Continental Gold: Back in Business in ColombiaBy Claire O'Connor and James West
Friday, July 2, 2010
Continental Gold Ltd.(TSX: CNL) began trading on the TSX on April 19th 2010 following an amalgamtion with Cronus Resources Ltd. Continental's flagship project is Buriticá, a high-grade gold vein system, with historic gold production and areas that would allow for expansion. The company also has an extensive portfolio of projects in areas of known gold mineralization in Colombia, and is currently focusing on a program at its two key properties that will provide 30,000 – 60,000 metres of infill, step-out and exploration drilling.
"The diligence and dedication of Continental's professional team has moved this company forward tremendously since the amalgamation and TSX listing just a short two months ago, and I would personally like to thank them for their efforts." comments Continental Gold CEO Ari Sussman, "I look forward to working with our new team to develop Continental's exceptional projects and drive the company to the next stage."
Continental is an advanced-stage exploration company with eight gold projects covering 200,000 hectares in Colombia, all 100% owned by Continental with no royalties. Of these promising projects, the high-grade Buriticá and Berlin Gold Projects, covering 18,000 and 27,000 hectares, respectively, are at the forefront of the property pack. Continental has aggressive work plans for both projects over the next 18 months.
The Buriticá Gold Project
Buriticá is the company's highest priority property and is located in the Antioquía Department of Colombia, 75km northwest of Medellín. The project boasts excellent infrastructure with power and water readily available and accessibility guaranteed with paved roads.
Situated in a mineral-prolific region consisting of 18,000 hectares of high-grade gold veins and disseminated mineralization in breccias and sediments, Buriticá has a history of small-scale gold production and a bulk-sample operation continues to date. This property is characterized by a +500 meter 'Main Vein Zone' in a gold vein/breccia system located predominantly between two regional faults. Recent drilling by Continental Gold in the main vein zone has returned intersections of up to 79.09 g/t gold over 19.2 meters and 91.99 g/t gold over 7.0 meters. Continental Gold has also intersected a second, previously undetected, gold vein zone outside the Main Vein Zone which it refers to as the Veta Sur system. Initial results indicate this area contains the same type of high grade material as the main zone, returning results such as 12.18 g/t of gold over 38.1 meters and 12.01 g/t gold over 34.9 meters. Additional drilling is planned for this new Veta Sur system to determine its extent.
Continental's Progress at Buriticá
The mineralization at Buriticá consists of a porphyry-related carbonate base metal and gold vein and breccia system that has yielded numerous important areas of mineralization and several additional targets to be tested. Since the first discovery-hole in late 2007, Continental has completed over 17,000 metres of diamond drilling and over 1,200 metres of underground development at this project.
However, despite the significant drilling already undertaken at the property, the company believes Buriticá has more to offer. The project is now at the resource definition stage and, as well as planning an NI 43-101 mineral resource estimate within the next 12 months, Continental intends to complete 30,000 to 60,000 meters of drilling to explore the significant additional high grade vein potential and the lower grade disseminated gold potential they believe exists in several areas on the property. During the second and third quarters of 2010, Continental will have a minimum of four drills operating on the Buriticá property to complete a program of step-out drilling around the main vein corridor, to test areas outside this corridor
The Berlin Gold Project
Berlin is a drill-ready gold project located approx. 90 km north of Medellín. Another past-producing property in an area known for its historical gold production, the Berlin concessions cover 28,000 hectares and include the historical Berlin mine which operated from 1930 to 1946 and produced 413,000 oz of gold from a 20-metre thick lens with a production grade of 16 g/t Au and recoveries of 94%.
To date, surface mapping and sampling indicate excellent potential for large-scale mesothermal veins contained within a large, orogenic gold system. With over 80% of the known mineralized trend undrilled, more than 11 km of favorable vein trend in two subparallel belts have been outlined with a minimum of 4,000 metres of drilling planned in 2010.
Dominical, Dojura and Santander
While Buriticá and Berlin are Continental's highest priorities, the company also has several other promising projects simmering on the back burner, including a joint venture with AngloGold Ashanti on the Dojura project. Located in the Choco Department of Colombia and covering 37,235 hectares, Dojura constitutes a large area of porphyry-style alteration with significant historical alluvial gold production. The JV states that AngloGold Ashanti can earn up to 75% interest over three years by spending US$6.9 million in combined option payments and on exploration and development.
Also worth keeping an eye on are the Dominical and the Santander gold projects. The 100%-owned, 6,500 hectare Dominical property is a grass roots discovery of epithermal vein systems with strike extents of 400 – 1,500 meters. Chip samples produced 1.15 grams per tonne of gold at 12 meters, 1.00 grams at 24 meters and 0.86 grams at 30 meters.
The 100%-owned Santander project covers 6,000 hectares of concessions and is located near Ventana Gold's La Bodega property. Known, yet again, for historical high-grade production; Santander is situated on a belt in which the most prominent global gold rush is now occurring.
When asked, why Colombia? Continental was ready with a veritable arsenal of reasons:
- Columbia has the 5th largest economy in Latin America (GDP US$242 Bn);
- The country has the steadiest growth rate in Latin America 1970 – 2007 (WB);
- Lowest average inflation in Latin America 1998 – 2008 (DANE);
- FDI (Foreign Direct Investment) increased 400% 2002 - 2008 (Colombia Central Bank);
- 2nd Best business climate in Latin America (World Bank);
- 2nd Best investor protection in Latin America (Forbes);
- 3rd Largest population in Latin America: 44.5 million people;
- 4th Largest market cap. total in Latin America, and;
- US$8.8 billion infrastructure investment through 2012;
- Mining royalties to government of 3.2%.
With its corporate amalgamation now complete, Continental Gold Ltd., and its international management team with over 40 years combined Colombian experience, is now focused entirely on the exploration and development of its significant Colombian portfolio. Continental Gold has approximately 71 million share outstanding (96 million fully-diluted and has a solid cash position.
Follow Continental's drill program and mine development progress at www.continentalgold.com.