Continental Gold Drills 10.2 m @ 83.8 g/t Gold & 285 g/t Silver at Depth, Demonstrating 1,180 Vertical Metres of High-Grade Mineralization in the Veta Sur System at the
Buritica Project, Colombia
Toronto, Ontario - November 23, 2011 - Continental Gold Limited, CNL/TSXV, is pleased to announce results for the first two diamond drill-holes from the Company's deep drilling
program of the Veta Sur system at its Buriticá project (the "Buriticá Project") in Antioquia, Colombia. Over 90,000 metres of diamond drilling have been completed on the
property to date and ten drills are currently on schedule to complete approximately 100,000 metres of surface and underground drilling by the end of 2011.
Highlights
BUSY210 and BUSY221, drilled deep into the Veta Sur system (Figures 1 and 2), have demonstrated high grade gold-silver mineralization over vertical extents of up to 1,180 metres,
and to more than 600 metres below the maiden National Instrument 43-101 ("NI 43-101") compliant resource model.
All mineralized intercepts in BUSY221 are outside of the current resource model and significantly expand the resource potential of the Veta Sur system. High-grade gold
and/or silver mineralization was encountered through 1,180 vertical metres and 350 metres of horizontal strike length with major intercepts including:
10.2 m @ 83.8 g/t Gold and 285 g/t Silver, including 4.25 m @ 187.1 g/t Gold and 627 g/t Silver
9.8 m @ 9.1 g/t Gold and 8 g/t Silver, including 0.4 m @ 56 g/t Gold and 32 g/t Silver and 1.15 m @ 38.2 g/t Gold and 13 g/t Silver
3.3 m @ 20.2 g/t Gold and 46 g/t Silver
12.0 m @ 11.8 g/t Gold and 16 g/t Silver, including 0.4 m @ 100.3 g/t Gold and 216 g/t Silver plus 3 m @ 21.5 g/t Gold and 3 g/t Silver
BUSY210 extended the strike length of the Veta Sur system to over 500 metres and remains open to the southwest, northeast and at depth. Significant intercepts outside
of the current resource model include:
4.1 m @ 25.1 g/t Gold, 40 g/t Silver and 1.2% Zinc, including 0.5 m @ 167.6 g/t Gold, 264 g/t Silver and 7.2% Zinc
6.0 m @ 7.8 g/t Gold and 37 g/t Silver, including 2.05 m @ 17 g/t Gold and 81 g/t Silver
1.2 m @ 20.9 g/t Gold and 9 g/t Silver
Significant BUSY210 intercepts within the current resource model include:
8.0 m @ 9.3 g/t Gold and 17 g/t Silver, including 1.4 m @ 33.2 g/t Gold and 43 g/t Silver
2.0 m @ 20.2 g/t Gold and 16 g/t Silver
6.1 m @ 8.3 g/t Gold and 19 g/t Silver, including 2.5 m @ 14.9 g/t Gold and 30 g/t Silver
Together, the two deep drill-holes significantly increase the resource potential of the Veta Sur system and will be followed up with additional deep drilling.
"Continental is at an exciting point in our path towards production in 2014. BUSY210 and BUSY221 have validated our exploration model for Buriticá and we are looking
forward to continued expansion of our high-grade mineralized footprint," commented Ari Sussman, CEO. "2012 is going to be an exciting year for the Company as we focus
on both definition and expansion drilling of the Veta Sur and Yaragua systems as well as exploratory drilling of at least four new geochemical targets."
Details Continental's 100%-owned, 29,329-hectare Buriticá Project contains several known areas of high-grade gold and silver mineralization, of base metal-carbonate
style mineralization ("Stage I") variably overprinted by texturally and chemically distinctive high-grade "Stage II" mineralization. The two most extensively explored
of these areas, the Yaragua system and the Veta Sur system (Figure 1), are central to this land package. The Yaragua System has been drill-outlined along 570 metres of
strike and 600 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 500 metres of strike and over
1,180 vertical metres. 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. Continental recently issued a NI 43-101 compliant maiden resource estimate for parts of the Yaragua and Veta Sur systems. See "Technical
Information" below.
