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Drilling at Continental Gold's Buriticá Project Discovers BMZ4, a New High-Grade and Broad Mineralized Zone

TORONTO, May 16, 2019 (Canada NewsWire via COMTEX) --

Continental Gold Inc. (TSX:CNL; OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce high-grade assay results from the initial 12 holes drilled into BMZ4, a new discovery located in the eastern-most part of the Yaraguá system at its 100%-owned Buriticá project in Antioquia, Colombia. The Company plans to drill up to 73,500 metres in 2019, consisting of approximately 55,000 metres of capitalized definition drilling and approximately 18,500 metres of exploration drilling targeting broad mineralized zone ("BMZ") targets. Supporting information for results discussed in this release can be found in Table 1 and Figures 1 and 2.

Highlights

    --  Twelve surface diamond drill-holes were completed into the far
        east portion of the Yaraguà¡ system to test if a new broad
        mineralized zone ("BMZ4") exists in this location. The target
        was generated on the hypothesis that the Tonusco Fault, located
        at the eastern edge of the Yaraguà¡ system, is a fluid conduit
        for precious metal deposition in its vicinity and such
        deposition would specifically be pronounced at the junction
        where the Centena vein crosses the Murciélagos master vein
        family.

    --  The discovery hole, BUSY407, intercepted multiple continuous
        high-grade zones through the BMZ4 structure at an excellent
        angle to the geometry of the zone, with results including:
  o 12.30 metres @ 10.17 g/t gold and 4.4 g/t silver (BUSY407)
  o 8.70 metres @ 6.49 g/t gold and 57.2 g/t silver (BUSY407)

    --  Each hole sequentially drilled following the discovery hole
        (BUSY407) intercepted BMZ4 at or near perpendicular angles to
        the strike of the zone. Additionally, the majority of the holes
        intercepted more than one thick interval of remarkably
        continuous mineralization within the zone. Narrow bands of
        visible gold were also observed. Key results are as follows:
  o 15.50 metres @ 7.03 g/t gold and 9.1 g/t silver (BUSY409)
  o 14.75 metres @ 4.82 g/t gold and 15.4 g/t silver (BUSY410)
  o 5.65 metres @ 18.69 g/t gold and 38.7 g/t silver (BUSY411)
  o 11.45 metres @ 8.24 g/t gold and 17.3 g/t silver (BUSY412)
  o 5.10 metres @ 17.32 g/t gold and 39.6 g/t silver (BUSY415)
  o 27.90 metres @ 7.04 g/t gold and 7.5 g/t silver (BUSY416)
  o 7.55 metres @ 7.66 g/t gold and 12.4 g/t silver (BUSY417)

    --  BMZ4, which is located approximately 60 metres east of BMZ2 in
        the eastern portion of the Yaraguà¡ system, has been intersected
        by drilling for more than 200 vertical metres and measures
        between 25 - 45 metres in thickness. Mineralization encountered
        in BMZ4 is expected to add new ounces to the
        multi-million-ounce global mineral resource inventory for the
        project. BMZ4 remains open at depth with extension drilling
        currently underway. Three diamond drill rigs are actively
        turning on this promising new discovery.

    --  In light of this new discovery, initially definition drilling
        will start into the very upper part of BMZ4 where underground
        development has been advancing in the upper eastern Yaraguà¡
        area with a crosscut to the Murciélagos vein. The zone will be
        more intensively drilled as a ramp is developed deeper in this
        area and additional drill chambers constructed. The Company
        expects to incorporate ongoing results from BMZ4 into the mine
        plan and will be looking to design wider stopes with potential
        to use bulk-style mining, including transverse extraction using
        primary and secondary stopes.


"Discovering BMZ4 is an excellent outcome for the Company and our geology team deserves credit for successfully proving the concept with drilling," commented Ari Sussman, CEO. "BMZ4 continues to highlight the upside at Buriticá as this discovery will ultimately add high-grade ounces to the global mineral resource inventory of the project. More importantly, we are hopeful that we will be able to successfully delineate new stopes in this area and be producing gold from the zone in 2020."

