Continental Gold off to the races after Colombia drill results

Continental Gold (TSE: CNL) shares gained almost 7% on Tuesday after the explorer reported initial drilling results from its Buriticá project in Colombia.

Highlights from four underground diamond drill holes for the Veta Sure vein showed 16.7 metres of 58.7 g/t gold and 233 g/t silver including 5.15 metres at 184 g/t gold and 671 g/t silver and 18.7 metres at 22.4 g/t gold and 80 g/t silver, including 3.8 metres at 99.6 g/t gold and 254 g/t silver.

In early morning trade the counter was trading at $3.46, up 6.8% and lifting its market value to $431 million on the Toronto big board.

Like all juniors in the gold sector 2013 has been brutal for Continental Gold – it is down 61% year to date.

The Toronto-based company said 8 drills are currently on site at the Buriticá project located 75 km northwest from the South American nations second largest city Medellín, as it updates its resources for a prefeasibility study scheduled for 2014.

The Buriticá project's October 2012 NI 43-101 study covers two major vein systems, with combined measured and indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc.