Continental Gold Inc. [CNL-TSX, CGOF-OTCQX] on Monday released results from drilling on the Veta Sur system at its 100%-owned Buritica project in Antioquia, Colombia.
A 19.9%-owned affiliate of Newmont Mining Corp. (NEM-NYSE), Continental Gold is an advanced-stage exploration and development company with an extensive portfolio of wholly-owned gold projects in Colombia.
The 75,023-hectare Buritica property is Continental’s flagship asset. It contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style variably overprinted by texturally and chemically distinctive high-grade mineralization.
The two most extensively explored of these areas (the Yaragua and Veta Sur systems) are central to this landscape. The Yaragua system has been drill outlined along 1,100 metres of strike and 1,700 vertical metres and partially sampled in underground developments.
The Veta Sur system has been drill outlined over 1,000 metres of strike and 1,800 vertical metres. It too has been partially sampled in underground developments. Both systems are characterized by multiple, steeply dipping veins and broader, more disseminated mineralization, and both remain open at depth and along strike at high grades.
The company currently has 14 diamond drill rigs in operation, focusing on increasing and upgrading the mineral resources to higher classification categories by testing for high-grade and broad mineralized zones within the mineral reserve and resource envelopes and testing high-impact targets along strike and below existing mineral resources, as well as grassroots targets proximal to existing and proposed infrastructure.
Mineral reserves on the property currently stand at 3.7 million ounces of gold, grading 8.4 g/t. Production is scheduled to commence in early 2020, the company has said.
On Monday, Continental released additional drill results from Veta Sur, including a highlight of 4.7 m, grading 161 g/t gold and 31 g/t silver. The company said nine drill holes intersected the Veta Sur system over 1,200 vertical metres, validating the sheer scale of the precious metal system by confirming excellent continuity at high grades.
Continental Gold shares advanced on the news, rising 4.06% or 14 cents to $3.59. The 52-week range is $4.13 and $2.84.
“With excellent progress being made in underground development for the mine, we are becoming much better positioned to drill the orebodies from short distances,’’ said Continental CEO Ari Sussman. “The analytical results today continue to confirm our hypotheses for the Veta Sur system – namely that infill drilling improves the grade of master veins, which will provide the bulk of mine production, and that the vertical dimension of high-grade veins remains continuous at depth, providing additional flexibility and potential for production to continue many years past the feasibility mine plan,’’ Sussman said.
Continental said it had US$208 million of available liquidity as of June 30, 2018.