Mar 12 2014
Continental Gold Limited ("Continental" or the "Company") is pleased to provide an update for its Buriticá project in Antioquia, Colombia.
Highlights
- On March 7, 2014, the Company signed an Acta De Intenciones (Memorandum of Understanding) with the Ministry of Mines and Energy, the National Mining Agency and Corantioquia, outlining a framework to formalize small-scale mining taking place at the Company's Buriticá project. The Company will now proceed with the formalization process and anticipates executing sub-contracts with small-scale miners in the third quarter of 2014.
- On December 23, 2013, the Company submitted an Environmental Impact Assessment ("EIA") to Corantioquia, representing the final modification to the environmental license for the entire surface infrastructure required to build a mine in the Higabra valley.
"Achieving these important milestones are critical components of de-risking and moving the Buriticá project forward," commented Mark Moseley-Williams, President and Chief Operating Officer of Continental. "I want to personally thank the Ministry of Mines, the National Mining Agency, Corantioquia and the Government of Antioquia for unifying so effectively, and providing the framework for the first formalization that adheres to the new Law 1658 of July 15, 2013. This landmark process paves the way for future formalization processes in Colombia."
"This Acta De Intenciones forms the basis for building an efficient and definitive process for formalizing the artisanal miners of the Buriticá area," commented Mr. Frey Usuga, President of ASMIMODO, the largest artisanal mining group that will be formalized at Buriticá. "We are excited to be the pioneers and role models under Law 1658, leaving informal mining behind and growing responsibly alongside Continental. We are very grateful to the Company for its commitment through this process and we are confident that with their support, we will strengthen the social development of our community."
Details
On March 7, 2014, the Company signed an Acta De Intenciones (Memorandum of Understanding) with the Ministry of Mines, the National Mining Agency and Corantioquia, establishing the framework to formalize agreements with artisanal miners of the Buriticá area. The formalization process will be the first in Colombia under Law 1658 of July 15, 2013. Article 11 of Law 1658 allows concession owners to sign sub-contracts of formalization with small-scale miners operating in the concessions without the liability associated with regular operating contracts. The sub-contracts, when signed, will allow small-scale miners to legally operate in an agreed upon area with financial, technical and administrative autonomy under the control of the Colombian mining and environmental authorities. The Company anticipates that formalization agreements with local small-scale miners will be accomplished no later than the third quarter of 2014.
Additionally, on December 23, 2013, the Company submitted an EIA to Corantioquia, representing the final modification to the environmental license for the entire surface infrastructure required to build a mine in the Higabra valley, including the processing, tailings and maintenance facilities. Corantioquia, the autonomous regional corporation responsible for issuing and controlling environmental permits in Antioquia, is the same agency that approved the Company's first environmental permit modification on August 30, 2012, allowing the Company to commence construction of a six-kilometre switchback road and begin underground development. Once approved, the Company anticipates being in possession of both major licenses (mining and environmental) required to build the Buriticá Project.
About Continental Gold
Continental Gold Limited is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production. On October 1, 2012, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The combined Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% zinc.
An animation video providing an overview of the Buriticá project and the exploration potential is available in the following link: http://www.zijinmining.com/. Please note that any future production decision will be based on, among other things, the positive outcome of a pre-feasibility study in 2015.
The scientific and technical information contained in this press release has been reviewed and approved by Mark Moseley-Williams, President and Chief Operating Officer of the Company, who is a qualified person within the meaning of NI 43-101.
For additional technical information on the Buriticá project, please refer to the technical report entitled "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated November 15, 2012, effective as at October 22, 2012, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at http://www.zijinmining.com/. Additional details on the rest of Continental's suite of gold exploration properties are also available at http://www.zijinmining.com/.