Yaragua Vein System (Figures 1 and 3)
-- In eastern Yaragua, four drill-holes transected the central and northern vein families. Intercepts to the north of the October 2012 mineral resource estimate, prepared in accordance with National Instrument 43- 101 ("NI 43-101"), include: -- 6.3 metres @ 7.0 g/t gold and 60 g/t silver, including 0.8 metres @ 35.2 g/t gold, 366 g/t silver and 9.3% zinc (BUUY099, elevation of 1,325 metres); -- 0.7 metres @ 22.3 g/t gold, 750 g/t silver and 4.6% zinc (BUUY099, elevation of 1,279 metres); and -- 0.6 metres @ 10.8 g/t gold and 117 g/t silver (BUUY100, elevation of 1,242 metres).
These and other results add further definition to extensions of the Vein A, Vein AD and Vein D packages, the most northerly in the Yaragua vein system.
-- The eastern Yaragua drill-holes otherwise intersected veins with grades and thicknesses generally consistent with the current mineral resource model, with the exception of the following intercepts, which exhibited substantially greater apparent grades and thicknesses than in the current mineral resource model, including: -- 1.0 metres @ 34.6 g/t gold and 4 g/t silver (BUUY099, PRE vein, elevation of 1,376 metres); -- 1.7 metres @ 2.1 g/t gold and 350 g/t silver, (BUUY099, VNC, elevation of 1,369 metres); and -- 2.0 metres @ 12.5 g/t gold and 9 g/t silver (BUUY100, HWV, elevation of 1,351 metres).-- BUUY101, drilled southwards through the central and southern Yaragua vein families into Yaragua South, encountered intercepts in the VNB, VNE and Murcielagos vein packages with apparent grade and thicknesses substantially greater than those in the current mineral resource model, including: -- 1.1 metres @ 66.7 g/t gold and 8 g/t silver (VNB, elevation of 1,504 metres); -- 4.5 metres @ 6.2 g/t gold and 15 g/t silver (VNE, elevation of 1,491 metres); and -- 34.7 metres @ 2.7 g/t gold and 10 g/t silver, including 0.5 metres @ 8.9 g/t gold and 18 g/t silver (MU2 and MU, elevations of 1,481 metres and 1,468 metres, respectively).
Otherwise, BUUY101 intersected veins with grades and thicknesses generally consistent with the current mineral resource model until terminating in the Yaragua South area with vein intersections outside of the current mineral resource envelopes.
"Step-out drilling along strike and at depth and surface sampling continues to deliver encouraging results in the La Estera area," commented Ari Sussman, CEO. "Drilling at Yaragua continues to increase the confidence level in the mineral resource estimate and encounter mineralization outside of the current resource envelope. We are excited that our exploration program has recently increased with the addition of three new drill rigs as part of our Phase IV drill program. Our aim is to continue to drill the Yaragua and Veta Sur vein systems and to aggressively test the new exploration targets in 2013."
Continental's 100%-owned, 57,588-hectare project, Buritica, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style ("Stage I") variably overprinted by texturally and chemically distinctive high-grade ("Stage II") mineralization. The two most extensively explored of these areas, the Yaragua and Veta Sur systems, are central to this land package. The Yaragua system has been drill-outlined along 900 metres of strike and 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill intersected along 570 metres of strike and 1,180 vertical metres. Both systems are characterized by multiple, steeply-dipping veins and broader, more disseminated mineralization and both remain open at depth and along strike, at high grades. See "About Continental Gold" (below) for a precis of the updated mineral resource estimates for the Buritica project prepared in accordance with NI 43-101. This release documents the results of infill and extension drilling of the Yaragua vein system and also results of additional drilling and near surface sampling in the La Estera area to the south of the Yaragua and Veta Sur vein systems.