Continental Gold Announces Updated Resource For Buritica

Continental Gold (TSX:CNL) reported an updated mineral resource estimate for the Yaraguá and Veta Sur vein systems at its Buritica project in Colombia.

As quoted in the press release:

• The mineral resource estimate represents significant increases in Measured and Indicated (“M&I”) resources and Inferred resources of gold, silver and zinc over those of the previous mineral resource estimate for the Buriticá project announced by the Company on May 13, 2014 which was based on the Buriticá database as at December 31, 2013 (the “2014 Estimate”). The updated mineral resource estimate reflects higher estimated tonnages and higher grades.
• Gold equivalent mineral resources in the M&I category increased by 60% at higher grades (11.4 g/t AuEq) than the 2014 Estimate (11.0 g/t AuEq=Au+Ag/50), reflecting the Company’s emphasis on infill drilling and sampling in 2014 and 2015. Inferred gold equivalent resources grew by approximately 9%, also at higher grades (9.0 g/t AuEq) than the 2014 Estimate (8.2g/t AuEq=Au+Ag/50), reflecting growth in both deposits through step-out drilling. The 51% increase in the number of composites defining the vein domains increased confidence in mineral resource estimations and demonstrate the continuity of the vein domains.
• Tonnage-grade estimates were also made of 2-metre wide halos on both sides of vein domains. These estimates were utilized to dilute vein domains to 1-metre horizontal width and will be very important for evaluating potential mining dilution in future economic studies undertaken by the Company.
• Grade-Tonnage charts (Figure 4) demonstrate the high-grade nature of the Yaraguá and Veta Sur mineral resources over a range of cut-off grades from 0 to 5 g/t gold.
• Estimates of tonnage-grade per vertical-metre (Figures 5 and 6) for the major vein domains demonstrate significant mineral resources over an elevation range of more than 1,000 metres, with less variation than the 2014 Estimate due to the marked increase in infill drilling.
• 80% of combined Yaraguá and Veta Sur gold resources are situated above an elevation of 1,000 metres, including 97% of combined M&I gold resources.
• Potential remains for future mineral resource increases in the Yaraguá and Veta Sur vein systems, as most of the vein domains modeled in each deposit are open at depth and to the west. The current mineral resource estimate also excludes a number of veins to the south and north for which there was limited drilling as of the database cut-off date.

Continental Gold CEO, Ari Sussman, said:

This current mineral resource estimate significantly surpassed our internal growth expectations for both Measured and Indicated plus total ounces for these categories, and is a testament to the scale of the deposits at Buriticá as well as our team’s ability to find and delineate ounces at less than $15 per ounce. With 4.71 million Measured and Indicated gold equivalent ounces, the Company plans to forgo the scheduled updated Preliminary Economic Assessment in H2 2015 and will instead initiate a Feasibility Study, the details of which will be released shortly once the relevant contractors are engaged and scheduling has been finalized.

Click here to read the Continental Gold (TSX:CNL) press release