Unigold Provides Neita Exploration Update
UNIGOLD INC.
P.O. Box 936, STN Adelaide, Toronto, Canada M5C 2K3
T. 416.866.8157
www.unigoldinc.com
PR No. 2018-04
Unigold Provides Neita Exploration Update
Toronto, Ontario, August 7, 2018 – Unigold Inc. (“Unigold” or the “Company”) (TSX -V:UGD) is
pleased to provide the following update regarding its plans to resume exploration on the
Company’s 100% owned Neita Fase II Exploration Concession located in the Dominican Republic.
The Ministry of Energy and Mines approved the Company’s application to explore the 21,031
hectare concession in May 2018. The Company is currently awaiting approval of the
Environmental License for the granted Exploration Concession. This application is currently
awaiting final approval by the Minister of the Environment. Approval is expected in the third
quarter of 2018. On approval, the Company will resume active exploration of the Candelones
Project, and plans to focus on increasing the current mineral resource estimate.
The Company plans to:
evaluate the near surface oxide mineralization at the Candelones Main and Connector
Zones; and
complete a follow up Induced Polarization (“IP”) survey targeting the high grade , gold-
copper massive sulphide mineralization discovered at the Candelones Extension deposit
in 2016.
Joseph Del Campo, Interim President and CEO of Unigold commented, “We are eager to resume
exploration on the Neita Concession, especially at the Candelones Project where we believe there
is an excellent opportunity to increase both the near surface oxide resource as well as the deep,
high grad e sulphide resource . Petrographic work on samples collected in 2016 concluded that
the massive sulphide mineralizat ion intersected by our 2016 drilling has an epigenetic origin.
Recent analysis by our Senior Geophysical Consultant of the IP survey completed in 2011,
combined with physical properties testing on drill core, suggest that additional ground IP surveys
could assist in identifying the continuation of the massive sulphide mineralization and assist in
drill targeting. The oxide min eralization at the Candelones Main and Connector deposits is a
compelling exploration target given that metallurgical work in 2007 indicated robust gold
recoveries. Review of the historical drilling suggests that the oxide mineralization extends from
surface to a depth of 10 -15 metres. We believe the oxide resource repres ents an opportunity for
a small, efficient and profitable starter pit that would establish early initial cash flow allowing for
the development of the higher grade, sub -surface sulphide res ource at the Candelones
Extension.”
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The current mineral resource estimates for the Candelones Project , comprised of the
Candelones Main, Candelones Conn ector and Candelones Extension deposits (Ref. Figure 1.0) .
are summarized in Table 1.0.
Figure 1.0 – Candelones Project Drill Plan over Gradient Induced Polarization Chargeability.
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Table 1.0 – Summary of Historical Mineral Resource Estimates – Candelones Project
Date Classification Source / Deposit Tonnes Au Au ozs Strip
Press Release # Mineralization (x1,000) (g/t) (x1,000) Ratio
Type
11/12/2013 (1,3,4,5) INFERRED Open Pit Main 2,448 0.92 72 1.3
UGD-2013-22 OXIDE Connector 1,108 1.12 40 1.3
Extension - 0.00 - 0.0
Subtotal 3,556 0.98 112 1.3
INFERRED Open Pit Main 5,003 1.16 186 1.3
SULPHIDE 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
INFERRED Underground Main 704 2.21 50 0.0
SULPHIDE Connector 50 2.49 4 0.0
Extension 4,977 2.42 387 0.0
Subtotal 5,731 2.39 441 0.0
INFERRED TOTAL 39,493 1.59 2,014 NA
2/24/2015 (2,3,4,6,7)
UGD 2015-2
INFERRED Underground
SULPHIDE
Extension 5,274 5.27 894 NA
1. 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. Both Mr. Lewis and
Mr. 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 (May
2014) (“the CIM Standards”). The 2014 estimate is based on a long term gold price of US$ 1,500 per ounce and
economic cut -off grades 0.32 g/t Au (OXI DE), 0.56 g/t (SULPHIDE) and 1.25 g/t (UNDERGROUND SULPHIDE).