Two deep diamond drill-holes, BUSY210 and BUSY221, have been completed in the Veta Sur system, the first holes in a drilling program to clarify the resource potential
of the Buriticá Project well below the current NI 43-101 compliant resource estimate. Because of the lack of access to appropriate drill pad locations around central
Veta Sur, the holes were drilled obliquely through the northern Veta Sur system from the northeast (Figure 1), resulting in testing of considerable strike lengths of
the mineralization as well as its depth extents.
Both BUSY210 and BUSY221 intersected multiple zones of high-grade gold-silver mineralization including the deepest intersections made to date in the Buriticá Project.
Significant drill intercepts are tabulated below.
Table I
BUSY221
From To Int. Au Ag Zn RL
M gms gms ppm
42.00 43.00 1.00 12.14 8.7 7005 1721
94.50 96.00 1.50 3.89 21.0 23000 1670
199.60 200.00 0.40 4.82 114.0 291 1572
210.00 211.00 1.00 12.16 54.0 406 1560
401.00 402.50 1.50 2.40 385.0 6621 1379
418.35 418.80 0.45 4.68 44.0 235 1362
437.00 441.50 4.50 2.29 15.7 386 1343
463.00 468.50 5.50 1.27 178.0 1346 1317
487.00 488.00 1.00 17.10 19.0 147 1297
585.20 586.70 1.50 4.52 7.8 783 1204
608.25 611.15 2.90 3.45 16.1 841 1181
663.60 665.10 1.50 37.53 55.0 334 1130
793.70 794.20 0.50 18.87 8.0 164 1007
800.85 801.30 0.45 17.63 13.0 1018 1000
830.50 840.70 10.20 83.84 285.0 1408 970
incl 831.40 835.65 4.25 187.06 627.0 2616 969
847.50 858.30 9.80 9.06 8.0 112 963
incl 848.60 849.00 0.40 56.04 32.0 174 956
856.25 857.40 1.15 38.21 12.9 122 952
861.25 864.55 3.30 20.24 45.80 198 942
915.50 930.6 15.10 2.79 7.9 416 892
incl 916.10 917.50 1.40 16.65 16.4 1094 893
942.00 954.00 12.00 11.84 16.0 1471 884
incl 945.60 946.00 0.40 100.30 216.0 28800 863
951.00 954.00 3.00 21.46 3.2 143 857
1159.00 1159.50 0.50 28.78 29.0 6639 659
1170.50 1171.70 1.20 5.13 13.0 1173 647
1215.00 1215.40 0.40 9.96 36.0 10500 606
* Intercepts calculated at 1 g/t Au + 0.03 g/t Ag cut-off grade, less than 20% internal dilution. True thicknesses not accurately known.
Table I continued
BUSY210
From To Int. Au Ag Zn RL
gms gms ppm
95.30 96.80 1.50 7.99 8.1 1569 1675
165.80 171.20 5.40 3.03 4.8 726 1607
192.00 195.85 3.85 2.39 51.7 400 1585
342.00 345.00 3.00 2.16 6.0 986 1453
351.00 361.55 10.55 2.43 21.3 678 1444
366.40 372.60 6.20 2.69 28.2 226 1430
390.00 398.00 8.00 9.30 17.3 260 1411
incl 394.60 396.00 1.40 33.15 42.7 307 1407
402.00 404.00 2.00 20.19 16.0 422 1400
408.00 414.10 6.10 8.29 18.6 1205 1395
incl 411.60 414.10 2.50 14.94 30.4 1816 1392
427.60 428.00 0.40 10.02 28.0 397 1378
452.00 453.90 1.90 3.90 8.3 212 1357
461.00 462.00 1.00 5.97 7.9 4859 1349
480.80 484.90 4.10 25.10 40.0 12000 1333
incl 480.80 481.30 0.50 35.11 47.0 23400 1333
incl 484.40 484.90 0.50 167.64 264.0 72300 1330
519.65 521.50 1.85 3.71 4.6 553 1300
569.00 569.90 0.90 18.16 64.0 1608 1258
606.50 607.00 0.50 5.21 17.0 547 1227
838.70 839.20 0.50 8.64 4.4 90 1033
847.50 848.50 1.00 6.92 23.0 170 1026
864.00 865.50 1.50 14.12 2.6 78 1013
870.00 879.50 9.50 1.83 4.3 77 1008
892.50 898.50 6.00 7.79 36.6 923 990
incl 893.35 895.40 2.05 17.01 80.7 1688 989
904.50 905.70 1.20 20.88 9.2 61 979
937.30 939.30 2.00 7.00 5.8 57 953
1025.00 1025.50 0.50 16.31 13.0 140 881
1057.00 1064.40 7.40 3.42 25.9 4232 855
1070.20 1071.00 0.80 9.58 6.1 6927 845
1075.50 1077.55 2.05 2.89 4.0 125 840
* Intercepts calculated at 1 g/t Au + 0.03 g/t Ag cut-off grade, less than 20% internal dilution. True thicknesses not accurately known.
