New channel sampling results, from underground development drifts being evaluated for stope design in three areas of the Buriticá project currently under preparation for mine start-up in 2020, have returned high grades of gold and silver over significant strike lengths in both the Yaraguá and Veta Sur systems, with results as follows:

o            31 meters @ 24.09 g/t gold and 76.22 g/t silver at 2.26 meters width

o            35 meters @ 18.26 g/t gold and 104.70 g/t silver at 2.24 meters width

o            35 meters @ 14.24 g/t gold and 56.81 g/t silver at 2.25 meters width

o            45 meters @ 10.60 g/t gold and 124.36 g/t silver at 2.25 meters width

o            46 meters @ 10.07 g/t gold and 25.35 g/t silver at 2.24 meters width

o            10 meters @ 58.55 g/t gold and 85.78 g/t silver at 2.24 meters width

o            32 meters @ 9.46 g/t gold and 88.26 g/t silver at 2.21 meters width

o            19 meters @ 9.53 g/t gold and 10.44 g/t silver at 2.23 meters width

o            51 meters @ 8.61 g/t gold and 41.47 g/t silver at 2.25 meters width

The weighted average gold grade of all new development drifts announced in Continental’s statement measures 13.59 g/t gold over 329 meters strike length. Remarkable continuity and consistent gold-grades were observed in areas of interest along all development drifts, with total drift sampling in these areas measuring 329 meters strike length. Face channel sampling in the drifts often include gold mineralization that extends beyond the width of the development drift, indicating potential for broader mineralization.

Lateral underground development for the project continues to be ahead of schedule, with more than 1,000 meters per month being achieved consistently and is expected to remain at a similar pace into production in 2020.

“Underground development continues at a very brisk pace with drifting occurring at a range of elevations in both the Yaraguá and Veta Sur systems. High-grades of both gold and silver are being observed in the vast majority of drifts on mineralization in both vein systems and at all elevations. There continues to be a backlog of samples in the lab and we look forward to receiving additional assay results on a regular basis throughout the year,” said CEO Ari Sussman.

Details

Assay results have been received for channel sampling results of eight development drifts totaling 329 meters strike length. Four of the development drifts are located in each of the Yaraguá and Veta Sur systems respectively.

Yaraguá System

Located in the central part of the Yaraguá system at an elevation of 1,444 meters, drifting along mineralization from Cross-Cut 5 advances at a rapid pace. The northern-most drift from the cross-cut continues to move eastward with remarkable continuity and high-grade mineralization being observed (Figure 1), with assay results as follows:

• 31 meters @ 24.09 g/t gold and 76.22 g/t silver at 2.26 meters width

Located in the eastern portion of the Yaraguá system at an elevation of 1,425 meters, Cross-Cut 7 continues to advance from the south to the north on schedule with multiple east-west trending drifts in development. Along the southern portion of the cross-cut, a drift moving westward has intersected high grade mineralization (Figure 2) with results as follows:

• 46 meters @ 10.07 g/t gold and 25.35 g/t silver at 2.24 meters width

Further north along the same cross-cut, another east-west drift has been advanced with high-grade mineralization being observed to both the east and west of the cross-cut (Figure 3), with assay results as follows:

• 45 meters @ 10.60 g/t gold and 124.36 g/t silver at 2.25 meters width
• 51 meters @ 8.61 g/t gold and 41.47 g/t silver at 2.25 meters width

At a shallower elevation, an old mine working is being widened and advancing to the west (Figure 3). High-grade mineralization has been encountered over a short interval in drift development and remains open, with assay results as follows:

• 10 meters @ 58.55 g/t gold and 85.78 g/t silver at 2.24 meters width (elevation of 1,441 meters)

Veta Sur System

At an elevation of 1,611 meters, two drifts are rapidly advancing in the western portion of the Veta Sur system (Figure 4). The northern-most drift has encountered high-grade mineralization, with assay results as follows:

• 35 meters @ 18.26 g/t gold and 104.70 g/t silver at 2.24 meters width

At the same elevation but slightly further to the south (Figure 4), high-grade mineralization has been encountered, with results as follows:

• 32 meters @ 9.46 g/t gold and 88.26 g/t silver at 2.21 meters width

At an elevation of 1,179 meters, two parallel drift are advancing (two headings to the west and one heading to the east) from Cross-cut 8 in the central portion of the Veta Sur system (Figure 5). High-grade mineralization has been encountered in these drifts, with assay results from channel sampling as follows:

• 19 meters @ 9.53 g/t gold and 10.44 g/t silver at 2.23 meters width
• 25 meters @ 5.60 g/t gold and 44.84 g/t silver at 2.21 meters width
• 35 meters @ 14.24 g/t gold and 56.81 g/t silver at 2.25 meters width

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.

