Gold developer Continental Gold’s stock on the Toronto exchange received a boost on Monday, after the company announced its latest assay results for four diamond drill holes at the Buritica project, in Colombia, and said that Eric Sprott had invested $25-million in the company.
Sprott agreed to buy 10 645 200 shares of the company at C$3.10 a share, representing a 2.9% discount to the five-day volume-weighted average share price ended June 21.
Continental said the proceeds of the private placement would be used for general working capital and corporate purposes.
In terms of the drilling results, Continental said that high-grade visible gold was encountered in all four holes, covering a block of 50 m by 50 m on the Centena vein. Highlights of the results include 1.2 m at 44.90 g/t and 50.4 g/t silver, 0.50 m at 582 g/t gold and 159 g/t silver, 0.50 m at 47.2 g/t gold and 363 g/t silver, 2.10 m at 35.54 g/t gold and 47.9 g/t silver and 1.05 m at 44.41 g/t gold and 273 g/t silver.
The miner said that these intercepts were grading “significantly higher” than the current inferred resource block model estimate for this area of the Centena vein.
The company currently has 11 diamond drill rigs operating as part of its 73 500-m definition and exploration drilling programme for 2019.
“Our strategy of drill-testing targets that have potential for being incorporated into the first three years of mine life at Buriticá has yielded excellent results in 2019. With the recent discovery of BMZ4 and assay results from drilling of the Centena vein yielding, on a weighted average basis, greater than a 500% higher grade of gold than the mineral resource block model in the corresponding locations, we have plenty to look forward to in the coming months,” commented CEO Ari Sussman.
Construction of the Buriticá project was 67% complete at May 31, and remains on schedule for first gold pour in the first half of next year.
Continental’s stock rose 12.2% to C$3.68 a share on Monday.