Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

July 18, 2012 09:52 ET

Unigold Intersects 77 Metres of 3.81 g/t Gold, Including 15m @ 16.36 g/t. Further Extends Mineralization at the Candelones Project, Dominican Republic

TORONTO, ONTARIO--(Marketwire - July 18, 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.

"With hole LP28 we have added yet another 100 m of strike length to the Candelones Extension deposit that we started to drill in 2011." says Unigold President & CEO, Andrew Cheatle. "Hole LP28 of the ongoing wide-spaced step out drill program is confirming the geometry and existence of an extensive, mineralized system. The intensity of the mineralization in hole LP28 is significantly higher than previous results, with very significant and consistent high grade values at the top of the zone. A second zone of gold mineralization is now being discovered below the Main Zone."

  • LP28: 77.0 m @ 3.81 g/t gold, (incl. 15.0 m @ 16.36 g/t, which itself includes 6.0 m @ 32.69 g/t), and deeper in the hole 11.2 m @ 4.36 g/t.

  • LP27: 26.0 m @ 1.52 g/t gold, (incl. 12.4 m @ 2.41 g/t), and deeper in the hole 2.0 m @ 10.26 g/t.

These results are from two of six holes recently completed at the Candelones Extension (Lomita Piña) VMS / epithermal gold-silver-copper-zinc discovery. The results received from the two completed holes are located on a 100 m step-out drill program extending significant gold mineralization. The results are also interpreted to be the continuation of a mineralizing system, extending over 3 km, which has now been mapped and identified from an IP Survey. The intersections are located approximately 2 km east of the Candelones gold deposit, which lies on the same IP anomaly. To date, there has been no drilling that has fully tested the IP anomaly between the current program at Candelones Extension and the Candelones deposit. Mineralization remains open along strike, dip and at depth.

Results are summarized in the tables below. Results from LP29, which contained visible gold, will be released when they are received.

Given the strength of the numbers reported so far in the current drill program Unigold continues working towards a mineral resource on this new discovery.

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
(%)
Comment
LP27 317.0 343.0 26.0 1.52 0.59 0.07 0.74 Main Zone
includes 330.6 343.0 12.4 2.41 1.17 0.14 1.12
and 436.0 438.0 2.0 10.26 13.25 1.48 0.11 Lower Zone
LP28 263.0 340.0 77.0 3.81 6.16 0.10 1.09 Main Zone
includes 263.0 278.0 15.0 16.36 26.7 0.26 2.36
includes 263.0 269.0 6.0 32.69 63.9 0.49 4.51
and 361.8 373.0 11.2 4.36 5.52 0.66 0.21 Lower Zone
Note: True widths are estimated to be equal to drill intercept interval. No top cut applied to assay values.

The Company has completed 28 holes to date at the Candelones Extension, identifying gold mineralization over approximately a 1,000 m x 400 m area. Drill hole spacing to date has been on 100 m centers. Previous results from the Candelones Extension are summarized in the table below. Note that holes LP1 through LP26 have been summarized in previous press releases.

Table 2: Summary of Previously Reported 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. *** pending ICP results at reporting date

Geological Description

Based on increasing geological knowledge of its Neita property, Unigold interprets mineralization at Candelones as a large volcanic hosted massive sulphide / epithermal style deposit. 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 3 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 is currently operating three Atlas Copco drill rigs at site.

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.

Forward-looking Statements

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.

To view Figure 1: Tireo Formation, Candelones Target, Neita Concession, Dominican Republic please visit the following link:

http://media3.marketwire.com/docs/718UGDFig1.pdf

To view Figure 2: Candelones Drill Holes with IP Chargeability, Neita Concession, Dominican Republic please visit the following link:

http://media3.marketwire.com/docs/718UGDFig2.pdf

To view Figure 3: Candelones Extension Recent result location please visit the following link:

http://media3.marketwire.com/docs/718UGDFig3.pdf

To view Figure 4: Candelones Extension Grade - Thickness Plan (projected to horizontal) please visit the following link:

http://media3.marketwire.com/docs/718UGDFig4.pdf

To view Figure 5: Section LL please visit the following link:

http://media3.marketwire.com/docs/718UGDFig5.pdf

To view Figure 6: Section JJ please visit the following link:

http://media3.marketwire.com/docs/718UGDFig6.pdf

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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