Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

October 04, 2012 12:48 ET

Unigold Further Extends Mineralization at the Candelones Project LP43 75.4 m @ 1.08 g/t Gold Including 19.7 m @ 3.19 g/t Gold

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2012) - Unigold Inc. ("Unigold" or the "Company")(TSX VENTURE:UGD) is pleased to announce assay results recently received from seven drill holes from the ongoing drilling program at the Candelones Project. Five of the seven holes intersected significant alteration and mineralization. The project is located within its wholly owned 22,616 hectare Neita Concession, located in the Dominican Republic.

  • The best results are 75.4 m @ 1.08 g/t gold in hole LP43 including 19.7 m @ 3.19 g/t gold and 100.6 m @ 1.02 g/t gold in hole LP42. The Candelones Extension continues to be delineated with positive drill results. LP43 is located on the second IP anomaly.
  • LP36 was previously released in PR No. 2012-15, but is restated with recently received "over-limit" assays, and is now reported as 39.0 m @ 2.99 g/t gold.
  • The exploration program has been expanded to new targets in the Tireo Formation trend and the company is mobilizing a fourth drill rig to site.
Table 1: Recent drill hole results from Candelones Extension
Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Cu (%) Zn (%) Comments
LP36 299.0 329.0 30.0 2.99 3.9 0.15 0.79
LP37 374.0 444.0 37.0 0.32 1.8 0.30 0.22
LP38 NSV N of IP Anomaly
LP39 Hole abandoned
LP40 211.2 227.0 15.8 0.88 0.9 0.05 0.22 Edge of IP anomaly
LP41 339.0 347.0 8.0 0.58 2.0 0.02 0.07 Edge of IP anomaly
LP42 241.0 341.6 100.6 1.02 1.4 0.10 0.23 In-fill drill hole
LP43 216.5 291.9 75.4 1.08 0.4 0.04 0.13 Western IP Anomaly
includes 234.3 254.0 19.7 3.19 0.9 0.07 0.30
Note: True widths are estimated to be equal to drill intercept interval. No top cut applied to assay values.

"These results continue to show solid mineralization at Candelones Extension. Significantly, LP43 makes a very positive start to our new drilling program on the second IP anomaly which is 800 m long," commented Andrew Cheatle, President and CEO. "The success at Candelones has laid the foundation for us to move forward at a rapid pace to new and untested targets."

The five reported drill holes were all drilled within the Candelones Extension Zone (Lomita Piña). The results continue to support Unigold's interpretation that the Candelones Extension zone is open in three directions. Drilling to date also demonstrates a very strong correlation between IP chargeability anomalies and mineralization. (Figure 1 and Figure 2)

To date the Company has received assay results from a total of 43 diamond drill holes at Candelones Extension over an area having a surface expression of approximately 1,000 metres E-W by 700 metres N-S. Drill holes are on approximate 100 m centers (with the exception of LP42). Twenty-six of these holes have intersected significant gold mineralization, with important credits in silver, copper and zinc. Six additional holes have been drilled within the Candelones Extension zone and assay results from holes LP 44, 45, 46, 47, 48, and 49 pending. (Figure 1)

Drill hole LP43 is considered very significant, and indicates potential continuity of a large zone of mineralization extending south and west from discovery hole LP20. This general target zone is a high priority drill target for the Company with drill holes at 100 metre centers in progress. (Figure 1)

The Company is currently defining drill targets between the Candelones Extension and the main Candelones zone, which is approximately two kilometers to the west. Exploration programs have defined a zone of intense silicification with strong gold values at surface over an area approximately 700 x 125 metres east of Candelones. Trenching and surface sampling are currently being conducted with drill targets to be defined this month.

The Company has identified multiple targets outside of the Candelones-Candelones Extension area. Drilling on these will start mid-October and to advance these targets at a rapid pace a fourth drill rig is being mobilized to site.

Unigold is well funded with $10.6 million cash and, given the strength of the numbers reported so far of the current drill program, continues working towards a mineral resource on this new discovery.

QA/QC

Core drilling is being done primarily with NQ. 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. 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). Jim Robinson, C.P.G., Vice President - Exploration of Unigold, and a Qualified Person under National Instrument 43-101, has designed and supervised the program, and 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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