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Continental Gold provides a development update for its Buritica Project, Colombia

Friday, Dec 07, 2012

Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) (the "Company") is pleased to report that underground development commenced as scheduled on November 22, 2012 at its 100%-owned Buritica project in Antioquia, Colombia. Two working fronts are being advanced simultaneously with an initial goal of providing underground drilling access in order to grow the measured and indicated portion of the mineral resource estimate prepared in accordance with National Instrument 43-101 ("NI 43-101") for both the Yaragua and Veta Sur vein systems ahead of a pre-feasibility study in H1 2014. Images reflecting recent development activities at Buritica are presented below.

As announced on October 22, 2012, the first development face is a 4.5 x 5.0 metre tunnel located in the Higabra Valley at an elevation of 1,150 metres above sea-level. The tunnel will be driven into the hillside for approximately 1,000 metres in a northwest direction before turning due east where it will hit the projection of the Yaragua vein system, allowing underground infill and depth extension drilling to commence (Figures 1 and 2). Presently, 14.4 metres of steel arch-supported development in oxidized basalts has been completed. It is anticipated that the development will transition shortly into primary basalts, a strong working index host rock for development, and development pace will pick up considerably, as the required installation of steel arches will cease at that time. Underground diamond drilling from this tunnel is expected to commence in Q3 2013.

The second development face is a 3.5 metre x 3.5 metre ramp beside the Veta Sur vein system located at an elevation of 1,700 metres above sea-level (Figure 3). To date, 19.2 metres of steel arch-assisted development has been completed in oxidized andesitic rock. Over the next 10 days, development is expected to pass out of the oxidized rock into primary andesite, with a significant increase in development pace anticipated. Underground definition drilling into the Veta Sur vein system is expected to commence in February 2013.

Furthermore, the Company is planning to initiate a bid process for the construction of a six kilometre switchback road, with construction expected to commence in Q3 2013. The road will connect the existing main paved Buritica road that traverses the Buritica project at approximately 1,800 metres above sea-level, with the future infrastructure site in the Higabra Valley at approximately 1,000 metres above sea level (Figure 4).

"I am pleased with the progress to date and impressed with the ability of our development contractors, Mincivil S.A., Estyma S.A., and Latinco S.A., to responsibly and expeditiously mobilize large development-related equipment down difficult terrain," commented Mark Moseley-Williams, President and COO. "Prior to the calendar year-end, we will announce our 2013 development and exploration plan and, on a go-forward basis, provide regular updates, including photos on our website."

Source: Marketwire

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