Continuum Resources Ltd. (“CNU”) is a newly-formed junior minerals exploration company listed on the TSX Venture Exchange. Goal is to build Continuum Resources into a successful, and profitable, resource company through the acquisition, and discovery, of precious metals ore bodies in Canada and internationally

Continuum Resources Ltd.       [CNU:TSX-V]

La Calentana Project, Pinzan Morado District, Guerrero. Vancouver, British Columbia, October 2, 2003: Continuum Resources Ltd (TSXV: CNU) is pleased to announce that it has signed a Letter Of Intent regarding an option to purchase a 100% interest in the historically-producing La Calentana gold deposit from the owners, Minera Reyna del Pacifico, S.A. de C.V. The owners are at arm’s length to Continuum. Recent drilling at La Calentana by the current owners has returned high-grade gold values such as 42.9 grams per ton over a core interval of 4.30 meters, and yet higher gold grades over narrower intervals. The deposit is located in the State of Guererro, Mexico, 35 km by paved highway from the city of Altamirano.

La Calentana is located in the Pinzan Morado gold district, which contains numerous, shale-hosted, gold-zinc-bearing mesothermal quartz vein systems. The deposit, which has been in operation on a discontinuous basis since the 1940’s, has been developed and explored to a depth of only100 to 150 meters below the surface. Continuum management believes that the La Calentana vein system is a mesothermal-style system, and as such, has the potential to continue to depths of many hundreds of meters. Recent drilling, conducted in 2002 by Reyna del Pacifico, has returned some very high-grade intersections along a portion of the approximately 900 m-long quartz vein system as follows:

Hole # From (m) To (m) Length (m) Au (gpt) Zn (%)
BDNP-2 89.75 94.05 4.30 42.93 2.93
Including 91.40 92.45 1.05 161.75 6.71
BDNP-3 91.85 92.50 0.65
9.53 0.28
BDNP-4 116.15 119.05 2.9 40.46 2.28
Including 117.95 119.05 1.10 88.94 2.44
BDNP-5 122.0 123.7 1.70 41.41 3.31
Including 122.0 122.6 0.60 101.45 4.84
BDNP-6 189.35 192.60 3.25 29.67 1.25
Including 189.35 190.45 1.10 46.14 1.41
And 191.35 192.05 0.70 60.10 2.40
200.30 202.65 2.35 21.26 0.49
BDNP-7 34.70 35.95 1.25 12.21 0.63
BDNP-9 140.60 141.25 0.65 14.26 0.27
BDNP-12 84.40 85.15 0.75 10.15 0.48
109.35 109.95 0.60 36.70 0.94
117.95 118.50 0.55 12.80 1.89
BDNP-14 78.34 79.60 1.25 90.90 1.82
BDNP-15 173.65 175.70 2.05 15.83 1.28
Including 173.65 174.85 1.20 25.13 1.85
BDNP-16 158.85 160.65 1.80 33.69 5.28
Including 159.80 160.65 0.85 63.60 7.72

Holes were drilled towards the south at angles of between 45 and 60 degrees, while the veins dip steeply towards the north. The majority of the above intersections are from holes which tested approximately 200 meters of strike length near the western end of the known vein system. Drill hole BDNP-16, however, tested the vein system approximately 550 meters to the east of its known western limit. The system remains open to the east and west, and to depth. Drilling carried out by Reyna del Pacifico during 2000 showed that the vein system can attain significantly greater widths locally. One hole, CIP-10, intersected a true vein width of 6.80 meters grading 21.66 grams per ton gold at a depth of 65 meters below the surface. Under the terms of the agreement, Continuum can earn a 100% interest in the 1,200 ha. property by issuing shares to Reyna del Pacifico, as follows:

Date No. of shares to be issued

On signing 1 million
First anniversary 1.75 million
Second anniversary 2.375 million
Third anniversary 2.875 million

In addition, Continuum must expend on exploration, the following (US$):

First year $ 650,000
Second year $ 1,000,000
Third year $ 1,000,000

A 90 day period of due diligence follows the signing of the Letter of Intent.

Historical mining has extracted ore to an average depth of approximately 100 meters below the surface, and along a strike length of approximately 800 meters. A mill and concentration facility, with an approximate capacity of 250 tons per day, was installed by Reyna del Pacifico. Both the existing workings and the mill and concentration facility will be transferred upon the exercise of the option. Under the terms of the agreement, Reyna del Pacifico has the right to conduct minimal mining operations from existing infrastructure to a maximum depth of approximately 140 meters below the surface during the option period. Production cannot exceed 60,000 ounces in total, and Continuum will be paid US$15 for every ounce of gold mined.

Continuum plans to explore, by surface and underground diamond drilling, the full strike length and depth extent of the gold mineralization, with the objective of determining a geological resource, and ultimately a mineable reserve. Continuum has also announced a separate option agreement (see press release dated September 15, 2003) in which it has acquired 3,552 hectares of exploration lands adjacent to the La Calentana deposit, on which numerous vein systems are known to occur in a similar geological environment. No modern exploration, including diamond drilling, is known to have been conducted on the option claims, despite the presence of numerous small shafts, adits and shallow underground developments on gold-bearing quartz vein systems. One of the principal prospects, the La Pompeya vein system, can be traced on surface for over 600 meters along strike. With the acquisition of the La Calentana deposit, and surrounding lands with exploration potential for similar-style mineralization, Continuum will be making the Pinzan Morado district a major focus of its near-future exploration efforts.

