Continental Gold Announces Second Long-Hole Trial Mining Test and Provides Project Update - Seite 2

Site Update (Figure 3)

Underground mine development continues to ramp-up well ahead of schedule, mitigating the potential risk of work not being completed in time for planned production start-up in H1 2020. Major development equipment continues to arrive at site and the mining fleet now includes three jumbos and two 10-tonne LHD loaders. Also, a mechanized bolting machine, for use in larger development headings, is scheduled to arrive in late October 2017. The Company is continuing its comprehensive training and safety programs for its employees as they transition from the existing small-scale conventional mine to mechanized mining related activities. Over the past quarter, significant increases in development efficiencies have been realized with expectations for continued improvements in the months ahead.

Upgrades to the site access road continue and is on schedule to enable major equipment deliveries to begin in the second half of Q4 2017. Site preparations are progressing as planned, with first concrete pour anticipated in late Q4 2017. A modular building supply contract for the majority of the infrastructure facilities was signed with a well-qualified local fabricator. Work is underway on a 3.2-km low-voltage transmission line to provide additional power for mine development and construction activities.

As announced on September 18, 2017, the Company increased its drill program for calendar year 2017 from 15,000 to 25,000 metres, with eight drill rigs expected to be in operation by early November. Drill program objectives include increasing and upgrading mineral resources to higher classification categories as well as overall mineral resource growth by drilling step-out holes along strike from the Yaraguá and Veta Sur deposits. Additionally, greenfield geochemical anomalies located near existing and proposed infrastructure will be tested with a series of reconnaissance drill holes.

"We're extremely pleased with how rapidly the Buriticá project is ramping up," commented Donald Gray, Chief Operating Officer. "Both underground development and surface construction are achieving our targets and meeting expectations for production start-up in the first half of 2020. As we move forward with this second long-hole trial mining test, we expect that it will add to the valuable information and experience gained from our previous long-hole trial mining success, which validated our confidence that the long-hole method is well-suited for the near-vertical vein systems we find here at Buriticá."