Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

April 11, 2016 13:48 ET

Unigold Expands Candelones Extension Deposit Intersecting 7.0 Metres Averaging 8.9 g/t Au; 37.1 g/t Ag; 0.2% Cu; 2.4% Zn at Target C

TORONTO, ONTARIO--(Marketwired - April 11, 2016) - Unigold Inc. ("Unigold" or the "Company") (TSX VENTURE:UGD) is pleased to announce recent results from exploration drilling at the Candelones Extension deposit, within the Company's 100% owned Neita Concession in the Dominican Republic.

The Company has received results from five holes testing Target C (REF Figure 1.0), near the currently defined western limit of the Candelones Extension deposit. Historical holes LP52 (15.9 metres @ 11.36 g/t Au; 38.3 g/t Ag; 0.4% Cu; 5.1% Zn) and LP57 (10.0 metres @ 6.71 g/t Au; 2.0 g/t Ag; 0.1% Cu; 0.6% Zn), define a potential vertical feeder system (REF Figure 2.0). West of LP52, historical drilling intersected relatively flat lying mineralization, dominated by sphalerite and barite, localized at the andesite - dacite contact.

LP16-103 targeted the midpoint between holes LP52 and LP57; intersecting 7.0 metres @ 8.86 g/t Au; 37.1 g/t Ag; 0.2% Cu and 2.4% Zn.

LP16-104, 50 metres to the west, intersected 3.3 metres @ 5.06 g/t Au; 90.0 g/t Ag; 0.2% Cu and 2.1% Zn.

LP16-105, 100 metres to the west, intersected 8.0 metres @ 6.30 g/t Au; 16.9 g/t Ag; 0.1% Cu and 0.9% Zn.

The three holes also roughly bisect a 200 metre gap in the historical drill pattern between holes LP70 and LP54 (REF Figure 3.0), both of which failed to intersect any mineralization of note. West of LP70, historical hole collars shifted to the north, tracking the flat lying portion of the andesite - dacite contact. These latest results suggest that there may possibly be additional resource potential south of the historical drilling.

The results suggest E-W metal zonation, represented by gold and copper rich, pyrite dominated massive sulphides in the east, changing to gold, zinc, silver mineralization associated with quartz - barite veining to the west. The results define a structural corridor that is 75 to 100 metres in vertical thickness, plunging at approximately 25-30° to the east from Target C through Target A and beyond (REF. Figure 4.0). This structural corridor contains the majority of the high grade results intersected at the Candelones Extension with the exception of some results at Target B, which are interpreted to be related to a vertical epithermal feeder system.

Joseph Del Campo, Interim President and CEO of Unigold notes: "This limited drill program has far exceeded our expectations. First and foremost it supports that higher grade mineralization is present and that the historical drill pattern failed to capture the potential associated with this mineralization which was the intent of this limited drill program. We identified higher grade mineralization at all three targets tested; three of every four holes drilled intersected elevated gold grades. All three targets remain open, offering excellent targets for future drilling which we hope will increase the mineral resource. We have isolated a structural corridor and believe that drilling within that corridor will continue to return results similar to those reported from this program. We completed the work on time and within budget, with all in drill costs of CAD $80 a metre. Most importantly, we have identified targets for follow up drill testing that we believe will increase both the quantity and quality of the mineral resource at the Candelones Extension ."

Table 1.0 summarizes the results of all the drill holes completed at Target C. The latest results define a zone that has been traced for approximately 200 metres along strike (LP43 to LP16-104) by 100 metres vertical thickness.

Table 1.0 - Significant Results - Target C - Candelones Extension

Hole #FromToInterval
(metres)
Au (g/t)Ag (g/t)Cu (%)Zn (%)
LP52115.2131.015.811.3638.30.45.1
LP57260.0270.010.06.714.20.10.8
LP43240.0244.04.09.672.00.10.6
LP16-103117.0123.07.08.8637.10.22.4
LP16-104134.9138.23.35.0690.00.22.1
LP16-105176.0184.08.06.3016.90.10.9
LP16-106141.0154.313.31.081.50.10.3
LP16-107168.0311.0135.01.442.10.10.5

LP16-106 was collared 50 metres to the north of LP16-103 and drilled at the same azimuth. It intersected 13.3 metres @ 1.08 g/t Au; 1.5 g/t Ag; 0.1% Cu and 0.9% Zn. Visual inspection of the core and the lower grades suggest that the mineralization is different than that intersected in holes LP16-103, 104 and 105. Barite is largely absent and quartz veining is minimal. It is believed that the mineralization in LP16-106 is similar to the flat lying stratabound mineralization and not the higher grade vertical feeder system believed to be responsible for the elevated gold, silver, copper and zinc mineralization intersected in the other holes at Target C.

