Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) has announced the results from nine diamond drill holes into the Veta Sur system as part of its 2018 drilling program at its Buriticá project in the Colombian department of Antioquia.
The Canadian company, which had $208 million USD of available liquidity as of June 30, currently has 14 diamond drill rigs in operation and is focused on increasing and upgrading the mineral resources to higher classification categories by testing for high-grade and broad mineralized zones within the mineral reserve and resource envelopes.
It is also testing high-impact targets along strike and below existing mineral resources, as well as grassroots targets proximal to existing and proposed infrastructure.
“With excellent progress being made in underground development for the mine, we are becoming much better-positioned to drill the orebodies from short distances,” said Ari Sussman, CEO.
“The analytical results today continue to confirm our hypotheses for the Veta Sur system — namely that infill drilling improves the grade of master veins, which will provide the bulk of mine production, and that the vertical dimension of high-grade veins remains continuous at depth, providing additional mining flexibility and potential for production to continue many years past the feasibility mine plan.”
Continental Gold stated that drill-testing the depth potential of Veta Sur in the past had been limited due to lack of access. But “with underground development advancing at a productive rate and providing suitable drilling locations, the company will be more aggressive in drilling the orebody and extensions over the balance of the year.”
The company released the following results for its work at the Veta Sur system, restated here in full as described by Continental Gold:
Nine drill holes intersected the Veta Sur system over 1,200 vertical metres validating the sheer scale of the precious metal system by confirming excellent continuity at high-grades. Key highlight intercepts are as follows:
- 2.0 meters @ 53.87 g/t gold and 40.2 g/t silver (BUUY376, elevation 1,559 meters)
- 4.70 meters @ 161.33 g/t gold and 31.1 g/t silver (BUUY389, elevation 1,515 meters)
- 3.25 metres @ 18.64 g/t gold and 9.3 g/t silver (BUUY381, elevation 1,513 metres)
- 1.0 meters @ 51.45 g/t gold and 388 g/t silver (BUSY374D04, elevation 875 meters)
- 2.60 meters @ 131.96 g/t gold and 21.9 g/t silver (BUSY374D05, elevation 821 meters)
- 1.1 meters @ 36.7 g/t gold and 18.6 g/t silver (BUUY349D03, elevation 677 meters)
Current and previously-announced results of Veta Sur drilling are having the following three impacts (at a 3 g/t gold cut-off):
The shallower drill intercepts (BUUY376, BUUY378, BUUY381, BUUY385) continue to demonstrate an improvement of grades in the master vein sets versus the mineral resource block model;
Drill-hole series BUSY374D1-D5, which have intersected the Veta Sur system up to 350 meters below the Higabra Tunnel, have potentially extended the vertical dimension of the Indicated mineral resource estimate boundary; and
Drill-hole series BUSY349D1-D3 have successfully extended high-grade gold some 300-400 meters below the current Inferred mineral resource limit.