Continental Gold Drills Broad and High-Grade Intervals in Infill and Extensions of the Yaragua System at Buritica, Colombia
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 04/29/15 -- Continental Gold Limited (TSX: CNL)(OTCQX: CGOOF) ("Continental" or the "Company") is pleased to announce results for 17 diamond drill-holes through the Yaragua vein system at the Company's 100%-owned Buritica project in Antioquia, Colombia. Drilling continues with the goal of upgrading Inferred resources into the Measured and Indicated categories under National Instrument 43-101 ("NI 43-101") guidelines, and delivering overall mineral resource growth. An updated mineral resource estimate for the Buritica project remains on track for completion in late Q2 2015.
Highlights (referenced in Figures 1, 2 ,3 and 4)
- Step-out drilling was successful in extending the Yaragua system to the west and to depth whereas infill drilling, largely at high angles to the veins, focused on elevations around the Higabra tunnel.
- In western Yaragua, step-out drilling extended a bulk mineralized zone discovered in BUSY291 (65.1 metres (at) 10.4 g/t gold and 9 g/t silver, CNL News Release, November 12, 2012). New intercepts in this zone, located below the current Yaragua mineral resource envelope, include:
These drill-holes, along with BUSY291, are interpreted to outline a northeast-elongate zone, more than 100 metres in vertical extent and 25 x 40 metres in horizontal strike, open vertically in both directions and along strike to the southwest. Mineralization takes the form of moderately-dipping, sheeted gold-rich pyrite-Kspar veinlets, locally cross-cut by auriferous base-metal veins. This style of mineralization ("291-Style") is interpreted as relatively high-temperature "porphyry" style and may contribute further to more bulk style gold potential of Buritica at depth.
- Elsewhere, drilling also intersected multiple veins below or outside of the current Yaragua mineral resource envelope, extending the vertical extents of several Yaragua vein families. In western Yaragua, key intercepts include:
and, in eastern Yaragua:
Most of the Yaragua vein families remain open to depth and the grades encountered in this drilling are encouraging for future mineral resource growth.
- Infill drill-holes encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected from the current mineral resource block model for Yaragua. Broad and/or high-grade intercepts in related master veins, in eastern Yaragua, include:
and, in central Yaragua:
and, in western Yaragua:
- These and other intercepts will contribute to increased confidence levels of high-grade gold and silver mineral resources within master vein families covering large vertical and horizontal extents of the Yaragua system. The grade X thicknesses of these veins in the 1,000-1,400-metre range of elevations are particularly encouraging as this is proximal to the main haulage developments proposed in the 2014 Preliminary Economic Assessment (the "PEA"), and also restricts the influence of areas within the Yaragua system that were previously modelled as containing predominately low to medium precious metal grades.
"The 2014 drilling program at Yaragua continues to achieve better results than anticipated from the May 2014 mineral resource estimate," commented Ari Sussman, President and CEO of Continental. "We look forward to completing an updated mineral resource estimate prior to the end of this quarter and are optimistic that our internal targets will be achieved in the study."
Details
Continental's 100%-owned, 59,285-hectare project, Buritica, 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 Yaragua and Veta Sur systems) are central to this land package. The Yaragua system has been drill-outlined along 1,100 metres of strike and 1,700 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 1,000+ metres of strike and 1,800 vertical metres 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. See "About Continental Gold" below for a precis of the PEA prepared in accordance with NI 43-101. This release documents the results of infill and extension drilling through the Yaragua vein system. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1, 2, 3 and 4.
Table I: Drilling Highlights
Infill and extension drilling of Yaragua comprised four fans (for 15 underground drill-holes) drilled from chambers set up in the Higabra Valley tunnel, at elevations around 1,170 metres (Figures 1 and 2). Drill-holes in three of the fans were broadly north-directed and shallowly-inclined to achieve very high angle intersections with master vein sets through most of the Yaragua vein families. Two holes (GEOMK14 and GEOMK17) were drilled from surface, primarily for geotechnical purposes, but also infilled parts of the Yaragua system at higher elevations than the underground holes were targeting. Five holes (BUUY291D01-D05) were directionally drilled off of BUUY291D, deep into western Yaragua.
These step-out holes extended a bulk mineralized zone discovered in BUSY291 (65.1 metres (at) 10.4 g/t gold and 9 g/t silver, (CNL News Release, November 12, 2012). New intercepts in this zone, below the current Yaragua mineral resource envelope (Figures 2 and 4), include:
These drill-holes, along with BUSY291, are interpreted to outline a northeast-elongate zone, over 100 metres in vertical extent and 25 x 40 metres in the horizontal, open to depth, upwards and to the southwest. Mineralization takes the form of moderately-dipping, sheeted gold-rich pyrite-Kspar veinlets with high lead/zinc but base-metal-poor, chemically and morphologically distinct from and locally cross-cut by auriferous base-metal veins. Selvages around the pyritic veinlets exhibit potassic, biotite-stable alteration. This mineralization ("291-Style") is interpreted as an apparently relatively high-temperature, "porphyry" style and may contribute further to more bulk style gold potential of Buritica at depth.
