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Re:Additional High Grade

in response to CNL achieves... by joey_pasta

posted on Feb 01, 12 09:47AM (Log in to use the IP Check tool) ^[?]

Continental Gold drills 5.9 m of 125 g/t Au at Buritica

2012-02-01 06:47 ET - News Release

Mr. Ari Sussman reports

CONTINENTAL GOLD ANNOUNCES ADDITIONAL HIGH-GRADE ASSAY RESULTS AT BURITICA, COLOMBIA

Continental Gold Ltd. has released 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.

Yaragua and Yaragua South

Significant new drill intercepts in these areas are tabulated below (Table I).

Table I: Drilling highlights - Yaragua and Yaragua South 



              From      To   Interval    Gold  Silver    Zinc               
Drill-hole     (m)     (m)     (i)(m)   (g/t)   (g/t)   (ppm)       Vein Set

BUSY223       41.5    43.1        1.6   15.09    72.1   15841    Murcielagos
                58    64.5        6.5    9.08     8.8    1148    Murcielagos
Incl.        63.25   63.65        0.4  108.16      32    1140    Murcielagos
              74.5      76        1.5    5.78      33     584    Murcielagos
             119.5   120.2        0.7   12.15     1.2     100    Murcielagos
            234.45   235.4       0.95    8.34     2.2     389         Vein C
            241.45  243.75        2.3    4.41     8.8    1140          Sofia
             276.4   284.6        8.2    2.42     9.1    7736          Sofia
             296.5     298        1.5     5.6    3.13     604             HW
             436.2   436.5        0.3    3.18     635    9877              ?
             458.5   464.2        5.7    2.39      13    1251              ?
            474.25   477.9       3.65    13.5   552.3   15368         Vein A
Incl.       474.75     476       1.25   35.74  1062.2   42253         Vein A

BUSY224      146.2  146.45       0.25   45.21      28     444             FW
             181.5   184.2        2.7    0.28    34.3     759          San A
             244.5  245.27       0.77    6.39      27    3472          Sofia
            337.55  338.12       0.57   2.367      84   24100         Vein B
            421.81  446.82      25.01   13.25    15.9    1066    Murcielagos
Incl.          434  438.52       4.52    52.8    16.3    1298    Murcielagos
            474.24  484.63      10.39    5.12     2.9     166    Murcielagos
Incl.        480.6  482.24       1.64   22.61     6.3     208    Murcielagos

BUSY227        138   138.5        0.5    5.91      23     141    Murcielagos
               359     360          1   4.421    9.35     142        unnamed
               444   445.5        1.5    10.9    2.08    1887         Vein C
               450   451.5        1.5    16.2    0.96     344         Vein C
             463.5     466        2.5    2.58    27.6    2315         Vein C
             494.3   496.1        1.8    5.92    12.4     441          Sofia

BUSY238      148.5   149.5          1    7.84     4.5    2894    Yaragua Sth
             324.1   330.2        6.1    2.43     6.1    8000    Yaragua Sth
             342.8  344.14       1.34   17.07      18    7664    Yaragua Sth
            381.15   381.7       0.55     5.2      25    6900    Yaragua Sth
               691     696          5    9.36    20.8     145    Murcielagos
               698     704          6   13.26     8.5     157    Murcielagos
             709.6     727       17.4    6.49    13.7     273    Murcielagos
Incl.        709.6   711.2        1.6   15.51      20     710    Murcielagos
               725     727          2   22.91     9.5     166    Murcielagos
               738     740          2    6.04     5.9     336    Murcielagos
               753     765         12    3.04     9.8    1141         Vein B
Incl.       758.35   759.5       1.15   15.84      48    7621         Vein B

BUUY064         11      13          2   37.29   142.3    1820    Murcielagos
             62.45   64.85        2.4     5.4    21.8    1056    Yaragua Sth
              77.4   82.22       4.82    1.74     5.3    2480    Yaragua Sth
             89.55   90.55          1    2.69    15.7   10056    Yaragua Sth
             100.1   100.5        0.4   24.36     215   20700    Yaragua Sth
             113.3  113.72       0.42   3.035      58   16600    Yaragua Sth
            156.92     158       1.08    1.42    22.6   19206    Yaragua Sth
               171   172.5        1.5     2.8     0.4     194    Yaragua Sth
             391.7  392.65       0.95   3.054    0.77     612    Yaragua Sth
             421.8   422.5        0.7   0.087      90    2242            new

(i)   Intercepts calculated at 1 g/t Gold + 0.03 g/t Silver cut-off grades  
      with up to 20% internal dilution and generally tabulated if greater   
      than 10 gram x metres gold equivalent. True widths not accurately     
      known but generally are between 0.3 and true width of down-hole       
      interval.                                                             
(ii)  approximately 25% core recovery in this interval.

