Continental Gold (TSX:CNL; OTCQX:CGOOF) is a development-stage gold mining company. With a first mover advantage in Colombia, the Company has a portfolio of high-grade and high impact exploration and development properties. The Company’s flagship Buriticá project is a high-grade and multi-million-ounce precious metal project boasting mineral reserves of 3.7 million ounces at 8.4 g/t gold (13.7 million tonnes), with production scheduled for early 2020. In May 2017, Newmont Mining invested US$109 million at a 46% premium to market to purchase a 19.9% interest. The Company is advancing on schedule with construction of its Buriticá mine and is commencing an aggressive 100,000-metre drill program on the property.

Why Continental Gold?


  • One of the largest and highest grade undeveloped deposits in the world
  • Fully permitted with production scheduled for 2020
  • US$389 million Buriticá project CAPEX
  • Feasibility Study demonstrates that Buriticá will be a lowest quartile cost producer and financially robust gold mine
  • Newmont Mining purchased a 19.9% cornerstone stake for US$109 million
  • Vein continuity and mineability robust: pilot-scale mine operating for 23 years; over 10 km of underground development completed; trial mining stopes successfully extracted by long-hole; reconciled results with over 100% more gold than estimated
  • Significant exploration upside: Multi-million Inferred gold ounces of existing Inferred gold not included in Feasibility Study; both the Yaraguá and Veta Sur vein systems remain open along strike and depth; four additional vein systems at drill-ready stage
  • Significant discount to peer group on all metrics according to consensus analyst research*

*Source: FactSet, Bloomberg, available equity research November 29, 2016
1All references to mineral reserves and the mineral resource estmate and the results of the Feasibility Study are sourced from the technical report entitled “Buritcá Project NI 43-101 Technical Report Feasibility Study Antoquia, Colombia” dated March 29, 2016 with an effective date of February 24, 2016. A copy of the technical report can be accessed under the Company’s SEDAR profile at www.sedar.com or on the Company’s website at www.continentalgold.com.

The Buriticá Project

 

The Buriticá project is Continental Gold’s 100%-owned, fully permitted flagship high-grade gold project located in the middle Cauca belt in the northwest region of Colombia. Easily accessible by an approximately two-hour drive on the paved Pan-American highway from Medellín, Colombia’s second largest city. Comprised of two major vein systems, the project boasts a rare combination of size, grade, excellent metallurgy and growth-potential.

 

February 2016 Feasibility Study (After Tax)

 
 
  Low Case Base Case High Case
Gold/Silver Price
(US$/ounce)
$1,000 / $12 $1,200 / $15 $1,400 / $17
Net Cash Flow
(US$)
$991 million $1.44 billion $1.89 billion
Net Present Value
(5.0% discount) (US$)1
$560 million $860 million $1.16 billion
Internal Rate
of Return
23.6% 31.2% 37.8%
Payback (from start of
production period)
3.0 years 2.3 years 1.8 years
Exchange Rate
(US$:COP)
2,850 2,850 2,850
1 NPV is discounted to September 1, 2016.
Source: Technical report entitled “Buriticá Project NI 43-101 Technical Report Feasibility Study Antioquia, Colombia” dated March 29, 2016 with an effective date of February 24, 2016, led by independent consultants JDS Energy & Mining, Inc.
 

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Investor Relations

Paul Begin, CFO
+1-416-583-5611 | +1-877-273-8228
info@continentalgold.com