Press Release 02Oct03

San Jose epithermal silver-gold deposit, Taviche silver-gold district, Oaxaca. Continuum Resources Ltd. (“Continuum”) is pleased to announce that it has signed a binding Letter of Intent with Minerales de Oaxaca, S.A. de C.V. (“Mioxa”), an arm’s length party, to acquire up to an 80% interest in the past-producing San Jose epithermal silver-gold deposit, as well as other exploration concessions in the nearby Taviche silver-gold district, all located in the State of Oaxaca, Mexico. Historic production at the San Jose mine was from structurally-hosted mineralization which graded in the range of 400-600 grams per ton silver, and 3-5 grams per ton of gold, although much higher grades occur. Limited sampling carried out by Continuum on the lowest level of the San Jose mine returned gold values ranging between 10.0 and 33.1 grams per ton of gold, and between 1790 and 5940 grams per ton of silver (3 samples). Silver-gold mineralization at San Jose is open to depth, and along strike, from historically mined sections. The nearby Taviche claims host several, past-producing deposits, which similarly have depth, and on-strike, potential. An aggressive exploration program is planned to identify new silver-gold resources both at San Jose and Taviche, by exploring to depth, and along strike from known mineralization.

Under the terms of the agreement, Continuum can earn an 80% interest in both projects by making cash payments totaling US$ 2.82 million over a period of six years. A cash payment of US$ 40,000 is due on signing, with first and second anniversary payments being US$100,000 and US$200,000 respectively. Remaining cash payments are spread over the subsequent 4 anniversaries of the option period. Additionally, the agreement calls for the issuance of a total of 2.1 million shares of Continuum to the vendor: 150,000 on signing; 150,000 after the first anniversary; 200,000 after the second anniversary, and the balance over the ensuing 4 year period. Continuum has the right to terminate the option at any time.

Continuum also commits to expend a minimum of US$ 1 million in exploration, consisting of minimum expenditures of US$ 100,000 during the first year, and US$ 150,000 during the second year.

A 50,000 share finder’s fee will be issued in relation to this agreement.

The Property: Two groups of claims are included in the agreement; 702 hectares covering the past-producing San Jose del Progreso low-sulphidation, epithermal Ag-Au deposit (San Jose) and a second group comprising 479 hectares, which covers a significant portion of the nearby Taviche Ag-Au district. The Taviche district is located 43 km south of the city of Oaxaca and both Taviche and San Jose are accessible by paved highway.

The San Jose mine operated intermittently from the late 1800’s until 1942. More recently, small-scale production began in 1991 when the current owners acquired the property. Mineralization occurs in at least two veins, the Trinidad and Bonanza veins, and an intermediate zone of brecciation and stockworking. The Trinidad vein averages approximately 2.5 meters wide, and locally reaches approximately 10 meters in width, while the Bonanza vein has a variable width of up to 4 meters. While the veins can be traced on surface for approximately 3 km within the boundaries of the San Jose property, mining has occurred intermittently over a strike length of 1.4 km and to a depth of only 130 meters below the surface.

Existing records at the site indicate that the vein-hosted ore graded up to 20 grams per ton gold, and up to 4 kilos per ton silver, although average grades were lower, in the order of 400-600 grams per ton silver, and 3 to 5 grams per ton gold. Three samples collected from the Trinidad and Bonanza veins from the lowest level (130 meters depth) during a recent inspection by Continuum, and analyzed by ALS Chemex, gave the following results:

Vein  Sample type Gold (grams/t) Silver (grams/t) 

Trinidad     Chip     33.1      5940
Trinidad     Grab     19.6      4410
Bonanza     Grab     10.0     1790


During 2001, two drill holes were completed under the existing workings. The first hole (OCW-1) intersected mineralization approximately 10 meters below the lowest workings. The second hole was drilled vertically beneath the first, and intersected a narrower interval of mineralization. Assays of the core from both holes were carried out by ALS Chemex and are summarized as follows:

Hole No. Inclination From (m) To (m) Interval (m) Gold (g/t) Silver (g/t)

OCW-1     -57        172.5        198.1    25.6        3.25        436

Includes         172.5        184.9    12.4        5.66        730

OCW-2    -70        189.2        195.7        6.5        3.31        540


The Taviche claim block is located approximately 14 km east of the San Jose mine. Numerous, past-producing Ag-Au mines, hosting mineralization of a similar style to San Jose, consist of underground workings to variable depths below surface. The claims cover approximately 3 km of structurally-controlled quartz veins, averaging between 1 and 2.5 meters wide, which host the past-producing deposits. The mineralization was mined during the Colonial period, and no known, modern exploration has ever been carried out.

Exploration Plans

Continuum plans to explore both properties with the initial objective of identifying additional resources along strike, and to depth, near existing and previously-mined bodies. An initial phase of data compilation will accompany confirmatory re-sampling of the lowest level at San Jose and accessible parts of the Taviche deposits. Diamond drilling, both from surface and underground, is planned as a second phase of exploration once geological controls on known mineralization are better understood.

Press Release 09Sep03