With the new ventilation raise now complete, air flow has drastically improved in the lower portion of the mine, resulting in a marked increase in the pace of development. With a new crosscut advancing to the north at the Higabra valley elevation through the Yaraguá system, we are seeing new mineralized structures that fall outside of the current mineral resource model. More importantly, we have begun drifting on these new structures and are encountering strong visual mineralization. We are excited for further advancement of these drifts to see what else we encounter and for the corresponding assay results to be received in due course.”

Details
Assay results have been received for channel sampling from six development drifts totalling 263 meters of strike length. All of the development drifts are located in either the upper or lower portions of the Yaraguá system.

Figure 1
Located in the eastern portion of the Yaraguá system on Sublevel 1465, high-grade gold has been encountered along a mineralized corridor being developed eastward from the crosscut, with results as follows:

• 38 meters @ 14.18 g/t gold and 32.22 g/t silver at 3.6 meters width

Figure 1: Underground Channel Sampling Results from the Eastern Portion of the Yaraguá System, Sublevel 1465

Figure 2
Two drifts—located further to the south and approximately 60 meters lower in elevation on Sublevel 1405—have encountered high-grade gold over significant strike lengths along the same mineralized corridor, with results as follows:

• 80 meters @ 9.73 g/t gold and 41.3 g/t silver at 2.6 meters width; and
• 41 meters @ 12.2 g/t gold and 44.3 g/t silver at 2.4 meters width

Figure 2: Underground Channel Sampling Results from the Central-Southern Portion of the Yaraguá System, Sublevel 1405

Figure 3
Located some 215 meters deeper on Sublevel 1190 near the elevation of the Higabra valley (where the project infrastructure is being constructed), high-grade gold has been encountered in recent drift development along two separate mineralized structures. Situated in the southwestern portion of the Yaraguá system, high grades of gold have been encountered on the western portion of the southern drift and the eastern portion of the northern drift, with results as follows:

• 24 meters @ 15.6 g/t gold and 21.4 g/t silver at 2.5 meters width; and
• 22 meters @ 11.1 g/t gold and 11.2 g/t silver at 2.6 meters width

Development of the northern drift continues to advance in mineralization to the east.

Figure 3: Underground Channel Sampling Results from the Southwestern Portion of the Yaraguá System, Sublevel 1190

Figure 4
Located slightly further to the east at an elevation that is 15 meters deeper on Sublevel 1175, high-grade gold has been encountered over a significant strike length, with results as follows:

• 58 meters @ 8.13 g/t gold and 13.45 g/t silver at 2.66 meters width

Figure 4: Underground Channel Sampling Results from the Central-Southern Portion of the Yaraguá System, Sublevel 1175

Other
Additional development drifts at various elevations are currently being advanced for both the Yaraguá and Veta Sur systems. In particular, with suitable ventilation now being distributed at the Higabra valley elevation, development has accelerated and multiple new drifts have been initiated on strongly-mineralized veins. More results will be forthcoming as these new drifts are advanced and channel sampling assay results are received and evaluated.

For reference, the mineral reserve estimate for the Buriticá project (as at February 24, 2016) is as follows:

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: 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, which includes the mineral reserve estimate as at February 24, 2016.

All images courtesy Continental Gold, except Ari Sussman taken by Loren Moss