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Continental Gold Granted Key Exploration Title

Wednesday, November 13th, 2019

Continental Gold Inc. has announced that it has been granted a key exploration license by the Government of Antioquia encompassing the Electra South and Orion targets and, as a result, will commence a much-anticipated maiden drill program in the near term.

The Company currently has 11 diamond drill rigs operating as part of its 73,500-metre definition and exploration drill program for 2019. Mine construction at the Buriticá project remains on schedule with mechanical completion anticipated in Q1 2020.

Highlights of the Electra South and Orion Targets (Referenced in Figures 1 and 2)

  • The Electra South and Orion vein systems have very similar mineralogy and metal associations to the Stage I and Stage II veins currently being mined at the Buriticá deposit.
  • The Electra South and Orion vein systems are located within five kilometres from the Buriticá Mine site and could be accessed for mining in the future through a new tunnel on the opposite side of the Higabra valley and fed directly into the milling facilities nearing construction completion.
  • At the Electra South target, multiple high-grade quartz carbonate veins are hosted within cretaceous tonalite and have been traced over dimensions measuring 2,000 metres along strike by 500 metres across and remain open in all directions. The geochemical signature of veins at Electra South are akin to both Stage I and Stage II high-grade and ultra-high-grade Buriticá veins. Surface channel sampling on limited vein outcrop returned high-grade gold and silver assay results over widths ranging from 10-50 centimetres, with highlights as follows:
Vein Sampling Highlights, Electra South

Sample ID Gold (g/t) Silver (g/t)
910037 136 28
912773 136 808
910427 120 53
912776 98.7 330
912775 85.1 314
907962 79.8 868
904261 78.6 106
904198 70.1 420
904196 63.6 92
910422 62.3 55
904164 45.8 78
907462 41.4 436
912778 41.4 192
904162 41 55
904183 37.4 175
904184 35 227
904178 31.9 244
904188 22.9 160
904157 22 329
904148 21.9 33
904163 21.2 149
904191 18.7 82

*Majority of assay results previously reported on October 16, 2017; Electra South formerly known as Obispo.

  • 35 vein channel samples graded between 10-136 g/t gold and up to 808 g/t silver.
  • A total of 75 vein channel samples averaged over 2 g/t gold and 49 channel samples averaged more than 31 g/t silver.
  • At the Orion target, multiple high-grade quartz carbonate veins hosted within cretaceous mafic volcanics have been outlined from soil geochemistry, surface mapping and sampling in an area measuring greater than 1,500 metres along strike by 500 metres across and remain open in all directions. The vein packages at the Orion target contain high grades of gold and silver in association with anomalous zinc, lead and copper. Highlights from surface channel samples on limited outcropping vein material at widths ranging between 10‑50 centimetres are as follows:
Vein Sampling Highlights, Orion

Sample ID Gold (g/t) Silver (g/t)
911869 94.5 27
906020 88.2 630
906014 53.7 80
904132 50 81
911895 38 37
906025 36.8 30
906015 28.4 77
911899 25.2 29
912740 25.1 61
911891 24.5 35
912716 23.1 23
911793 22.7 36
911882 19 58
912723 16.7 64
912722 16 41
911897 13.9 8
911863 13.4 42
911873 13.2 33
911864 12.9 26
911769 11.8 24
904133 11.6 156
911774 11.1 21

*Majority of assay results previously reported on October 16, 2017; Orion formerly known as Pinguro.

  • 22 channel samples collected graded between 10-94 g/t gold and up to 630 g/t silver.
  • A total of 43 channel samples averaged greater than 2 g/t gold and 23 channel samples averaged more than 31 g/t silver.

Ari Sussman, CEO, commented: “With the granting of the exploration title covering these two exciting targets now in hand, the Company is finally in a position to drill-test these exciting discoveries. “Electra South and Orion have four important attributes that make them world-class targets for drilling:

  1. An irregularly-large proportion of samples collected from both systems contain very high grades of gold.
  2. The footprint of both systems is vast, covering surface dimensions comparable to the footprint of the Yaraguá and Veta Sur deposits.
  3. The sheer number of veins that have been mapped and sampled, some of which are overlapping.
  4. Given that both targets are located close to our mining complex, if either system turns out to be economic in the future, the mined material from Orion and Electra South could ultimately be fed into the existing mill.

Drill pad locations are currently being selected with the anticipation of an initial drill program beginning in the near term.”

Figure 1: Buriticá Exploration Targets Highlighting Orion and Electra South
Figure 2: Orion and Electra South Vein Systems and Gold Grades in Channels
Geological Description of the Buriticá Project

Continental’s 100%-owned, 75,604-hectare project, Buriticá, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style (“Stage I”) variably overprinted by texturally and chemically distinctive high-grade (“Stage II”) mineralization. The two most extensively explored of these areas (the Yaraguá and Veta Sur systems) are central to this land package. The Yaraguá system has been drill-outlined along 1,350 metres of strike and 1,800 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 1,300+ metres of strike and 1,800 vertical metres and has been partially sampled in underground developments. 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.

Technical Information

David J Reading, M.Sc., FIMM, the special advisor to Continental and an independent Qualified Person as defined under Canadian National Instrument 43‑101 – Standards of Disclosure for Mineral Projects (“NI 43‑101”), has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Mr. Reading has over 35 years’ experience in the mining industry covering all stages of mine development, including exploration, feasibility, financing, construction and operations. He has an MSc in Economic Geology and is a Fellow of the Institute of Materials, Minerals and Mining and of the Society of Economic Geology.

Besides rigorous chain-of-custody procedures, the Company utilized a comprehensive quality control/quality assurance program for the channel samples. All quality control anomalies were addressed and/or corrected as necessary to assure reliable assay results; no material quality control issues were encountered in the course of the program. Crush rejects and pulps are kept and stored in a secured storage facility for future assay verification.

For information on the Buriticá project, please refer to the technical report, prepared in accordance with NI 43‑101, entitled “NI 43‐101 Buriticá Mineral Resource 2019‐01, Antioquia, Colombia” and dated March 18, 2019 with an effective date of January 30, 2019, led by independent consultants Ivor Jones Pty Ltd. The technical report is available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.

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