Continental Gold Drills a New High-Grade Gold and Silver Discovery Over 1,200 Vertical Metres at Buriticá, Colombia

Transcription

1 Cntinental Gld Drills a New High-Grade Gld and Silver Discvery Over 1,200 Vertical Metres at Buriticá, Clmbia Trnt, Ontari, September 13, Cntinental Gld Limited (TSX:CNL; OTCQX:CGOOF) ("Cntinental" r the "Cmpany") is pleased t annunce the results f initial drilling and undergrund channel sampling f ld wrkings in the La Estera and La Man areas, new mineralized vein systems suth f the Yaraguá and Veta Sur depsits in the Cmpany's 100%-wned Buriticá prject in Antiquia, Clmbia. Highlights La Estera (Figures 1 and 2) Drilling and undergrund channel sampling f ld wrkings in the La Estera area has resulted in the discvery f up t three high-grade silver and gld vein systems (Nrthern, Central and Suthern La Estera), lcated apprximately between 100 and 300 metres t the suth f the Veta Sur depsit. Drilling has intersected multiple intervals f vein mineralizatin exhibiting high silvergld in the Suthern La Estera vein system and high-grade gld in the Nrthern La Estera vein system, particularly at depth. Significant intercepts include: BUSY292 intersected g/t Gld and 1,061 g/t Silver (28.0 g/t Gld equivalent) g/t Gld and 121 g/t Silver (13.5 g/t Gld equivalent) g/t Gld and 88 g/t Silver (11.9 g/t Gld equivalent) BUSY282 intersected g/t Gld and 41 g/t Silver (9.1 g/t Gld equivalent) g/t Gld and 8 g/t Silver (10.8 g/t Gld equivalent) The high-grade gld intercepts in BUSY282 are amng the deepest btained t date in all drilling at the Buriticá prject. These intercepts prject vertically up t extensive shallw artisanal wrkings, suggesting vertical extents f precius metal mineralizatin f mre than 1,200 metres in the Nrthern La Estera vein system. This target remains pen alng strike in all directins and at depth. Channel sampling f shallw histrical wrkings at La Estera has encuntered highgrade silver-gld veins: 6.2 g/t Gld and 362 g/t Silver (13.4 g/t Gld equivalent) ver an average width f 1 m, including 27.5 g/t Gld and 1,581 g/t Silver (59.1 g/t Gld equivalent) ver 0.2 m, alng 22 metres 6.8 g/t Gld and 454 g/t Silver (15.9 g/t Gld equivalent) ver an average width f 1.2 m, including 41 g/t Gld and 2,747 g/t Silver (95.9 g/t Gld equivalent) ver 0.2 m, alng 10 metres

2 Page 2 The high-grade silver and gld intercepts in BUSY292 are up t 120 metres alng strike and up t 400 metres deeper than histrical wrkings in the Central La Estera vein system. This system remains pen alng strike and at depth. The distributin f silver and gld sil gechemical anmalies and artisanal wrkings suggest that bth the Suthern, Central and Nrthern La Estera vein systems may have substantial lateral extents. La Man (Figure 1) Lcated apprximately 300 t 400 metres suth f the Yaraguá depsit, the first drilling in Suthern La Man has als intersected multiple intervals f vein mineralizatin exhibiting bth high and mderate gld-silver. Significant intercepts under extensive sil gechemical anmalies include: g/t Gld and 1 g/t Silver (BUSY263) g/t Gld and 9 g/t Silver (BUSY263) g/t Gld and 187 g/t Silver (BUSY269) g/t Gld and 153 g/t Silver (BUSY276) Additinal drilling and surface sampling f the La Man and La Estera systems is underway and will cnfirm, amng ther things, if the Nrthern La Estera and the Suthern La Man systems are cntiguus and cntinuus ver 1,000 metres f ptential strike length as satellite imagery and mapping seemingly indicates. Our team cntinues t be successful in unlcking value at Buriticá and they shuld be cngratulated fr their effrts, cmmented Ari Sussman, CEO. We cntinue t take an aggressive explratin and develpment stance, which, in this instance, resulted in new discveries at La Man and at La Estera with ver 1,200 metres f vertical ptential already utlined. Shrtly after the annuncement f ur updated mineral resurce estimate, which remains n track fr cmpletin prir t mnth s end, we plan t annunce a revised explratin and develpment plan fr Buriticá, which will include aggressive drilling f the La Estera and La Man systems. Details Cntinental's 100%-wned 28,920-hectare prject, Buriticá, cntains several knwn areas f high-grade gld and silver mineralizatin, f base metal carbnate-style ("Stage I") variably verprinted by texturally and chemically distinctive high-grade ("Stage II") mineralizatin. The tw mst extensively explred f these areas (the Yaraguá and Veta Sur systems) are central t this land package. The Yaraguá system has been drill-utlined alng 900 metres f strike and 1,300 vertical metres, and partially sampled in undergrund develpments. The Veta Sur system has been drill intersected alng 570 metres f strike and 1,180 vertical metres. Bth systems are characterized by multiple, steeply-dipping veins and brader, mre disseminated, mineralizatin and bth remain pen at depth and alng strike, at high grades. See Abut Cntinental Gld (belw) fr a précis f the maiden mineral resurce estimate fr Buriticá. This release examines new precius metal discveries in the La Estera and La Man areas, lcated t the suth f Veta Sur and Yaraguá, respectively.

