Continental Gold Announces Second Long-Hole Trial Mining Test and Provides Project Update

TORONTO, ON--(Marketwired - October 10, 2017) - Continental Gold Inc. (TSX: CNL) (OTCQX: CGOOF) ("Continental" or the "Company") is pleased to provide a project update and announce the commencement of the second long-hole trial mining test at its Buriticá project located in northwestern Antioquia, Colombia.

Long-Hole Trial Mining Stopes (Figures 1 and 2)

The second trial mining test will occur in the Yaraguá vein system where ore will be extracted using mechanized long-hole mining from the Hanging Wall vein ("HW2") (Figure 1). The trial mining test will extract 28.9 metres of total ore from two vertically-stacked stope blocks (see Figure 2). Production estimates for the stopes were calculated using the mineral resource estimate block model in the February 2016 Feasibility Study for the Buriticá Project.

The upper stope block will extend 20 metres along strike with a drill height of 13 metres and is anticipated to produce approximately 552 ounces of gold and 1,000 ounces of silver. The lower stope block will extend 20 metres along strike with a drill height of 15.9 metres and is anticipated to produce 310 ounces of gold and 652 ounces of silver. The average stope width for both the upper and lower blocks will be 2.3 metres, calculated by aggregating the HW2 vein width of 1.7 metres and 0.3 metres of over-break material on each stope wall.

Table 1: Combined Production Estimate for Two Trial Mining Stopes
		Tonnes		Vein Dip		Stope Dimensions (m) (LxWxH)		Gold (g/t)		Silver (g/t)		Contained Gold Ounces		Contained Silver Ounces
Upper Stope Design		1,734		83°		20 x 2.3 x 13		9.90		17.93		552		1,000
Lower Stope Design		1,915		75°		20 x 2.3 x 15.9		5.03		10.59		310		652
Totals		3,649						7.34*		14.08*		862		1,652
* Weighted average calculation

The objectives of this program include crucial technical and safety training for our workforce. In addition, the program will provide further validation, ahead of planned commercial production in 2020, of the mechanized long-hole mining method and its associated criteria for the Buriticá project. Finally, the lower stope block will be drilled to a longer vertical height of 15.9 metres compared to the 13 metres vertical height for all mineable stopes outlined in the feasibility study. If successful, the Company will begin evaluating the feasibility of increasing the stope heights in the mine plan, which, if adopted, would reduce the amount of development required, potentially lowering pre-production underground mining capital costs and post-production sustaining capital costs.