TORONTO, Nov. 13, 2019 /CNW/ - Continental Gold Inc. (TSX: CNL; OTCQX: CGOOF) ("Continental" or the "Company") is pleased to announce that it has been granted a key exploration license by the Government of Antioquia encompassing the Electra South and Orion targets and, as a result, will commence a much-anticipated maiden drill program in the near term.
The Company currently has 11 diamond drill rigs operating as part of its 73,500-metre definition and exploration drill program for 2019. Mine construction at the Buriticá project remains on schedule with mechanical completion anticipated in Q1 2020.
Highlights of the Electra South and Orion Targets (Referenced in Figures 1 and 2)
- The Electra South and Orion vein systems have very similar mineralogy and metal associations to the Stage I and Stage II veins currently being mined at the Buriticá deposit.
- The Electra South and Orion vein systems are located within five kilometres from the Buriticá Mine site and could be accessed for mining in the future through a new tunnel on the opposite side of the Higabra valley and fed directly into the milling facilities nearing construction completion.
- At the Electra South target, multiple high-grade quartz carbonate veins are hosted within cretaceous tonalite and have been traced over dimensions measuring 2,000 metres along strike by 500 metres across and remain open in all directions. The geochemical signature of veins at Electra South are akin to both Stage I and Stage II high-grade and ultra-high-grade Buriticá veins. Surface channel sampling on limited vein outcrop returned high-grade gold and silver assay results over widths ranging from 10-50 centimetres, with highlights as follows:
Vein Sampling Highlights, Electra South
*Majority of assay results previously reported on October 16, 2017; Electra South formerly known as Obispo.
- 35 vein channel samples graded between 10-136 g/t gold and up to 808 g/t silver
- A total of 75 vein channel samples averaged over 2 g/t gold and 49 channel samples averaged more than 31 g/t silver.
- At the Orion target, multiple high-grade quartz carbonate veins hosted within cretaceous mafic volcanics have been outlined from soil geochemistry, surface mapping and sampling in an area measuring greater than 1,500 metres along strike by 500 metres across and remain open in all directions. The vein packages at the Orion target contain high grades of gold and silver in association with anomalous zinc, lead and copper. Highlights from surface channel samples on limited outcropping vein material at widths ranging between 10‑50 centimetres are as follows:
Vein Sampling Highlights, Orion
*Majority of assay results previously reported on October 16, 2017; Orion formerly known as Pinguro.
- 22 channel samples collected graded between 10-94 g/t gold and up to 630 g/t silver.
- A total of 43 channel samples averaged greater than 2 g/t gold and 23 channel samples averaged more than 31 g/t silver.
Ari Sussman, CEO, commented: "With the granting of the exploration title covering these two exciting targets now in hand, the Company is finally in a position to drill-test these exciting discoveries. "Electra South and Orion have four important attributes that make them world-class targets for drilling:
- An irregularly-large proportion of samples collected from both systems contain very high grades of gold.
- The footprint of both systems is vast, covering surface dimensions comparable to the footprint of the Yaraguá and Veta Sur deposits.
- The sheer number of veins that have been mapped and sampled, some of which are overlapping.
- Given that both targets are located close to our mining complex, if either system turns out to be economic in the future, the mined material from Orion and Electra South could ultimately be fed into the existing mill.
Drill pad locations are currently being selected with the anticipation of an initial drill program beginning in the near term."
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 of 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.
David J Reading, M.Sc., FIMM, the special advisor to Continental and an independent Qualified Person as defined under Canadian National Instrument 43‑101 – Standards of Disclosure for Mineral Projects ("NI 43‑101"), has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Mr. Reading has over 35 years' 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 and of the Society of Economic Geology.
Besides rigorous chain-of-custody procedures, the Company utilized a comprehensive quality control/quality assurance program for the channel samples. All quality control anomalies were addressed and/or corrected as necessary to assure reliable assay results; no material quality control issues were encountered in the course of the program. Crush rejects and pulps are kept and stored in a secured storage facility for future assay verification.
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 it's 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.
This press release contains or refers to forward-looking information under Canadian securities legislation—including statements regarding: timing of commencement of a drill program, 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.
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