Unigold Announces New Area of Mineralization
TORONTO, ONTARIO -- (Marketwire) -- 11/28/12 -- Unigold Inc. ("Unigold" or the "Company") (TSX VENTURE: UGD) is pleased to announce significant results of recent surface sampling, geological mapping and re-interpretation of historical drill and trench results at its 100% owned Neita Property. These results indicate a new area of mineralization incorporating Candelones SE and Connector, collectively known as "the Connector Zone". Both areas correspond to IP anomalies interpreted from the 2011 survey.
Candelones SE mineralization is coincident with a largely untested IP anomaly south / south east of Candelones Main Zone. Candelones Connector is coincident with the deeper IP anomaly interpreted to link Candelones Main and Candelones Extension (Lomita Pina) deposits (Figures 1 and 2). Gold mineralization in the broader Candelones area has now been demonstrated over a strike length of three kilometers.
Expanding the Candelones Footprint
Based on the success of the 2012 drill campaign testing IP targets and as recently demonstrated in Press Release 2012-19 of 25 November, which included:
-- Drill hole LP 52 returned 69.4 m @ 3.75 g/t gold and 1.6 % zinc,
including 15.8 m @ 11.4 g/t gold and 5.1 % zinc.
-- Drill hole LP 50 returned 20.2 m @ 2.6 g/t gold and 1.1 % copper
Unigold has commenced testing other IP targets close to Candelones Main and Candelones Extension. The following are the first results from this initiative.
The Connector Zone
Geological mapping and trenching has also identified significant areas of mineralization and silicification corresponding with the IP anomalies.
Candelones SE is an 800 m long IP anomaly ranging in width up to 300 m, and is located approximately 200 m south / south east of Candelones Main. New trenching and historic drill results indicate mineralization comes to surface and may have only tested the easternmost extent of this large IP anomaly. Highlights from the trench sampling include 92.5 m @ 1.35 g/t gold and 9.0 m @ 5.88 g/t gold (Table 1 and Figure 3). Historic drill intercepts included SC 22 (26 m @ 2.2 g/t gold), SC 24 (48 m @ 1.0 g/t gold), SC 04 (30 m @ 1.0 g/t gold), and SC 35 (19 m @ 1.9 g/t gold and 18 m @ 1.8 g/t gold). All these drill holes started in mineralization (Tables 2 and Figure 4). The Candelones SE IP anomaly is open for over 800 m to the west and remains largely untested.
Initial results have been returned from the Candelones Connector. This area is located between the Candelones Main and Candelones Extension. This 700 m long area is coincident with a large and deeper IP anomaly that was largely untested. Geological mapping has also identified significant silicification in surface exposures that occurs between Candelones Extension and the Main Zone. Significant gold values have been reported from continuous rock chip sampling (Table 1 and Figure 2).
Table 1: Results of recent continuous rock chip sampling
at the Connector Zone
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Zone Sample Line Line Length (m) Au g/t
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Main/Connector 1 12.0 0.89
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Main/Connector 2 30.0 0.37
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Main/Connector 3 33.0 1.07
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Main/Connector 4 55.0 0.84
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Main/Connector 5 9.0 1.39
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SE 6 48.0 NSR
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SE 7 9.0 0.15
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SE 8 35.0 NSR
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SE 9 15.0 0.25
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SE 10 27.0 0.38
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SE 11 35.0 0.25
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SE 12 15.0 0.37
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SE 13 30.3 0.83
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SE 14 27.0 0.24
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SE 15 16.0 1.47
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SE 16 45.0 1.23
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SE 17 92.5 1.35
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SE 18 22.0 1.44
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SE 19 9.0 5.88
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SE 20 6.0 1.10
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Connector 21 45.0 NSR
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SE 22 21.0 1.46
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SE 23 9.0 1.02
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Connector 24 18.0 0.79
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Connector 25 6.0 0.95
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Note: Continuous rock chip samples were taken from mechanically excavated
trenches and outcrops, with samples lengths ranging from 3 to 5 m
summarized in the table above.
"These are excellent first phase sampling results that have resulted in a new area of mineralization being identified and reinforces that IP is key to unlocking the potential of the property," stated Andrew Cheatle, President and CEO of Unigold Inc. "These results continue to confirm the potential for the entire Candelones area to host significant gold mineralization. The Neita Property clearly has the potential to provide for many more exciting discoveries."
Table 2: Historical drill results Connector Zone Area
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Zone Hole_ID From (m) To (m) Interval (m) Au g/t
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Connector DC 123 11.0 20.0 9.0 0.75
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Connector DC 125 51.0 59.0 8.0 1.20
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South SC 04 0.0 30.0 30.0 1.00
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and 48.0 52.0 4.0 1.10
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South SC 22 0.0 26.0 26.0 2.20
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South SC 23 12.0 40.0 28.0 0.80
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South SC 24 2.0 50.0 48.0 1.00
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South SC 33 0.0 6.0 6.0 1.50
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South SC 35 0.0 19.0 19.0 1.90
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and 30.0 48.0 18.0 1.80
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Testing Shallow Targets
The Company intends to continue testing these near surface targets and believes these new zones potentially increases the areas of mineralization at or close to surface. The trenching program will continue and drilling has commenced. Assay results can be expected in early 2013.
More Targets to Test - More Potential for Success
Unigold is committed to extending its current mineralization footprint at the Candelones area on the wholly owned Neita Concession in the Dominican Republic. Unigold has initially focused on testing a three km long IP anomaly at Candelones Main through to Candelones Extension. There is confirmed gold mineralization, through diamond drilling at either end of (this three km long) IP anomaly.
The Company plans to continue expanding the known mineralized zones. Beyond the immediate work at Candleones, the Company intends to test other regional targets in 2013. Primary targets include Loma de Montazo, Montazo, Rancho Pedro and Naranjo (Figure 5). All of these targets have strong geochemical anomalies and coincident strong IP anomalies. Previous work on the targets did not have the benefit of the 2011 IP survey.
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 is well funded with $9.7 million cash.
QA/QC
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. 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). 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 the five figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/UGD27IMAGES1-5.pdf.
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Contacts:
Unigold Inc.
Mr. Andrew M. Cheatle, P.Geo
President & CEO
acheatle@unigoldinc.com
Unigold Inc.
Ms. Amanda Dillon
Investor Relations
416.866.8157
adillon@unigoldinc.com
www.unigoldinc.com
