Unigold Inc.
TSX VENTURE : UGD

Unigold Inc.

June 27, 2016 10:59 ET

Unigold Resumes Exploration Drill Program Targeting High Grade Systems at the Candelones Extension Deposit

TORONTO, ONTARIO--(Marketwired - June 27, 2016) - Unigold Inc. ("Unigold" or the "Company") (TSX VENTURE:UGD) is pleased to announce that exploration drilling at the Candelones Extension deposit in the Dominican Republic, will resume in July 2016 and continue through to December 2016. The Company's Board of Directors has approved an 8,000 metre drill program to follow up on the favourable results reported earlier this year:

Target A (UGD PR#s 2016-01, 2016-02 and 2016-04) - gold and copper rich massive sulphide lenses, approximately 200 metres (length) x 75 metres (width). The upper lens ranges from 5 - 30 metres in thickness, the lower lens ranges between 3 - 8 metres in thickness. Gold grades range from 3.0 to 7.5 g/t; copper grades range between 0.4% to 1.1% (Reference Table 1.0).
Target B (UGD PR# 2016-03) - a vertical feeder system with elevated gold, silver and zinc mineralization. Traced over an area measuring 100 metres (length) x 25 metres (width). Thickness ranges between 6.0 to 9.0 metres. Gold grades range from 4.0 to 16.0 g/t; silver grades range from 18.0 to 52.0 g/t (Reference Table 1.0).
Target C (UGD PR# 2016-05) - a second vertical feeder system with elevated gold, silver and zinc mineralization. Traced over an area measuring 100 metres (length) x 25 metres (width). Thickness ranges from 5.0 to 10.0 metres. Gold grades range from 5.0 to 11.0 g/t, and silver grades ranged from 2.0 to 90.0 g/t (Reference Table 1.0) .

Joseph Del Campo, Interim President and CEO of Unigold notes: "Our recent financing allows us to continue our systematic exploration of the Candelones Extension deposit, following up on the exciting results reported earlier this year at Targets A, B and C. We have updated our geological model, reviewed the historical data and identified new targets that we will evaluate for the remainder of 2016. We are focused on identifying additional, high grade, feeder systems and massive sulphide lenses; within the currently defined, easterly plunging envelop where drill density is sparse, at depth down plunge to the east of Target A which is untested and at depth below the identified feeder systems at Targets B and C which are also untested. We believe the targets selected offer excellent potential to increase the size and grade of the existing resource. We also plan to complete preliminary metallurgical tests on the higher grade mineralization within the Candelones Extension deposit."

Targets A, B and C all lie within what is interpreted to be a zone plunging to the east at 25° to 30° degrees. The zone measures approximately 75 to 100 metres in width and has been traced by wide spaced drilling along plunge for over 1,500 metres. The system is open to both the east and the west. Drill coverage within the zone is relatively sparse, limited to widely spaced drill holes that are generally 100 metres apart. As a result, there are scattered drill holes ("orphans") within the plunging system that intersected elevated gold, silver, copper and zinc grades but the nearest informing drill hole is over 100 metres away. These orphans are compelling exploration targets, especially considering the dimension of the high grade mineralization intersected at Targets A, B and C.

Table 1.0 - Significant Results Targets A, B and C - Candelones Extension
Target Hole # From To Interval
(metres)(1)
Au (g/t) Ag (g/t) Cu (%) Zn (%)
A LP17 285.0 291.0 6.0 6.05 5.0 0.8 0.0
LP50 417.0 422.7 5.7 5.07 6.3 2.4 0.0
LPMET01 314.0 336.0 22.0 6.48 6.6 0.6 0.0
LP15-93 298.6 314.3 15.7 7.45 16.0 1.1 0.0
LP15-94 273.3 319.0 45.7 0.54 0.7 0.2 0.0
LP15-95 252.6 287.5 34.9 6.19 4.1 0.6 0.0
LP15-95 309.9 314.0 4.1 7.31 8.2 1.1 0.0
LP15-96 279.0 313.0 34.0 4.15 2.9 0.4 0.0
LP15-96 324.0 333.0 9.0 4.81 2.5 0.7 0.0
LP16-101 409.6 419.4 9.8 3.10 2.0 0.6 0.0
B LP28 263.0 278.0 15.0 16.36 26.7 0.3 2.4
LP29 400.0 412.0 12.0 6.28 6.3 1.1 0.4
LP16-97 249.0 264.0 15.0 1.15 1.0 0.0 0.4
LP16-98 245.8 250.6 4.8 7.32 52.0 0.2 2.7
LP16-99 276.6 283.0 6.4 4.23 12.1 0.2 1.7
LP16-100 291.1 333.6 42.5 3.41 6.3 0.5 1.6
including 291.1 300.6 9.5 2.43 18.8 0.2 4.3
and 307.5 319.5 12.0 7.46 5.1 1.4 1.3
C LP52 115.2 131.0 15.8 11.36 38.3 0.4 5.1
LP57 260.0 270.0 10.0 6.71 4.2 0.1 0.8
LP43 240.0 244.0 4.0 9.67 2.0 0.1 0.6
LP16-103 117.0 123.0 6.0 8.86 37.1 0.2 2.4
LP16-104 134.9 138.2 3.3 5.06 90.0 0.2 2.1
LP16-105 176.0 184.0 8.0 6.30 16.9 0.1 0.9
LP16-106 141.0 154.3 13.3 1.08 1.5 0.1 0.3
LP16-107 168.0 311.0 143.0 1.44 2.1 0.1 0.5
(1) Intervals reflect down hole interval and not true width

Exploration during the second half of 2016 will focus on expanding the limits of the mineralization identified at Targets A, B and C (Reference Figure 1.0). All three targets remain open in multiple directions.

Exploration will also test the continuation of the mineralized system along plunge to the west and east. Historical drilling was focused on the andesite-dacite contact and failed to recognize the plunge component of the high grade core. As a result, historical drilling prematurely suggested mineralization was truncated to the east and west along strike.

Finally, the Company plans to evaluate additional orphan holes where higher grade mineralization within the currently defined plunging system intersected high grade gold, silver, copper and/or zinc mineralization but the nearest informing holes are 100 metres away. These orphan holes fall within the currently defined mineral resource but these holes are compelling targets given the potential to identify high grade feeders or massive sulphide lenses that the wide spaced drilling failed to identify.

To view Figure 1.0 - Candelones Extension Deposit – Grade Thickness (Gold), visit the following link: http://media3.marketwire.com/docs/a1060506.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 is in good standing.

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, who is a qualified person under the definitions established by National Instrument 43-101, has reviewed and approved the contents of this press release.

About Unigold Inc. - Discovering Gold in the Dominican Republic

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.

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