TORONTO, Nov. 19, 2019 /CNW/ - Continental Gold Inc.
(TSX:CNL; OTCQX:CGOOF) ("Continental" or the "Company") is
pleased to provide a project update for its Buriticá project in
northwestern Antioquia, Colombia.
Construction of the project remains on schedule for mechanical
completion in Q1 2020, ramping to commercial production
approximately six to nine months thereafter.
Highlights
- Mill facilities construction was 88 percent completed as of
October 31, 2019.
- Major milling equipment installation has been completed with
piping, electrical and instrumentation advancing well.
- Acceleration of underground development continues;
Continental's mine crews achieved over 1.5 kilometres of lateral
development in October, the highest monthly advance
to-date.
- Total lateral development advance is 19,800 metres, including
ramps, sublevels and ore development.
- Pre-production stockpile of 81,200 tonnes averaged 7.2 g/t gold
at the end of October 2019 and is
anticipated to continue increasing by approximately 10,000-15,000
tonnes per month.
- The 110-kV powerline construction was completed in Q3 2019,
with line and mine substation energization in November.
(Click here for progress photos)
Details
As of October 31, 2019, the
Buriticá project mill facilities mechanical completion was 88
percent. All major milling equipment has been installed, and work
is advancing in all areas for piping, electrical and
instrumentation. The mill building was enclosed in November and
there has been significant advance on the electrical room and mill
control office. Liner installation is underway for both the SAG and
ball mills. The tailing filtration building is nearly enclosed;
roof structure work is well-advanced for the Merrill Crowe and
tailing storage buildings. Construction of the approximately
32-kilometre powerline between the Chorodó substation on the power
grid and the Buriticá project was completed in Q3 2019. The line
and mine substation were energized in November and all underground
mining areas are now being powered with energy from the new 110-kV
powerline. The mill facilities remain on schedule for Q1 2020
mechanical completion. Ramp-up to commercial production is
anticipated approximately six to nine months thereafter.
Underground development continues to exceed expectations as
Continental's crews achieved 1,569 metres of lateral development in
October. This was the highest monthly advance for the project
to-date. Total lateral development advance, including ramps,
sublevels and ore development is 19,800 metres. Crews are advancing
daily at the Yaraguá and Veta Sur
ramps and the Higabra adit, with focus on stope preparation prior
to production startup. At the end-October
2019, the pre-production stockpile was 81,200 tonnes and
averaged 7.2 g/t gold. Since early 2019, monthly definition
drilling has been increasing with 15 drills focused on underground
definition drilling. Ventilation circuit modifications were
implemented following the completion of the 294-metre ventilation
raise connecting shallow elevation Veta
Sur development with deeper Veta
Sur development in the Higabra tunnel. Two additional raises
are presently being excavated as ore and waste passes in the
Yaraguá system and are on schedule.
"We continue to be very pleased with Buriticá's progress,"
commented Donald Gray, Chief
Operating Officer. "Our mine crews have been consistently exceeding
planned development with monthly advance topping
1.5 kilometres in October, the highest monthly advance to
date. Mill facilities construction—in particular piping, electrical
and instrumentation—are advancing rapidly for mechanical
completion, and we have already begun pre-commissioning in a number
of areas. Our mine development and mill construction progress has
positioned us well to achieve our 2020 goal of mechanical
completion in Q1 and commercial production six to nine months
thereafter. Comprehensive production mining and mill operations
training is underway for our local workforce. We are very confident
our crews will continue meeting the challenge to work safely and
efficiently for this world-class operation."
About Continental Gold Inc.
Continental Gold is the
leading large-scale gold mining company in Colombia and is presently developing it's 100%
owned Buriticá project in Antioquia. Buriticá is one of the largest
and highest-grade gold projects in the world and is being advanced
utilizing best practices for mine construction, environmental care
and community inclusion. Led by an international management team
with a successful record of discovering, financing and developing
large high-grade gold deposits in Latin
America, the Buriticá project is on schedule with mechanical
completion anticipated during the first quarter of 2020.
For information on the Buriticá project, please refer to the
technical report, prepared in accordance with NI 43‑101,
entitled "NI 43‐101 Buriticá Mineral Resource 2019‐01, Antioquia,
Colombia" and dated March 18, 2019 with an effective date of
January 30, 2019, led by independent
consultants Ivor Jones Pty Ltd. The technical report is available
on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and
on the Company website at www.continentalgold.com.
The scientific and technical information contained in this press
release has been reviewed and approved by Donald Gray, Chief Operating Officer of the
Company, who is a qualified person within the meaning of
NI 43‑101.
Forward-Looking Statements
This news release contains
or refers to forward–looking information under Canadian securities
legislation—including statements regarding the development and
construction of the Buriticá project, completion of various
construction and development activities, ramp-up of underground
development activities, timing of mechanical completion and
production start-up, advancing the Buriticá project and future
plans and objectives of the Company—and is based on current
expectations that involve a number of significant business risks
and uncertainties. Forward–looking statements are subject to other
factors that could cause actual results to differ materially from
expected results. Readers should not place undue reliance on
forward–looking statements. Specific reference is made to the most
recent Annual Information Form on file with Canadian provincial
securities regulatory authorities for a discussion of some of the
factors underlying forward–looking statements. All the
forward–looking statements made in this news release are qualified
by these cautionary statements and are made as of the date hereof.
The Company assumes no responsibility to update them or revise them
to reflect new events or circumstances other than as required by
law.
SOURCE Continental Gold Inc.