Details

Two diamond drill holes were completed in the eastern-most area of the Yaraguá system. The initial two holes, BUSY405 and BUSY406, were drilled too far east and consequently passed through the Tertiary dioritic intrusion host rock of the Yaraguá system into the Tonusco fault before finally passing into Cretaceous basalt on the eastern side of the fault and out of the system. BUSY408 ran into technical difficulties and was abandoned shortly after coring reached 32 metres down hole. The remaining 10 drill holes (BUSY407 and BUSY409-417) all successfully intercepted high-grade gold over varying thicknesses in BMZ4 with drill intercepts over 200 vertical metres in elevation. BMZ4 remains open in high-grade mineralization at depth.

The majority of the drill holes intersected more than one continuous run of thicker mineralization; all broad intervals encountered demonstrated excellent continuity at 1 g/t gold or greater along the axis of the hole. Additionally, detailed core logging of holes indicates that the orientation of drilling was done at or near perpendicular angles to the strike of the mineralized structures of BMZ4.

Three diamond rigs are now actively drilling BMZ4 and will continue to test the depth extension potential of the zone. Additionally, drilling from underground development recently excavated close to BMZ4 will allow more intensive definition drilling to commence shortly. Finally, results from the intensive definition drilling will allow the Company's mine planning team to begin preliminary designs for BMZ4 in order to assess the potential for mining the zone early in the production schedule. A particular focus in this work will be to evaluate the potential to use bulk-style mining, including transverse extraction using primary and secondary stopes.

Assay results for all drill-holes reported in this release are reported in the table below:

Table I: Drill Hole Results

        Hole ID       From        To            Intercept         Gold**          Silver**

             Gold                  Mid-Point
                (m)        (m)        Interval*             (g/t)           (g/t)                Equivalent**             Elevation
                                         (m)                                                         (g/t)                   (m)


        BUSY405      29.50      39.50                 10.00            2.23                4.6                       2.29                     1425

    ---

                     44.20      48.00                  3.80            7.79               10.3                       7.93                     1422



        incl         46.00      46.60                  0.60           25.90               10.8                      26.04                     1423


        BUSY406      36.90      38.40                  1.50            2.60               31.5                       3.02                     1357


        BUSY407      56.15      58.70                  2.55            2.91                2.9                       2.95                     1395

    ---

                     75.95      77.50                  1.55            3.39                1.7                       3.41                     1380



                     84.40      96.70                 12.30           10.17                4.4                      10.23                     1365



        incl         84.40      84.95                  0.55           21.90                2.3                      21.93                     1374

    ---

        and          90.50      91.05                  0.55           58.80               19.8                      59.06                     1370

    ---

        and          94.00      94.60                  0.60           44.60               10.2                      44.74                     1367

    ---

                     98.55     101.90                  3.35            2.07                1.3                       2.09                     1361



                    103.10     110.70                  7.60            3.00                3.8                       3.05                     1354



        incl        107.80     108.40                  0.60           11.50                3.8                      11.55                     1356

    ---

                    112.50     114.75                  2.25            3.06                3.7                       3.11                     1351



                    122.60     124.40                  1.80            8.27                2.2                       8.30                     1344



                    136.50     140.40                  3.90            4.08                7.1                       4.18                     1331



                    149.15     154.35                  5.20            1.49                8.4                       1.60                     1320



                    155.50     165.60                 10.10            4.03               14.1                       4.22                     1312



        incl        159.35     160.35                  1.00           10.30                7.8                      10.40                     1316

    ---

                    174.20     179.75                  5.55            1.50               11.1                       1.65                     1301



                    193.00     201.70                  8.70            6.49               57.2                       7.25                     1284



        incl        195.70     197.45                  1.75           19.03              191.6                      21.58                     1287


        BUSY409      73.80      89.30                 15.50            7.03                9.1                       7.15                     1382

    ---

        incl         74.80      75.30                  0.50           22.90               13.7                      23.08                     1391

    ---

        And          88.70      89.30                  0.60           49.40               20.4                      49.67                     1381

    ---

                     89.85      93.80                  3.95            1.56                5.0                       1.62                     1379



                     98.30      99.80                  1.50            7.52               13.3                       7.70                     1375


