Continental Gold Releases Feasibility Study for Buritica Project

Continental Gold Inc. (TSX:CNL,OTCQX:CGOOF) released a NI 43-101 feasibility study for its Colombia-based Buritica project, noting that it shows that the project “will be host to an economically robust, high-grade underground gold mine.”
Highlights of the feasibility study include:

• Maiden mineral reserve for the combined Yaraguá and Veta Sur vein systems totaling 3.7 million ounces of gold and 10.7 million ounces of silver (13.7 million tonnes grading 8.4 g/t gold and 24.3 g/t silver);
• Gold and silver recoveries of 94.1% and 59.9%, respectively, over the life of the mine (“LOM”);
• A 14-year mine life that will produce 3,492,000 ounces of recovered gold and 6,425,000 ounces of recovered silver;
• The first five years of production will average approximately 282,000 ounces of gold and 494,000 ounces of silver annually, at a total average cash cost of $387 per ounce of gold (including silver credits). LOM production will average 253,000 ounces of gold and 466,000 ounces of silver annually, at a total cash cost of $411 per ounce of gold (including silver credits), placing Buriticá in the lowest cash-cost quartile globally;
• Estimated project capital cost, including contingency, of $389.2 million;
• LOM average operating costs of $111.59 per tonne milled (including royalty, doré transport and refining charges);
• • Base case scenario utilizes a gold price of $1,200/ounce, a silver price of $15/ounce and an exchange rate (US$:COP (Colombian Peso)) of 2,850, resulting in the following economics:
    • The after-tax net present value at a 5% discount (“NPV₅“) amounts to $0.86 billion;
    • Internal Rate of Return (“IRR”) of 31.2%; and
    • Capital payback of 2.3 years;

Ari Sussman, CEO of Continental Gold, commented:

The Feasibility Study confirms that the Buriticá project offers immediate development potential and would be among one of the lowest cost precious metal mines in the world. The construction phase of the mine would employ over 1,200 people at peak activity (approximately 900 during operations), and would be the largest single gold mine in Colombia once production commences. With support from our employees, the Buriticá community and local, departmental and national governments of Colombia, we look forward to building Latin America’s next great high-grade gold mine. Initial production is scheduled to commence from the mineral reserves of only two deposits. With existing large Inferred mineral resources already in place and mineralization open in most directions, not only do these deposits offer significant future growth, but exploration has outlined four other large vein system targets within five kilometres that are drill ready.

Click here to read the full Continental Gold Inc. (TSX:CNL,OTCQX:CGOOF) press release.