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Continental defines resource on Buritica broad zone

Continental Gold has announced a mineral resource estimate for the area of its Buritica deposit in Antioquia, Colombia, it calls broad mineralised zone 1 (BMZ1). The company is seeking to identify broad mineralised zones where veins of different orientations intersect and provide potential for greater mining widths of high-grade material as well as disseminated and vein stockwork materials.
Continental defines resource on Buritica broad zone Continental defines resource on Buritica broad zone Continental defines resource on Buritica broad zone Continental defines resource on Buritica broad zone Continental defines resource on Buritica broad zone

BMZ1 at Continental's Buritica project in Colombia

Staff Reporter

BMZ1 is in the central-west portion of the Yaraguá system and hosts a combined measured and indicated resource estimate of 828,870 tonnes grading 14.15 grams per tonne of gold and 22.9g/t of silver, for 377,000 ounces of gold and 611,000oz of silver. It also has an inferred mineral resource estimate of 141,150t grading 5.37g/t gold and 12.1g/t silver, for 24,400oz gold and 55,000oz silver.

"BMZ1 continues to expand and this initial mineral resource estimate highlights the potential of this zone to provide greater flexibility for mine planning and more ounces per vertical metre during production. Our 2019 drilling focus is to define the broad mineralized zones identified to date ahead of planned commercial production in 2020," said CEO stated Ari Sussman in a statement.

BMZ1 has a vertical extent of 400m and ranges between 25m-to-40m in width by 80m-to-120m of lateral extent. It remains open at depth for expansion and up to 10,000m of drilling specifically targeting BMZ1 is planned in 2019. Recent drilling assays received after the resource estimate cut-off date include 40.60m grading 16.65g/t gold and 7g/t silver.

The BMZ1 resource estimate was based on 141 drill holes for 6,410m and 1,084m of underground channel sampling. Previous mineral resource estimation work at Buriticá separately reported vein and broad mineralized zone material located between the gold bearing vein domains. The BMZ1 mineral resource estimate is a restatement of the block models, in a combined form, as derived from the January 2019 mineral resource estimate. 

Shares in Continental (TSX:CNL) closed at C$3 yesterday, valuing the company at $566 million. Its shares have increased 24% so far this year.