3 Page 3 La Estera Significant drill intercepts in the La Estera system are tabulated belw in Table I and are referenced in Figures 1 and 2. Table I: Drilling Highlights La Estera Drill-hle Frm T Interval* Gld Silver Zinc (%) Elevatin BUSY065** BUSY135** BUSY incl BUSY incl

4 Page 4 Drill-hle Frm T Interval* Gld Silver Zinc (%) Elevatin incl BUSY * Intercepts calculated at 1 g/t gld and 30 g/t silver cut-ff grades with up t 20% internal dilutin and generally tabulated if greater than 10 gram*metres gld equivalent. True widths nt accurately knwn but generally are between 30% and actual true width f the dwn-hle interval. ** Drill-hles previusly released and never reached target depths due t drill limitatins, significant intervals are recalculated herein. Drilling in La Estera targeted sil and rck chip gechemical anmalies. All three drill-hles intersected multiple gld and silver-mineralized intervals which included high-grade intercepts thrugh extensive vertical and hrizntal ranges. The related families f veins lie 100 t 300 metres t the suth f the Veta Sur depsit and are gechemically distinct frm the latter. Up t dwn-hle depths f arund 500 metres (RL s frm 1,900 m t 1,400 m), drill-hles BUSY282, BUSY292 and BUSY305 each intersected multiple vein sets with mderate t high silver-gld (Table I, Figure 2). BUSY065, drilled n a mre westerly azimuth, als intersected very high silver-gld veins at high RL s and shallw depths (Table I, Figure 2). Artisanal wrkings abve and t the east and west f these drill intercepts are cnsistent with extensins f the Suthern La Estera vein system utside f the drilling area. Channel sampling shallw undergrund histrical wrkings at La Estera (further nrth f the mst sutherly veins) encuntered high silver and gld grades with numerus samples assaying mre than 1,000 g/t Silver. Cntinuus sampling intervals include: 6.2 g/t Gld and 362 g/t Silver (13.4 g/t Gld equivalent) ver an average width f 1 m, including 27.5 g/t Gld and 1,581 g/t Silver (59.1 g/t Gld equivalent) ver 0.2 m, alng 22 metres (RL 1,787 m)

