Continental Gold drills high-grade gold and silver in the La Estera area, Buritica Project, Colombia
Friday, Dec 14, 2012
Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 10 diamond drill-holes following up on the recent discovery at the La Estera area, as part of the Company's ongoing exploration program at the Buritica Project in Antioquia, Colombia. The La Estera area measures approximately 1,000 metres east-west by 700 metres north-south and consists of three east-west trending vein systems named Laurel (north), La Mano (central) and La Estrella (south). Seven drills are currently on site as part of the Company's Phase IV, minimum 100,000-metre diamond drill program for 2012-2013.
These intersections are interpreted to represent fault-offset western extensions of the La Estrella vein system previously intersected in drilling and sampling of old workings as announced on September 13, 2012 (Figure 2).
Based on assay results received to date, the Laurel vein system is interpreted to measure 300 metres laterally by over 1,000 metres vertically, where it lines up with surface manifestations of mineralization and high-grade intercepts deep in BUSY292 (see September 13, 2012 release). Additionally, encouraging and potential visual mineralization has been logged in BUSY332, which if mineralized would increase the lateral strike of the Laurel vein system to 400 metres.
"Our team deserves credit for the success achieved so early into the evaluation of our new discovery at La Estera," commented Ari Sussman, CEO. "A core focus of 2013 is going to be drilling the La Estera area as we believe there is a potential to add a new dimension of mineral resource growth to our corporate profile."
Continental's 100%-owned, 57,641-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 and Veta Sur systems) are central to this land package. The Yaragua system has been drill-outlined along 900 metres of strike and 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 570 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. See "About Continental Gold" (below) for a precis of the updated mineral resource estimates for the Buritica project prepared in accordance with National Instrument 43-101 ("NI 43-101"). This release documents drilling results for prospects from the La Estera area to the south (Laurel, La Mano and La Estera vein systems), west (Far West target) and northeast (Guacamaya target) of the Yaragua and Veta Sur vein systems.
In the Far West area, BUSY314 intersected a family of veins with high silver/gold and high zinc contents at elevations straddling about 1,550 metres above sea-level. This vein family could represent either an extension of the Veta Sur system to the southwest or a shallow westerly extension of the Laurel vein system.
Some 500 metres further to the northwest, BUSY280 intersected a high silver/gold vein set at an elevation of 1,576 metres above sea-level. Some 80 metres further down-hole, BUSY280 cut a broad interval (68.5 metres @ 0.24 g/t gold and 0.1% copper) of low-grade mineralization. These intersections are the most westerly drilled to date in the Buritica project and it is unclear whether the mineralization is an extension of the Yaragua system or a newly discovered precious metal-bearing system.