Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

March 31, 2016 11:57 ET

Unigold Intersects 9.8 Metres Averaging 3.1 g/t Au With 0.6% Cu; Extends Massive Sulphide Mineralization 75 Metres Further East

TORONTO, ONTARIO--(Marketwired - March 31, 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.

Hole LP16-101 was drilled 75 metres east of the recently discovered lenses of massive sulphide intersected by holes LP15-93, 95 and 96 (UGD PR#2016-02). Hole LP50 (5.07 g/t Au; 2.5% Cu over 5.7 metres) is located an additional 50 metres to the east. LP16-101 intersected massive to semi-massive, pyrite rich sulphides at a depth of 409.6 metres assaying:

3.10 g/t Au with 0.6% Cu over 9.8 metres

The massive sulphides are similar to the initial massive sulphide lenses discovered 75 metres to the west. Pyrite is the dominant sulphide mineral with lesser chalcopyrite. The sulphide mineralization occurs at the same elevation as LP50 and the second massive sulphide lens intersected in LP15-96 (Ref. Figure 2.0). The flat lying massive sulphide lenses appear to be confined to a 75 metre wide trend plunging at 25° to 35° to the east. This trend has not been drill tested east of hole LP50 (Ref. Figure 3.0). To date, seven holes (Ref. Table 1.0) have tested this trend with all seven returning gold and copper grades three to four times higher than the 2013 initial resource grade. The seven drill holes define a strike length of 200 metres with a width between 60 to 80 metres and thickness ranging from 5 to 30 metres.

Joseph Del Campo, Interim President and CEO of Unigold notes: "The latest results are very encouraging. Not only have we expanded the gold and copper rich massive sulphide mineralization over 100 metres to the east, we have identified mineralization that was not previously recognized and which may have a significant, positive impact on the mineral resources of the deposit. We have tested two targets, both of which have returned very positive results, supporting our initial premise, that the wide spaced historical drilling failed to isolate higher grade zones that may represent potential feeder systems. Both targets tested to date have consistently returned results that are among the highest grades intersected at the Candelones Extension deposit. We believe these latest drill results are an initial indication of the potential for resource growth at our flagship property in the Dominican Republic."

LP16-102 targeted the massive sulphides 75 metres up dip (north) of LP16-101. It intersected scattered stringers of massive sulphide, generally less than 25 cm in length. The broad, multi-metre intervals of massive sulphide intersected in the other holes at Target A were absent and assays indicate some lower grade gold and copper enrichment, typical of the stratabound mineralization that was the focus of historical drill campaigns but no sustained intervals of higher grade mineralization were intersected in LP`16-102. It is likely that this hole, like many of the historical holes drilled to the east, passed over top of the mineralized trend.

Table 1.0 summarizes the results of all the holes intersecting the massive sulphide mineralization at Target A, defining a zone measuring approximately 200 metres along strike by 75 metres down dip with thicknesses ranging from 5 to 30 metres.

Table 1.0 - Massive Sulphide Mineralization - Target A - Candelones Extension

Hole # From To Interval
(metres)
True Width
(metres) (1)
Au (g/t) Cu (%)
LP17 285.0 291.0 6.0 5.4 6.05 0.8
LP50 417.0 422.7 5.7 5.2 5.07 2.5
LPMET01 314.0 336.0 22.0 20.2 6.48 0.6
LP15-93 298.6 314.3 15.7 14.0 7.45 1.1
LP15-95 252.6 287.5 34.9 32.0 6.19 0.6
LP15-95 309.9 314.0 4.1 3.7 7.31 1.1
LP15-96 279.0 313.0 34.0 31.0 4.15 0.4
LP15-96 324.0 333.0 9.0 8.2 4.81 0.7
LP16-101 416.6 424.6 9.8 8.9 3.10 0.6
(1) True width estimated from current interpretation of the orientation of mineralization and drill hole(s)

To view 'FIGURE 1.0', please visit the following link: http://media3.marketwire.com/docs/unig0331fig1.pdf

To view 'FIGURE 2.0', please visit the following link: http://media3.marketwire.com/docs/unig0331fig2.pdf

To view 'FIGURE 3.0', please visit the following link: http://media3.marketwire.com/docs/unig0331fig3.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.

For Further Information please visit www.unigoldinc.com.

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