Toronto, Ontario, June 14, 2010
- Unigold Inc. ("Unigold" or the "Company") (TSX-V: UGD, NASDAQ-DUBAI: UGD) is pleased to announce the discovery of a new gold zone on its wholly-owned Neita Property located in the western region of the Dominican Republic. The gold zone is grading 2.3 g/t gold over 27 meters (true thickness) and is included in a 52-metre intercept (true thickness) grading 1.4 g/t gold. Hole number LP07 has encountered a massive barite unit and hydrothermal breccias which carry gold mineralization. Hole LP05 located 100 metres to the North-West has also intercepted the same structure and returned 29-meters grading 0.7 g/t gold from the same zone. Results from a further 2 holes are pending.
The discovery at Lomita Pina is located 3 kilometres South-East of Unigold's Los Candelones deposit. Drilling was positioned to follow-up on trenching results that returned 34 metres at 2.2 g/t gold (Press release Feb 24 2009). Lomita Pina gold zone was traced at surface over a length of 0.7 kilometres with 14 trenches and gold bearing grab samples up to 16.5 g/t gold. Lomita Pina is part of a large epithermal alteration zone which covers an area of more than 16 square kilometres. Mineralization at Lomita Pina is strikingly similar to that found at Candelones and the area is believed to be an extension of the Candelones deposit which has been displaced along a fault corridor. The entire zone at Lomita Pina is covered by a volcano-sedimentary sequence made of andesitic pyroclastic units and a sequence of impure limestone and detritic sediments. Geological interpretation implies that this pyroclastic may be a capping sequence that was later altered by epithermal systems. The underlying rock units, as well as the 3 kilometre area between Lomita Pina and Candelones, have become high priority exploration targets. Drill results are shown in the table below.
Mr. Daniel Danis, the President of Unigold Inc., states "We are extremely encouraged by these excellent drill results from a possible extension to the Candelones mineralization. The entire 3 kilometre distance between the Candelones resource and this new area of mineralization has become highly prospective. We expect that geophysical and geochemical anomalies from this area will be prioritized and follow-up work will commence immediately."
In addition to these new discoveries, Unigold has increased it's exploration presence in the Dominican republic. The Company has added 10 geologists to it's field teams in the first half of this year, with two senior geologists joining the Company in recent weeks: Mrs. Lise Chenard and Mr. Francois Gaboury.
Mrs.Chenard is a former Chief Geologist for Barrick Gold at the Pueblo Viejo Project in the Dominican Republic.Mrs. Chenard holds an engineering degree in Geology and while involved in the Pueblo Viejo Project Feasibility Study she was leading a team responsible for evaluating the reserves of that world-class gold deposit.
Mr. Gaboury holds a degree in Geology and has over 23 years of exploration experience. Mr. Gaboury has extensive experience with high-sulphidation epithermal systems and has worked at Pierina and Alto Chicama in Peru. He has been involved in regional to property scale exploration and from early stage exploration to definition drilling and pre-production studies.
"The addition of these two geologists to Unigold's team is not just simply raising the bar in terms of the expertise and the experience available in the field for a successful 2010 exploration campaign but it is enhancing significantly the chance to materialize a major discovery. Adding such background to the already deep Unigold team is just the perfect recipe for success in 2010" says Daniel Danis President and CEO of Unigold.
** Reported length or thickness is believed to be true thickness
Elsewhere in the large land package in the Dominican Republic the exploration efforts at MGN (Press release March 4, 2010) has been completed and all work in this area has been suspended pending the compilation of geochemical, geophysical and drilling data. At MGN gold occurs within barium-rich jasperiods and jasperiod breccias that are anomalous in arsenic, copper and gold with prolific argillic alteration of wallrock. Grab samples from this area returned up to 21.90 g/t gold. Follow-up trench sampling returned up to 4.2 g/t gold over 10 metres. Two drills were mobilized into the MGN zone in March and completed 535 metres of drilling in 2 holes over Rancho Pedro target area. The drilling contributed significantly to the understanding of the complex geology of the area but did not return any significant mineralization. Drilling was suspended while Unigold geologists compile and interpret the assembled geological information prior to designing follow-up exploration programs for this area. Nevertheless, surface geology remains encouraging in this area where a concurrent geochemical sampling program has delineated a 1.8 kilometre by 450 metre continuous gold-in-soils anomaly with peak values of 742 ppb gold and 0.37% copper. This anomaly remains untested but will be prioritized over the coming months.
Work programs for the next quarter will concentrate on drilling at the Candelones Extension, Noisy and Rancho Pedro. More then 4000 metres of drilling is planned. More the 2000 soil samples and 50 kilometres of geophysical survey is planned as follow-up work at Neita. Detailed geological mapping, structural mapping and alteration re-interpretation are underway and will continue in the next quarter. The Company is currently awaiting an environmental permit to proceed with exploration on Sabaneta. The Company expects that this permit will be granted shortly and exploration within this important concession will commence in the next quarter.
The foregoing scientific and technical information has been prepared and reviewed by Daniel Danis, M.Sc., the President and CEO of Unigold. Mr. Danis is a "qualified person" within the meaning of National Instrument 43-101. All samples were assayed at Acme Analytical Laboratories facility in Chile utilizing standard fire assay procedure.
About Unigold Inc.
Unigold Inc. is exploring to find and develop gold deposits on its 100-per-cent-owned 226 km2 Neita Property located in the Dominican Republic. Having the largest land package in the Dominican Republic, the goal is to target bulk tonnage, open pit able, oxide gold deposits within a very similar geological setting to the world class Pueblo Viejo gold project located 150 kilometres to the south-east. Unigold benefits from an 16-year tax holiday on all corporate, sales taxes and import duties in the Dominican Republic. The economics of any discovery will be significantly improved by the fact that Unigold is benefiting from an 16-year holiday on all corporate taxes, sales taxes and import duties in the Dominican Republic.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mr. Daniel Danis, President and C.E.O (+1-450-667-4766)
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 press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forwardlooking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.