Unigold Inc. Delivers Positive Feasibility Study FOR Candelones Oxide Project
,
UNIGOLD INC.
Ste 2704, 401 Bay Street,
P.O. Box 4, Toronto, ON M5H 2Y4
T. (416) 866-8157
www.unigoldinc.com
PR No. 2022-12
UNIGOLD INC. DELIVERS POSITIVE FEASIBILITY STUDY FOR CANDELONES OXIDE PROJECT
• 52% Pre-Tax Internal Rate of Return (“IRR”), 44% After-Tax IRR
• AISC of US$829/oz Au
• Feasibility Study assumes 5,000 tonnes per day (“tpd”) run-of-mine heap leach operation
• Average annual payable gold production of 31,400 oz
• Initial capital expenditure (“Capex”) of US$36 Million (includes US$8 Million for EPCM,
owner’s, indirect costs and contingency)
• US$38 Million Pre-Tax Net Present Value (“NPV5”), US$30 Million After-Tax NPV5
• Average annual after-tax free cash flow of US$23.8 Million
• Average blended gold recovery of 85%; total cash cost of US$14/tonne treated
• Creation of approximately 140 direct jobs and 50 indirect jobs during operation
Toronto, Ontario, November 10, 2022 – Unigold Inc. (“Unigold” or the “Company”) (TSX -V:UGD;
OTCQX: UGDIF; FSE:UG B1) is pleased to provide results of an independent Feasibility Study (“the
Study”) prepared in accordance with National Instrument 43 -101 – Standards of Disclosure for
Mineral Pr ojects ("NI 43 -101") on the Company’s 100% owned Candelones Oxide Project in the
Dominican Republic.
Gordon Babcock, Chief Operating Officer notes: “The Feasibility Study has enhanced the economics as
compared to the Company’s April 2021 Preliminary Economic Assessment (PEA). While inflation did have an
impact, we were able to realize savings by identifying local suppliers and contractors for many of the cost
centers. The Capital and Operating costs increased 4% relative to the PEA estimates. Metallurgical recoveries
increased by 10% reflecting changes in ore handling and stacking . Recovered ounces increased by 7,400
ounces relative to the PEA due to improved metallurgical recovery assumptions. The net result describes a
low-cost, low impact open pit heap leach mining operation capable of producing 31,000 ounces of gold
annually. Our consulting team has done an outstanding job in streamlining the design to minimize capital
and operating cost increases. Our exploration drilling of the oxide resource successfully converted 93% of
the 2021 inferred resource to the measured and indicated classification, facilitating conversion to proven
and probable reserves.
Unigold Inc. Press Release: PR2022-12 November 10, 2022 Page: 2
Joseph Hamilton, Chairman and CEO of Unigold notes: “The delivery of this feasibility study is a key
deliverable for the Company for 2022. The Feasibility Study met our expectations, and our team was able
to deliver a low-cost starter pit with a minimal environmental footprint. The economics are compelling for
a starter operation. While this study looks at Oxide produ ction only, the integration of the larger sulphide
resource into the project planning is expected to enhance the mine life and production profile . We are
awaiting the approval of the Exploitation Concession application which will be required for us to get to a
production decision for the Candelones Project.”
This Study was prepared for Unigold by Micon International Limited and other industry consultants.
The following “qualified persons” contributed to the Study, each of whom has reviewed and approved
the content of this news release . The following persons are independent for the purposes of NI 43 -
101:
• Chris Jacobs, C.Eng., MIMMM, President & Mining Economist, Micon International Limited
• Abdoul Aziz Dramé, P.Eng., Mining Engineer, Micon International Limited
• Bill Lewis, P.Geo., Senior Geologist, Micon International Limited
• Alan J. San Martin, MAusIMM (CP), Mineral Resource Specialist, Micon International Limited
• Stuart Saich, Principal Metallurgist, Company Director, Promet 101 Consulting Pty Ltd.
