Unigold Announces 20,000 metre Drilling Program for Neita Concession
UNIGOLD INC.
P.O. Box 936, STN Adelaide, Toronto, Canada M5C 2K3
T. 416.866.8157
www.unigoldinc.com
PR No. 2019-08
Unigold Announces 20,000 metre Drilling Program for Neita Concession
Toronto, Ontario, October 03, 2019 – Unigold Inc. (“Unigold” or the “Company”) (TSX-V:UGD) is pleased
to announce exploration on the Company’s 100% owned Neita Fase II Exploration Concession, located in
the Dominican Republic, will resume in early October.
The Company’s Board of Directors have approved up to 20,000 meters of diamond drilling with a total
Budget of CAD $2.5M. The exploration program has the following objectives:
Upgrade 50% of the inferred mineral resources to an indicated resource classification;
Complete metallurgical tests and develop preliminary process flow sheet and design criteria for
the oxide, transition and sulphide mineralization;
Update the mineral resource estimates for the Candelones Project;
Support permit applications for both surface and underground mine development with the
Dominican government;
Complete additional geophysical surveys if warranted;
Evaluate new geological targets proximal to the known Candelones deposits;
Evaluate new geological targets along the east-northeast gold trend.
Joseph Hamilton, Chairman and CEO of Unigold notes, “During the license renewal process, government
representatives repeatedly expressed disappointment that the Company was not in a position to apply
for an Exploitation License for the Candelones deposits . Our work to date has identified an inferred
mineral resource of approximately 2.0 million ounces of gold at Candelones and this resource would
most logically be exploited using a combination of open pit and underground mining methods . Our
immediate objective with this initial phase of exploration is to reduce the technical risks associated with
the currently identified mineral resource. De-risking the project requires an updated mineral resource
estimate with a significant conversion of inferred resource to an indicated classification, detailed
metallurgical studies to establish metallurgical recoveries, preliminary flow sheet and process plant
design optimization and initiation of the permitting process for both open pit and underground mine
development. This data can then be evaluated through a preliminary economic analyses of the
Candelones Projects to provide an initial indication of the project economics. We believe the Candelones
Project is a compelling opportunity, particularly in a rising gold price environment and our intent is to
position the Company and our shareholders to benefit from this opportunity. ”
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The current mineral resource estimates for the Candelones Project, comprised of the Candelones Main,
Candelones Connector and Candelones Extension deposits (Ref. Figure 1.0) is summarized in Table 1.0.
Historical drilling of the Candelones Extension mineralization focused on the northeasterly trending
andesite-dacite contact. The contact dips to the south at 30 to 70° (Ref. Figure 1.0). The initial drilling at
the Candelones Extension deposit (2010-2013) targeted the andesite – dacite contact as mineralization
was interpreted to be stratigraphically controlled, sub-parallel to the contact, with grades decreasing as
the distance from the contact increased. This historical drilling was completed on a nominal 100 x 100
meter spacing and forms the basis for the 2013 mineral resource estimate (Ref. Table 1.0).
Figure 1.0 – Candelones Project – Compilation Plan
In 2016, the Company identified higher grade mineralization that was not followed- up in the 100 meter
drill coverage at the Candelones Extension deposit. Three distinct higher grade targets were identified in
2016. These targets include pyrite rich massive sulphide mineralization with anomalous gold and copper
mineralization (Anomaly A – Ref. Figure 2.0). The massive sulphides are currently interpreted to strike
east-northeast and are relatively flat lying with a plunge of 30° to the northeast. Drilling to date has
traced the mineralization along a 350 meter strike length with holes spaced roughly 75 meters along
strike.
Two additional anomalies (B and C – Ref. Figure 2.0) were also indentified, both appear to be sub-
vertical, zoned polymetallic zones that returned anomalous gold, silver, copper and zinc.
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Figure 2.0 – Longitudinal Projection Section A – A’ (Looking North)
All three higher-grade targets identified in 2016 remain open at depth (Ref. Figure 2.0)
Re-interpretation of the data suggests that the andesite – dacite contact, the focal point of the initial
drilling at Candelones Extension, plunges to the northeast at 20-30° and is eroded away at surface to the
west exposing the underlying dacites at the Candelones Main and Connector deposits.
