Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

May 14, 2013 07:00 ET

New Drilling Confirms Historic Drill Results at Candelones Main Zone Including 35.0 Metres of 1.9 g/t Au and 15.4 g/t Ag

TORONTO, ONTARIO--(Marketwired - May 14, 2013) - Unigold Inc. ("Unigold" or the "Company") (TSX VENTURE:UGD) today reports that initial results from infill drilling at the Candelones Main zone has intersected grades and widths consistent with the historical drill results confirming over 3 km of strike length of mineralization, at Candelones, within the Company's 100% owned Neita Concession in the Dominican Republic.

Highlights include:

  • CFI 03 35.0 metres averaging 1.91 g/t Au with 15.4 g/t Ag;
  • CFI 04 18.3 metres averaging 1.23 g/t Au with 2.5 g/t Ag;
  • CFI 05 51.0 metres averaging 1.64 g/t Au with 0.8 g/t Ag; and
  • CFI 06 60.9 metres averaging 0.88 g/t Au with 0.2 g/t Ag
Table 1: Candelones Main Zone - Infill Drill Results (Figure 2)
SECTION I - CANDELONES MAIN ZONE - TWIN HOLES - 2013
BHID FROM TO INTERVAL AU_GPT AG_GPT CU_PCT ZN_PCT
CFI 01 257.0 263.3 6.3 0.59 1.6 0.1 % 0.0 %
CFI 02 166.0 230.0 64.0 0.48 0.2 0.1 % 0.1 %
and 241.0 265.0 24.0 0.36 0.7 0.0 % 0.1 %
CFI 03 3.0 38.0 35.0 1.91 15.4 0.2 % 0.1 %
and 50.0 68.0 18.1 0.39 1.1 0.0 % 0.1 %
CFI 04 27.0 39.6 12.6 1.40 0.7 0.1 % 0.2 %
and 50.7 69.0 18.3 1.23 2.5 0.4 % 0.1 %
CFI 05 26.6 140.0 113.4 0.82 0.5 0.1 % 0.2 %
incl 53.0 104.0 51.0 1.64 0.8 0.1 % 0.3 %
CFI 06 103.1 164.0 60.9 0.88 0.2 0.0 % 0.2 %
incl 103.1 112.0 8.9 1.11 0.4 0.1 % 0.6 %
CFI 07 132.0 249.0 117.0 0.51 0.5 0.0 % 0.1 %
incl 194.0 210.0 16.0 1.25 1.0 0.1 % 0.1 %
CFI 08A 7.0 29.7 22.7 0.76 2.7 0.0 % 0.0 %
The results reported represent down hole sample intervals and not true widths. All drilling at Candelones Main is designed to intersect the targeted mineralized zone at right angles and therefore, the results above should approximate true widths.

"We are excited to bring attention back to the original discovery area: the Candelones Main zone, which has largely been 'off the investors radar,' while we focused drilling at the Extension," said Andrew Cheatle, President and CEO. "Today's results confirm historically tested mineralization at Candelones Main zone, which was drilled over a strike length of 400 m, and continues to demonstrate three kilometers of gold mineralization at Candelones."

Candelones Main

The Candelones Main zone, the initial gold discovery within the Company's 22,600 hectare Neita Concession, is located approximately 700 m west of the Candelones Extension zone (Figure 1).

Exploration drilling at the Candelones Main zone dates back to 1997 and over 140 holes are completed to date. Drilling was completed on section lines spaced approximately 50 m apart with holes spaced from 50 to 100 m along each section. Results have outlined a mineralized zone over a 600 metre strike length (Figure 2). The mineralization sub-crops and dips from 40 to 50 degrees to the northeast. Drilling has traced the mineralization to a down dip extent of approximately 200 to 300 m and the mineralization varies in thickness from several metres to several tens of metres, with gold grades averaging between 0.5 to 2.5 g/tonne.

The upper 20 to 30 m of the mineralized horizon is highly to moderately oxidized. Previous metallurgical test work from the Candelones Main Zone, completed in 2007, indicated gold recovery within the oxide horizon in excess of 95% based on direct cyanidation tests of an oxide composite collected from the Candelones Main zone.

The historical drilling was completed without the benefit of currently accepted Quality Assurance and Quality Control ("QA/QC") procedures. In 2012, the Company engaged independent consultants to complete duplicate assays on historic pulp and reject samples from the Candelones Main zone. Results demonstrated excellent precision between duplicate and original assays, consequently the original analytical results can be used with confidence.

The Company also decided to complete a fence of holes designed to twin specific sections from the historical drill record. The twinned holes would increase the confidence level of the historical data at Candelones in advance of an initial resource estimate.

An initial fence of eight drill holes were laid out approximately 10 m southeast of Section I and 40 m northwest of Section H at the Candelones Main zone (Figure 2, Figure 3).

Results of the twinned section are consistent with the results from the original drilling (Table 1, Figure 4).

The original results from Section I (Table 2, Figure 5) and Section H (Table 3, Figure 5) both indicate that average grades and interval lengths are consistent with the latest results.