• Mathew Fuller, Principal, C.P.G., P.Geo., QP, Principal, Tierra Group International Ltd.
The pertinent input parameters and results of the Candelones Oxide Study (Base Case) are presented
in Table 1 to Table 4. Table 5 presents the NPV and IRR sensitivity to variability in gold price, capital
cost, and operating cost.
Mineral Reserve and Resource Estimates
The oxide mineral reserves and resources for the Candelones project are summarized in Tables 6 and
7. The Study is based on the oxide mineral resources, estimated by Mr. W. Lewis, P.Geo. and Mr. A.
San Martin, MAusIM M (CP) and the oxide mineral reserves, estimated by Mr. Abdoul Aziz Dramé,
P.Eng. all of whom are employees of Micon. Micon is independent of Unigold and Messrs. Lewis, San
Martin and Dramé each meet the requirements of a “Qualified Person” as established by NI 43-101
and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards for
Mineral Resources and Mineral Reserves ( May 2014). The effective date of the mineral r eserve
estimate is October 7, 2022. The effective date of the mineral resource estimate is August 8, 2022. A
Technical Report summarizing the estimation methodology and procedures will be published on
SEDAR and the Company’s website within 45 days.
Unigold Inc. Press Release: PR2022-12 November 10, 2022 Page: 3
Table 1: FS Summary (reported in US$)
Total mineralized material mined (000 t) 5,597
Total waste (000 t) 2,232
Average grade (Au g/t) 0.67
Total gold contained (oz) 121,350
Total gold produced (oz) 102,970
Average Gold recovery (%) 85%
Average annual gold produced (oz) 31,426
Total initial Capex (US$M) $35.9
Sustaining Capital (US$M) $0.9
Unit Operating Cost (per tonne ore treated)
Mining (US$/t) $4.13
Processing (US$/t) $5.55
General & administration (US$/t) $1.31
Refining, delivery, royalty (US$/t) $3.18
Total operating cost per tonne treated (US$/t) $14.17
Table 2: Capital Cost Summary (US$ million)
Capital Costs (US$M) Pre-
Production
Sustaining Total
Mining $1.71 $0.94 $2.65
ADR Processing Plant $9.97 $9.97
Infrastructure $16.40 $16.40
EPCM, Indirects, Owners Costs $3.72 $3.72
Subtotal $31.80 $0.94 $32.74
Contingency $4.10 $4.10
Total Capital Costs $35.90 $0.94 $36.84
Closure and Rehabilitation $0.47 $4.66 $5.13
Note: Totals may differ due to rounding.
Unigold Inc. Press Release: PR2022-12 November 10, 2022 Page: 4
Table 3: Summary Economics at US$1,650 gold per oz (US$ million) (US$M)
LOM: Gross Revenue * (US$M) $169.9
Minimum Tax/Royalty/Community Burdens* $17.0
EBITDA Net Cash Operating Margin* $90.6
Direct Taxes * $8.8
Net Cash Flow from Operations After-Tax* $81.8
Total Capital Cost including sustaining and closure costs* $42.0
Net Project Cashflow after Capital recapture* $39.8
Pre-Tax 5% NPV cash flow (US$M) $38.2
Pre-Tax IRR 52.4%
After-Tax 5% NPV cash flow (US$M) $30.6
After-Tax IRR 43.6%
* Undiscounted
Table 4: All-In Sustaining Cost (US$ million)
Mining Cost (US$M) $23.1
Processing Cost (US$M) $31.1
General & Administrative (US$M) $7.3
Refining & Smelting (US$M) $0.8
Royalties (US$M) 17.0
Adjusted Operating Costs $79.3
Sustaining (US$M) $0.9
Closure cost (US$M) $5.1