Structural interpretation in 2016 suggests the potential for multiple, northwest trending, strike slip
faults that are interpreted to disrupt the Candelones mineralization, producing a series of en-echlon
deposits along a general east-northeast trend, approximately 20° relative to the andesite-dacite contact
(Ref. Figure 1.0).
2019 Exploration Program Overview
The 2019 exploration program will commence with infill / metallurgical drilling of the pyrite rich massive
sulphide mineralization (Target A – Ref. Figure 3.0). Approximately 5000 meters of drilling is proposed at
Target A. This drilling will provide sufficient material for metallurgical testing of the higher grade
mineralization type.
On completion of the infill / metallurgical drilling, approximately 5000 meters of drilling is proposed to
probe the eastern continuity of the massive sulphide mineralization (Ref. Figure 3.0).
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An additional 5000 meters of drilling is allocated to evaluate the potential of fault offset en-echlon
mineralization to the west, in an area of sparse drill coverage (Ref. Figure 3.0).
Figure 3.0 – Candelones Extension Infill and Resource Expansion Drilling
Approximately 3000 meters of drilling is reserved to test undrilled targets along the east northeast
trending gold trend.
Finally, approximately 3000 meters of close spaced, shallow drilling is proposed at the Candelones Main
and Connector deposits. This drilling is focused on near surface oxide mineralization as well as the sub-
surface transition mineralization.
At the Candelones Connector deposit, holes will be spaced on 25 meter centers on lines spaced 25
meters apart. At the Candelones Main deposit, holes will be spaced on 25 meter centers on lines spaced
50 meters apart (Ref. Figure 4.0). The oxide drill program assumes a maximum hole depth of 20.0 to
25.0 meters, sufficient to pass through the oxide mineralization and into the underlying transition
mineralization. The drilling is designed to provide sufficient material for metallurgical testing of both the
oxide and transition mineralization, and to supply geotechnical information that can inform and support
pit designs.
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Figure 4.0 – Candelones Main and Connector Oxide Drill Program
The metallurgical program is currently being finalized. The Company will provide details on the
metallurgical program when it is finalized.
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Table 1.0 –Inferred Mineral Resource Estimate for the Candelones Project as of November 4, 2013
Source Mineralization Deposit Tonnes Au Au ozs Strip
Type (x 1,000) (g/t) (x 1,000) Ratio
OXIDE Main 2,448 0.92 72 1.3
Connector 1,108 1.12 40 1.3
Extension - 0.00 - 0.0
Subtotal 3,556 0.98 112 1.3
SULPHIDE Main 5,003 1.16 186 1.3
Connector 980 1.08 34 1.3
Extension 24,223 1.59 1,241 7.6
Subtotal 30,206 1.50 1,461 6.4
Subtotal 33,762 1.45 1,573 5.8
Not Pit
Constrained SULPHIDE Main 704 2.21 50
Connector 50 2.49 4
Extension 4,977 2.42 387
Subtotal 5,731 2.39 441
TOTAL 39,493 1.59 2,014
NA
Pit
Constrained
Pit
Constrained
Mineral Resources were estimated by Mr. W. Lewis, P.Geo and Mr. A. San Martin, MAusIMM (CP) of Micon International Ltd. (“Micon”), a
Toronto based consulting company independent of Unigold. Messrs. Lewis and San Martin meet the requirements of a “qualified person” as
established by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral
Reserves, adopted May 2014, the (“CIM Standards”) and National Instrument 43-101 ( “NI 43 -101”).
Mineral Resources are reported according to the CIM Definition Standards for Mineral Resources and Mineral Reserves. The CIM Standards
define a Mineral Resource as: "a concentration or occurrence of solid material of economic interest in or on the earth's crust in such form, grade
or quality and quantity that there are reasonable prospects for eventual economic extraction."
The CIM Standards further define an Inferred Mineral Resource as: " that part of a Mineral Resource for which quantity and grade or quality are
estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade
or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must
not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated
Mineral Resources with continued exploration."
