Continental Gold drills 17.90 m of 113.82 g/t Au
2010-11-24 07:08 ET - News Release
Ms. Naomi Nemeth reports
CONTINENTAL GOLD DRILLS 17.9 METRES AT 113.82 G/T GOLD AND 112 G/T SILVER IN THE VETA SUR SYSTEM, BURITICA GOLD PROJECT, COLOMBIA
Continental Gold Ltd. has released further diamond drilling results from the Veta Sur and Yaragua vein systems at its Buritica gold project in Antioquia, Colombia. Seven drills continue to turn as part of a 100,000-metre phase II diamond drilling program, with completion anticipated prior to the end of 2011.
Highlights
* Drill hole BUSY-131 tested the central Veta Sur system and intersected 17.9 metres at 113.82 grams per tonne (g/t) gold and 112 g/t silver including 1.2 metres at 1,432.35 g/t gold and 625 g/t silver. This hole was an offset of the previously announced BUSY-79 which intersected 14.3 metres at 446 g/t gold and 166 g/t silver.
* Step-out drilling on the Veta Sur system indicates significant gold mineralization in multiple subparallel veins in a 100-metre-wide corridor with more than 400 metres of lateral and 350 metres vertical extents and is open to the west and at depth.
* High-grade stage II-style gold mineralization has now been identified overprinting phyllic alteration and base metal/carbonate gold (stage I) mineralization in the Yaragua and Veta Sur systems.
* Continuing drilling in the Yaragua area family of veins intersected 11.0 metres at 17.16 g/t gold including 1.25 metres at 128.40 g/t gold and 55 g/t silver in hole BUSY-129 in the western portion of the San Antonio vein.
* Step-out and infill drill intercepts on Yaragua vein B include 2.95 metres at 24.37 g/t gold with 30 g/t silver in BUSY-92 and 13.4 metres at 6.54 g/t gold in BUUY-49.
Details
The 100-per-cent-owned, 18,000-hectare Buritica gold project, located in the department of Antioquia, Colombia, is characterized by widespread, high-grade gold mineralization in multiple vein packages as well as extensive gold-in-soil anomalies. Drilling to date has focused on the Yaragua and Veta Sur vein systems. These systems exhibit two mineralogically and geochemically distinct phases of gold mineralization. Stage I, seen in veins and breccias, comprises semi-massive banded iron-zinc-lead (Fe-Zn-Pb) sulphides with a carbonate-quartz gangue. The recently identified stage II style is lower in sulphide and comprises principally carbonate, quartz and native gold. Bonanza-grade drill intercepts in areas dominated by stage II mineralization previously reported from the Veta Sur zone include 14.3 metres at 446 g/t gold and 166 g/t silver in Busy-79.
Total surface and underground diamond drilling on the property since its discovery in 2008 is over 42,000 metres. Seven drills are currently working on infill and step-out on the Veta Sur and Yaragua families of veins, new exploration in targets defined by soil anomalies, and drilling along the trend of a planned one-kilometre-long tunnel which will access the orebodies at depth. The 100,000-metre phase II drilling program is to be completed before the end of 2011. This release summarizes the results of recent drilling in the Veta Sur and Yaragua systems.
Veta Sur
Results from the eight new drill holes reported in the Veta Sur system extend the strike length of the 100-metre-wide mineralized corridor to 400 metres open to the southwest. Within this corridor all holes exhibit multiple vein intersections, which preliminary modelling indicates reflect a family of five main veins. The entire Veta Sur corridor is open below the 350 vertical metres currently drill tested. Significant intercepts are tabulated in the associated table.
VETA SUR DRILL RESULTS
Interval
Hole ID From (m) To (m) (m) Gold g/t Silver g/t Zinc ppm
BUSY-81 236.85 239.45 2.60 20.91 7.5 7,133
249.35 261.50 12.15 4.81 120.1 3,527
Including 256.80 258.85 2.05 11.33 254.8 12,597
268.40 269.70 1.30 14.22 80.0 2,616
285.10 286.35 1.25 23.93 219.2 2,421
BUSY-82 68.80 70.20 1.40 14.26 20.0 53,800
81.00 83.00 2.00 6.46 30.2 38,040
202.10 203.20 1.10 7.62 14.0 1,083
313.30 316.50 3.20 4.55 14.8 4,380
343.30 346.70 3.40 12.42 23.4 871
BUSY-83 171.00 173.00 2.00 23.33 216.0 13,751
252.55 254.50 1.95 12.56 160.2 1,369
BUSY-86 352.90 355.00 2.10 4.12 27.8 4,445
359.00 362.20 3.20 3.49 23.5 3,326
BUSY-89 325.80 328.50 2.70 12.16 19.0 2,403
334.50 340.55 6.05 8.93 78.2 1,587
BUSY-90 260.85 262.30 1.45 9.38 79.2 3,286
333.15 333.80 0.65 18.47 28.0 2,036
381.70 382.60 0.90 27.24 68.6 654
405.50 409.80 4.30 16.05 14.7 200
BUSY-91 245.60 249.30 3.70 4.22 18.4 333
283.00 288.10 5.10 4.34 24.2 589
317.70 318.75 1.05 8.64 28.0 2,748
BUSY-131 104.00 106.50 2.50 9.63 27.4 1,887
124.00 141.90 17.90 113.82 112.4 645
Including 127.30 128.50 1.20 1,432.35 625.4 625
And 132.00 133.80 1.80 127.02 161.8 796
(a) True widths are not known but estimated at 50 per cent or higher of the quoted
intercept.