TABLE 2 - SECTION I - CANDELONES MAIN ZONE - HISTORICAL DRILL RESULTS
BHID FROM TO INTERVAL AU_GPT AG_GPT CU_PCT ZN_PCT
DC104 186 203 17 0.57 0.2 0.00 % 0.10 %
and 219 239 20 2.18 0.4 0.10 % 0.00 %
DC105 101 196 95 0.41 0.1 0.00 % 0.10 %
and 101 177 76 0.45 0.1 0.00 % 0.10 %
DC110 151 247 96 0.62 0.4 0.00 % 0.20 %
and 151 178 27 1 0.6 0.00 % 0.20 %
DC112 263 267 4 1.25 0.8 0.20 % 0.00 %
and 280 297 17 1.56 0 0.00 % 0.40 %
SC29 39 100 61 2.18 0.9 0.10 % 0.20 %
SC36 88 129 41 1.14 0.9 0.10 % 0.20 %
DC70 40 53 13 0.71 1.2 0.00 % 0.10 %
SC39 16 57 41 1.01 0.3 0.00 % 0.20 %
and 91 104 13 0.99 0.6 0.10 % 0.30 %
DC88 0 30 30 0.7 4.1 0.00 % 0.00 %
SC20 0 32 32 0.45 0.3 0.00 % 0.00 %
DC111 No Significant Values
SC38 No Significant Values
TABLE 3 - SECTION H - CANDELONES MAIN ZONE - HISTORICAL DRILL RESULTS
BHID FROM TO INTERVAL AU_GPT AG_GPT CU_PCT ZN_PCT
SC07 26 39 13 0.67 1.1 0.00 % 0.00 %
SC28 20 43 23 0.57 3.8 1.20 % 0.10 %
and 70 75 5 0.6 0.9 0.10 % 0.60 %
DC100 118 206 88 0.89 0.5 0.10 % 0.20 %
DC120 156 216 60 1.22 0.3 0.00 % 0.10 %
SC06 0 13 13 0.39 1.4 0.00 % 0.10 %
and 31 47 16 0.46 3.1 0.00 % 0.10 %
SC07 0 14 14 1.35 1 0.00 % 0.10 %
and 26 39 13 0.67 1.1 0.00 % 0.00 %
SC37 44 145 101 1.43 0.5 0.00 % 0.30 %
SC44 82 153 71 0.59 0 0.00 % 0.00 %

Given the excellent correlation between these results and the historical drilling, the Company has decided to postpone a second planned section of infill / twin drilling at Candelones Main to focus on untested geophysical and geochemical targets proximal to the Candelones Main - Candelones Extension area.

Regional Exploration

Regional mapping at 1:5000 scale has been completed over the Montazo, Guano and Naranjo ("MGN") target areas that lie entirely within the Neita Concession. Mapping has identified dacite tuff(s) in contact with overlying andesite as well as significant silicic and argillic alteration assemblages. Gold mineralization at Candelones is closely associated with similar lithologies and alteration assemblages suggesting the MGN area is highly prospective for additional gold discovery.

Company field teams are currently completing detailed 1:1000 scale mapping where soil geochemical surveys and the recent induced polarity surveys have identified multiple anomalies. On completion of this detailed geological mapping, drills will be mobilized to the area to test the most prospective anomalies.

Award of Initial Resource Estimate

Micon International has been awarded the contract to provide the initial resource estimate and accompanying Technical Report for the Candelones Main, Connector and Extension zones. The Company is targeting completion by the end of the third quarter.

Premier Mining Destination - Dominican Republic

The Dominican Republic is host to world-class gold and base metal mines and deposits. The government supports development and exploration in the mining sector. In addition, the country has well established Mining Laws and Environmental Laws. Unigold's wholly owned flagship property, Neita is compliant with all mineral and environmental requirements and work is conducted to internationally accepted environmental and social standards. The Neita concession exploration license was renewed in 2012 and is in good standing.

Unigold has sufficient funding to meet the goals and objectives established for the current exploration program.

QA/QC (TWIN HOLES)

Drilling provides both HQ and NQ diameter core for sampling. Holes are typically started with larger diameter HQ core and the hole diameter is reduced to NQ at depth. Samples are logged, split by wet diamond saw, and half sent for assaying with the other half stored on site. Sample lengths typically average 1 m, but vary by geological boundaries. Continuous chip samples from trenches are typically 3 m to 5 m in length. QA/QC included inserting certified standards and blanks into the sample stream at industry standard intervals. Samples are prepped by ACME Analytical Labs in the Dominican Republic, with assaying performed through ACME's laboratory in Santiago, Chile. Analytical procedures include a 36-element ICP-ES analysis (1E) and a 50 g FA AA finish for gold (G6-50).

Wes Hanson PGeo., Chief Operating Officer of Unigold, has reviewed and approved the contents of this press release.

About Unigold Inc. - Discovering Gold in the Caribbean

Unigold is a Canadian based mineral exploration company traded on the TSX Venture Exchange under the symbol UGD, focused primarily on exploring and developing its gold assets in the Dominican Republic.

For Further Information please visit www.unigoldinc.com.

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