Table 1.0 excerpted from: “NI 43-101 Technical Report, Mineral Resource Estimate for the Candelones Project, Neita Concession, Dominican
Republic; Report Date: December 20, 2013; Effective Date: November 4, 2013; Report By: William J. Lewis, B.Sc., P.Geo., Ing. Alan J. San Martin,
MAusIMM (CP) and Richard M. Gowans, B.Sc., P.Eng.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Not pit constrained resources (sulphide) were estimated by block tabulation above a cut off grade, based on costs from similar mining projects
which, based on the QP’s expertise, were reasonable at the time the estimate was made.
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Table 2.0 –Inferred Mineral Resource Estimate for the Candelones Extension as of February 24, 2015
at a Cut-Off Grade of 3.5 g/t Gold
Mineralization Deposit Tonnes Au Au ozs Cu Cu lbs
Type (x 1,000) (g/t) (x 1,000) (%) (x 1,000)
SULPHIDE Extension 5,274 5.27 894 0.35 41,175
Mineral Resources were estimated by Mr. W. Lewis, P.Geo and Mr. A. San Martin, MAusIMM (CP) of Micon International Ltd. (“Micon”), a
Toronto based consulting company independent of Unigold. Messrs. Lewis and San Martin meet the requirements of a “qualified person” as
established by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for Mineral Resources and Mineral
Reserves, adopted May 2014, the (“CIM Standards”) and National Instrument 43-101 (“NI 43-101”).
Mineral Resources are reported according to the CIM Definition Standards for Mineral Resources and Mineral Reserves. The CIM Standards
define a Mineral Resource as: "a concentration or occurrence of solid material of economic interest in or on the earth's crust in such form, grade
or quality and quantity that there are reasonable prospects for eventual economic extraction."
The CIM Standards further define an Inferred Mineral Resource as: " that part of a Mineral Resource for which quantity and grade or quality are
estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade
or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must
not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resource could be upgraded to Indicated
Mineral Resources with continued exploration."
Table 2.0 excerpted from: “NI 43-101 Technical Report, Mineral Resource Estimate for the Candelones Extension Deposit, Candelones Project,
Neita Concession, Dominican Republic; Report Date: March 30, 2015: Effective Date: February 24, 2015; Report By: William J. Lewis, B.Sc.,
P.Geo., Ing. Alan J. San Martin, MAusIMM (CP) and Richard M. Gowans, B.Sc., P.Eng.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Resource estimated by block tabulation above a cut off grade, based on costs from similar mining projects which, based on the QP’s expertise,
were reasonable at the time the estimate was made.
QA/QC
Diamond drilling utilizes both HQ and NQ diameter tooling. Holes are established using HQ diameter
tooling before reducing to NQ tooling to complete the hole. The core is received at the on-site logging
facility where it is, photographed, logged for geotechnical and geological data and subjected to other
physical tests including magnetic susceptibility and specific gravity analysis. Samples are identified,
recorded, split by wet diamond saw, and half the core is sent for assay with the remaining half stored on
site. A minimum sample length of 0.3 metres and a maximum sample length of 1.5 metres are employed
with most samples averaging 1.0 metres in length except where geological contacts dictate. Certified
standards and blanks are randomly inserted into the sample stream and constitute approximately 5-10%
of the sample stream. Samples are shipped to a sample preparation facility in the Dominican Republic
operated by Bureau Veritas. Assaying is performed at Bureau Veritas Commodities Canada Ltd.’s
laboratory in Vancouver, B.C. Canada. All samples are analyzed for gold using a 50 gram lead collection
fire assay fusion with an atomic adsorption finish. In addition, most samples are also assayed using a 36
element multi-acid ICP-ES analysis method.
Wes Hanson P.Geo., Chief Operating Officer of Unigold has reviewed and approved the contents of this
press release.
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William J. Lewis, B.Sc., P.Geo of Micon International Ltd., has reviewed the 2014 CIM Definition
Standards for Mineral Resources and Reserves and confirms the 2013 and 2015 Inferred Mineral
Resource Estimates, restated in this Press Release, remain valid.
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 or contact:
Mr. Joseph Hamilton
Chairman & CEO
416.866.8157
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