Drilling in west, central and east Yaragua targeted lateral and depth extensions of the Yaragua vein system. All five drill-holes intersected multiple gold and silver mineralized intervals, which included high grade intercepts.

BUSY224 extended the Murcielagos system of veins 75 metres westwards from previous drilling. The broad intercept, from 421.81 metres down-hole of 25.01 metres @ 13.3 g/t Gold and 16 g/t Silver, including 4.52 metres @ 52.8 g/t Gold and 16 g/t Silver, is particularly significant among several broad intersections which also exhibit high grade intervals. Each of these intercepts contains relatively low base metal grades, a feature emerging in other deep parts of the Yaragua system. Further up-hole, BUSY224 also intersected several other Yaragua vein sets extending these westward below the Diatreme Fault and by up to 50 metres from earlier drilling. All intersections in BUSY224 are outside the current resource model.

BUSY238 intersected the Murcielagos system of veins below central Yaragua at elevations of 1,110-1,030 metres, the deepest Murcielagos intersections to date and well below the current resource model. The broad intercepts of good gold grades (e.g. 6 metres @ 13.3 g/t Gold and 17.4 metres @ 6.5 g/t Gold, including 1.6 metres @ 15.5 g/t Gold and 20 g/t Silver) also exhibit relatively low base metal contents like the high grade intervals in BUSY213 at similar elevations in the Murcielagos vein sets in central Yaragua. At 758.35 metres down-hole in BUSY238, a broad mineralized interval was intersected in the Vein B package, including 1.15 metres @ 15.8 g/t Gold and 48 g/t Silver and other mineralized intervals down to 800 metres in elevation. All mineralized intercepts in BUSY231 are outside of the current resource model.

BUUY064 in central Yaragua also intersected a high-grade southern vein of the Murcielagos system, from 11 metres downhole assaying 2 metres @ 37.3 g/t Gold and 142 g/t Silver.

BUSY227 intersected the Vein C package in central Yaragua at an elevation below 1,200 metres. These deep intercepts (including 1.5 metres @ 16.2 g/t Gold) are below the current resource model.

BUSY223, drilled in eastern Yaragua, extended several of the Yaragua vein sets further eastward and outside of the current resource model, demonstrating these veins are open to the east and to depth. Base metal-rich and base metal poor veins of the Murcielagos family exhibit good grades of gold (from 41.5 metres down-hole, 1.6 metres @ 15.1 g/t Gold and 72 g/t Silver and from 58 metres down-hole 6.5 metres @ 9.1 g/t Gold, including 0.4 metres @ 108.2 g/t Gold). Further down-hole, BUSY223 intersected several vein sets with high silver/gold and high grade silver, including 3.65 metres @ 13.5 g/t Gold and 552 g/t Silver in Vein A at around 1,100 metres elevation. This indicates that high silver values may persist to substantial depths in parts of the Yaragua system. The Vein A intercept also extended the strike length of this sparsely drilled vein set to more than 550 metres. BUSY223 was lost in mineralization (Vein D?) at an elevation of 1,020 metres.

In the Yaragua South area, BUUY064 and also (300 metres further west) BUSY238 intersected several vein sets of the Yaragua South family of veins. BUSY238 intercepts are characterized by high gold/silver (for example from 342.8 metres down-hole, 1.34 metres @ 17.1 g/t Gold and 18 g/t Silver) whereas BUUY064 exhibits both high and low gold/silver. Further drilling in the Yaragua South is expected to outline more than 500 metres of strike length of the Yaragua South vein families. BUUY064 ended in high silver/gold mineralization at depth well south of this family of veins.

La Mano

Significant new drill intercepts in these areas are tabulated below (Table II).

Table II: Drilling highlights - La Mano



                 From         To   Interval       Gold     Silver       Zinc
Drill-hole        (m)        (m)     (i)(m)      (g/t)      (g/t)      (ppm)

BUSY228          17.7         24        6.3       0.48       44.7        187
                   37       38.5        1.5      0.815        107        750
               118.55        120       1.45      0.035         63        512
                306.5      307.1        0.6      55.39       6.48      14200

(i)   Intercepts calculated at 1 g/t Gold + 0.03 g/t Silver cut-off grades  
      with up to 20% internal dilution and generally tabulated if greater   
      than 10 gram x metres gold equivalent. True widths not accurately     
      known but generally are between 0.3 and true width of down-hole       
      interval.

BUSY228, the second drill-hole to be successfully completed in the La Mano area, intersected several high silver/gold mineralized zones including 6.3 metres @ 0.5 g/t Gold and 45 g/t Silver at shallow depths. A high grade gold and base metal-rich interval encountered further down-hole (from 306.5 metres, 0.6 metres @ 55.4 g/t Gold, 6.5 g/t Silver and 1.42% zinc) is particularly encouraging for further drilling in the La Mano area. Two diamond drill rigs are presently being mobilized with drilling anticipated to ensue in late February. A series of 5-10 holes will be completed and released as a batch of assays once available.

