Continuum Receives Permits for the Initiation of Surface Drilling and Underground Bulk Sampling at Natividad
Vancouver, British Columbia, May 1, 2007: Continuum Resources Ltd (TSXV: CNU) is pleased to announce that it has received the required environmental permits for the initiation of surface drilling at their Natividad gold-silver prospect located in the state of Oaxaca in southern Mexico. The permit, which was issued by Semarnat, the Federal environmental agency, also grants Continuum the right to carry out an additional 600 meters of underground tunneling. A contract for a minimum of 2,500 meters of surface Diamond drilling has been signed with World Wide Exploration S.A. de C.V.
Surface drilling will test the depth, and on-strike extensions of the southern-most recognized, historically-producing ore shoot at Natividad, a bonanza-grade gold and silver producer which historically produced approximately 1 million ounces of gold and 23 million ounces of silver. The objective of the surface drilling at the southern end of the Natividad deposit is to determine if the ore body continues to the south and could add an additional resource that is currently being drilled from underground approximately 2 kilometers to the north (the Northern Extension Zone, see previous news releases).
Additional targets farther to the south, characterized by historical, smaller gold-silver mines have been identified and will also be tested by the surface drilling. For example, at the Manchega Zone, located 1 km south of the Natividad mine entrance, surface channel samples yielded values such as 4.79 grams per tonne (gpt) gold and 37gpt silver over a true width of 3 meters and underground sampling of historic, near-surface workings returned values up to 17.95 gpt gold and 143 gpt silver over a vein width of 2.10 meters. Over three years of exploration in the Natividad district by Continuum have provided targets for the southern continuation of the Natividad deposit.
Continuum has been carrying out underground drilling at Natividad since mid 2006 and has discovered high-grade gold and silver intercepts in the Northern Extension Zone; the fault-displaced continuation of the ore body towards the north (refer to previous news releases).
Lawrence Dick, Vice President of Exploration for Continuum states: "With the initiation of surface drilling, the Company will now be probing extensions of the deposit to the north, south, and to depth. Our new permit allows for the drilling of a further 30 holes from underground, most of which will be targeting a resource in the new, Northern Extension Zone. The permitted 600 meters of underground tunneling will allow Continuum to drift on drill-indicated vein intercepts to allow for better grade estimation. Given the significant nugget effect of the mineralization, the tunneling program will provide a better grade estimation on lower-grade drill intercepts, critical to a resource estimation."
Continuum controls a large, approximately 55,000 hectare land package at Natividad, constituting what management has labeled the "Natividad District". The Natividad deposit, and numerous other, smaller past-producers and exploration targets are aligned along a 35 km-long, NE-trending zone, all of which falls within Continuum's land holdings.
Continuum is a major explorer in the state of Oaxaca, with over 200,000 hectares of land, comprising 11 projects, in a number of past-producing silver and gold districts. At the San Jose silver-gold deposit, Continuum and joint venture partner Fortuna Silver Mines Inc. have recently initiated an aggressive exploration drilling and pre-feasibility program to take the San Jose deposit towards production (refer to previous news releases).
The Qualified Person for this project, under the definition established by National Instrument 43-101, is Lawrence Dick, Ph.D., P.Geo., Vice President Exploration for Continuum Resources Ltd. All geochemical analyses are carried out by ALS Chemex in North Vancouver, B.C.
On behalf of the Board of Continuum Resources Ltd.
"Larry Dick"
Lawrence A. Dick, Ph.D., P.Geo., Vice President and Director
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