Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) (“Continental” or the “Company”) is pleased to announce that systematic channel sampling of underground development for the Buriticá project has resulted in the discovery of two high-grade veins in the Yaraguá system. Development of its 100%-owned Buriticá project in Antioquia, Colombia remains on schedule with mechanical completion of the mine anticipated prior to the end of Q1 2020. All sampling widths reported herein are horizontal metres.

Yaraguá System

  • The Athena vein was discovered in a cross-cut currently being developed as part of underground construction of the Buriticá mine. Subsequent to the discovery, development drifting was initiated along the vein from the cross-cut in both east and west directions. Assay results from systematic channel sampling have, to date, returned two intervals of very high-grade gold with results as follows:

    • 50 metres @ 60.9 g/t gold and 42 g/t silver at 2.64 metres width in the western side of the drift from the cross-cut.
    • 35 metres @ 26.37 g/t gold and 14 g/t silver at 2.65 metres width in the eastern side of the drift from the cross-cut.

The Athena vein was intersected at an elevation of 1,190 metres and is situated between the Murcielagos and San Antonio master vein packages in the central portion of the Yaraguá system. High-grade mineralization remains open along the vein and underground drift development advancing in both the west and east directions. The Athena vein will also be targeted by definition drilling at various elevations both above and below the Higabra tunnel elevation.

  • The Cassandra vein was also discovered while sampling the walls of a separate cross-cut being developed through the Yaraguá system. Cassandra is a shallow-dipping vein situated between the San Antonio and HW veins and is one of a number of new shallow veins that are being outlined within this area. Drifting along the Cassandra vein was initiated with continuous high-grade gold being encountered as follows:

    • 135 metres @ 33.4 g/t gold and 24 g/t silver at 2.62 metres width.

The Cassandra vein was intersected at an elevation of 1,175 metres within the San Antonio master vein package in the western portion of the Yaraguá system. This shallow dipping vein is one of a number of new veins that are being outlined through new underground development within this area. Previous exploration drilling was not orientated appropriately to identify veins with this geometry. Underground drift development continues to advance along the vein and additional results will be announced in due course.

  • The Athena and Cassandra veins have been intersected near the elevation of the mine infrastructure in the Higabra valley. Drilling density at this elevation is relatively sparse and coincides with the lower limit of mineral resources in the Indicated category. The Company is confident that additional mineralized structures will be discovered with further underground development and drilling as sample density increases at these elevations and below.

  • Face channel sampling in the drifts includes gold mineralization that extends beyond the width of the development drift, indicating additional potential for broader mineralization than currently reported.

  • The Athena and Cassandra veins will be incorporated into the mine plan and the Company expects that it will be in a position to potentially begin mining the veins as early as Q4 2020.

“We are extremely enthusiastic with the discovery of bonanza-grade gold in the Athena and Cassandra veins. Importantly, both veins have already been developed along significant strike lengths and remain wide-open for expansion,” commented Ari Sussman, CEO. “Given that the Athena and Cassandra veins are located so close to our mining infrastructure in the Higabra valley, they will be sequenced into the early part of the production schedule with mining to begin as early as Q4 2020.”