Continental Gold Announces Additional High-Grade Assay Results at Buritica, Colombia

 

TORONTO, ONTARIO–(Marketwire – Feb. 1, 2012) – Continental Gold Limited ("Continental" or the "Company") (TSX:CNL) is pleased to announce results for nine diamond drill-holes from the Company's ongoing program at its 100%-owned Buritica Project in Antioquia, Colombia. Ten drills are currently on site as part of the Company's Phase III, 60,000-metre diamond drill program for 2012.

Highlights

Yaragua (Figures 1 and 2)

 

--  Step-out drilling to the west at the Yaragua System has extended the

 

    strike length of several veins between 50 to 75 metres and the veins

 

    remain open along strike and at depth. Significant intercepts include 25

 

    metres @ 13.3 g/t Gold and 16 g/t Silver (including 4.5 metres @ 52.8

 

    g/t Gold and 16 g/t Silver) in drill-hole BUSY224, which is outside the

 

    current National Instrument 43-101 ("NI 43-101") compliant resource

 

    estimate.

 


 

--  BUSY238, the first deep penetrating drill-hole to test the Yaragua

 

    System vertically, was drilled to over 1,000 metres before completion.

 

    Significant intercepts below the current NI 43-101 resource estimate

 

    include 36 metres @ 6.7 g/t Gold and 11 g/t Silver. A second deep

 

    penetrating diamond drill hole is nearing completion and a series of

 

    deep holes are planned to probe the depth extent of the Yaragua System

 

    in 2012.

 


 

--  Step-out drilling in eastern Yaragua demonstrated that the system

 

    remains open to the east and at depth. Results outside the current NI

 

    43-101 compliant resource model include 3.65 metres @ 13.5 g/t Gold and

 

    552 g/t Silver.

 

La Mano (Figure 1)

 


 

--  BUSY228, the second drill hole completed at La Mano target prior to the

 

    end of 2011, yielded several high silver/gold mineralized zones at

 

    shallow depths and, encouragingly, at greater depths. A significant

 

    intercept to the south intersected 0.6 metres @ 55.4 g/t Gold, 6 g/t

 

    Silver and 1.42% Zinc. Two diamond drills are presently being mobilized

 

    to the La Mano target with drilling expected to commence towards the end

 

    of February. The next assay results from La Mano will be released once

 

    five to ten holes have been completed and analyzed.

 


 

Veta Sur System (Figures 1 and 3)

 


 

--  BUSY231, the third deep penetrating drill hole to test the Veta Sur

 

    system, intersected 5.95 metres @ 125.9 g/t Gold, 66 g/t Silver and 1.6%

 

    Zinc before the hole ran into technical difficulty and was abandoned at

 

    approximately 550 metres down-hole, ending in mineralization. This hole

 

    extended the northern Veta Sur system by more than 100 metres of strike

 

    length and to a depth of approximately 500 metres from surface outside

 

    of the current NI 43-101 resource estimate. The reader should be

 

    cautioned that due to drilling difficulties, a recovery rate of 25% was

 

    achieved in this portion of the interval and, consequently, the result

 

    should only be regarded as an indication that high-grade mineralization

 

    occurs at this depth in the northern portion of the Veta Sur System. The

 

    Company intends to re-drill this hole in short order.

 


 

--  BUSY225 drilled from northern Veta Sur intersected high silver/gold base

 

    metal-rich mineralization (including 1.9 metres @ 0.5 g/t Gold and 326

 

    g/t Silver), open laterally and at depth.

 


 

--  BUSY226 encountered several broad mineralized intervals (for example 7.2

 

    metres @ 5.2 g/t Gold and 36 g/t Silver, including 1.55 metres @ 16.3

 

    g/t Gold and 115 g/t Silver) mainly outside the current resource model.

 


 

"Our exploration efforts at Buritica continue to expand the mineralized footprint of the project. The initial deep hole at the Yaragua System and the La Mano intercept bode well for an updated NI 43-101 compliant resource due to be released during the summer of 2012," commented Ari Sussman, CEO. "The Company is well funded for its exploration and development programs with a $58 million budget for 2012."

Details

Continental's 100%-owned, 19,452-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 system and the Veta Sur system, Figure 1) are central to this land package. The Yaragua System has been drill-outlined along 650 metres of strike and 600 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 550 metres of strike and 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 for parts of the Yaragua and Veta Sur systems. See "about Continental Gold" below.

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