Veta Sur

Drilling of the Veta Sur System focused on lateral and depth extensions of the mineralized system. Significant new drill intercepts are tabulated below (Table III).

Table III: Drilling Highlights - Veta Sur System



                  From      To   Interval    Gold  Silver    Zinc  Elevation
Drill-hole         (m)     (m)     (i)(m)   (g/t)   (g/t)   (ppm)        (m)

BUSY225          61.25   62.30       1.05    0.29   133.0   58300       1730
                 64.00   65.85       1.85    0.46   325.7   36426       1727

BUSY226         421.14  428.30       7.16    5.15    36.2    3425       1502
Incl.           423.27  424.82       1.55   16.26   114.5    9523       1500
                439.19  448.60       9.41    3.42    30.4     699       1481
                462.00  467.38       5.38    6.29    25.5     797       1466
Incl.           462.00  463.17       1.17   12.07    27.1     916       1466
Incl.           466.00  467.38       1.38   10.38    48.0    1731       1462

BUSY231         101.50  102.28       0.78   10.12     8.9   15600       1662
                231.90  232.90       1.00    6.03    24.0     760       1532
                256.50  259.75       3.25    2.48    57.1     218       1507
                316.30  316.70       0.40    3.99   133.0   13600       1448
                382.35  383.55       1.20    0.71   217.5   11900       1382
                470.05  470.80       0.75   19.60   136.0   43200       1295
                484.60  489.25       4.65    4.78    79.2   20098       1281
Incl.           486.85  488.25       1.40   12.13   205.4   59921       1278
                493.00  495.60       2.60    5.91    26.1    1716       1271
                499.30  503.65       4.35    4.92    62.0   26785       1266
Incl.           499.30  500.05       0.75   21.27   191.0   65900       1266
                530.90  536.85   5.95(ii)  125.93    66.0   15600       1234
                542.00  543.60       1.60    4.83    11.8     368       1223
                551.00  552.00       1.00    8.81     0.9     238       1214

(i)   Intercepts calculated at 1 g/t Gold + 0.03 g/t Silver cut-off grades  
      with up to 20% internal dilution and generally tabulated if greater   
      than 10 gram x metres gold equivalent. True widths not accurately     
      known but generally between 0.3 and true width of down-hole interval.

BUSY231 extended the northern family of Veta Sur vein sets by more 100 metres of strike length and to depths of more than 500 metres from surface and elevation down to 1,100 metres, all outside of the current resource model. Mineralized intercepts through a 450-metre vertical extent exhibit varied gold/silver and base metal contents and include both high-grade gold and medium grade silver intervals. The very high grade sample (126 g/t Gold, 66 g/t Silver and 1.56% zinc) is representative of the 1.4 metres of core recovered from the 5.95-metre interval from 530.90 metres and demonstrates high grade gold-base metal veins down to RL's of 1,120 metres in northeast Veta Sur. Below this interval BUSY231 encountered auriferous veins with low silver and base metal contents and was lost in mineralization.

BUSY225 was drilled from northern Veta Sur towards Yaragua and intersected a newly recognized family of high silver/gold veins, including 1.85 metres @ 0.5 g/t Gold, 326 g/t Silver and 3.6% zinc from 64 metres down-hole. BUSY225 intersected high silver/gold mineralization at the end of hole, which may represent an extension of the Yaragua system to the west of current drilling.

BUSY226, drilled into central Veta Sur, encountered several broad mineralized intervals containing high grade intercepts (for example, from 421.14 metres down-hole, 7.16 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). Intercepts below this are characterized by moderate silver/gold and low base metal contents. Most of the mineralized intercepts in BUSY221 are outside of the current resource model.

Technical Information

The results of the Company's drilling program have been reviewed, verified and compiled by Vic Wall, PhD, a qualified person for the purpose of NI 43-101. Dr. Wall is a geologist with 35 years 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 an industry-standard QA/QC program. HQ and NQ diamond drill-core is sawn in half with one half shipped to a sample preparation lab in Medellin run by SGS Colombia. 100% of BQ diameter drill samples are shipped. Samples are then shipped for analysis to SGS 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 ACME laboratories in Vancouver and/or Inspectorate Labs in Reno.

For additional technical information on the Buritica Project, please refer to the Company's technical report (the "Technical Report") entitled "Mineral Resource Estimate of the Buritica Gold Project, Colombia" dated October 24, 2011, as amended November 23, 2011, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com and on the Company website at www.continentalgold.com.

We seek Safe Harbor.