Toronto, Ontario, March 27, 2013
-- Unigold Inc. ("Unigold" or the "Company") (TSX-V:UGD) reports that drilling continues to expand the Candelones "Extension Zone", at the Company's wholly owned 22,600 hectare Neita Concession in the Dominican Republic.
Table 1: Recent Drill Results Candelones Extension Zone (Figures 2,3,4)
- LP 66 155.0 metres averaging 1.14 g/t Au including 38.5 metres averaging 1.69 g/t Au and
LP 65 28.2 metres averaging 2.50 g/t Au.
- 35.0 metres averaging 1.60 g/t Au;
The intervals presented represent down hole intervals from drill holes drilled at right angles to the targeted mineralization. As such, the intervals reported approximate the true width of the mineralization.
"These are more impressive near surface results that continue to show the continuity of mineralization on our 3 km long Candelones trend" commented Andrew Cheatle, President and CEO Unigold.
The results from the Extension zone continue to return positive results as the Company expands the Extension zone to the northwest towards the Candelones Main zone mineralization.
Hole LP 65 intersected 159.5 m @ 0.64 g/t Au at a depth of 60 metres from surface, approximately 50 metres northwest of hole LP 61 (UGD PR 02-13-13 -- 70.7 m @ 0.37 g/t Au).
Hole LP 66 intersected 155.0 m @ 1.14 g/t Au at a depth of 40 metres from surface. LP 66 was collared approximately 60 metres northwest of hole LP 62 (UGD PR 02-13-13 -103.0 @ 1.45 g/t Au).
Hole LP 67, drilled 60 metres northwest of hole LP 60 (UGD PR 02-13-13 -- 40.5 m @ 0.48 g/t Au), intersected 105.2 m @ 0.35 g/t Au at a depth of approximately 100 metres from surface.
Holes LP 63 and LP 64, 100 and 200 metres southwest of hole LP 66 respectively, intersected pervasive, low grade mineralization approximately 150 metres from surface. These holes are the most northwesterly holes returned to date and the presence of low grade gold mineralization continues to suggest potential to further expand the Candelones Extension to the northwest.
To date, results from 67 holes testing the twin Induced Polarity ("IP") anomalies of the "Extension Zone" have been received with 85% (57) of the holes intersecting significant mineralization. The mineralization ranges from 20 to 200 metres (down hole interval length) and average 0.25 to 2.5 g/t Au (a maximum of 3.81 g/t Au found in hole LP 28) with associated Ag, Cu and Zn. The Candelones Extension is being expanded on a nominal 100 x 100 metre grid pattern and has been traced along a 1,600 metre strike length to a depth of
300 metres. The Candelones Extension remains open along strike to the northwest and southeast and at depth.
The Company continues to actively drill the Candelones Main, Connector and Extension zones representing a potential mineralized strike length of 3 km. A Request for Proposal ("RFP") has been issued to qualified, independent consultants to estimate the initial mineral resource for the Candelones Main, Connector and Extension zones. Award of this work is anticipated by May 2013.
The Company has deployed field teams to evaluate the Montazo, Guano, Naranjo (collectively "MGN"), Juan del Bosques and Rancho Pedro target areas, located entirely within the Neita Concession, approximately 7.0 kilometres east of Candelones. Numerous gold in soil and copper in soil anomalies were identified in the regional geochemical soil sampling programs. In addition, more than 20 IP anomalies have been identified for field verification, many of which are coincident with the aforementioned soil geochemical response. Company geologists have confirmed that the lithologies and alteration assemblage hosting gold mineralization is present at MGN and field mapping and sampling is underway in preparation for initial drill testing of prioritized targets.
Historical drilling, pre IP survey and not testing significant IP anomalies in the MGN area returned some significant results, including:
Premier Mining Destination -- Dominican Republic
||113.0 metres averaging 0.28 g/t Au including 4.0 metres averaging 2.20g/t Au
||5.5 metres averaging 1.0% Cu and 4.4% Zn
||49.0 metres averaging 0.34 g/t Au
||Juan del Bosques
||9.3 metres averaging 1.50g/t Au
||Juan del Bosques
||30.0 metres averaging 0.7% Zn
||163.0 metres averaging 0.2 g/t Au
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 has sufficient funding to meet the goals and objectives established for the current exploration program.
Drilling provides both HQ and NQ diameter core for sampling. Holes are typically started with larger diameter HQ core and the hole diameter is reduced to NQ at depth. 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).
Wes Hanson P.Geo., Chief Operating Officer of Unigold, and a Qualified Person under National Instrument 43-101 has 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
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 forwa rd-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. W e 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 zones with IP Chargeability,Neita Concession,Dominican Republic
Figure 2: Candelones Extension area with IP Chargeability,Neita Concession,Dominican Republic
Figure 3: Section P'-P
Figure 4: Section R'-R
Figure 5: Neita Property, RegionaiiP Chargeability and targets.