5 Page g/t Gld and 454 g/t Silver (15.9 g/t Gld equivalent) ver an average width f 1.2 m, including 41 g/t Gld and 2,747 g/t Silver (95.9 g/t Gld equivalent) ver 0.2 m, alng 10 metres (RL 1,778 m) The silver-rich intercept in BUSY292 frm m (RL 1,651 m), g/t Gld, 1,061 g/t Silver (28.0 g/t Gld equivalent) and 2.6 % Zinc (including g/t Gld, 2,480 g/t Silver (55.9 g/t Gld equivalent) and g/t Gld and 2,060 g/t Silver (47.5 g/t Gld equivalent)) lies further west f and 130 metres deeper than the La Estera undergrund histrical wrkings. A 300-metre deeper gld-rich intercept in BUSY292, frm metres (RL 1,373 metres) yielding g/t Gld and 56 g/t Silver (4.92 g/t Gld equivalent), including g/t Gld, 121 g/t Silver (13.5 g/t Gld equivalent) and g/t Gld, 88 g/t Silver (11.9 g/t Gld equivalent) may als be crrelated with the Central La Estera vein system. These drill intercepts and the near surface sampling are cnsistent with a vertically-extensive Central La Estera vein system and mre than 120 metres f lateral strike. The Central La Estera vein system remains pen alng strike and at depth. Gld and silver sil gechemical anmalies and artisanal wrkings ptentially relating t this vein system extend alng strike fr ver 1,000 metres t the east-sutheast f the Central La Estera vein system (Figure 1). Mre than 200 metres further nrth f the Central La Estera vein system, BUSY282 had several high-grade gld intercepts, with bth high and lw base metal cntents, but gechemically distinct fr the Veta Sur system, 100 metres t the nrth. These intersectins are amng the deepest btained t date in drilling at the Buriticá prject and include: frm 1,154.6 m (RL 832 m), g/t Gld and 41 g/t Silver (9.1 g/t Gld equivalent), including g/t Gld and 154 g/t Silver (35.4 g/t Gld equivalent) frm 1,381 m (RL 620 m), g/t Gld and 8 g/t Silver (10.8 g/t Gld equivalent) The BUSY282 intercepts prject vertically t extensive shallw artisanal wrkings suggesting vertical extents f precius metal mineralizatin f mre than 1,200 metres in the Nrthern La Estera vein system and remains pen alng strike and at depth (Figure 2). Surface sampling and results frm BUSY135 (Table I) are cnsistent with high silver-gld fr the shallw, high elevatin mineralizatin at the Nrthern La Estera vein system. The distributin f artisanal wrkings and sil precius metal anmalies in the Nrthern La Estera vein system (Figure 1) may indicate this system has substantial untested lateral strike extent.

6 Page 6 La Man Significant new drill intercepts in the Suthern La Man area are listed belw in Table II and are referenced in Figure 1. Table II: Drilling Highlights La Man Drill-hle Frm T Interval Gld Silver Zinc (%) Elevatin BUSY BUSY BUSY incl

7 Page 7 Drill-hle Frm T Interval Gld Silver Zinc (%) Elevatin BUSY * Intercepts calculated at 1 g/t gld and 30 g/t silver cut-ff grades with up t 20% internal dilutin. True widths nt accurately knwn but generally are between 30% and actual true width f the dwn-hle interval. ** Drill-hles previusly released and never reached target depths due t drill limitatins, significant intervals are recalculated herein. The first drilling in Suthern La Man, 300 t 400 metres suth f the Yaraguá depsit, targeted extensive precius and base metal sil anmalies. All fur drill-hles intersected multiple intervals f vein mineralizatin within brad, lwer grade envelpes, exhibiting bth high and mderate gld-silver. BUSY263 examined a limited area, but encuntered mineralizatin ver an elevatin range f 250 metres. Mst significant intercepts in this drill-hle are g/t Gld and 1 g/t Silver frm 235 m dwn-hle and g/t Gld and 9 g/t Silver frm m dwn-hle. BUSY269, drilled mre acrss strike, encuntered numerus veins ver a 450 metre range f vertical elevatins, with a best intercept f g/t Gld, 187 g/t Silver and 2.8 % Zinc starting at m dwn-hle. BUSY276 intersected vein mineralizatin including g/t Gld and 153 g/t Silver at 29.8 m dwn-hle, befre being abandned shrt f its target. BUSY243 was drilled t the nrth and intersected silver-gld mineralizatin dwn t elevatins f 1,150 m, suth f the suthern-mst Yaraguá vein families. The distributin f sil precius anmalies and artisanal wrkings in the Suthern La Man area (Figure 1) indicates that the La Man mineralizatin is mre laterally extensive than drilled t date and may prve t be cntiguus with the Nrthern La Estera mineralizatin. Onging drilling and surface sampling is testing the cntinuity f bth the La Man and La Estera systems, in particular t clarify if the Nrthern La Estera and Suthern La Man systems are cntiguus and cntinuus ver 1,000 metres f ptential lateral extent. Technical Infrmatin Vic Wall, PhD, special advisr t the Cmpany and a qualified persn fr the purpse f NI , has prepared r supervised the preparatin f, r apprved, as applicable, the technical infrmatin cntained in this press release. Dr. Wall is a gelgist with 35 years experience in the minerals mining, cnsulting, explratin and research industries. Fllwing a career in Australian and Nrth American academes, he held senir psitins in a number f multinatinal majr and junir minerals cmpanies. A Fellw f the Australian Institute f Gescientists, Dr. Wall is Principal f Vic Wall & Assciates, a Brisbane-based cnsultancy

