TORONTO, ONTARIO -- (Marketwire) -- 01/10/13 -- Continental Gold Limited (TSX: CNL)(OTCQX: CGOOF) (the "Company") is pleased to provide details of its 2013 exploration and development plans for the Buritica project in Antioquia, Colombia.
Exploration Plans (Figure 1)
The Company's 2013 drilling plan will utilize a minimum of seven diamond drill rigs to drill 95,000 metres, with 48,000 metres focused on exploration targets. In light of the early success achieved in drilling the La Estera area, drilling has already resumed and will continue to expand and define the three vein systems discovered in 2012. The next batch of assay results from this area is expected to be released in early February 2013. The remaining budgeted exploration metres will test the San Agustin and the Pinguro areas, with drilling commencing at the beginning of Q2 2013.
The remaining fifty percent of planned drilling will continue to define the Yaragua and Veta Sur vein systems in order to increase the measured and indicated categories in the current mineral resource estimate. The underground drilling in the Yaragua vein system is well underway and the Company remains on track to begin underground drilling in the Veta Sur vein system by March 2013. Deep underground drilling in the Yaragua vein system is expected to commence later in 2013 once the Higabra Valley tunnel development has sufficiently advanced. The next set of assay results from the Yaragua and Veta Sur vein systems are expected prior to the end of January.
Planned drilling will focus on the following targets:
- La Estera area exploration - 34,000 metres- San Agustin exploration - 9,600 metres- Pinguro area exploration - 4,400 metres- Yaragua underground drilling - 27,100 metres- Veta Sur underground drilling - 12,000 metres- Yaragua and Veta Sur step-out drilling - 7,900 metres
In addition, the Company plans to release an updated mineral resource estimate prepared in accordance with National Instrument 43-101 in H2 2013, to be followed by a Pre-feasibility Study to be completed in 2014.
As announced on December 6, 2012, two production-scale working fronts are being advanced simultaneously, with an initial goal of providing underground drilling access in order to grow the measured and indicated portion of the mineral resource estimate for both the Yaragua and Veta Sur vein systems. To date, the Company has completed approximately 40 metres of steel arch-supported development on schedule in both the Higabra Valley tunnel and the Veta Sur ramp (Figure 2). It is expected that the development pace will increase as it progresses into stronger working index rocks. Images reflecting recent development activities at Buritica are presented below.
The bidding process for the construction of a six-kilometre switchback road has been initiated, with bids expected late in the first quarter of 2013. A thorough review of each bid will be undertaken and construction is expected to commence in Q3 2013. The road will connect the existing main paved road at the Buritica project at approximately 1,800 metres above sea-level, with the future infrastructure site in the Higabra Valley at approximately 1,000 metres above sea-level.
The Company is currently working on the required studies and analyses for the submission of the final modification of its existing Environmental Impact Assessment to Corantioquia, the autonomous regional corporation responsible for issuing and controlling environmental permits in Antioquia, Colombia. The final environmental permit amendment is anticipated to grant the Company the necessary permits to begin construction of the entire infrastructure required for production. It is expected that the required work and report will be completed and submitted to Corantioquia in H2 2013, with final approval anticipated in 2014.
About Continental Gold
Continental Gold Limited 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 Buritica gold project to production. On October 1, 2012, the Company announced an updated mineral resource estimate for the Buritica project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The combined Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% zinc. For additional technical information on the Buritica project, please refer to the technical report entitled "2012 Mineral Resource Estimate of the Buritica Gold Project, Colombia", dated November 15, 2012 with an effective date of October 22, 2012, prepared by Mining Associates Pty Limited, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.
In August 2012, Continental achieved an important milestone, receiving formal approval for the modification of its existing Environmental Impact Assessment. The amendment allows the Company to build a six-kilometre switchback road and begin underground development by constructing a one-kilometre access tunnel. With a goal of being the newest hard rock gold producer in Colombia, Continental has commenced the construction of the access tunnel, which will initially provide access for underground drilling and eventually used for commercial production. The objective of the drill program underway at the Buritica project is to further delineate the mineral resource and drill new target zones identified within its concessions.
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 NI 43-101.
This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, and timing of the commencement of 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, 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. Readers should not place undue reliance on forward-looking statements. 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.
Differences in Reporting of Resource Estimates
This press release was prepared in accordance with Canadian standards, which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources," "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). The CIM Standards differ significantly from standards in the United States. While the terms "mineral resource," "measured mineral resources," "indicated mineral resources," and "inferred mineral resources" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute "reserves" by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.
To view Figure 1 - Buritica Exploration Targets, please visit the following link: http://media3.marketwire.com/docs/CNLfigure1BET.pdf
To view Figure 2 - Access Tunnel in the Higabra Valley and Ramp Accessing Veta Sur System, please visit the following link: http://media3.marketwire.com/docs/CNLfigure2ATHV.pdf
To view Figure 3 - Recent Development Activities at Buritica, please visit the following link: http://media3.marketwire.com/docs/CNLfigure3RDA.pdf
Continental Gold Limited
Director, Investor Relations