The final hole of the program, LP16-107 was drilled at an azimuth of 060°, parallel to the interpreted strike of the stratabound mineralization (REF Figure 1.0). The hole was designed to both confirm the vertical continuity of the mineralization at Target C and to check for N-S faulting that might explain the break defined in the IP chargeabilty results (REF Figure 1.0). LP16-107 intersected the mineralized zone at a depth of 168.0 metres and remained in mineralization for the next 135.0 metres averaging 1.44 g/t Au; 2.1gpt Ag, 0.1% Cu and 0.5% Zn. For budgetary reasons, the hole was terminated in mineralization at a depth of 311.0 metres with the last interval assaying 1.0 metre @ 5.74 g/t Au; 42.4 g/t Ag; 0.4% Cu and 0.2% Zn.

To view 'FIGURE 1.0', please visit the following link: http://media3.marketwire.com/docs/1050212_1.pdf

The drill results at Target C strongly suggest that there is potential to expand the higher grade mineralization to the west. The latest results, in addition to adding 100 metres of strike length, also indicate that the historical drilling to the west of LP16-105 were collared too far to the north and potentially may have missed the continuation of the high grade mineralization. The geology at Target C is complex, numerous multi-metre scale, late stage mafic dikes are present as well as multiple fault zones. Additional drilling is required to better understand the latest results.

Drilling has now been completed. The program was completed on time and under budget. All analytical results have been received and reported in UGD PR#s 2016-01 through 2016-05. The Company is currently evaluating the results with the objective of designing follow up drill programs to increase the mineral resource at the Candelones Extension deposit.

To view 'FIGURE 2.0', please visit the following link:http://media3.marketwire.com/docs/1050212_2.pdf

To view 'FIGURE 3.0', please visit the following link: http://media3.marketwire.com/docs/1050212_3.pdf

To view 'FIGURE 4.0', please visit the following link: http://media3.marketwire.com/docs/1050212_4.pdf

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 is in good standing.

Unigold intends to acquire new financing in the near future to resume drilling in the Dominican Republic to follow up on the promising results achieved to date on Targets A, B and C.

QA/QC

Diamond drilling at the Candelones Project utilizes both HQ and NQ diameter tooling. Holes are established using HQ diameter tooling before reducing to NQ tooling to complete the hole. The core is received at the on-site logging facility where it is, photographed, logged for geotechnical and geological data and subjected to other physical tests including magnetic susceptibility and specific gravity analysis. Samples are identified, recorded, split by wet diamond saw, and half the core is sent for assay with the remaining half stored on site. A minimum sample length of 0.3 metres and a maximum sample length of 1.5 metres are employed with most samples averaging 1.0 metres in length except where geological contacts dictate. Certified standards and blanks are randomly inserted into the sample stream and constitute approximately 5-10% of the sample stream. Samples are shipped to a sample preparation facility in the Dominican Republic operated by Bureau Veritas. Assaying is performed at Bureau Veritas Commodities Canada Ltd.'s laboratory in Vancouver, B.C. Canada. All samples are analyzed for gold using a 50 gram lead collection fire assay fusion with an atomic adsorption finish. In addition, most samples are also assayed using a 36 element multi-acid ICP-ES analysis method.

Wes Hanson P.Geo., Chief Operating Officer and Technical Director of Unigold, who is a qualified person under the definitions established by National Instrument 43-101, 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.

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Certain statements contained in this document, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute forward-looking statements within the meaning of the federal securities laws. These statements are based on our assumptions and estimates and are subject to risk and uncertainties. You can identify these forward-looking statements by the use of words like "strategy", "expects", "plans", "believes", "will", "estimates", "intends", "projects", "goals", "targets", and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. We wish to caution you that such statements contained are just predictions or opinions and that actual events or results may differ materially. The forward-looking statements contained in this document are made as of the date hereof and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward-looking statements. Where applicable, we claim the protection of the safe harbour for forward-looking statements provided by the (United States) Private Securities Litigation Reform Act of 1995.

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