Strong drill results from nine diamond drill holes at the Buritica gold project in Colombia sent shares of Continental Gold (CNL-T) up 28¢, or 3.9%, to $7.38 apiece on June 4.
Highlights from the holes drilled into the Yaragua system include an intercept of 5 metres grading 20.3 grams gold per tonne and 102 grams silver per tonne, with 2 metres grading 49.2 grams gold and 262 grams silver in hole 258.
The hole in southern Yaragua is a 500-metre vertical stepout in the Yaragua system and 1,356 metres downhole at the 445-metre elevation level, which is more than 1,100 metres below the surface expression of the Murcielagos South veins. This demonstrates that the Yaragua system has a vertical extent of more than 1,300 metres and is open at depth.
Other high-grade intercepts include 255, which returned 17 metres grading 38.8 grams gold and 43 grams silver, including 3 metres of 109.6 grams gold and 121 grams silver, and 1 metre of 206.5 grams gold and 198 grams silver. Drill hole 262 cut 2 metres of 49.7 grams gold and 30 grams silver.
Continental has 10 drills turning at its wholly owned, 292-sq.-km flagship Buritica project, 75 km northwest of Medellin in Antioquia department. The project is accessible by paved road and has good infrastructure with power and water.
Buritica is 2 km south from the town of Buritica in a district that was an important gold-producing area during the Spanish colonial period, when it hosted several small artisanal mines exploiting narrow, high-grade veins and alluvial and colluvial deposits. Extensive areas of superficial weathered material are believed to have been worked by hydraulic methods, and small, high-grade veins were worked underground for gold and silver.
Central to Continental’s land package are the Yaragua and Veta Sur systems. The former has been drill-delineated along 650 metres of strike and 1,300 vertical metres, and has been partially sampled in underground developments. The Veta Sur system has been drill intersected along 550 metres of strike and 1,180 vertical metres.
The company describes both systems as characterized by multiple, steeply dipping veins and broader, more disseminated mineralization. Both remain open at depth and along strike.
The Yaragua and Veta Sur systems have a National Instrument 43-101 resource estimate of 1.11 million tonnes grading 17.8 grams gold for 630,000 contained oz. gold, 42 grams silver for 1.5 million oz. silver and 0.8% zinc for 18.7 million contained lb. zinc in the measured and indicated categories.
Inferred resources add 6.9 million tonnes grading 11.4 grams gold for 2.5 million contained oz. gold, 43 grams silver for 9.5 million oz. silver and 0.6% zinc for 88 million lb. zinc.
Continental shares closed on June 5 at $7.34 per share within a 52-week range of $5.35 to $9.62. The junior has 110 million shares outstanding.
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