Geological Description of the Buriticá Project

Continental’s 100%-owned, 75,604-hectare (186,822 acre) project, named Buriticá for the nearby town, 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.

Highlights

• Twelve surface diamond drill-holes were completed into the far east portion of the Yaraguá system to test if a new broad mineralized zone (“BMZ4”) exists in this location. The target was generated on the hypothesis that the Tonusco Fault, located at the eastern edge of the Yaraguá system, is a fluid conduit for precious metal deposition in its vicinity and such deposition would specifically be pronounced at the junction where the Centena vein crosses the Murciélagos master vein family.
• The discovery hole, BUSY407, intercepted multiple continuous high-grade zones through the BMZ4 structure at an excellent angle to the geometry of the zone with results including:
  • 12.30 meters @ 10.17 g/t gold and 4.4 g/t silver (BUSY407)
  • 8.70 meters @ 6.49 g/t gold and 57.2 g/t silver (BUSY407)

• Each hole sequentially drilled following the discovery hole (BUSY407) intercepted BMZ4 at or near perpendicular angles to the strike of the zone. Additionally, the majority of the holes intercepted more than one thick interval of remarkably continuous mineralization within the zone. Narrow bands of visible gold were also observed. Key results are as follows:
  • 15.50 meters @ 7.03 g/t gold and 9.1 g/t silver (BUSY409)
  • 14.75 meters @ 4.82 g/t gold and 15.4 g/t silver (BUSY410)
  • 5.65 meters @ 18.69 g/t gold and 38.7 g/t silver (BUSY411)
  • 11.45 meters @ 8.24 g/t gold and 17.3 g/t silver (BUSY412)
  • 5.10 meters @ 17.32 g/t gold and 39.6 g/t silver (BUSY415)
  • 27.90 meters @ 7.04 g/t gold and 7.5 g/t silver (BUSY416)
  • 7.55 meters @ 7.66 g/t gold and 12.4 g/t silver (BUSY417)
• BMZ4, which is located approximately 60 meters east of BMZ2 in the eastern portion of the Yaraguá system, has been intersected by drilling for more than 200 vertical meters and measures between 25 – 45 meters in thickness. Mineralization encountered in BMZ4 is expected to add new ounces to the multi-million-ounce global mineral resource inventory for the project. BMZ4 remains open at depth with extension drilling currently underway. Three diamond drill rigs are actively turning on this promising new discovery.
• In light of this new discovery, initially definition drilling will start into the very upper part of BMZ4 where underground development has been advancing in the upper eastern Yaraguá area with a crosscut to the Murciélagos vein. The zone will be more intensively drilled as a ramp is developed deeper in this area and additional drill chambers constructed. Continental Gold expects to incorporate ongoing results from BMZ4 into the mine plan and will be looking to design wider stopes with potential to use bulk-style mining, including transverse extraction using primary and secondary stopes.

“Discovering BMZ4 is an excellent outcome for Continental Gold and our geology team deserves credit for successfully proving the concept with drilling,” commented Ari Sussman, CEO (pictured above, center). “BMZ4 continues to highlight the upside at Buriticá as this discovery will ultimately add high-grade ounces to the global mineral resource inventory of the project. More importantly, we are hopeful that we will be able to successfully delineate new stopes in this area and be producing gold from the zone in 2020.”

