Continental Gold extends high-grade gold and silver in the Yaragua Vein System and confirms a new discovery, San Agustin, at Buritica, Colombia

Tuesday, Feb 12, 2013

Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for ten diamond drill-holes in the Yaragua vein system, including two holes which confirmed the discovery of a new vein system called San Agustin. These results are part of the Company's ongoing exploration program at the Buritica Project in Antioquia, Colombia. Seven drills are currently on site as part of the Company's Phase IV, minimum 95,000-metre diamond drill program for 2013.

Two long drill-holes, BUSY324 and BUSY329, collared in the Yaragua south area, transected the western Yaragua vein system and continued northwards into the San Agustin area. The more shallowly inclined of these, BUSY329, penetrated to 400 metres north of the Yaragua system (Figure 1).

In Yaragua south, both drill-holes intersected several high silver/gold veins; intercepts include BUSY324, from 131.7 metres down-hole, 0.4 metres @ 3.5 g/t gold and 681 g/t silver and BUSY329, from 137.6 metres, 0.4 metres @ 0.4 g/t gold and 477 g/t silver, at elevations above 1,600 metres.

Surface sampling by Continental (Figure 1) and widespread recent informal mining activity in the western San Agustin area are consistent with vertical extents for some the San Agustin vein families of up to 900 metres and the vein systems are open to depth, as well as to the west and east.

BUSY329, to the north of the end-hole of BUSY324 (Figure 1) intersected a broad zone of low grade gold and copper mineralization, from 1,126 metres down-hole, 113 metres @ 1.2 g/t gold and 0.1% copper. This mineralization is associated with fracture-controlled bioitite +/-Kfeldspar alteration and resembles mineralization encountered deep in BUSY291. The gold-copper mineralization is partly overprinted by veinlets with elevated gold and lead-zinc contents (responsible for the higher grade intervals listed in Table I) and related phyllic alteration.

Source: Marketwire