Continental Gold Provides a Corporate and Development Update for the Buritica Project, Colombia
TORONTO, ONTARIO--(Marketwired - Jun 4, 2014) -
Editors Note: There are two graphics associated with this press release.
Continental Gold Ltd. (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce that it has begun mobilizing equipment at the Veta Sur Ramp after being granted an ancillary amendment to its current environmental permit on May 22, 2014 from Corantioquia, the autonomous regional corporation responsible for issuing and controlling environmental permits in Antioquia. At an elevation of approximately 1,550 metres above sea level, the Company's underground development plan now includes a 400-metre cross-cut off of the Veta Sur Ramp, transecting the entire Veta Sur vein package as well as drifting along certain veins from the cross-cut (Figure 1). The Company plans to utilize its own fleet of mining equipment on the Veta Sur Ramp development, thereby reducing the overall cost per metre. Cross-cut development is expected to ensue within the next 30 days.
In addition, the Higabra Valley Tunnel, which is located at elevations between 1,150-1,200 metres, has approximately 175 metres of development remaining and is expected to be completed within two months (Figure 2). In similar fashion to the Veta Sur Ramp, planning is now underway for development off of the Higabra Valley Tunnel, including both a cross-cut through the western Yaraguá veins and drifting along veins at both the Yaraguá and Veta Sur systems. Further details will be provided once the Higabra Valley Tunnel is completed and necessary approvals are in place.
There are currently two diamond rigs operating from drilling chambers within the Higabra Valley Tunnel targeting the eastern part of the Yaraguá system, and an additional three rigs are expected to be mobilized between July and September 2014. Drilling from the Higabra Valley Tunnel is expected to transect the Yaraguá and northeastern Veta Sur vein systems at flat and up angles in order to convert and add new measured and indicated ("M&I") ounces between elevations of 1,200-1,400 metres. The Higabra Valley Tunnel is intended to serve as the main access line from the current proposed mine to the processing facilities in the Higabra Valley, making it crucial for the Company to add M&I ounces at these elevations, as these ounces are currently intended to be mined at the beginning of current proposed operations. Once drilling at these elevations is complete, the Company intends to focus on infilling and extending mineralization between elevations of 800-1,200 metres, where relatively sparse drilling in this elevation range has encountered both high grade and apparently thick intercepts in both the Yaraguá and Veta Sur vein systems. A production decision has not yet been made.
"Cross-cutting and drifting along veins at various elevations in both the Yaraguá and Veta Sur systems will provide the Company with an excellent underground platform to continue to improve its understanding of vein geometries and begin trial mining scenarios in early 2015," commented Ari Sussman, CEO of Continental Gold. "With nine drill rigs currently turning and three more on the way, we expect to have an exciting second half of 2014."
Other Business
The Company also announces that Jaime I. Gutierrez has resigned from the Board of Directors for personal reasons, effective immediately. "I would like to thank Jaime for his personal contributions made over the years as one of the founding directors of Continental and we wish him success in the future," commented Leon Teicher, Chairman of the Board.
About Continental:
Continental Gold Ltd. is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production.
The scientific and technical information contained in this press release has been reviewed and approved by Mark Moseley-Williams, President and Chief Operating Officer of the Company, who is a qualified person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
The Company utilizes a rigorous, industry-standard QA/QC program. HQ core is sawn or split with one-half shipped to a sample preparation lab in Medellín run by ALS Colombia Limited ("ALS") in Colombia. Samples are then shipped for analysis to an ALS-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 Analytical Laboratories in Vancouver, British Columbia and/or Inspectorate America Corp. in Reno, Nevada.
For additional technical information on the Buriticá project, please refer to the technical report entitled "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated November 15, 2012, effective as at October 22, 2012, available on SEDAR at www.sedar.com, on the OTCQX® at www.otcmarkets.com and on the Company website at www.continentalgold.com.
Forward-Looking Statements
This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, exploration drilling and results, potential mineralization, exploration, development and mining plans, and timing of the commencement of construction and operations, and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and 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, failure to convert estimated mineral resources to reserves, the receipt of positive stickers that result in a production decision being made, 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 forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
To view Figure 1: Long Section of Development Plans and Proposed Infrastructure, please visit the following link: www.marketwire.com/library/20140603-cgoof0604fig1.jpg.
To view Figure 2: Higabra Valley Tunnel: Planned Drill and Development Program, please visit the following link: www.marketwire.com/library/20140603-cgoof0604fig2.jpg.