(b) Grades are uncut, and an external grade cutoff of one g/t Au was used to
determine intersection thickness and grade.
(c) BUSY- sequence was drilled from the surface, BUUY- sequence from underground.
(d) Holes not reported in numerical sequence are in sample preparation or
assay lab.
BUSY-131 was drilled from south to north and in scissor pattern with the north-to-south drilled Busy-79, which intersected 14.3 metres at 446 g/t Au gold and 166 g/t Ag silver. Both holes contain two very high-grade portions which exhibit abundant visible gold and which define a steeply dipping high-grade subzone of more than 10 metres true thickness. The bonanza gold grades associated with low base metals and vuggy carbonate are typical of the stage II-style mineralization which is proving to be extensive in the Veta Sur system.
Yaragua veins
Drilling in the Yaragua area focused on defining the western extension of vein B. Eight of the nine new drill holes into vein B intersected good gold grades and/or vein-set thicknesses. Higher grades were encountered to the west where the vein shows a distinct stage II overprint characterized by carbonate-native gold-stibnite mineralization. The main intercepts from these holes are tabulated in the associated table.
A single drill hole completed on the San Antonio vein further demonstrates good grades and continuity of the western part of this vein set. The intersection of 1.25 metres at 128 g/t Au in BUSY-129 appears to be a phase II overprint within the broader intersection of 11 metres at 17.16 g/t Au.
Interval Gold Silver Zinc
Drill hole ID From (m) To (m) (m) g/t g/t ppm
BUSY-80 127.50 129.00 1.50 3.37 6.2 5,795
BUSY-84 85.00 86.15 1.15 12.58 5.1 4,863
BUSY-85 85.40 89.90 4.50 6.24 4.0 3,281
98.90 100.40 1.50 7.10 7.9 3,528
BUSY-88 40.95 47.30 6.35 5.07 18.2 13,015
82.30 84.80 2.50 9.25 6.3 11,824
BUSY-92 143.50 144.50 1.00 7.97 18.6 47,220
157.75 160.70 2.95 24.37 30.0 18,227
198.30 198.70 0.40 38.91 10.0 562
BUSY-129 108.70 110.20 1.50 7.13 7.2 2,872
118.85 129.85 11.00 17.16 9.9 3,038
including 122.40 123.65 1.25 128.40 55.0 3,963
140.10 149.60 9.50 8.52 18.1 7,551
BUUY-40 136.30 138.50 2.20 15.44 25.8 4,470
BUUY-41 231.35 237.60 6.25 5.69 6.6 4,143
240.60 256.90 16.30 3.47 5.2 2,423
including 243.30 246.50 3.20 9.72 11.4 1,254
BUUY-43 75.00 76.50 1.50 13.10 16.3 1,136
266.55 267.95 1.40 5.59 8.4 761
BUUY-49 11.00 15.60 4.60 3.86 4.5 1,541
60.10 73.50 13.40 6.54 4.6 6,646
including 65.50 70.50 5.00 13.80 6.6 10,918
85.00 86.00 1.00 13.75 4.9 247
(a) True widths are not known but are estimated to be 50 per cent or higher of quoted
intercept.
(b) Grades are uncut and an external grade cutoff of one g/t Au was used to
determine intersection thickness and grade.
(c) BUSY- sequence was drilled from the surface, BUUY- sequence from underground.
(d) Holes not reported in numerical sequence are in sample preparation or
assay lab.
Technical information
The results of the company's drilling program have been reviewed, verified and compiled by vice-president, exploration, Stuart Moller, PGeol, a qualified person for the purpose of National Instrument 43-101. Mr. Moller has over 30 years of mineral exploration experience and is a licensed professional geologist in the province of British Colombia and a fellow of the Society of Exploration Geologists.
The company utilizes an industry-standard quality-assurance and quality-control program. HQ and NQ diamond drill core is sawn in half with one-half shipped to a sample preparation lab in Medellin run by SGS Colombia. Samples are then shipped for analysis to SGS-certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance, and a portion of the samples are periodically check assayed at ACME laboratories in Vancouver and/or Inspectorate Labs in Reno.
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