BUSY221 intersected high-grade gold and silver mineralization to 1,180 vertical metres and 350 metres of horizontal strike length (Table I, Figures 1 and 2).
The long intercepts from 830.50 metres downhole (10.20 m @ 83.8 g/t Gold, 285 g/t Silver) and also from 942 metres downhole (12 m @ 11.8 g/t Gold and 16 g/t Silver)
are respectively 250 metres and 330 metres deeper than any previously-announced Veta Sur major drill intercepts and include ultra-high-grade intervals (Table I).
However, additional intersections of high-grade gold mineralization were made down to RLs between 659 m (0.5 m @28.8 g/t Gold, 29 g/t Silver) and 606 metres,
the deepest yet encountered in the Buriticá Project. These intercepts demonstrate that gold-silver mineralization in the Veta Sur system continues to more than
1,180 vertical metres and still remains open to depth.
All mineralized intercepts in BUSY221 are outside of the current NI 43-101 compliant resource model. The deepest intercepts are more than 600 metres deeper than
the lowest blocks in the NI 43-101 compliant resource model (Figure 2) The shallower intercepts in BUSY221 (RLs between 1,721 and 1,300 metres) may also contribute
to extension of modeled veins into the related areas in northeast Veta Sur. Overall, the results of BUSY221 significantly expand the gold-silver resource potential
of northern Veta Sur.
BUSY210, drilled on a more southerly azimuth and shallower inclination than BUSY221, encountered gold-silver mineralization through 830 vertical metres and 500 metres
of horizontal strike length (Table I, Figures 1 and 2). Intercepts below 1,340 metres RL are outside the current NI 43-101 compliant resource model, with the deepest
intercepts extending the Veta Sur system to 830 metres RL (1,000 metres below surface) in the southwest and increasing the strike length of the system to over 500
metres. The Veta Sur system remains open along strike to the southwest and northeast. All of the mineralization intersected by BUSY210 outside the current resource
model remains open at depth. It is noteworthy that high grade intercepts outside the resource model exhibit both high (eg. from 484.4 metres downhole, 0.5 m @ 167.6 g/t
Gold, 264 g/t Silver, 7.2% Zinc) and low base metal contents (eg. from 892.5 metres downhole, 6.0 m @ 7.8 g/t Gold, 37 g/t Silver, 0.9% Zinc, including 2.05 m @ 17.1 g/t
Gold, 81 g/t Silver and 1.7% Zinc). Overall, the results of BUSY210 significantly expand the gold-silver resource potential of Veta Sur, particularly in the southwest
of the system to depth.
Between RLs of 1,620 and 1,340 metres, gold-silver mineralization encountered by BUSY210 is within the current resource model. Significant intercepts (eg. from 390 metres
downhole, 8.0 m @ 9.3 g/t Gold, 17 g/t Silver, including 1.4 m @ 33.2 g/t Gold, 43 g/t Silver; from 408 metres downhole, 6.1 m @ 8.3 g/t Gold, 19 g/t Silver including
2.5 m @ 14.9 g/t Gold, 30 g/t Silver) generally correlate well with modeled veins, adding further confidence to the NI 43-101 compliant resource model.
A third drill-hole at Veta Sur was abandoned due to drilling conditions and is expected to be re-drilled shortly. The deep-drilling rig has already commenced on the first
of three exploratory diamond drill-holes to test the depth potential of the Yaragua system. In addition, a second special-purpose deep-drilling rig has been sourced and is
expected to arrive at site shortly. The Company is currently constructing an exploration access road, which when constructed, will allow better access to drill both the
Veta Sur and Yaragua systems at depths below the current NI 43-101 compliant resource model as well as to test new targets such as the La Mano and La Estera geochemical
anomalies to the south.
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