Toronto, Ontario, September 13, 2012
-- Unigold Inc. ("Unigold" or the "Company")(TSX-V:UGD) is pleased to announce assay results recently received from five drill holes from the ongoing drilling program at the Candelones Project. Four of the five holes intersected significant alteration and mineralization. The project is located within its wholly owned 22,616 hectare Neita Concession, located in the Dominican Republic.
Table 1: Recent drill hole results from Candelones Extension
- LP36 reported 30.0 m @ 2.06 g/t gold, 0.15% copper and 0.79% zinc.
- LP33 reported 165.7 m @ 0.71 g/t gold, which included 0.09% copper and 0.42% zinc and includes 27.65 m @ 1.38 g/t gold. LP33 was drilled approximately 100 m southwest of hole LP22A, with reported assay results (PR. No 2012-06 April 11) of 80.0 m @ 1.60 g/t gold.
Note: True widths are estimated to be equal to drill intercept interval. No top cut applied to assay values.
To date the Company has received assay results from a total of 36 diamond drill holes at Candelones Extension over an area having a surface expression of approximately 500 m x 700 m. Drill holes are on approximate 100 m centers. Twenty-four of these holes have intersected significant gold mineralization, with important credits in silver, copper and zinc. A further seven holes have been drilled within the Candelones Extension deposit and assay results from holes LP 37, 38, 39, 40, 41, 42 and 43 are pending. (Figure 1).
Unigold has clearly demonstrated that diamond drilling combined with geological mapping coupled with IP and soil surveys have greatly increased the Company's understanding of mineralization. Consequently, the Company is now stepping out to test the distinct, 600 m in length, IP chargeability anomaly drilled by LP19 and LP20 (Figure 1). It will also test several of the numerous other targets in the southern sector of the Neita property (Figure 2). This work will be concurrent with the objective of defining the extent of the large zone of mineralization at Candelones Extension, and to demonstrate the potential for continuity of mineralization towards the Main Candelones Zone, approximately two kilometers to the west.
The IP surveys correspond well with mineralization high in sulfide content, and are considered to be a critical tool for discovery of shallow subsurface deposits. Geologic mapping shows that the property lies within a well defined belt of numerous dacite domes, porphyries and dikes. The dacite intrusives are interpreted as driving the epithermal mineralizing systems. Within the Candelones Extension zone, the 3 dimensional picture is unfolding of a large moderately south dipping stratibound zone of mineralization generally occurring near the contact of dacite tuffs and overlying andesite volcanics and volcanoclastics. Candelones Extension demonstrates mineralization with VHMS characteristics, and flooded by a younger event of epithermal silicification. Much of the mineralization occurs with a volcano-sedimentary breccia. The Company interprets the environment to be prospective for porphyry gold deposits.
On September 13, 2012 the company announced the closing of a bought deal financing with gross proceeds of $5.04 million. Unigold is well funded with $10.7 million cash and, given the strength of the numbers reported so far of the current drill program, continues working towards a mineral resource on this new discovery.
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. 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
Mr. Andrew Cheatle
President & CEO
416 866 8157
Ms. Amanda Dillon
416 866 8157
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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Figure 1: Candelones Drill Holes with IP Chargeability, Neita Concession, Dominican Republic
Figure 2: Southern Neita Property, Regional IP Chargeability with Areas of more extensive drilling highlighted. Numerous IP targets remain untested.
Figure 3: Section M-M'
Figure 4: Candelones Extension Grade -- Thickness Plan (projected to horizontal)