Exploration-Stage Mining Company Continental Gold Is Optimistic About Moving into Project Financing Stage

This week, Continental Gold completed channel sampling results in its large Buriticá mine project, and the firm considers the results positive enough that it is now looking to advance into the project financing and development stage. While environmental permitting remains a hurdle, the eight-year-old mining company believes the paperwork can be completed this year to pave the way towards its larger goal.

“Combining these broad and high-grade channel sampling results with the excellent results encountered in our long-hole trial mining test stope announced on May 3, 2016 provides us with reason to be optimistic about the possibility of introducing wider, more productive extraction methods to certain areas,” said company CEO Ari Sussman. “We look forward to completing environmental permitting later this year and commencing project financing and development shortly thereafter.”

Continental Gold, an advanced-stage exploration mining company in precious metals, holds the rights to explore and develop more than 122,000 hectares in Colombia across six properties. It has 100% control of its largest location, the 61,784-hectare Buriticá project in the Antioquia department, and anticipates high-level returns from the two largest systems explored there so far, the Yaraguá and Veta Sur systems.

“Underground development sampling at Yaraguá continues to deliver high-grade results over significant true widths,” said Ari Sussman, Continental’s chief executive.

In response to the test results, Clarus Securities raised both its FY2019 and FY2020 earnings per share estimates for Continental Gold. This follows a target price increase by Dundee Securities in April. In the same month, RBC Capital, on the other hand, cut its target price for Continental shares.

The company begin preparing to be listed on the Colombia stock exchange, Bolsa de Valores de Colombia, early in 2015. Its original estimates included a total of 4.2 million ounces of gold, 13.1 million ounces of silver, and 111 million pounds of zinc ore at the Buriticá project.

The sample results also follow a recent shake up in the company’s board of directors. René Marion, director of the board, announced his resignation a week earlier on June 22. “My resignation is for personal reasons and does not take away my enthusiasm for the Buriticá project, which I believe will become a world class operation,” said Marion in a statement.