        BUSY410      80.20      81.20                  1.00           16.63               22.6                      16.93                     1328

    ---

                    179.40     185.90                  6.50            5.43                3.0                       5.47                     1257



        incl        179.40     180.00                  0.60           22.00               11.5                      22.15                     1261

    ---

        And         185.40     185.90                  0.50           34.60                6.9                      34.69                     1257

    ---

                    218.30     221.80                  3.50            4.17                2.2                       4.20                     1234



        incl        221.20     221.80                  0.60           10.00                0.8                      10.01                     1234

    ---

                    266.95     281.70                 14.75            4.82               15.4                       5.03                     1195



        incl        271.40     272.00                  0.60           31.20                7.9                      31.31                     1201

    ---

                    302.70     306.40                  3.70            9.60               59.0                      10.39                     1179



        incl        304.80     306.40                  1.60           15.34              100.3                      16.68                     1179


        BUSY411      91.20      96.70                  5.50            4.15                7.2                       4.24                     1370

    ---

        incl         93.00      93.50                  0.50           24.10                3.2                      24.14                     1372

    ---

                    112.50     118.15                  5.65           18.69               38.7                      19.20                     1354



        incl        115.65     116.65                  1.00           47.45              146.0                      49.40                     1355

    ---

        And         117.15     117.65                  0.50           80.60               78.4                      81.65                     1354

    ---

                    121.30     126.50                  5.20            2.26                3.4                       2.31                     1348



                    134.70     148.00                 13.30            5.71               10.7                       5.85                     1332



        incl        136.30     137.60                  1.30           21.42                5.8                      21.50                     1340

    ---

        And         141.75     142.25                  0.50           13.20               32.8                      13.64                     1336

    ---

                    157.10     163.50                  6.40            4.08               35.5                       4.55                     1321



        incl        162.50     163.00                  0.50           12.05               78.1                      13.09                     1321


        BUSY412     160.00     161.10                  1.10            3.29                6.6                       3.38                     1261

    ---

                    183.90     194.80                 10.90            3.50                7.1                       3.60                     1234



        incl        193.15     193.70                  0.55           15.20               19.3                      15.46                     1237

    ---

        And         194.30     194.80                  0.50           24.90               19.1                      25.15                     1236

    ---

                    205.85     206.35                  0.50           18.25                9.7                      18.38                     1227



                    211.55     219.60                  8.05            2.05                2.6                       2.09                     1217



                    230.95     242.40                 11.45            8.24               17.3                       8.47                     1200



        Incl        233.10     235.25                  2.15           37.80               19.6                      38.06                     1205

    ---

        and         234.20     234.70                  0.50          146.00               10.9                     146.15                     1206

    ---

                    254.00     257.30                  3.30            7.13                5.4                       7.20                     1189



        incl        254.50     255.00                  0.50           24.20               17.3                      24.43                     1190

    ---

                    269.80     271.90                  2.10            3.12               12.4                       3.28                     1177


        BUSY413      72.40      76.20                  3.80            1.92                3.4                       1.96                     1392

    ---

                     96.00     102.50                  6.50            3.66               10.0                       3.79                     1376



        incl        101.50     102.00                  0.50           23.80               42.8                      24.37                     1376

    ---

                    112.60     118.60                  6.00            5.39               10.6                       5.53                     1365



        incl        112.60     113.20                  0.60           12.90               27.0                      13.26                     1369

    ---

        and         114.25     115.50                  1.25           12.23                8.3                      12.34                     1368

    ---

                    122.30     137.70                 15.40            3.48               19.7                       3.74                     1353



        incl        129.50     130.00                  0.50           11.00               51.0                      11.68                     1358

    ---

        and         130.50     131.00                  0.50           14.55               37.1                      15.04                     1358


        BUSY414      58.20      58.90                  0.70            4.40                0.7                       4.41                     1344

    ---

                    198.50     199.60                  1.10            3.66                1.5                       3.68                     1252



                    202.40     202.90                  0.50            2.80              211.0                       5.81                     1249



                    222.70     224.20                  1.50            4.19                5.7                       4.28                     1236