8 Page 8 that prvides gescientific services t mineral cmpanies and gvernment agencies, wrldwide. The Cmpany utilizes a rigrus, industry-standard QA/QC prgram. Cre is sawn in half with ne-half shipped t a sample preparatin lab in Medellín run by ALS Clmbia Limited ( ALS ) in Clmbia. Samples are then shipped fr analysis t an ALS-certified assay labratry in Lima, Peru. The remainder f the cre is stred in a secured strage facility fr future assay verificatin. Blanks, duplicates and certified reference standards are inserted int the sample stream t mnitr labratry perfrmance and a prtin f the samples are peridically check assayed at ACME Analytical Labratries in Vancuver, British Clumbia and/r Inspectrate America Crp. in Ren, Nevada. The Cmpany des nt receive assay results fr drill-hles in sequential rder; hwever, all significant assay results are publicly-reprted. A cmplete listing f assay results t date fr the Yaraguá and Veta Sur Systems is available n the Cmpany s website at Gld equivalent grade is calculated by dividing silver grades by 50 and adding this figure t the gld grade, assuming 100% metallurgical recvery. Fr additinal technical infrmatin n the Buriticá prject, please refer t the Cmpany s technical reprt (the Technical Reprt ) entitled Mineral Resurce Estimate f the Buriticá Gld Prject, Clmbia dated Octber 24, 2011 as amended Nvember 23, 2011, prepared by Andrew J Vigar, BAppSc Ge, FAusIMM, MSEG, and Martin Recklies, BAppSC Ge, MAIG, each f Mining Assciates Pty Limited, available n SEDAR at n the OTCQX at and n the Cmpany website at Abut Cntinental Gld Cntinental Gld Limited is an advanced-stage explratin and develpment cmpany with an extensive prtfli f 100%-wned gld prjects in Clmbia. Spearheaded by a team with ver 40 years f explratin and mining experience in Clmbia, the Cmpany is fcused n advancing its high-grade Buriticá gld prject t prductin. A maiden mineral resurce estimate fr the Buriticá prject prepared in accrdance with NI cvers tw majr vein systems, with cmbined measured and indicated mineral resurces f 1,110,000 tnnes f mineralized material cntaining 630,000 unces f gld grading 17.8 g/t gld, 1,500,000 unces f silver grading 42 g/t silver, and 18,700,000 punds f zinc grading 0.8% zinc. The inferred mineral resurce is 6,900,000 tnnes f mineralized material cntaining 2,500,000 unces f gld grading 11.4 g/t gld, 9,500,000 unces f silver grading 43 g/t silver and 88,000,000 punds f zinc grading 0.6% zinc. Fr additinal technical infrmatin n the Buriticá prject, please refer t the Technical Reprt. In August 2012, Cntinental achieved an imprtant milestne, receiving frmal apprval fr the mdificatin f its existing Envirnmental Impact Assessment. The amendment allws the Cmpany t build a six-kilmetre switchback rad and begin undergrund develpment by cnstructing a ne-kilmetre access tunnel. With a gal f being the first mdern-day gld prducer in Clmbia, Cntinental will cmmence the cnstructin f the access tunnel in H2 2012, initially prviding access fr undergrund drilling and eventually used fr cmmercial prductin. A Phase III drill prgram is underway at the Buriticá prject t further delineate the resurce and drill new target znes identified within its cncessins. Additinal details n the Buriticá prject and the rest f Cntinental s suite f gld explratin prperties are available at