Total (US$M) $85.3
All-in Sustaining Cost (US$/oz) $829
All-in Sustaining Costs are presented as defined by the World Gold Council Less Corporate G&A
Table 5: NPV & IRR Sensitivities (Base Case1 in bold): 5% Discount Rate
80% 85% 90% 95% 100% 105% 110% 115% 120%
Gold
Price
NPV
(US$M) $10.3 $15.4 $20.5 $25.6 $30.6 $35.7 $40.7 $45.7 $50.7
IRR 19.1% 25.6% 31.7% 37.7% 43.6% 49.2% 54.8% 60.2% 65.5%
Operating
Cost
NPV
(US$M) $38.5 $36.5 $34.6 $32.6 $30.6 $28.7 $26.7 $24.7 $22.8
IRR 52.5% 50.3% 48.1% 45.8% 43.6% 41.3% 39.0% 36.7% 34.3%
Capital
Cost
NPV
(US$M) $36.1 $34.7 $33.4 $32.0 $30.6 $29.3 $27.9 $26.6 $25.2
IRR 59.5% 54.9% 50.8% 47% 43.6% 40.4% 37.5% 34.8% 32.3%
1 – Base Case: US$1,650 gold per oz; CAPEX US$35.90 Million; Operating Cost US$14.17/ tonne processed
Unigold Inc. Press Release: PR2022-12 November 10, 2022 Page: 5
Table 6.0 – Mineral Reserve Estimate – Candelones Oxide Project
Mineralization Type Category Tonnes
(x1,000) Au g/t Au oz Waste/Ore
Ratio
Oxide Proven 2,564 0.79 65,000
Total Proven 2,564 0.79 65,000
Oxide Probable 2,384 0.57 43,000
Transition 649 0.62 13,000
Total Probable 3,033 0.58 56,000
Total Proven + Probable 5,597 0.67 121,000 0.40
Table 7.0 – Mineral Resource Estimate – Candelones Oxide Project
Mineralization Type Category Tonnes
(x1,000) Au g/t Au oz Waste/Ore
Ratio
Oxide Measured 2,542 0.83 67,000
NA
Oxide Indicated 2,483 0.60 48,000
Transition 710 0.66 15,000
Measured + Indicated 5,735 0.71 130,000
Oxide Inferred 1,094 0.43 15,000
Transition 160 0.59 3,000
Inferred 1,255 0.45 18,000
Oxide Mineral reserves, with an Effective Date of October 7, 2022, were estimated by Mr. Abdoul Aziz Dramé, P. Eng, of Micon International
Limited (“Micon”) a Toronto based consulting company independent of Unigold. Mr. Dramé meets the meet the requirements of a
“Qualified Person” as defined by NI 43-101. The reserve estimate is based on a long-term gold price of US$ 1650 per ounce and economic
cut-off grades of 0.21 g/tonne (OXIDE) and 0.33 g/tonne (TRANSITION). Mineral reserves are reported within a final designed pit developed
from an optimized pit shell. Mineral reserves assume 2.5% dilution, metallurgical recoveries of 88% (OXIDE) and 59% (TRANSITION); mining
costs of USS$ 1.84 to 2.39 per tonne (WASTE), US$2.25 per tonne (OXIDE) and US$ 2.75 per tonne (TRANSITION); processing costs of US$5.56
per tonne; G&A costs of US$1.31 per tonne and selling and royalty costs of US$ 3.18 per tonne
Oxide Mineral resources, with an Effective Date of August 8, 2022, are inclusive of mineral reserves and were estimated by Mr. W. Lewis,
P.Geo. and Mr. A. San Martin, MAusIMM(CP) of Micon International Limited. (“Micon”), a Toronto based consulting company, independent
of Unigold. Both Mr. Lewis and Mr. San Martin meet the requirements of a “Qualified Person” as defined by NI 43 -101. The estimate is
based on a long-term gold price of US$1,800 per ounce; metallurgical recoveries of 88% (OXIDE) and 59% (TRANSITION); mining costs of
US$2.25 per tonne (OXIDE) and US$ 2.75 per tonne (TRANSITION); processing costs of US$5.97 per tonne; G&A costs of US$1.93 per tonne.
