Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

November 12, 2013 07:00 ET

Unigold Reports Initial 2.0 Million Ounce Gold Inferred Mineral Resource at Candelones Project in the Dominican Republic

TORONTO, ONTARIO--(Marketwired - Nov. 12, 2013) - Unigold Inc. ("Unigold" or the "Company") (TSX VENTURE:UGD) is pleased to report the initial mineral resource estimate for its 100% owned Candelones Main, Extension and Connector Zones ("Candelones Project") within the Company's wholly owned, 22,600 hectare Neita Concession in the Dominican Republic.

Summary:

Open pit (inferred) 33.8 M tonnes averaging 1.5 g/t Au 1.6 M ounces Au
Underground (inferred) 5.7 M tonnes averaging 2.4 g/t Au 0.4 M ounces Au
TOTAL 39.5 M tonnes averaging 1.6 g/t Au 2.0 M ounces Au

The mineral resource was estimated by Mr. W. Lewis, P.Geo. and Mr. A. San Martin, MAusIMM(CP) of Micon International Limited. (www.micon-international.com, "Micon"), a Toronto based consulting company, independent of Unigold. Mr. Lewis and Mr. San Martin both meet the requirements of a "qualified person" as established by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (2010) ("the CIM Standards").

Andrew Cheatle, President and CEO of Unigold notes: "We are delighted with the results of our maiden mineral resource estimate at Candelones which we delivered within 18 months of discovering significant gold mineralization, with exceptional continuity, at the Candelones Extension. This multi-million ounce mineral resource represents only a small portion of our land position and confirms that the Central Cordillera of the Dominican Republic offers outstanding potential for additional significant discovery: a potential that we intend to capture as we begin to evaluate multiple targets along the Candelones trend and elsewhere within our 22,600 hectare concession."

Summary of Estimation Methodology

Micon completed a site visit to the Candelones Project in May, 2013, reviewing the Company's drilling, logging, sampling, chain of custody, quality assurance, database and data management procedures. During the site visit, Micon independently collected samples for analysis independent of Unigold. Micon notes that their site visit and subsequent review did not identify any significant errors or omissions that would materially affect the mineral resource estimate and further note that the results of their independent sampling are consistent with the sample results provided by Unigold. Micon did advise that the silver, copper and zinc grades may offer additional value that the mineral resource estimate does not capture. The Company has chosen to await the results of additional metallurgical testing that is specifically designed to evaluate copper and zinc recovery, before estimating the potential impact on the mineral resource estimate.

Micon received the final drilling database for the Candelones Project consisting of 315 drill holes and over 48,000 individual sample intervals. Micon verified a representative subset of the final database, through direct comparison to original logs, sample logs and certified assay certificates. Micon also reviewed the quality assurance and quality control procedures established by Unigold and determined that the data was free of gross errors and omissions and was collected according to industry accepted best practices as established by the Canadian Institute of Mining Metallurgy and Petroleum's Exploration Best Practices Guidelines.

Micon advises that the drill hole spacing at the Candelones Main and Connector Zones is approximately 50 metres while at the Candelones Extension deposit, the drilling was completed on sections that were spaced on 100 metre intervals. Micon is confident that the drill hole spacing is adequate to support an inferred mineral resource classification.

Micon received, reviewed and where warranted, edited the company's geological interpretation of the Candelones Main, Connector and Extension Zones prior to utilizing said interpretation in estimating the mineral resource.

Micon independently completed the statistical and geostatistical analyses of the data, established the block model parameters and interpolated grades into the model blocks based on their geostatistical analyses. Micon verified the grade interpolation utilizing industry standard methods and procedures. Micon then utilized industry standard open pit optimization software to evaluate the portion of the block model recoverable by open pit mining and reported this as the inferred open pit mineral resource.

Micon then evaluated the model blocks external to the optimized pit shells and concluded a portion of that material would be recoverable utilizing underground mining methods. This was reported as an inferred underground mineral resource.

