One of the largest and richest undeveloped gold assets in the world is Continental Gold‘s Buriticá project in Colombia, with over 7 million ounces at average grades of over 9 grams gold per ton.
The company published a Buriticá development update this morning (here’s a link). Of note, the cross cut at Veta Sur is validating the resource model and assay results from the sampling are expected shortly. Permitting remains on track for mid-2015 completion.
A staggering 9 drill rigs are turning currently at Buriticá as the company completes a Phase V 60,000 metre drill program by year end.
Continental is well funded and will not need to go back to the market any time soon with ~$85 million in cash.
Here are a few highlights from the current work program:
- A 1200 metre long tunnel (Highland Valley) was completed in August. Currently four drill rigs are focusing on infill drilling at the Yaraguá deposit. The idea here is to increase the indicated resources which are modest at the moment;
- An underground cross-cut at the Veta Sur deposit is ahead of schedule with 245 metres of the 350 metres complete. The cross cut is being used to validate the resource model. Initial assays from channel sampling are expected mid fourth quarter;
- 650 metres of cross cuts was initiated in September at the Yaraguá mine. Work here will be used to determine precious metals grades used for calculating dilution between certain veins that will be sequenced early in future mine production. Assays are also expected mid fourth quarter;
- The delayed development of the Yaraguá Ramp resumed in August. Progress is advancing and 91 meters of the 350 meters planned is complete. The Ramp will allow for greater drilling access to hopefully grow and convert the Yaraguá resource. Assays are expected late in the fourth quarter.
A major obstacle for Continental to overcome is permitting risk within Colombia. The company continues to work with the Corantioquia to complete the modification process for the Environmental Impact Assessment (EIA). The EIA is the final major permitting step at Buritica. Management hopes to receive this permit in mid 2015.
Additionally, a Preliminary Economic Assessment (PEA) is on track to be complete by the end of the year.
If everything goes according to plan Continental Gold will be in production in 2017.
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