Deep drilling at Continental Gold‘s (CNL-T) wholly-owned Buritica gold project in Colombia’s Antioquia department shows that high-grade mineralization runs deeper than previously thought.
The company released results from the first two holes of a deep drilling program probing two key areas: Veta Sur and Yaragua.
Hole 221 returned the first results from an area outside the current resource with highlight intercepts of 10 metres grading 83.8 grams gold and 285 grams silver, and 10 metres grading 9.1 grams gold and 8 grams silver.
Next, hole 210 extended the strike length of Veta Sur to over 500 metres and returned highlight intercepts from outside the current resource model of 4 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.
Hole 210 also highlighted mineralization within the resource model at 8 metres grading 9.3 grams gold per tonne and 17 grams silver per tonne.
The two holes hit mineralization as deep as 1,180 metres – which is more than 600 metres below current resources.
On Nov. 23 the promising results lifted the company’s shares by 41¢, where they traded for $9.19 on a volume of 1.4 million shares.
Continental says the holes validate its exploration model and increase Veta Sur’s potential.
“Next year is going to be exciting for the company as we focus on 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 officer, said in a statement.
The Yaragua system and the Veta Sur system are the two most extensively explored areas within the property. They are located 500 metres northeast of Veta Sur.
Mineralization at Yaragua has been traced over 570 metres of strike down to 600 metres, and the Veta Sur system has been drill intersected along 500 metres of strike, at a depth of over 1,180 metres.
Both systems are characterized by multiple steeply dipping veins and broad, disseminated mineralization. Additionally, both remain open at depth and along strike at high grades.
Combined, the two areas have measured and indicated resources of 1.1 million tonnes grading 17.8 grams gold, 42 grams silver and 0.8% zinc for 630,000 oz. gold and 1.5 million oz. 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. gold and 9.5 million oz. silver.
Buritica lies on the gold-rich Middle Cauca belt of central Colombia, which also hosts AngloGold Ashanti‘s (AU-N) La Colosa gold project and Medoro Resources‘ (MRS-V) Marmato gold project.
Both of those projects are south of Buritica, which is located 75 km northwest of Medellin.
Over 90,000 metres of diamond drilling have been completed on the Buritica property.
Ten drills are on schedule to complete 100,000 metres of surface and underground drilling at the Buritica project by the end of the year.
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