                    251.00     252.20                  1.20            2.97               18.6                       3.24                     1219



                    265.30     265.80                  0.50            7.58               13.8                       7.78                     1210



                    290.00     295.30                  5.30            4.73                4.8                       4.79                     1193



        incl        290.00     290.50                  0.50           25.30                3.8                      25.35                     1196


        BUSY415      27.50      32.60                  5.10           17.32               39.6                      17.89                     1416

    ---

        incl         28.00      28.50                  0.50           25.80                6.9                      25.90                     1419

    ---

        and          30.50      32.10                  1.60           41.10              107.0                      42.63                     1417

    ---

                     90.50      91.00                  0.50           24.20                1.4                      24.22                     1370



                    104.50     113.10                  8.60            5.03               12.4                       5.21                     1358



        incl        109.90     110.40                  0.50           15.50                5.3                      15.58                     1355

    ---

        and         112.60     113.10                  0.50           23.90               13.8                      24.10                     1353

    ---

                    121.00     122.60                  1.60            3.14                7.4                       3.24                     1345



                    129.00     135.40                  6.40            4.40                3.8                       4.46                     1335



        incl        132.35     132.90                  0.55           25.70                2.4                      25.73                     1337

    ---

                    148.95     151.25                  2.30            3.18               19.2                       3.45                     1323



                    157.55     159.20                  1.65            3.66               13.0                       3.84                     1317



                    164.85     170.75                  5.90            4.25               22.4                       4.57                     1308



        incl        168.00     168.70                  0.70           11.55               31.5                      12.00                     1309

    ---

                    190.50     193.20                  2.70            3.70                7.8                       3.81                     1290


        BUSY416      75.10      87.30                 12.20            5.11               10.9                       5.27                     1387

    ---

        incl         81.00      82.00                  1.00           43.05               20.0                      43.34                     1391

    ---

                     90.40      91.60                  1.20            4.01                4.3                       4.07                     1385



                    100.20     128.10                 27.90            7.04                7.5                       7.15                     1363



        incl        109.50     110.00                  0.50           41.00               24.1                      41.34                     1373

    ---

        and         113.20     114.00                  0.80           35.00                7.3                      35.10                     1371

    ---

        and         117.40     118.10                  0.70           41.50                3.5                      41.55                     1369

    ---

                    133.00     140.60                  7.60            3.85               33.7                       4.33                     1355



        incl        139.10     139.65                  0.55           12.15               73.7                      13.20                     1355


        BUSY417      55.30      55.80                  0.50            5.94                3.2                       5.99                     1340

    ---

                     69.65      70.15                  0.50           77.20               49.8                      77.91                     1329



                    228.50     230.85                  2.35            4.67                5.0                       4.74                     1208



        incl        230.20     230.85                  0.65           14.20                1.5                      14.22                     1208

    ---

                    235.20     236.20                  1.00            4.02               11.4                       4.18                     1204



                    266.00     273.55                  7.55            7.66               12.4                       7.83                     1178



        incl        268.20     268.70                  0.50           81.90                4.3                      81.96                     1181

    ---

                    278.00     291.20                 13.20            3.69               33.6                       4.17                     1165



        incl        287.40     287.90                  0.50           12.95              146.0                      15.04                     1167

    ---

        and         290.00     290.60                  0.60           30.50               58.8                      31.34                     1165

    ---

                    297.85     299.00                  1.15            3.06               17.9                       3.32                     1160



                    319.25     319.75                  0.50            7.67               38.3                       8.22                     1144



               *    Intercepts calculated at a
                composite 4.8 grams X metre gold
                equivalent for minimum intervals
                of 0.5 metres, with generally no
                more than 10% internal dilution


               **  Grades herein are reported as
                uncapped values. Gold equivalent
                in this release and table was
                calculated at Au:Ag ratio of 1:75
                with no assumptions made for
                metallurgical recovery rates


               *** True widths for intercepts of
                modelled veins outside of the BMZs
                are estimated to be between
                75-100%. Mineralization
                intercepted with BMZ4 is generally
                estimated to be within 70-100% of
                true widths


Geological Description of the Buriticá Project

Continental's 100%-owned, 75,583-hectare project, Buriticá, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style ("Stage I") variably overprinted by texturally and chemically distinctive high-grade ("Stage II") mineralization. The two most extensively explored of these areas (the Yaraguá and Veta Sur systems) are central to this land package. The Yaraguá system has been drill-outlined along 1,350 metres of strike and 1,800 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 1,300+ metres of strike and 1,800 vertical metres and has been partially sampled in underground developments. Both systems are characterized by multiple, steeply-dipping veins and broader, more disseminated mineralization and both remain open at depth and along strike, at high grades.

