Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

June 06, 2012 10:08 ET

Unigold Intercepts 41 Metres of 1.44 g/t Gold, Extends Mineralization at the Candelones Project, Dominican Republic

TORONTO, ONTARIO--(Marketwire - June 6, 2012) - Unigold Inc. ("Unigold" or the "Company") (TSX VENTURE:UGD) is pleased to announce continued positive results from the ongoing drilling program at the Candelones Project, located within its wholly owned 22,616 hectare Neita Concession, located in the Dominican Republic.

Assays have been received for drill holes LP24, LP25 and LP26 from the Candelones Extension (Lomita Piña) zone. Significant results from hole LP26 include:

  • 41.0 meters of 1.44 g/t gold from 312 to 353 metres. Full results reported in the table below. The Company has also released significant results of silver, copper and zinc coincident with reported gold values; these have the potential to add significant credits to the developing deposit.

"We continue to demonstrate excellent continuity of significant gold mineralization with hole LP26, which is located 100 m east of 'discovery hole' LP17 and 200 m east of LP23," comments Andrew Cheatle, President and CEO. "I am also excited about the fact that our geological team has identified significant silver, copper and zinc credits in the deposit, which is now being re-interpreted as having signatures of volcanic hosted massive sulphide mineralization."

The Company has completed 26 holes to date at the Candelones Extension, identifying gold mineralization over approximately a 1000 m x 400 m surface area. Hole spacing to date has been on 100 m centers. Results from the Candelones Extension are summarized in the table below. Note that holes LP1 through LP23 have been summarized in previous press releases, although without silver and base metals values.

Table 1: Summary of Candelones Extension (Lomita Piña) Drill Holes

Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t) Cu (%) Zn (%)
LP01 10.6 17.0 6.4 2.97 20.1 0.05 0.37
LP02 41.8 51.0 8.3 1.00 10.5 0.02 0.24
LP03 NSV NSV NSV NSV
LP04 75.0 77.0 2.0 1.31 2.6 0.03 0.24
LP05 41.0 70.0 29.0 0.68 2.1 0.03 0.24
including 41.0 50.0 9.0 1.03 0.8 0.02 0.05
LP06 139.0 141.0 2.0 0.61 0.8 0.01 0.09
LP07 99.0 144.0 45.0 1.58 3.3 0.03 0.35
including 99.0 127.0 28.0 2.24 5.1 0.04 0.47
LP08 239.0 240.0 8.0 1.61 13.5 0.03 0.09
LP09 37.0 87.0 50.0 1.17 3.0 0.03 0.33
including 37.0 72.0 35.0 1.50 3.3 0.02 0.28
LP10 95.0 159.0 64.0 1.36 2.6 0.03 0.44
including 95.0 129.0 34.0 2.01 3.5 0.03 0.52
LP11 156.0 173.0 17.0 0.18 1.4 0.07 0.61
LP12 57.0 64.0 7.0 1.05 2.4 0.05 0.44
and 163.0 164.0 1.0 26.20 5.1 0.29 0.05
and 201.0 207.0 6.0 1.46 1.4 0.61 0.01
LP13 49.0 51.0 2.0 9.01 2.1 0.28 0.02
and 129.0 183.0 54.0 0.40 1.2 0.09 0.44
including 137.0 147.0 10.0 1.14 3.0 0.25 1.66
LP15 210.0 285.0 75.0 1.38 1.8 0.20 0.28
LP16 43.0 75.0 32.0 0.42 1.6 0.01 0.08
including 57.0 67.0 10.0 0.76 1.5 0.02 0.12
LP17 252.0 361.0 109.0 1.73 2.5 0.17 0.03
including 252.0 325.0 73.0 2.37 1.8 0.25 0.04
including 325.0 363.0 36.0 0.44 4.0 0.00 0.01
LP18 200.0 260.0 60.0 1.30 0.6 0.04 0.35
including 200.0 237.0 37.0 1.86 0.9 0.03 0.48
including 239.0 242.0 3.0 1.01 0.4 0.04 0.37
LP19 96.0 120.0 24.0 0.37 0.5 0.03 0.06
LP20 60.0 80.0 20.0 2.74 16.8 0.13 0.49
including 60.0 68.0 8.0 6.25 34.5 0.08 0.47
and 121.0 158.0 37.0 1.48 20.1 0.11 2.07
LP21 233.0 263.0 30.0 0.97 4.9 0.13 0.42
LP22A 227.0 307.0 80.0 1.60 *** *** ***
including 227.0 233.0 6.0 7.36 *** *** ***
LP23 191.0 261.0 70.0 2.10 3.2 0.18 0.14
including 242.0 260.0 17.0 4.71 7.1 0.02 0.19
LP24 84.0 85.0 1.0 14.20 3.7 0.14 0.09
and 240.0 285.0 45.0 0.17 0.5 0.01 0.10
LP25 155.0 158.0 3.0 0.58 1.1 0.04 0.42
LP26 312.0 353.0 41.0 1.44 0.6 0.05 0.03
and 377.0 383.0 6.0 1.63 1.0 0.16 0.00
and 415.0 418.0 3.0 2.87 1.6 0.17 0.00
Note: True widths are estimated to be equal to drill intercept interval.
*** no ICP at reporting date
Hole LP 25 was drilled north of the IP target. LP 24 was located to the NE of the IP target, and a distance from the recently reported higher grade mineralization.

