Drilling is successfully continuing in Colombia for Continental Gold (CNL:TSX) and the company has released assay results for 11 drill holes from the Veta Sur and eastern Laurel vein systems at their high-grade Buritica project. These results are part of the 2013 program and the company expects to continue to deliver robust resources as well as to upgrade inferred resources into the measured and indicated category.
All of the holes announced in this batch of assays have extended the vein families in the Veta Sur vein system and have also helped to infill the system. The latter is an integral part of delineating the system, and so far Continental has been able to prove the resource grades are reflective of the vein systems by successfully infilling the known structures.
Of the 11 holes released, 9 encountered a series of veins to the north of the current block model for the Veta Sur system and have a strike length of up to 400m and vertical extents of up to 500m. They remain open along strike and to depth. Highlights include:
- 0.7m at 26.8 grams per tonne (g/t) gold and 118g/t silver (BUSY355, elevation of 1,112 metres);
- 2m at 11.7g/t gold and 14g/t silver (BUSY360, elevation of 1,175 metres)
Three drill holes intersected a series of veins located to the south of the current block model for the Veta Sur system of which hole BUSY358 specifically targeted the Laurel vein system which is south of the Veta Sur system and Veta Sur ramp which is currently being constructed. BUSY358 encountered 0.6m at 7.4 g/t gold.
The holes were successful in both extending the Veta Sur system to greater heights and depths from the current block model and infill drilling continues to encounter better than expected grades and/or thicknesses than the block model suggests.
"Drilling continues to successfully infill and vertically extend existing veins while encountering new veins outside of the current mineral resource block model," commented Ari Sussman, CEO. "The updated mineral resource estimate remains on track for release in the first quarter of 2014 and will include the current drill results."
Permitting remains the key for Continental and the company continues to expect final permits by early 2015. In the meantime, the company intends to keep the news flowing with continued drilling, an updated resource estimate (Q1/2014) and a final feasibility study; all expected within the year.
The company has budgeted roughly $60 million for 2014. The company was sitting on just north of $130 million by the end of September and was burning roughly $3 million per month between Q2 and Q3. This would leave them with approximately $120 million remaining.