Continental finds more gold deep down at Buritica

Deep drilling at Continental Gold’s (CNL-T) Buritica project in Antioquia, Colombia show that high grade mineralization runs deeper than previously known…which could well lead to many more ounces finding their way into the projects next resource update.

The company released results from the first two holes of a program that drilled deep into the Veta Sur system, which is one of two key areas on the property, the other being
Yaragua.

The first hole, BUSY221, returned results from an area outside the current resource with highlight intercepts of 10.2 metres grading 83.8 grams gold and 285 grams silver and 9.8 metres grading 9.1 grams gold and 8 grams silver.

The second hole, BUSY210, extended the strike length of Veta Sur to over 500 metres and returned highlight intercepts from outside of the current resource model of
4.1 metres grading 25.1 grams gold, 40 grams silver and 1.2% zinc and 6 metres grading 7.8 grams gold and 37 grams silver.

The second hole also hit mineralization within the resource model highlighted by 8 metres grading 9.3 grams gold and 17 grams silver.

The two holes hit mineralization as deep as 1,180 metres – more than 600 metres below current resources.

That was promising enough to help give the company’s shares a 5% or 41¢ lift in Toronto on Nov. 23 where they were trading for $9.19 on a volume of 1.4 million shares.

Continental says the two holes validate its exploration model and increase the resource potential of the Veta Sur system as a whole.

“2012 is going to be an exciting year for the company as we focus on both definition and expansion drilling of the Veta Sur and Yaragua systems as well as exploratory drilling of at least four new geochemical targets.” Ari Sussman, Continental’s chief executive said in a statement.

Buritica is wholly owned by Continental and stretches out over 29.3 sq km.

The Yaragua system and the Veta Sur system are the two most extensively explored areas within the property with Yaragua sitting roughly 500 metre northeast of Veta Sur.

Thus far mineralization at Yaragua has been traced over 570 metres of strike and down to 600 metres.

The Veta Sur system has been drill intersected along 500 metres of strike and to a depth of over 1,180 metres.

Both systems are characterized by multiple steeply dipping veins and broader more disseminated mineralization and both remain open at depth and along strike at high grades.

Combined the two areas have measure and indicated resources of 1.1 million tonnes grading 17.8 grams gold, 42 grams silver and 0.8% zinc for 630,000 oz. of gold and 1.5 million oz. of silver. They also have inferred resources of 6.9 million tonnes grading 11.4 grams gold, 43 grams silver and 0.6% zinc for 2.5 million oz. of gold and 9.5 million oz. of silver.

Buritica lies on the gold rich Middle Cauca belt of central Colombia, which also hosts AngloGold Ashanti’s (AU-N) La Colosa project and Medoro Resources (MRS-V) Marmato project. Both of those projects are situated to the south of Buritica

Thus far over 90,000 metres of diamond drilling have been completed on the property and ten drills are currently on schedule to complete 100,000 metres of surface and underground drilling by the end of 2011.