Elsewhere, drilling also intersected multiple veins below or outside of the current Yaragua mineral resource envelope (Table 1), extending the vertical extents of several Yaragua vein families. In western Yaragua, key intercepts include:
and, in eastern Yaragua:
Most of the Yaragua vein families remain open to depth and the grades encountered in this drilling are encouraging for future mineral resource growth.
Infill drill-holes encountered multiple vein families with grades X thicknesses that are commonly substantially greater than those expected (Table 1) from the current mineral resource block model for eastern, central and western Yaragua (Figures 1, 2 and 3). Broad and/or high-grade intercepts in related master veins, in eastern Yaragua, include:
and, in central Yaragua:
plus, in western Yaragua:
These and other intercepts will contribute to increased confidence levels of high-grade gold and silver mineral resources within master vein families through large vertical and horizontal extents of the Yaragua system. The grade X thicknesses of these veins in the 1,000-1,400-metre range of elevations are particularly encouraging as this is proximal to the main haulage developments proposed in the PEA and also restricts the influence of areas within Yaragua that were previously modelled as containing predominately low to medium precious metal grades.
Technical Information
Vic Wall, PhD, special advisor to the Company and a qualified person for the purpose of NI 43-101, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Dr. Wall is a geologist with 35 years' experience in the minerals mining, consulting, exploration and research industries. Following a career in Australian and North American academes, he held senior positions in a number of multinational major and junior minerals companies. A Fellow of the Australian Institute of Geoscientists, Dr. Wall is Principal of Vic Wall & Associates, a Brisbane-based consultancy that provides geoscientific services to mineral companies and government agencies, worldwide.
The Company utilizes a rigorous, industry-standard QA/QC program. HQ and NQ core is sawn or split with one-half shipped to a sample preparation lab in Medellin run by ALS Colombia Limited ("ALS") in Colombia, 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 Medellin, Colombia.
The Company does not receive assay results for drill-holes in sequential order; however, all significant assay results are publicly reported. A listing of assay results to date for the Buritica project is available on the Company's website at .
For additional information on the Buritica project, please refer to the PEA (entitled "Buritica Gold Project, NI 43-101 Technical Report Preliminary Economic Assessment, Antioquia, Colombia", and dated December 22, 2014 with an effective date of November 17, 2014), led by M3 Engineering and Technology of Tucson, Arizona, with contributions from other independent consultants including NCL Ingeneria y Construccion SPA, which was responsible for the underground mine plan for the Buritica project. The PEA is preliminary in nature and includes inferred mineral resources that are considered to be too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty the PEA will be realized. Further, mineral resources are not mineral reserves and have not demonstrated economic viability. The PEA is available on SEDAR at , on the OTCQX at and on the Company website at .
About Continental Gold
Continental Gold Limited is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buritica gold project to production. On November 17, 2014, the Company announced the PEA, the results of which included an 18-year mine life based on 20,055,000 tonnes grading 7.80 g/t gold and 19.35 g/t silver, resulting in 4,777,000 ounces of recovered gold and 7,088,000 ounces of recovered silver, and utilized the May 2014 mineral resource estimate prepared in accordance with NI 43-101. The PEA concludes an after-tax net present value at a 5% discount of $1.08 billion and an after-tax internal rate of return of 31.5% on an initial capital cost of $390.3 million with a payback of 2.8 years.
With a goal of being the newest large-scale hard rock gold producer in Colombia, Continental has achieved major advances in recent times and anticipates completing environmental permitting in 2015. A Phase VII drill program is underway at the Buritica project to further delineate mineral resources and drill new target zones identified within its concessions.
Additional details on the Buritica project, including the PEA, and the rest of Continental's suite of gold exploration properties are available at .
Forward-Looking Statements
This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, results of the PEA, advancing the Buritica project, exploration results, potential mineralization, potential development of mine openings, potential improvement of mining dilution grades, timing of an updated mineral resource estimate, and exploration and mine development plans, and is based on current expectations that involve a number of significant business risks and uncertainties. Forward-looking statements are subject to other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, an inability to advance the Buritica project to the next level, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Specific reference is made to the most recent Annual Information Form on file with Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements. All of the forward-looking statements made in this press release are qualified by these cautionary statements, and are made as of the date hereof. The Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
Differences in Reporting of Resource Estimates
This press release was prepared in accordance with Canadian standards, which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources," "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). The CIM Standards differ significantly from standards in the United States. While the terms "mineral resource," "measured mineral resources," "indicated mineral resources," and "inferred mineral resources" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute "reserves" by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.
To view Figure 1, please visit the following link: .
To view Figure 2, please visit the following link: .
To view Figure 3, please visit the following link: .
To view Figure 4, please visit the following link: .
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+1.416.583.5610
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Datum: 29.04.2015 - 10:30 Uhr
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