TORONTO, Feb. 3, 2020 /CNW/ - Continental Gold
Inc. (TSX:CNL; OTCQX:CGOOF) ("Continental" or the "Company") is
pleased to announce that systematic channel sampling of underground
development for the Buriticá project has resulted in the discovery
of two high-grade veins in the Yaraguá system. Development of its
100%-owned Buriticá project in Antioquia, Colombia remains on schedule with mechanical
completion of the mine anticipated prior to the end of
Q1 2020. Supporting information for results discussed in this
release can be found in Figures 1 and 2. All sampling widths
reported herein are horizontal metres.
Yaraguá System
- The Athena vein (Figure 1) was discovered in a
cross-cut currently being developed as part of underground
construction of the Buriticá mine. Subsequent to the discovery,
development drifting was initiated along the vein from the
cross-cut in both east and west directions. Assay results from
systematic channel sampling have, to date, returned two intervals
of very high-grade gold with results as follows:
-
- 50 metres @ 60.9 g/t gold and 42 g/t silver at 2.64 metres
width in the western side of the drift from the cross-cut.
- 35 metres @ 26.37 g/t gold and 14 g/t silver at 2.65 metres
width in the eastern side of the drift from the cross-cut.
The Athena vein was intersected at an elevation of 1,190 metres
and is situated between the Murcielagos and San Antonio master vein packages in the
central portion of the Yaraguá system. High-grade mineralization
remains open along the vein and underground drift development
advancing in both the west and east directions. The Athena vein
will also be targeted by definition drilling at various elevations
both above and below the Higabra tunnel elevation.
- The Cassandra vein (Figure 2) was also discovered
while sampling the walls of a separate cross-cut being developed
through the Yaraguá system. Cassandra is a shallow-dipping vein
situated between the San Antonio
and HW veins and is one of a number of new shallow veins that are
being outlined within this area. Drifting along the Cassandra vein
was initiated with continuous high-grade gold being encountered as
follows:
-
- 135 metres @ 33.4 g/t gold and 24 g/t silver at 2.62 metres
width.
The Cassandra vein was intersected at an elevation of 1,175
metres within the San Antonio
master vein package in the western portion of the Yaraguá system.
This shallow dipping vein is one of a number of new veins that are
being outlined through new underground development within this
area. Previous exploration drilling was not orientated
appropriately to identify veins with this geometry. Underground
drift development continues to advance along the vein and
additional results will be announced in due course.
- The Athena and Cassandra veins have been intersected near the
elevation of the mine infrastructure in the Higabra valley.
Drilling density at this elevation is relatively sparse and
coincides with the lower limit of mineral resources in the
Indicated category. The Company is confident that additional
mineralized structures will be discovered with further underground
development and drilling as sample density increases at these
elevations and below.
- Face channel sampling in the drifts includes gold
mineralization that extends beyond the width of the development
drift, indicating additional potential for broader mineralization
than currently reported.
- The Athena and Cassandra veins will be incorporated into the
mine plan and the Company expects that it will be in a position to
potentially begin mining the veins as early as Q4 2020.
"We are extremely enthusiastic with the discovery of
bonanza-grade gold in the Athena and Cassandra veins. Importantly,
both veins have already been developed along significant strike
lengths and remain wide-open for expansion," commented Ari Sussman, CEO. "Given that the Athena and
Cassandra veins are located so close to our mining infrastructure
in the Higabra valley, they will be sequenced into the early part
of the production schedule with mining to begin as early as Q4
2020."
Geological Description of the Buriticá Project
Continental's 100%-owned, 75,604-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 vein
systems in these areas (the Yaraguá and Veta Sur systems) are
central to this land package. The Yaraguá system has been
drill-outlined along 1,350 metres of strike and 1,800 vertical
metres and partially sampled in underground developments. The Veta
Sur system has been drill-outlined along 1,300+ 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.
Technical Information
Donald Gray, Chief Operating
Officer 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
channel sampling, project development and technical information
contained in this release.
David J. Reading, MSc, FIMM,
special advisor to Continental and an independent qualified person
as defined under NI 43-101, has reviewed and approved the geology
and vein modelling contained in this release. Mr. Reading has over
35 years of experience in the mining industry covering all stages
of mine development, including exploration, feasibility, financing,
construction and operations. He has an MSc in economic geology and
is a fellow of the Institute of Materials, Minerals and Mining.
Channel samples are taken continuously along the walls of the
underground crosscut and across the face of the underground drift.
Faces are nominally spaced every 2 to 3 metres along the drift, and
face composites average six length-weighted channel samples.
Averaged mineralized widths shown in the tabulations and figures
for selected intervals along strike are horizontal metres at a 2.0
g/t Au cut-off and a 2.4-metre minimum width. Face sample
composites are length-weighted for each face sample. The drift
grade averages incorporate weighting by the strike influence of
each face determined from the actual face spacing. The minimum
width is chosen to match the expected stope minimum width; thus,
the intervals include some of expected planned edge and internal
mining dilution. No capping has been applied to sample composites.
The Company utilizes a rigorous, industry-standard QA/QC
program.
Rock samples have been prepared and analyzed at Continental
Gold's Yaraguá mine laboratory at Buriticá, Colombia. Blanks, duplicates and certified
reference standards are inserted into the sample stream to monitor
laboratory performance. Crush rejects and pulps are kept and stored
in a secured storage facility for future assay verification.
Although historic correlation between analytical results from the
Company's internal laboratory and certified independent
laboratories for gold and silver analysis have been within
acceptable limits, the Company's internal laboratory is not
independent or certified under NI 43‑101 and, as such, results
in this release should only be taken by the reader as indicative of
future potential.
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 the Company website at www.continentalgold.com.
About Continental Gold
Continental Gold is the leading
large-scale gold mining company in Colombia and is presently developing its
100%-owned Buriticá project in Antioquia. Buriticá is one of the
largest and highest-grade gold projects in the world and is being
advanced utilizing best practices for mine construction,
environmental care and community inclusion. Led by an international
management team with a successful record of discovering, financing
and developing large high-grade gold deposits in Latin America, the Buriticá project is on
schedule with mechanical completion anticipated during the first
quarter of 2020. Additional details on Continental Gold's suite of
gold exploration properties are also available at
www.continentalgold.com.
Forward-Looking Statements
This press release contains
or refers to forward-looking information under Canadian securities
legislation—including statements regarding: timing of drill
results, mechanical completion and commercial production; advancing
the Buriticá project; exploration results; potential
mineralization; potential development of mine openings; potential
improvement of mining dilution grades; reducing start-up risks; 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 Buriticá
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 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.
SOURCE Continental Gold Inc.