Continuum Updates Exploration Results and Initiates Drilling in Taviche Silver-Gold District, Oaxaca, Southern Mexico
Vancouver, British Columbia, August 9, 2006: Continuum Resources Ltd (TSXV: CNU) is pleased to announce that it has initiated a first phase of surface diamond drilling on silver-gold targets within their recently-expanded Taviche District landholdings, located in the state of Oaxaca, in southern Mexico (refer to press release dated August 1, 2006). The initial program consists of approximately 1,500 meters of drilling in a minimum of 8 holes, and is focused on the San Francisco-Consuelo and San Nicolas vein systems. These veins, which range in thickness up to 10 meters or more in true width, are the southeasterly extensions of past-producing silver-gold veins which were important producers of precious metals early in the last century. Continuum's current focus in the district is to explore by drilling, approximately 5 kilometers of strike length along this major, mineralized system of epithermal veins which can be traced on surface for approximately 11 kilometers. Although historic underground development has explored, and locally mined, silver-gold mineralization within the area targeted by the drilling, systematic exploration and diamond drilling have never been carried out.
Surface mapping and sampling by Continuum has identified the San Francisco and San Nicolas veins as high priority drill targets. Surface sampling of these near-surface, epithermal systems has yielded grab sample assays of up to 19.6 grams per tonne (gpt) gold and 563 gpt silver over the San Francisco vein. Shallow, historic mining is evident at numerous localities along the vein system in the target area, including significant workings at the historic Consuelo mine, where surface sampling of two parallel veins ranging in thickness from 6 to 22 meters returned assays ranging up to 2.1 gpt gold and 251 gpt silver. Further south, on the newly-acquired Pochotle claim group, a chip-channel sample across a 0.7 meter wide vein yielded 5.53 gpt gold and 1,090 gpt (1.09 kilos per tonne) silver.
Through option agreements and staking, the Company now controls 18,381 hectares of exploration lands which host numerous past-producing epithermal silver-gold deposits hosted by swarms of sub-parallel-trending quartz vein systems. Continuum's new acquisitions in the Taviche District are situated approximately 14 kilometers to the east of the Company's San Jose silver-gold prospect which is currently being drilled by joint venture partner Fortuna Silver Mines Inc. (Fortuna). The assembly of a larger land position at Taviche is consistent with Continuum's strategy in Oaxaca of building contiguous land positions in past-producing precious metals districts, historically comprised of complex multi-owner patchworks of smaller claims, to allow for district-scale exploration. The Company's amalgamation of historically-producing gold deposits and prospects in the Natividad District, located approximately 70 kilometers north of the city of Oaxaca, is another example of this strategy. At Natividad, Continuum now controls over 35,000 hectares of exploration ground covering the entire historical gold-silver-producing district.
During the late 1800's and early 1900's, the Taviche District was one of the most significant silver producing areas in southern Mexico. The District, which is located approximately 35 kilometers by paved highway west of the state capital city of Oaxaca, has historically produced high-grade silver ores, with significant gold as a byproduct, from scores of shallow mines along the numerous sub-parallel-striking epithermal vein systems. Historical land ownership comprised up to sixty-nine separate companies and private land owners, with concentrate being shipped by rail which was built to the site. Mining ceased during the Mexican Revolution in the 1920's. Later, the Taviche District was declared a National Mineral Reserve by the Mexican Government, and in 2002 properties within the reserve were auctioned by the government. Continuum's land holdings in the District include the historically-producing La Voluntad, La Escuadra, El Carmen, San Juan, La Altona and Los Ocotes mines. In addition, scores of adits and smaller shafts have been constructed within the large areas of surface outcropping silicification and hydrothermal alteration. Despite the historical significance of the Taviche District deposits, virtually no modern exploration, including diamond drilling, has ever been carried out.
Silver-gold deposits in the District are epithermal, quartz-vein hosted deposits of argentite-gold-pyrite-sphalerite-galena-chalcopyrite mineralization which were mined underground but to shallow depths, generally not exceeding 150 meters below surface. Continuum's San Jose prospect, which is situated on the western edge of the District, is typical of Taviche-style deposits. At San Jose, Continuum and joint venture partner Fortuna Silver Mines Inc. have drilled below the historic workings with very positive results. Underground sampling by Continuum of the new underground Level 6 at San Jose indicates that the Bonanza Vein averages 1,102 grams per tonne (gpt) silver and 10.2 gpt gold over an average 2.3 meters minimum width, while stockwork mineralization in the footwall to the vein contains an average of 482 gpt silver and 6.52 gpt gold over a true width of 14.8 meters (refer to previous news releases concerning Continuum's San Jose exploration results). Recent surface drill results reported by Fortuna and Continuum (see press release dated May 15, 2006) include assays of up to 1,772 gpt silver and 10.5 gpt gold over a width of 4.1 meters. Continuum is using geological concepts developed at San Jose to further their exploration planning for their Taviche landholdings.
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. Geochemical assays are carried out by ALS Chemex in North Vancouver, B.C.
On behalf of the Board of Continuum Resources Ltd.
Lawrence A. Dick, Ph.D., P.Geo.
Vice President and Director
Renmark Financial Communications Inc.
Barry Mire: email@example.com
Tina Cameron: firstname.lastname@example.org
Tel.: (514) 939-3989