Based on increasing geological knowledge of its Neita property, Unigold interprets mineralization at Candelones as a large volcanic hosted massive sulphide deposit ("VHMS"). Mineralization generally occurs near a stratabound contact between lower Cretaceous andesite and dacite volcanics. The mineralized zones have been tilted due to post-mineral tectonic activity. Unigold has mapped the volcanic package as being part of the favourable Upper Cretaceous Tireo volcanic sequence, that is believed to host the La Escandalosa (GoldQuest) and La Miel - Haiti (Eurasian Minerals / Newmont) deposits. This prospective formation and belt of mineralization is over 150 kms long, oriented NW-SE. The Pueblo Viejo deposit (Barrick 60%/Goldcorp 40%) is along the same trend, with proven and probable reserves of 314.5-million tonnes grading 2.48 g/t gold. These favourable volcanic packages are interpreted as deposited in rifted shallow basins (back arc) behind the extensive Greater Antilles island arc that developed during the Cretaceous period near the subduction zone of the North American Plate colliding with the Caribbean Plate. Unigold believes Candelones has the potential for containing a world class economic gold deposit, with significant credits for silver, copper and zinc.

The mineralized zone is divided into Candelones and the Candelones Extension. Drilling has indicated a potential strike length of three kilometres combining the two zones. Candelones Extension has been Unigold's main focus since 2010, with the program accelerating in late 2011 due to the recognition of a major mineralizing system and successful financing. In 2011, Unigold completed an Induced Polarization ground survey ("IP") over Candelones. The results defined distinct chargeability anomalies that geologists interpret to high sulphide content from deeper zones of mineralization. The recent drilling at Candelones Extension was based primarily on high IP anomalies. Mineralized intercepts coinciding with IP highs have been very significant, with thicknesses and grades potentially increasing "down-dip" to the south. The IP highs appear to have a direct correlation to mineralized core, which locally has >15% pyrite, along with lesser sphalerite and chalcopyrite. The Candelones Extension zone remains open in all directions and at depth.

In the late 1990's the Bureau de Recherche Geologiques et Minieres of France and state owned company Rosario Dominicana completed the first drilling program at Candelones, defining a significant deposit. Further drilling by Unigold between 2004 and 2009 resulted in very encouraging results over an area of approximately 400 m x 400 m, to a depth of 200 m. Mineralization is open in all directions including at depth. Mineralization is locally exposed at surface at Candelones.

The Company has designed a two phase exploration program, with the first phase designed to expand Candelones Extension, and to define continuity between Candelones and Candelones Extension. The Company has purchased and received in country two new Atlas Copco CS-1000 drill rigs. The new drills are being commissioned and production is expected to begin this week. The new drills will complement the two existing dills on-site that will be receiving maintenance in June and July. By July, Unigold plans to have four drills working on the property.

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 one meter, 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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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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