Continental Gold Reports High-grade Drill Results from Yaragua Vein System

Continental Gold Ltd. (TSX:CNL,OTCQX:CGOOF) announced results from 17 diamond drill holes completed at the Yaraguá vein system at its Colombia-based Buritica project. The goal of the drilling is to upgrade inferred resources to the measured and indicated categories.

Highlights include:

• Step-out drilling was successful in extending the Yaraguá system to the west and to depth whereas infill drilling, largely at high angles to the veins, focused on elevations around the Higabra tunnel.
• In western Yaraguá, step-out drilling extended a bulk mineralized zone discovered in BUSY291 (65.1 metres @ 10.4 g/t gold and 9 g/t silver, CNL News Release, November 12, 2012). New intercepts in this zone, located below the current Yaraguá mineral resource envelope, include:

• 17.38 metres @ 10.8 g/t gold and 7 g/t silver (BUUY291D01, elevation of 614 metres);
• 10.3 metres @ 6.2 g/t gold and 5 g/t silver (BUUY291D02, elevation of 640 metres);
• 7.95 metres @ 4.7 g/t gold and 6 g/t silver (BUUY291D03, elevation of 537 metres); and
• 21.15 metres @ 4.6 g/t gold and 4 g/t silver (BUUY291D05, elevation of 595 metres).

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

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 Buriticá gold project to production. On November 17, 2014, the Company announced the PEA, the results of which included an 18-year mine life based on 20,055,000 tonnes grading 7.80 g/t gold and 19.35 g/t silver, resulting in 4,777,000 ounces of recovered gold and 7,088,000 ounces of recovered silver, and utilized the May 2014 mineral resource estimate prepared in accordance with NI 43-101. The PEA concludes an after-tax net present value at a 5% discount of $1.08 billion and an after-tax internal rate of return of 31.5% on an initial capital cost of $390.3 million with a payback of 2.8 years.

With a goal of being the newest large-scale hard rock gold producer in Colombia, Continental has achieved major advances in recent times and anticipates completing environmental permitting in 2015. A Phase VII drill program is underway at the Buriticá project to further delineate mineral resources and drill new target zones identified within its concessions.