BMZ Details

The BMZ consists of a group of modelled precious metal-bearing veins in the current mineral resource estimate block model with mineralization occurring between these veins, generally in the form of veinlets at oblique angles to strike. The majority of the mineralization between modelled veins is not in the current mineral resource estimate, providing potential upside both in terms of identifying significantly broader and more productive zones for mining and increased mineral resources. To date, the Company has identified up to seven BMZ targets for testing and will systematically drill each target zone as underground mine development advances.

BMZ4 is a three-dimensional orebody interpretation and modelling with variability in width, thickness along a vertical extension. Additional core drilling is been planned to define its characteristics, such as gold/silver grades, geometry and geomechanical properties.

Technical Information

Mauricio Castañeda, Vice-President, Exploration of the Company and a Qualified Person for the purpose of Canadian National Instrument 43?101 ("NI 43?101"), has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release.

Besides rigorous chain-of-custody procedures, the Company utilized a comprehensive quality control/quality assurance program for the channel samples. All quality control anomalies were addressed and/or corrected as necessary to assure reliable assay results; no material quality control issues were encountered in the course of the program. Crush rejects and pulps are kept and stored in a secured storage facility for future assay verification.

For exploration and infill core drilling, the Company applied its standard protocols for sampling and assay. HQ and NQ core is sawn or split with one-half shipped to a sample preparation laboratory in Medellín run by ALS Colombia Limited ("ALS"), whereas BQ core samples are full core. Samples are then shipped for analysis to an ALS-certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check-assayed at SGS Colombia S.A., a certified assay laboratory in Medellín, Colombia.

The Company does not necessarily receive assay results for drill holes in sequential order; however, all significant assay results are publicly reported.

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.

About Continental GoldContinental 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 first gold pour anticipated during the first half of 2020. Additional details on Continental Gold's suite of gold exploration properties are also available at www.continentalgold.com.

Forward-Looking StatementsThis press release contains or refers to forward-looking information under Canadian securities legislation--including statements regarding: timing of drill results and first gold pour; advancing the Buriticá project; exploration results; potential mineralization; potential development of mine openings; potential improvement of mining dilution grades; reducing start-up risks; and exploration and mine development plans--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. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, an inability to advance the Buriticá project to the next level, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. 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 press 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.

Differences in Reporting of Resource EstimatesThis press release was prepared in accordance with Canadian standards for reporting of mineral resource estimates, which differ in some respects from U.S. standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources," "indicated mineral resources," "measured mineral resources" and "mineral resources" used or referenced in this release are Canadian mineral disclosure terms as defined in accordance with NI 43-101 -under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). Until recently, the CIM Standards differed significantly from standards in the U.S. The U.S. Securities and Exchange Commission (the "SEC") has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act"). These amendments became effective February 25, 2019 (the "SEC Modernization Rules") with compliance required for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules replace the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7, which will be rescinded from and after the required compliance date of the SEC Modernization Rules. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". In addition, the SEC has amended its definitions of "proven mineral reserves" and "probable mineral reserves" to be "substantially similar" to the corresponding definitions under the CIM Standards, as required under NI 43-101. Accordingly, during this period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or mineral reserves contained or referenced in this release may not be comparable to similar information made public by United States companies. Readers are cautioned that "inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies, except in limited circumstances. The term "resource" does not equate to the term "reserves". Readers should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

SOURCE Continental Gold Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2019/16/c4749.html

SOURCE: Continental Gold Inc.

Paul Begin, Chief Financial Officer, Continental Gold Inc., +1.416.583.5610,
info@continentalgold.com, www.continentalgold.com

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