Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

March 04, 2016 08:00 ET

Unigold Identifies Potential Vertical Feeder System at the Candelones Extension Deposit Intersecting 12.0 metres of 7.46 g/t Au; 1.4% Cu

TORONTO, ONTARIO--(Marketwired - March 4, 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 completed four holes at Target B; the second of three targets selected for drill testing (Ref. Figure 1.0). The drilling at Target B included four holes, centered on previous hole LP28 (16.4 g/t Au; 26.7 g/t Ag; 0.3% Cu; 2.4% Zn over 15.0 metres ("m")). Newly discovered mineralization is contained with a vertical feeder zone of sulphide matrix-supported angular breccias which show clear evidence of multiphase epithermal activity. The best results were intersected in hole LP16-100 which identified two, distinct zones of enrichment. The first, with elevated lead, zinc and silver grades, assayed 2.43 g/t Au; 18.8 g/t Ag; 0.2% Cu and 4.3% Zn over 9.5 m at a depth of 291.1 m from the collar. The second, with elevated gold and copper grades, assayed 7.46 g/t Au; 5.1 g/t Ag; 1.4% Cu and 1.3% Zn over 12.0 m at a depth of 307.5 m from the collar. The zonation may reflect excellent preservation of a classic, telescoping epithermal system.

Previous drilling at Target A, 200 m east of Target B (ref. Fig 1.0), intersected massive to semi-massive sulphides that returned intercepts of 6.19 g/t Au over 34.9 m, 7.45 g/t Au over 15.7 m and 4.15 g/t Au over 34.0 m (UGD PR# 2016-02). Mineralization at this target defined a flat-lying lens of massive sulphide. The area between Target A and B was not sufficiently tested during historic drilling to draw any conclusions regarding the relationship between the newly discovered feeder zone and the massive sulphide lens. It is possible that a genetic relationship links the two zones and this must be tested and defined in future drill programs.

The gold copper zone at Target B is particularly interesting as it appears to define a potential vertical feeder zone whereas the massive sulphides at Target A appear to be horizontal and cross-cut stratigraphy. The newly discovered vertical feeder system has been defined by drilling over a 100 m vertical distance by new hole LP16-100 and previous holes LP28 and LP29 (6.28 g/t Au; 1.1% Cu over 12.0 m). The feeder appears to be vertical and is estimated to have a true horizontal thickness ranging from 6.0 m (LP16-100) to 9.0 m (LP28) with a currently defined strike length of 20-25 m. The feeder appears to plunge to the east and is open down dip and down plunge.

Joseph Del Campo, Interim President and CEO of Unigold notes: "We are very pleased with these latest results. This is the second target we have drill tested and it is the second target where we have identified strong evidence for vertical feeders and massive sulphides. These results support our suspicion that previous drilling, while successful at identifying a multimillion ounce, low-grade, stratabound deposit, failed to adequately define high-grade feeder zones in this complex epithermal system. The results from Target A and Target B have proven that both massive sulphide mineralization and feeder zones both exist within the bounds of, and were missed by, previous drilling. The grades returned from these two targets are 3 to 4 times higher than the stratabound mineralization and are some of the highest grade intercepts returned in the history of the project. We are very encouraged with the results received to date from Targets A and B. Results are pending from Target C, a further 300 metres to the west. Target C, hosts the highest grade mineralization from historical drilling. We remain very optimistic that our interpretation will lead to similar results that should be available by the end of March."

Tables 1.0 and 2.0 summarize the results from the four holes completed at Target B. In all cases, the results summarized in Table 2.0 are inclusive of the results summarized in Table 1.0.

Table 1.0 - Barite and Quartz-Sulphide Mineralization - Target B - Candelones Extension

Hole From To Interval Au Ag Cu Zn True
Width (1)
(m) (m) (m) (g/t) (g/t) (%) (%) (m)
LP16-97 249.0 264.0 15.0 1.15 1.0 0.0 0.4 15.0
LP16-98 245.8 250.6 4.8 7.32 52.0 0.2 2.7 4.8
LP16-99 276.6 283.0 6.4 4.23 12.1 0.2 1.7 6.4
LP16-100 291.1 333.6 42.5 3.41 6.3 0.5 1.6 33.0
including 291.1 300.6 9.5 2.43 18.8 0.2 4.3 8.0
and 307.5 319.5 12.0 7.46 5.1 1.4 1.3 8.0

Table 2.0 (2) - Stratabound Mineralization - Target B - Candelones Extension

Hole From To Interval Au Ag Cu Zn True
Width (1)
(m) (m) (m) (g/t) (g/t) (%) (%) (m)
LP16-97 247.0 340.8 93.8 0.68 1.0 0.0 0.1 93.8
LP16-98 245.8 344.6 98.8 1.19 5.0 0.1 0.4 98.8
LP16-99 231.5 321.0 89.5 1.06 4.0 0.1 0.4 89.5
LP16-100 240.9 366.0 125.1 1.72 2.7 0.2 0.6 125.1
(1) True width is estimated based on current interpretation of the attitude of the mineralization and the orientation of each drill hole.
(2) Intervals reported are inclusive of intervals summarized in Table 1.0.

The Target B area is structurally complex. Extensive faulting and multiple intermediate to mafic dikes and/or sills are present. The gold and copper enriched feeder system can be observed over a 100 m vertical distance, intersected on section by holes LP28 and LP16-100 (75 m vertical separation) and by previous hole LP29 (23 m east and 25 m below LP16-100). Hole LP16-97, 75 m above LP29, did not intersect similar high grade gold and copper mineralization, suggesting that the feeder system may have a plunge component. Where the feeder intersects the andesite - dacite contact, the dip of the contact appears to flatten and massive to semi-massive barite with elevated zinc is observed. From the point of intersection, average grades of all metals within the stratabound zone decrease down dip to the south whereas to the north, in the up dip direction along the contact, metal grades are markedly higher within the defined stratabound deposit.

The gold and copper mineralization in holes LP28, 29 and LP16-100 is closely associated with late quartz veins that exhibit characteristics consistent with sulphide rich epithermal systems (Ref Figure 4.0). LP29 is one of the few holes where visible gold has been observed in drill core.

Figures 1.0 to 4.0 are available at the following address: http://media3.marketwire.com/docs/1045540_Figures.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 was renewed in 2012 and 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 and B.

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 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.

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