Deepest Intercept To Date in the Murcielagos Family of Veins Intersected by Continental Gold

- December 19th, 2011

3.0 m @ 162.7 g/t Gold and 41 g/t Silver, the deepest intercept to date in the Murcielagos family of veins has been intersected by Continental Gold Limited (TSX:CNL). The Company has also announced results for 20 diamond drill holes and 272 metres of underground channel sampling from its ongoing program in Antioquia, Colombia. Ten drills are currently on schedule to complete over 100,000 metres of surface and underground drilling on the project by the end of 2011.

3.0 m @ 162.7 g/t Gold and 41 g/t Silver, the deepest intercept to date in the Murcielagos family of veins has been intersected by Continental Gold Limited (TSX:CNL). The Company has also announced results for 20 diamond drill holes and 272 metres of underground channel sampling from its ongoing program in Antioquia, Colombia. Ten drills are currently on schedule to complete over 100,000 metres of surface and underground drilling on the project by the end of 2011.

As quoted in the press release:

Highlights
Yaragua System

  • BUSY213 intersected 3.0 m @ 162.7 g/t Gold and 41 g/t Silver, the deepest intercept to date in the Murcielagos family of veins. This and other intersections in BUSY213, BUSY202 and BUSY219 have extended the Murcielagos vein family up to 200 metres below the current resource model in central Yaragua.
  • Drilling in eastern Yaragua has extended the Murcielagos vein family and several other veins further to the east and to depth. All intercepts in BUSY199 (including 1.5 m @ 21.6 g/t Gold and 8 g/t Silver) and in BUSY214 (including 1.5 m @ 62.0 g/t Gold and 7 g/t Silver) are outside the current resource model.
  • Drilling in western Yaragua has extended the northern vein family (including San Antonio at higher elevations) and the Murcielagos vein family to west of the current resource model and these vein families remain open along strike to the west and at depth. Significant intercepts in BUSY204 include 7.72 m @ 14.7 g/t Gold and 50 g/t Silver (San Antonio vein) plus 33.68 m @ 6.2 g/t Gold (Murcielagos vein) and, in BUSY215, 5.90 m @ 12.3 g/t Gold and 125 g/t Silver (San Antonio vein) plus 1.62 m @ 30.3 g/t Gold and 21 g/t Silver (Murcielagos vein).
  • Underground sampling on Level 2 in central-western Yaragua has demonstrated high grades and grade continuity along significant strike lengths of the Sofia vein (along 18 m, 113.3 g/t Gold, 60 g/t Silver over 1.97 m average width) Hangingwall vein (along 148 m, 16.0 g/t Gold and 23 g/t Silver over 1.55 m average width) and the Centena vein. These grades are significantly higher than those for comparable locations in the current resource model. Most interestingly, a Level 2 cross-cut has intersected the high grade San Antonio vein 50 vertical metres below Level 1. Portions of the exposed vein in the cross-cut contain visible gold inclusions. The Company anticipates channel sampling assay results from this cross-cut in early 2012.
  • BUSY217 is the first drill hole completed in the Yaragua South/La Mano area and it intersected two high silver/gold veins including 2.5 m @ 0.2 g/t Gold and 360 g/t Silver. The Company will commence an extensive drilling campaign at La Mano in February 2012.

Veta Sur System

  • Drill holes BUSY207 and BUSY216 extended the Veta Sur system to the northeast of, and at depth from, the current resource model. BUSY216 contained several substantial high-grade intercepts including 4.85 m @ 14.7 g/t Gold and 59 g/t Silver, 2.2 m @ 6.1 g/t Gold and 174 g/t Silver and 1.0 m @ 27.2 g/t Gold. BUSY207 intersected a high silver interval including 2.7 m @ 1.9 g/t Gold and 442 g/t Silver.
  • BUSY198 in central Veta Sur intersected several high-grade veins (including 5.5 m @ 16.4 g/t Gold and 25 g/t Silver) with grades comparable to those in similar locations in the resource model, but also extended the mineralization past the resource model at depth. These deep intersections may relate to vein sets intersected more than 200 metres deeper in BUSY221.
  • Mineralized intercepts in BUSY203, BUSY211 and BUSY218 all lie southwest of the Veta Sur resource model and may relate to veins intersected up to 400 metres deeper in BUSY210.

Continental Gold CEO, Ari Sussman, said:

“Drilling continues to yield positive surprises and indicates to us that the number of ounces of gold and silver at Buriticá will continue to grow. Of particular interest are the high-grade intercepts at depth and also the apparent widening of mineralization to the west in the Yaragua system. These results will be followed up on once drilling resumes in January.”

Click here to read theContinental Gold Limited (TSX:CNL) press releaseSee this press release on Marketwire
Click here to see the Continental Gold Limited (TSX:CNL) profile.

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