Micon's mineral resource estimate is further sub-divided into oxide and sulphide components, recognizing the more robust metallurgical recovery of the oxide component. Micon notes that the oxide mineral resource is restricted to the near surface mineralization the Candelones Main and Connector deposits with no oxide mineral resource identified at the Candelones Extension.

Micon then classified and reported the mineral resource according to Canadian Institute of Mining, Metallurgy and Petroleum's Definition Standards for Mineral Resources and Mineral Reserves.

A Technical Report supporting the mineral resource estimate disclosed herein is currently underway.

The Effective Date of the Inferred Mineral Resource Estimate disclosed herein is November 4, 2013.

Table 1 summarizes Micon's mineral resource estimate and highlights the key assumptions used to complete the estimate.

Table 1 - Inferred Mineral Resource Estimate for the Candelones Project as at November 4, 2013
Source Mineralization Deposit Tonnes Au Au ozs Strip
Type (x1,000) (g/t) (x 1,000) Ratio
Open Pit Oxide Extension - - - -
Main 2,448 0.92 72 1.3
Connector 1,108 1.12 40 1.3
Subtotal 3,556 0.98 112 1.3
Sulphide Extension 24,223 1.59 1,241 7.6
Main 5,003 1.16 186 1.3
Connector 980 1.08 34 1.3
Subtotal 30,206 1.50 1,461 6.4
Subtotal 33,762 1.45 1,573 5.8
Underground Sulphide Extension 4,977 2.42 387
Main 704 2.21 50
Connector 50 2.49 4
Subtotal 5,731 2.39 441
ALL 39,493 1.59 2,014

Notes:

  1. The mineral resource estimate presented above has been prepared under the supervision of Mr. Alan J. San Martin, MAusIMM(CP) and Mr. William J. Lewis (P.Geo.) of Micon International Limited., both of whom are "qualified persons" as per the CIM Standards and independent of Unigold Inc. The Effective date of the mineral resource estimate is November 4, 2013.
  2. The mineral resource estimate presented above is classified as an Inferred Mineral Resource. The CIM Standards define a Mineral Resource as "a concentration of material in or on the Earth's crust in such form and quantity and of such grade or quality that it has reasonable prospects for economic extraction." The CIM Standards further define an Inferred Mineral Resource as "that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonable assumed but not verified, geological and grade continuity." The CIM Standards state; "Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration."
  3. Micon has not identified any legal, political, environmental or other risks that could materially affect the potential development of the mineral resource estimate presented.
  4. The mineral resource estimate presented above includes both open pit mineral resources; reported within an optimized pit shell and underground mineral resources; reported below the optimized pit shell. Both open pit and underground mineral resources are reported above an estimated economic cut-off grade developed using the following key economic assumptions.

Key Economic Assumptions:

Gold Price US $1,500 per ounce
Mining Costs Open Pit US $2.00 per tonne
Underground US $30.00 per tonne
Process Costs Oxide US $10.00 per tonne
Sulphide US $18.00 per tonne
G&A Costs US $2.50 per tonne
Recovery Oxide 95%
Sulphide 84%
Pit Slope Limits 45°
Estimated Cutoff Grades
Open Pit Oxide 0.32 g/t Au
Sulphide 0.56 g/t Au
Underground Oxide Not applicable
Sulphide 1.25 g/t Au

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 has sufficient funding to meet the goals and objectives established for the current exploration program.

QA/QC

Diamond drilling at the Candelones Project included both HQ and NQ diameter core for sampling. Holes were typically started with larger diameter HQ core and the hole diameter is reduced to NQ at depth. 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. Continuous chip samples from trenches are typically 3 m to 5 m in length. 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).

W. Lewis P.Geo. and A. San Martin, MAusIMM(CP), both employed by Micon International Limited., were the "qualified persons" supervising the mineral resource estimate. Both are independent of Unigold and both have reviewed the contents of this press release.

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.

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.

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.

To view the map accompanying this press release please click on the following link: http://media3.marketwire.com/docs/UGD1112.pdf

Contact Information