Toronto, Ontario, May 16, 2019 — Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) (“Continental” or the “Company”) is pleased to announce high-grade assay results from the initial 12 holes drilled into BMZ4, a new discovery located in the eastern-most part of the Yaraguá system at its 100%-owned Buriticá project in Antioquia, Colombia. The Company plans to drill up to 73,500 metres in 2019, consisting of approximately 55,000 metres of capitalized definition drilling and approximately 18,500 metres of exploration drilling targeting broad mineralized zone (“BMZ”) targets.
Twelve surface diamond drill-holes were completed into the far east portion of the Yaraguá system to test if a new broad mineralized zone (“BMZ4”) exists in this location. The target was generated on the hypothesis that the Tonusco Fault, located at the eastern edge of the Yaraguá system, is a fluid conduit for precious metal deposition in its vicinity and such deposition would specifically be pronounced at the junction where the Centena vein crosses the Murciélagos master vein family.
The discovery hole, BUSY407, intercepted multiple continuous high-grade zones through the BMZ4 structure at an excellent angle to the geometry of the zone with results including:
12.30 metres @ 10.17 g/t gold and 4.4 g/t silver (BUSY407)
8.70 metres @ 6.49 g/t gold and 57.2 g/t silver (BUSY407)
Each hole sequentially drilled following the discovery hole (BUSY407) intercepted BMZ4 at or near perpendicular angles to the strike of the zone. Additionally, the majority of the holes intercepted more than one thick interval of remarkably continuous mineralization within the zone. Narrow bands of visible gold were also observed. Key results are as follows:
15.50 metres @ 7.03 g/t gold and 9.1 g/t silver (BUSY409)
14.75 metres @ 4.82 g/t gold and 15.4 g/t silver (BUSY410)
5.65 metres @ 18.69 g/t gold and 38.7 g/t silver (BUSY411)
11.45 metres @ 8.24 g/t gold and 17.3 g/t silver (BUSY412)
5.10 metres @ 17.32 g/t gold and 39.6 g/t silver (BUSY415)
27.90 metres @ 7.04 g/t gold and 7.5 g/t silver (BUSY416)
7.55 metres @ 7.66 g/t gold and 12.4 g/t silver (BUSY417)
BMZ4, which is located approximately 60 metres east of BMZ2 in the eastern portion of the Yaraguá system, has been intersected by drilling for more than 200 vertical metres and measures between 25 – 45 metres in thickness. Mineralization encountered in BMZ4 is expected to add new ounces to the multi-million-ounce global mineral resource inventory for the project. BMZ4 remains open at depth with extension drilling currently underway. Three diamond drill rigs are actively turning on this promising new discovery.
In light of this new discovery, initially definition drilling will start into the very upper part of BMZ4 where underground development has been advancing in the upper eastern Yaraguá area with a crosscut to the Murciélagos vein. The zone will be more intensively drilled as a ramp is developed deeper in this area and additional drill chambers constructed. The Company expects to incorporate ongoing results from BMZ4 into the mine plan and will be looking to design wider stopes with potential to use bulk-style mining, including transverse extraction using primary and secondary stopes.
“Discovering BMZ4 is an excellent outcome for the Company and our geology team deserves credit for successfully proving the concept with drilling,” commented Ari Sussman, CEO. “BMZ4 continues to highlight the upside at Buriticá as this discovery will ultimately add high-grade ounces to the global mineral resource inventory of the project. More importantly, we are hopeful that we will be able to successfully delineate new stopes in this area and be producing gold from the zone in 2020.”