Nov 25 2010
Continental Gold Ltd. (TSX:CNL) has announced 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 metres Phase II diamond drilling program, with completion anticipated prior to the end of 2011.
Highlights
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Drill hole BUSY-131 tested the central Veta Sur system and intersected 17.9 metres @ 113.82 g/t gold and 112 g/t silver including 1.2 metres @ 1432.35 g/t gold and 625 g/t silver. This hole was an offset of the previously announced BUSY-79 which intersected 14.3 m @ 446 g/t gold and 166 g/t silver.
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Step-out drilling on the Veta Sur system indicates significant gold mineralization in multiple sub-parallel veins in a 100-meter wide corridor with more than 400 meters of lateral and 350 metres vertical extents and is open to the west and at depth.
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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
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Continuing drilling in the Yaragua area family of veins intersected 11.0 meters @ 17.16 g/t gold including 1.25 meters @ 128.40 g/t gold and 55 g/t silver in hole BUSY-129 in the western portion of the San Antonio vein.
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Step-out and infill drill intercepts on Yaragua Vein B includes 2.95 meters @ 24.37 g/t gold with 30 g/t silver in BUSY-92 and 13.4 meters @ 6.54 g/t gold in BUUY-49.
Details
The 100%-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, consists of semi-massive banded iron-zinc-lead (Fe-Zn-Pb) sulfides with a carbonate-quartz gangue. The recently identified Stage II style is lower in sulfide and consists principally of 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 meters. 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 kilometer long tunnel which will access the ore bodies at depth. The 100,000-metre Phase II drilling program is to be completed before end 2011.
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 meters, open to the southwest. Within this corridor all holes exhibit multiple vein intersections, which preliminary modeling indicates reflect a family of five main veins. The entire Veta Sur corridor is open below the 350 vertical meters currently drill tested.
BUSY-131 was drilled from south to north and in scissor pattern with the north-to-south drilled Busy-79, which intersected 14.3 m @ 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 sub-zone 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.
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 meters @ 128 g/t Au in BUSY-129 appears to be a Phase II overprint within the broader intersection of 11 meters @ 17.16 g/t Au.
Technical Information
The results of the Company's drilling program have been reviewed, verified and compiled by Vice President Exploration, Stuart Moller P.Geol., a qualified person for the purpose of NI 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.