TORONTO, ONTARIO -- (Marketwire) -- 12/13/12 -- 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.
(Figure 1 and Figure 2)
-- In western La Estera, BUSY325 encountered the La Estrella set of high- grade silver and gold veins, including: -- 1.1 metres @ 3.1 g/t gold, 1,857 g/t silver and 3.2% zinc -- 0.9 metres @ 4.8 g/t gold, 538 g/t silver and 2.6% zinc -- 2.3 metres @ 9.2 g/t gold and 18 g/t silver
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).
-- BUSY331 intersected the Laurel vein system some 300 metres further east of BUSY325, exhibiting high-grade gold and zinc, including: -- 1.05 metres @ 21.3 g/t gold, 96 g/t silver and 3.5% zinc (at an elevation of 1,448 metres above sea-level) -- 2.75 metres @ 13.6 g/t gold, 135 g/t silver and 12.8% zinc (at an elevation of 1,437 metres above sea-level)
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.
-- BUSY319, drilled further east of BUSY331, resulted in the discovery of three families of multiple, closely-spaced veins interpreted to be part of the La Estrella vein system and are the most southerly veins yet encountered in the La Estera area. Intercepts in the La Estrella vein system include: -- 0.4 metres @ 36.6 g/t gold, 84 g/t silver and 6.1% zinc (at an elevation of 975 metres above sea-level) -- 1.0 metres @ 8.3 g/t gold, 11 g/t silver and 3.9% zinc (at an elevation of 944 metres above sea-level)-- 500 metres east of BUSY319 in the eastern La Estera area, in close proximity to a small artisanal working named La Suliman, BUSY288, BUSY322 and BUSY328 each intersected multiple vein sets, including intercepts of: -- 0.75 metres @ 6.0 g/t gold, 20 g/t silver and 0.6% zinc (at an elevation of 1,416 metres above sea-level; BUSY288) -- 2.13 metres @ 15.9 g/t gold and 19 g/t silver (at an elevation of 1,080 metres above sea-level; BUSY322)-- Further drilling is required to clarify the potential continuity of the Laurel, La Mano and La Estrella vein systems between the eastern and central La Estera area.-- In the Far West area, BUSY314 intersected a family of veins with high silver/gold and high zinc contents, which may represent the southern extensions of the Veta Sur system or may belong to the Laurel vein system at relatively high elevations, circa, 1,550 metres above sea- level. Some 500 metres to the northwest, BUSY280 intersected a high silver/gold vein set and a broad interval of low-grade gold mineralization, the most westerly precious metal mineralization yet drilled in the Buritica project.-- In the Guacamaya area, BUSY284 intersected two intervals of high silver/gold veins, the first-drilled mineralization east of the Tonusco Fault and some 1,700 metres to the northeast of Yaragua.