Toronto-based Continental Gold (TSX:CNL) released a corporate update Thursday afternoon showing strong operating results for the year 2013, including 59,109 metres of drilling (adding to 215,300 metres for the project total), discovery of several new veins, four new precious metal-mineralized systems and – oh yeah - $117.5 million in hand with no debt to service.
In times like these, when so many gold explorers are under water (some literally), Continental's situation is an 'up times' level of rosy, which may explain why their shares have doubled in value since December 1 of last year.
The company is focused on its Buritica project in Antioquia, Colombia, where it has recently discovered a new mineralized vein system it calls San Agustin. From the company, that spot is generating the following results:
- BUSY329: intersected 0.4 metres @ 49.7 g/t gold and 163 g/t silver
- BUUY093: intersected 3.0 metres @ 7.2 g/t gold, 43 g/t silver and 8% zinc
- BUSY340: intersected 0.72 metres @ 31.0 g/t gold and 3 g/t silver, and 0.5 metres @ 12.0 g/t gold and 31 g/t silver.
That's fun side stuff while the company works on infrastructure, having bought 99% of the surrounding infrastructure-based land around their property, while developing the main access tunnel, new ramps, and waiting for the final environmental permits required to build out a mine, which are in process now.
While that's happening, it's also drilled in other places:
In the Veta Sur vein system:
- BUUY121: intersected 16.7 metres @ 58.7 g/t gold and 233 g/t silver, including 5.15 metres @ 184 g/t gold and 671 g/t silver
- BUUY118: intersected 18.7 metres @ 22.4 g/t gold and 80 g/t silver, including 3.8 metres @ 99.6 g/t gold and 254 g/t silver
- BUUY126: intersected 28.4 metres @ 20.5 g/t gold and 135 g/t silver, including 2.15 metres @ 135.3 g/t gold and 921 g/t silver and 10.9 metres @ 10.8 g/t gold and 85 g/t silver
- BUUY149: intersected 0.5 metres @ 101.5 g/t gold and 20 g/t silver
Or maybe you like the Yaraguá vein system:
- BUUY083: intersected 22.3 metres @ 23.9 g/t gold and 255 g/t silver
- BUUY086: intersected 20.2 metres @ 11.4 g/t gold and 59 g/t silver
- BUUY114: intersected 10.5 metres @ 108 g/t gold and 96 g/t silver
- BUUY170: intersected 2.7 metres @ 830.6 g/t gold and 65 g/t silver and 3.45 metres @ 27.1 g/t gold and 11 g/t silver
- BUUY120: intersected 1 metre @ 329.5 g/t gold and 52 g/t silver.
Also, underground channel sampling in the Yaraguá vein system resulted in significant intervals including 56.3 g/t gold and 112 g/t silver across 1.34 metres along 32 metres and 121.4 g/t gold and 775 g/t silver across 0.45 metres along 60 metres.
There's more, but it's really a case of more of the same. Lots of veins, lots of metres of solid gold per tonne.
You like metallurgy?
The preferred recovery process selected is gravity concentration followed by cyanidation of gravity tails. Overall metallurgical recoveries on all four 150 kilogram samples yielded 95.4% and 48.6% for gold and silver, respectively. In addition, a large proportion of the gold can be extracted using gravity separation with an average recovery rate of 73.8%.
Brothers and sisters, if Continental Gold didn't already have the treasure of the Sierra Madre in cash in hand, I'd be giving it to them and saying, “Yeah, build this mine if you wouldn't mind, thanks.”
I'm not going to tell you to buy Continental, mostly because I'm not your investment advisor. And I'll admit I don't own any of it, mostly because I like 'em cheap and risky, and this stock has already gone through its pubescent growth spurt. Now it wants its first car, it wants to be allowed out until 2am, and it wants its girlfriend Brittany to be allowed to sleep over.
Granted, there's still a little growth to go. It's going to ding the Buick at least once before college.
But you've got to like a company that has hit its milestones, removed a bunch of risk, found a nice upward trajectory and has been saving its allowance.
NI 43-101 to come. Gold prices rising. They grow up so quick, don't they?
Disclaimer: Continental Gold is an advertiser and we own shares which means we are biased. Please read our full Disclaimer and Continental Gold's Cautionary Note Regarding Forward Looking Statements.