9 Page 9 Fr further infrmatin, please cntact: Nisha Hasan Directr, Investr Relatins Cntinental Gld Limited inf@cntinentalgld.cm Frward-Lking Statements This press release cntains r refers t frward-lking infrmatin under Canadian securities legislatin, including statements regarding the estimatin f mineral resurces, explratin results, ptential mineralizatin, explratin and mine develpment plans, timing f the cmmencement f peratins and is based n current expectatins that invlve a number f business risks and uncertainties. Frward-lking statements are subject t significant risks and uncertainties, and ther factrs that culd cause actual results t differ materially frm expected results. Readers shuld nt place undue reliance n frward-lking statements. Factrs that culd cause actual results t differ materially frm any frward-lking statement include, but are nt limited t, failure t cnvert estimated mineral resurces t reserves, capital and perating csts varying significantly frm estimates, the preliminary nature f metallurgical test results, delays in btaining r failures t btain required gvernmental, envirnmental r ther prject apprvals, plitical risks, uncertainties relating t the availability and csts f financing needed in the future, changes in equity markets, inflatin, changes in exchange rates, fluctuatins in cmmdity prices, delays in the develpment f prjects and the ther risks invlved in the mineral explratin and develpment industry frward-lking statements are subject t significant risks and uncertainties, and ther factrs that culd cause actual results t differ materially frm expected results. Readers shuld nt place undue reliance n frwardlking statements. These frward-lking statements are made as f the date heref and the Cmpany assumes n respnsibility t update them r revise them t reflect new events r circumstances ther than as required by law. Differences in Reprting f Resurce Estimates This press release was prepared in accrdance with Canadian standards which differ in sme respects frm United States standards. In particular, and withut limiting the generality f the freging, the terms inferred mineral resurces, indicated mineral resurces, measured mineral resurces and mineral resurces used r referenced in this press release are Canadian mining terms as defined in accrdance with Natinal Instrument Standards f Disclsure fr Mineral Prjects under the guidelines set ut in the Canadian Institute f Mining, Metallurgy and Petrleum (the CIM ) Standards n Mineral Resurces and Mineral Reserves (the CIM Standards ). The CIM Standards differ significantly frm standards in the United States. While the terms mineral resurce, measured mineral resurces, indicated mineral resurces, and inferred mineral resurces are recgnized and required by Canadian regulatins, they are nt defined terms under standards in the United States. Inferred mineral resurces have a great amunt f uncertainty as t their existence, and great uncertainty as t their ecnmic and legal feasibility. It cannt be assumed that all r any part f an inferred mineral resurce will ever be upgraded t a higher categry. Under Canadian securities laws, estimates f inferred mineral resurces may nt frm the basis f feasibility r ther ecnmic studies. Readers are cautined nt t assume that all r any part f measured r indicated mineral resurces will ever be cnverted int reserves. Readers are als cautined nt t assume that all r any part f an inferred mineral resurce exists, r is ecnmically r legally mineable. Disclsure f cntained unces in a resurce is permitted disclsure under Canadian regulatins; hwever, United States cmpanies are nly permitted t reprt mineralizatin that des nt cnstitute reserves by standards in the United States as in place tnnage and grade withut reference t unit measures. Accrdingly, infrmatin regarding resurces cntained r referenced in this press release cntaining descriptins f ur mineral depsits may nt be cmparable t similar infrmatin made public by United States cmpanies.

10 Page 10 Figure 1 Plan view f drilling highlights, near surface sampling and artisanal wrkings n LIDAR tpgraphic base

11 Figure 2 Nrth-Suth sectin shwing drilling highlights, near surface sampling and artisanal wrkings