High-Grade Gold At Yaragua System Buritica Project

TORONTO - Continental Gold Inc. reported additional high-grade assay results from underground channel sampling results and six holes drilled into the Yaragua system as part of its 2018 exploration drilling and underground channel sampling program at its 100%-owned Buritica project in Antioquia, Colombia. The Company presently has 14 diamond drill rigs in operation; three rigs are being utilized for the recently-started stope definition drilling program, eight rigs are conducting infill and mineral resource expansion drilling at the Yaragua and Veta Sur deposits and three rigs are testing the Laurel and Perseus greenfield targets.

"The Buritica project continues to demonstrate its prowess as a rare world-class system, both in terms of its size and high grades. The system is so vast that it will take years of drilling to determine just how many ounces of gold will ultimately be mined from the Yaragua and Veta Sur deposits," said Ari Sussman, CEO. "With the new results announced herein, the Yaragua system now measures 1,350 meters laterally by 1,800 meters vertically and remains open in all directions for expansion. We look forward to incorporating all new results into an updated mineral resource estimate and mine plan in Q1 2019."

A fan of six diamond drill holes were completed from an underground chamber installed off of the main Yaragua ramp currently advancing ahead of planned commercial production for the Buritica project in 2020. Drilled to the northeast, the fan of holes had the dual purpose of infilling an eastern section of the Yaragua deposit as well as testing for extensions to the system along the San Antonio master vein family. Drilling covered 150 meters of lateral strike by 475 meters vertically and mineralized zones reported below remain open both up and down-dip for extensions.

Four distinct zones of mineralization were outlined from the drilling. The first two mineralized zones, located at shallow distances from the drill hole collars, successfully infilled seven veins within the Murcielagos vein family at the eastern edge of the mineral resource estimate block model. Impressively, the precious metal content is more than 125% higher on a weighted average grades X true widths basis than the mineral resource estimate block model. As a result, the Company is accelerating drilling plans on this section with an aim of sequencing mining into the early years of production.

Drifting has continued along the HW vein and the San Antonio vein in the Yaragua system located directly to its north in broad mineralized zone #1 ("BMZ1"). Significantly higher grades and wider exposures continue to be encountered to the southwest along the HW vein, which has been extended 16 metres for a total 37 meters from CX-04 crosscut. Additionally, development to the east in the San Antonio and HW vein drifts continues to expose strongly wide, high-grade zones. East in San Antonio, significant mineralization has been extended 15 meters for a total 20 meters from CX-04 crosscut. East in HW vein, significant mineralization has been extended 11 meters for a total 39 meters from CX-04 crosscut. The Company plans to advance a crosscut northward from the west drift (GA9551W) on the HW vein to intersect the San Antonio vein projection. This will also allow the Company to assess mineralization between the two veins in the BMZ1 at this location. Once completed, the Company will use the new information to prepare the updated mineral resource estimate, which can then be used when preparing stope designs for the mine study anticipated for release in Q1 2019. BMZ1 can be scheduled, along with other identified BMZ areas, for extraction early in the mine production schedule.