Continental Gold CEO Ari Sussman at Buritica, May 2014 (TH photo)

Continental Gold CEO Ari Sussman at Buritica, May 2014 (TH photo)

Continental Gold (CNL.TO)’s Buritica project in Colombia is one of the richest development stage gold assets.

The gold at Buritica, more than 7 million ounces in all categories and growing, will be mined underground from rich veins. The deposit has a combination of attributes that are rare for a gold miner: size, grade, exploration potential and excellent metallurgy. At average grades of 7.8 grams per tonne, Buritica’s grade is multiples of the world average, and the company’s projected cash costs are in the lowest quartile of gold mines globally.

A preliminary economic assessment from November outlines an 18-year mine life that would produce about 265,000 ounces of gold and 394,000 ounces of silver annually.

This morning, the company published results from 15 drill holes through the eastern Veta Sur vein system at Buritica. Continental says the results are better than the current mineral resource estimate, and an updated resource estimate is expected in late Q2 of this year. The goal of the new estimate is to upgrade the confidence in the resource (Measured and Indicated) plus grow overall ounces.

“Results from the 2014 infill and extension drilling program in Veta Sur continue to demonstrate robust continuity of master veins, commonly with better grades than predicted from the current mineral resource estimate,” commented Ari Sussman, President and CEO of Continental. “This bodes well for the next mineral resource estimate for the Buritica project, anticipated in late Q2 2015, as well as for the future development of Veta Sur.”

With about $60 million in the treasury, Continental has a roughly C$200 million enterprise value.

The company also expects to receive its final environmental permit this summer.

Here is today’s news release: Continental Gold Continues to Drill Greater Grades and Widths than the Current Mineral Resource Block Model for the Veta Sur Vein System, Buritica, Colombia

Here is Continental CFO Paul Begin introducing his company at the recent Toronto Subscriber Summit:

Continental Gold’s PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

For additional details regarding the Buriticá Project, see Continental Gold’s technical report entitled “NI 43-101 Technical Report, Preliminary Economic Assessment, Antioquia, Colombia”, dated December 22, 2014, and available on SEDAR at www.sedar.com.

Author has a business relationship with Continental Gold and holds a share position. This is not investment advice. Always do your own due diligence. Consult a professional, licensed investment professional prior to making any investment decision.