Details

Two diamond drill holes were completed in the eastern-most area of the Yaraguá system. The initial two holes, BUSY405 and BUSY406, were drilled too far east and consequently passed through the Tertiary dioritic intrusion host rock of the Yaraguá system into the Tonusco fault before finally passing into Cretaceous basalt on the eastern side of the fault and out of the system. BUSY408 ran into technical difficulties and was abandoned shortly after coring reached 32 meters down hole. The remaining 10 drill holes (BUSY407 and BUSY409-417) all successfully intercepted high-grade gold over varying thicknesses in BMZ4 with drill intercepts over 200 vertical meters in elevation. BMZ4 remains open in high-grade mineralization at depth.

The majority of the drill holes intersected more than one continuous run of thicker mineralization; all broad intervals encountered demonstrated excellent continuity at 1 g/t gold or greater along the axis of the hole. Additionally, detailed core logging of holes indicates that the orientation of drilling was done at or near perpendicular angles to the strike of the mineralized structures of BMZ4.

Three diamond rigs are now actively drilling BMZ4 and will continue to test the depth extension potential of the zone. Additionally, drilling from underground development recently excavated close to BMZ4 will allow more intensive definition drilling to commence shortly. Finally, results from the intensive definition drilling will allow Continental Gold’s mine planning team to begin preliminary designs for BMZ4 in order to assess the potential for mining the zone early in the production schedule. A particular focus in this work will be to evaluate the potential to use bulk-style mining, including transverse extraction using primary and secondary stopes.

Assay results for all drill-holes reported in this release are reported in the table below:

Table I: Drill Hole Results

* Intercepts calculated at a composite 4.8 grams X metre gold equivalent for minimum intervals of 0.5 meters, with generally no more than 10% internal dilution.

** Grades herein are reported as uncapped values. Gold equivalent in this release and table was calculated at Au:Ag ratio of 1:75 with no assumptions made for metallurgical recovery rates.

*** True widths for intercepts of modelled veins outside of the BMZs are estimated to be between 75-100%. Mineralization intercepted with BMZ4 is generally estimated to be within 70-100% of true widths.

Figure 1 – Plan View of Drilling in Eastern Yaraguá System Targeting BMZ4

Figure 2 – Cross Section A-A’ of Drilling into BMZ4

Geological Description of the Buriticá Project

Continental’s 100%-owned, 75,583-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.

BMZ Details

The BMZ consists of a group of modelled precious metal-bearing veins in the current mineral resource estimate block model with mineralization occurring between these veins, generally in the form of veinlets at oblique angles to strike. The majority of the mineralization between modelled veins is not in the current mineral resource estimate, providing potential upside both in terms of identifying significantly broader and more productive zones for mining and increased mineral resources. To date, Continental Gold has identified up to seven BMZ targets for testing and will systematically drill each target zone as underground mine development advances.

BMZ4 is a three-dimensional orebody interpretation and modelling with variability in width, thickness along a vertical extension. Additional core drilling is been planned to define its characteristics, such as gold/silver grades, geometry and geomechanical properties.

Technical Information

Mauricio Castañeda, Vice-President, Exploration of Continental Gold (pictured above, right) and a Qualified Person for the purpose of Canadian National Instrument 43 101 (“NI 43 101”), has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release.

Besides rigorous chain-of-custody procedures, Continental Gold utilized a comprehensive quality control/quality assurance program for the channel samples. All quality control anomalies were addressed and/or corrected as necessary to assure reliable assay results; no material quality control issues were encountered in the course of the program. Crush rejects and pulps are kept and stored in a secured storage facility for future assay verification.

For exploration and infill core drilling, Continental Gold applied its standard protocols for sampling and assay. HQ and NQ core is sawn or split with one-half shipped to a sample preparation laboratory in Medellín run by ALS Colombia Limited (“ALS”), whereas BQ core samples are full core. Samples are then shipped for analysis to an ALS-certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check-assayed at SGS Colombia S.A., a certified assay laboratory in Medellín, Colombia.

Continental Gold does not necessarily receive assay results for drill holes in sequential order; however, all significant assay results are publicly reported.

For information on the Buriticá project, please refer to the technical report, prepared in accordance with NI 43 101, entitled “NI 43‐101 Buriticá Mineral Resource 2019‐01, Antioquia, Colombia” and dated March 18, 2019 with an effective date of January 30, 2019, led by independent consultants Ivor Jones Pty Ltd. The technical report is available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on Continental Gold website at www.continentalgold.com.