Pit constrained resources are reported within an optimized pit shell.
Micon has not identified any legal, political, environmental, or other risks that could materially affect the potential development of the
mineral resource estimate.
The mineral reserve and resource estimates are classified according to the CIM Standards which 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 location, quantity, grade or quality, continuity and other
characteristics of a mineral resource are known, estimated, or interpreted from specific geological evidence and knowledge including
sampling. Mineral resources are sub -divided, in order of increasing geological confidence, into inferred, indicated, and measured
categories. An inferred mineral resource has a lower level of confidence than an indicated mineral resource. An indicated mineral resource
has a higher level of confidence than an inferred mineral resource but has a lower level of confidence than a measured mineral resource."
The CIM Standards define an inferred mineral resource as: "that part of a mineral resource for which quanti ty 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.
It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued
exploration." The reader is reminded that mineral resources are not mineral reserves and therefore do not have demonstrated economic
viability.
Unigold Inc. Press Release: PR2022-12 November 10, 2022 Page: 6
Mining
The oxide mineral reserves included in the life -of-mine plan outcrop on surface and are contained
within a pit with a maximum depth of approximately thirty metres. The mine has a nominal
production rate of 5,000 tonnes per day. Contract mining is assumed using a local, established
construction contractor in the Dominican Republic. The material is free-dig at surface.
The top 5.0 meters is expected to be sorted and the fine fraction agglomerated prior to placement
on the leach pad to counter the high clay conte nt observed near surface. The classification -
agglomeration of the upper portion of the deposit was added to mitigate any potential percolation
issues at the base of the heap leach pad as well as to maximize gold recovery.
Most of the oxide resource assumes a small percentage of ripping along with mechanical loading by
excavator no drilling and blasting is necessary. As the pit deepens an aggressive ripping program with
D8 triple shank and excavator ripper will be used to prepare the bench for loading by excavator this
will occur at or near the transition ore/waste zone at the bottom of the planned pit development.
Processing
A total of 150,000 tonnes per month of material will be extracted and hauled approximately 3 km
onto a Run -of-Mine heap leach pad that will follow local contours with a minimum of earthworks.
Gold and silver will be recovered in an adsorption -desorption-recovery circuit and electrowinning
cells, with gold room recovery and production of Dore bullion bars. Silver credits are not included in
the financial modelling. No tailings facility is required. Gold recovery estimates for oxide and
transition mineralization are based on a column leach test work completed at Bureau Veritas
Commodities Canada Ltd. Metallurgical test laboratories, Vancouver, where preliminary results
indicate 88% gold extraction in 30 days for -19 mm oxide mineralization and over 59% gold extraction
in 43 days for -12.5 mm transition mineralization. This study uses a weighted average of 85% leach
recovery with a 70-day leach cycle.
Surface Infrastructure and Indirect Costs
The mining and processing infrastructure will be located at the Candelones site . Site power is
assumed to be supplied by generators under contract. The mine site is directly accessible by an
International paved highway. No off-site infrastructure is expected to be required. Process Water is
available in the immediate area. Surface water management includes ditches, ponds, and pumping
stations.
Indirect costs including owner’s costs, engineering, procurement and construction management,
temporary faciliti es for construction and other related items are estimated at US$3.7 million. An
additional US$4.1 million (pre-production) has been budgeted as contingency for specific direct and
indirect costs.
Royalties
A 5% royalty on all metals produced from the Candelones Project is payable to the Government of
the Dominican Republic and forms a minimum tax. The royalty payments are credited against the
27% tax on Net Income. A community contribution of 5% of after -tax income is also provided for
within the 10% total royalty applied in th is Study. The royalty calculation is believed to be a
conservative estimate of the ultimate burdens.
