TORONTO, ONTARIO -- (Marketwired) -- 06/25/13 -- Continental Gold Limited (TSX: CNL)(OTCQX: CGOOF) ("Continental" or the "Company") is pleased to provide a development update for its Buritica project in Antioquia, Colombia. The Company remains debt-free and well-funded with approximately $145 million of cash in its treasury, and is spending approximately $3.5 million per month - increasing to $4 million per month by the fourth quarter of 2013.
Highlights-- Successful integration of 12 individual licences into one new 1,894- hectare exploitation (mining) licence valid for 30 years (until March 30, 2043). This exploitation licence covers essentially all of the Yaragua and Veta Sur vein deposits and their potential exploration extensions.-- On track to submit the second and final modification required to the existing Environmental Impact Assessment to Corantioquia at the beginning of the fourth quarter of 2013.-- Well ahead of schedule in purchasing surface rights in advance of a construction decision in 2014, owning approximately 90% of the total areas required.-- Geotechnical, hydrological, metallurgical and electrical studies continue to advance smoothly ahead of a pre-feasibility study ("PFS") scheduled for 2014, prepared in accordance with National Instrument 43- 101 ("NI 43-101"). Of particular importance are preliminary geotechnical study results indicating that future infrastructure will not have to be secured through piling to bedrock, but rather can be stabilized with in- situ cement-based reinforcement into the colluvium material in the Higabra Valley.-- Planned construction of a 3.5-metre x 3.5-metre ramp towards the Yaragua deposit will commence on schedule early in the fourth quarter of 2013. A dirt access road and surface work located at the planned box-cut location of the ramp are already progressing. This ramp will be the final surface access point required to prepare the project for future production, subject to delivery of a successful PFS in 2014 (see Figures 1 and 2).-- Both the Higabra Valley tunnel and the Veta Sur ramp continue to progress within budgeted parameters with approximately 300 metres and 525 metres completed, respectively (see Figures 1 and 2).-- Construction of a six-kilometre two-lane paved road will commence in the fourth quarter of 2013, connecting the existing two-lane paved road traversing Buritica with the Higabra Valley future infrastructure site. This construction is expected to take 12-18 months to be completed (see Figure 2).
"Continental is in the fortunate position of being well-funded and endowed with a high-grade multi-million ounce precious metal project," commented Ari Sussman, CEO. "In these challenging times for the natural resources industry where work programs on metals projects for the majority of the industry are either slowing down or stalling completely, Continental plans to continue on with its plans at Buritica. We intend to emerge from these difficult economic times an even stronger company than we are today, with a project that is further de-risked and advanced towards ultimate production. Furthermore, in this time frame, we fully intend to deliver robust growth to our total number of mineral resource ounces while simultaneously upgrading the ounce-quality of the deposit by converting existing inferred ounces into the measured and indicated categories under NI 43-101 guidelines."