News

Jan 16, 2012

Unigold Inc. Reports New Results, Including 73 m @ 2.36 g/t Gold, at Candelones Extension, Neita Property, Dominican Republic

Published: January 16, 2012

TORONTO, Ontario, January 16, 2012 - Unigold Inc. ("Unigold" or the "Company") (TSXV:UGD) is pleased to announce additional results from the 2011 drilling program at its wholly owned Candelones Project, Neita Property in the Dominican Republic.

Significant results are reported for drill holes LP17 and LP20. The holes were targeted to extend the known mineralization using Unigold's recently acquired IP survey, combined with improved geological knowledge. Assay results from the core obtained at the Candelones Extension (Lomita Piņa) are reported in the table below. The best results are 73.0 m @ 2.36 g/t gold in hole LP17 and 20.0 m @ 2.74 g/t gold plus 37.0 m @ 1.48 g/t gold in hole LP20. The deposit remains open along strike in both directions and down dip.

"These exciting drill results, in terms of their true width, grade consistency, and strike extent - now extending the mineralized zone at the Candelones Extension (Lomita Piņa) to nearly 1.0 km in length - show considerable promise at the property." noted Andrew Cheatle, Unigold's new President and Chief Executive Officer. "We are enthusiastically returning to the area and starting the year with a 10,000 m drill program to test both strike and dip extent."

Table: Significant Drill Results from Candelones Extension (Lomita Piņa)

Drill Hole

From (m)

To (m)

Interval (m)

Au (g/t)

Comments

 LP17

252.0

325.0

73.0

2.36

South of dyke

 LP18

200.0

260.0

60.0

1.30

South of dyke

 LP19

96.0

120.0

24.0

0.36

North of dyke

 LP20

60.0

80.0

20.0

2.74

North of dyke

Including

60.0

68.0

8.0

6.25

 

and

121.0

158.0

37.0

1.48

 

Notes:     Intervals indicate true width. Holes drilled at approximately 330° Azimuth and dips of -50° to -70°. See Appendix for all  drill results from Candelones Extension (Lomita Piņa) including those from previous press releases.

At the end of the 2011 drill program, LP17 was extended from 333 m to 450 m and intersected a further 100 m of sulphide mineralization. Assay results are pending.

Geological Setting
Gold mineralization occurs within Unigold's Neita concession, located within the Central Cordillera of Hispaniola. In the most general sense, the rocks of Hispaniola represent Cretaceous arc complexes that migrated eastward, along with an oceanic plateau, from the Pacific to the Atlantic ocean where they collided with the southern margin of North America. The geology of the property reflects this complex history. 

Within the project area, diffusely-bedded dacitic tuff and hyaloclastite breccia are intercalated with marine sedimentary rocks and all are intruded by andesitic sills. These rocks, and their andesitic basement, were overthrust by high-magnesium basalts, related terrestrial sediments, and ophiolitic rocks. They were deformed several times to create complex fault patterns and three different sets of folds. The two older sets of folds are recumbent to isoclinal and are crudely coaxial with W-NW trends. The third set of folds are broad open folds of northerly trend, which provide down-plunge views through the older folds and thrust faults. Economic values of gold mineralization at the property occur within the dacitic breccias.

Quality Assurance/Quality Control and Qualified Person
All diamond drill core samples were assayed at the Acme Analytical Laboratories facility in Chile utilizing standard fire assay procedures. The Company has also implemented a quality assurance and quality control ("QA/QC") program to ensure that sampling and analysis of all exploration work is conducted in accordance with the CIM Exploration Best Practices Guidelines. The drill core is cut in half with one-half of the core sample shipped to Acme. The remaining half of the core is kept for future assay verification, geological investigation and/or metallurgical testing. The QA/QC procedures also include the insertion of blind blanks and standards into the sample stream.

Technical information in this press release was reviewed and approved by Andrew Cheatle, P.Geo., President and Chief Executive Officer at Unigold, who is a qualified person under the definitions established by National Instrument 43-101.

About Unigold Inc. -- Discovering Gold in the Caribbean
Unigold is a growth-oriented junior natural resource company, focused primarily on exploring and developing its gold assets in the Dominican Republic -- a country which is highly prospective for gold mineralization.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Mr. Andrew Cheatle, President and CEO (+1 (416) 866-8157)
Web site: www.unigoldinc.com
Email:

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.

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.