August 30, 2012 14:19 ET
Continental Gold Receives an Environment Permit to Begin Construction of an Underground Tunnel and Road at Its Buritica Project
TORONTO, ONTARIO--(Marketwire - Aug. 30, 2012) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce that it has received formal approval for the modification of its existing Environmental Impact Assessment. The modification approval was received from Corantioquia, the autonomous regional corporation responsible for issuing and controlling environmental permits in Antioquia, Colombia.
The environmental permit amendment allows the Company to build a six-kilometre switchback road originating from the existing paved road at Buriticá down into the Higabra valley, the future site of planned mining and milling operations at the Buriticá project. Additionally, the permit amendment allows the Company to begin underground development in the Higabra valley by constructing a one-kilometre access tunnel measuring 5 metres x 4.5 metres. The tunnel, which will eventually serve as the main access for all underground development, will initially provide the Company with much-needed underground drilling access in order to infill drill existing mineral resources categorized in accordance with National Instrument 43-101 ("NI 43-101") for the Yaraguá and Veta Sur systems. As well, the Company will embark on an aggressive exploration drill program to confirm and expand upon the limited deep-drilling results received to date at Yaraguá (BUSY258, 4.5 metres @ 20.3 g/t Gold and 102 g/t Silver) and Veta Sur (BUSY221, 10.2 metres @ 83.8 g/t Gold and 285 g/t Silver) with the aim of adding to the existing mineral resource estimate categorized in accordance with NI 43-101.
The Company intends to immediately begin mobilizing contractors and expects to commence construction of the road and access tunnel in the fourth quarter of 2012. With this first amendment successfully completed, the Company anticipates filing a second amendment to its existing Environmental Impact Assessment in the second quarter of 2013, which is expected to encompass the remaining infrastructure required to build a mine at Buriticá.
"The environmental permit amendment is a major milestone for Continental and an important first step in what we anticipate will be a straight-forward permitting process towards production," commented Ari Sussman, CEO. "Although this tunnel will eventually serve as the main access level for an underground mine at the Buriticá project, the short term excitement will be the access provided for underground drilling to grow the resource base of the project at depth. On behalf of Continental and all of its shareholders, I would like to thank Corantioquia for the efficient and professional manner in which they handled this process, and the local communities for the unwavering support for the project."