Unigold Inc. Press Release: PR2022-12 November 10, 2022 Page: 7
Environment and Closure
The Candelones Project is located almost entirely on land owned by the Dominican Government. The
project requires the submittal of an Environmental and Social Impact Assessment (“ESIA”) . The
Company wil l engage the Government through the Ministerio de Medio Ambiente y Recursos
Naturales to develop the framework for the ESIA over the coming months. Environmental baseline
data collection has been initiated and all collected baseline data will inform the ESIA, which will
commence once the framework is finalized. Community consultations have started and will continue
for the remainder of the year as stated by Unigold CSR onsite team. In addition to ESIA approval, the
project will require permits and authorizations prior to construction and operation of the mine.
Requests for these approvals will be submitted following the ESIA approval.
A closure plan for the Candelones project will be developed in consultation with the Government and
the local communities as part of the ESIA. Closure costs are estimated at US$5.1 million. The objective
of site closure is to return the site to a fully satisfactory state that includes eliminating all unacceptable
health hazards and ensuring public safety, eliminating the production and spread of contaminants
that could damage the environment and in returning the site to an environmentally sound condition
without the need for maintenance or continuous monitoring.
Stakeholder Engagement
The Candelones Project is located south of the town of Restaura ćion in the northwes tern Dajabon
Province of the Dominican Republic, within a border area that has been designated for preferential
development by the government of the Dominican Republic. Unigold has been proactive in
community engagement for the past twenty years. Project consultations were initiated in 2020 and
will continue thru to project initiation at a future date pending permit approval . Numerous
stakeholders have expressed an interest in learning about the project. Surveys conducted by Unigold
in 2020 allowed members of the community to voice concerns about water quality, land disturbance,
blasting operations, dust control and impacts to wildlife. Unigold is committed to addressing concerns
and continuing the dialogue with potentially affected stakeholders through the detailed engineering
and environmental assessment process.
The local community has expressed strong support for the project. The main interest in the project
has a focus on employment and entrepreneurial opportunities . In 2020 more than 80 community
members worked at the Company’s projects in the Candelones area.
For further information please visit www.unigoldinc.com or contact:
Mr. Joseph Hamilton
Chairman & CEO
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, the
OTCQX exchange under the symbol UGDIF, and on the Frankfurt Stock Exchange under the symbol UGB1. The Company is
focused primarily on exploring and developing its gold assets in the Dominican Republic. The Candelones oxide gold deposit
is within the 100% owned Neita Fase II exploration concession located in Dajabón province, in the northwest part of the
Dominican Republic. Unigold has made an appl ication to convert part of this this exploration concession into a 9,990 Ha
Unigold Inc. Press Release: PR2022-12 November 10, 2022 Page: 8
Exploitation Concession: “Neita Sur”. Unigold made a subsequent application to renew the Exploration Concession over
those areas of Neita Fase II that do not fall within the Exploitation Licence area: “Neita Norte”. Both applications are pending
approval by the Dominican Government. The Candelones project area is about 20 kilometers south of the town of
Restauraćion. The oxide deposit occurs at surface as a result of the tropical weathering of underlying mineralization.
Unigold has been active i n the Dominican Republic since 2002 and remains the most active exploration Company in the
country. The Neita Fase II exploration concession is the largest single exploration concession covering volcanic rocks of the
Cretaceous Tireo Formation. This isla nd arc terrain is host to Volcanogenic Massive Sulphide deposits, Intermediate and
High Sulphidation Epithermal Systems and Copper-gold porphyry systems. Unigold has identified over 20 areas within the
concession area that host surface expressions of gol d systems. Unigold has been concentrating on the Candelones
mineralization and continues to expand the deeper sulphide resources with on-going drilling.
Forward-looking Statements
Certain statements contained in this document, including statements regarding events and financial trends that may affect our future operating results,
financial position, rates of return, 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 “estimate”, “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 c aution 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.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.