Open pit resources are reported within an optimized pit shell; underground resources are reported beneath the
defined optimized pit shell.
2. Mineral resources were estimated by Mr. W. Lewis, P.Ge o. and Mr. A. San Martin, MAusIMM(CP) of Micon
International Ltd. (“Micon”), a Toronto based consulting company, independent of Unigold. Both Mr. Lewis and
Mr. San Martin meet the requirements of a “qualified person” as established by the Canadian Institut e of
Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (May
2014) (“the CIM Standards”). The 2014 estimate is based on a long term gold price of US$ 1,200 per ounce, a
long term copper price of US$ 3.00 per pound and an economic cut -off grade of 3.50 g/t Au and assumed
exploitation of the Candelones Extension deposit by means of underground mining.
3. The mineral resource estimates are classified as INFERRED. CIM Standards define a Mineral Resource as “a
concentration of material in or on the Earth's crust in such form and quantity and of such grade or quality that it
has reasonable prospects for economic extraction." The CIM Standards further define an INFERRED Mineral
Resource as "that part of a Mineral Res ource for which quantity and grade or quality can be estimated on the
basis of geological evidence and limited sampling and reasonable assumed but not verified, geological and grade
continuity." The CIM Standards state: "Due to the uncertainty that may be attached to Inferred Mineral
Resources, it cannot be assumed that all or part of an Inferred Mineral Resource will be upgraded to an Indicated
or Measured Mineral Resource as a result of continued exploration.
4. Micon has not identified any legal, political, environmental or other risks that could materially affect the
potential development of the mineral resource presented.
5. The procedures, methodology and key assumptions supporting this mineral resource estimate are included in
the Technical Report titled: " NI-43-101 Technical Report Mineral Resource Estimate for the Candelones Project,
Neita Concession, Dominican Republic" with an Effective Date of November 4, 2013. The Technical Report is
available on SEDAR as well as the Company's website.
6. The procedures, methodology and key assumptions supporting this mineral resource estimate are included in
the Technical Report titled: "NI -43-101 Technical Report Mineral Resource Estimate for the Candelones
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Extension Deposit, Candelones Project, Neita Concession, Dominic an Republic" with an Effective Date of
February 24, 2015. The Technical Report is available on SEDAR as well as the Company's website.
7. Contains 41,175,000 lbs copper grading 0.35%.
Oxide Resource Opportunity
Historical drilling and trenching at the Candelones Main deposit intersected oxide mineralization
where the Candelones Main deposit outcrops on the Candelones Main hill. Extensive surface
trench sampling, largely at the Candelones Main deposit (~4000 samples), averages 3.5 g/t Au.
The exploration data defines a WNW trend ing corridor for over 500 metres in length and
measures approximately 100 metres in width. The interpreted oxide trend is coincident with the
topographic high defining the Candelones Main hill (Reference Figure 2.0).
At the Candelones Connector deposit, 200 metres to the southeast, a second oxide trend,
measuring 250 metres in length and 100 metres in width, trends NE. The Connector oxide trend
is defined largely by diamond drilling and is open along strike in both directions.
Figure 2.0 – Candelones Main and Connector Oxide Resource Area
The 2013 mineral resource estimate (Reference Table 1.0), estimated a total inferred oxide
resource of 72,000 ozs of gold at the Candelones Main deposit with an additional 40,000 ozs of
gold a t the Candelones Connector. The average grade of the inferred oxide resource was
estimated to be 1.0 g/t Au. Of particular interest is the fact that the average grade of the tre nch
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sample data from the defined oxide resource area is 3.5 g/t Au. As core recovery in the oxide
mineralization was typically less than 50%, the Company believes that the grade of the oxide
resource, based solely on the diamond drill results, may be understated.
The Company is planning to excavate targeted, vertical test pits centered on historical drill holes
that intersected high grade oxide mineralization (Reference Figures 3.0 and 4.0). All four walls of
the pits will be continuously channel sampled vertically on 1.0 metre intervals . The samples
would be assayed for gold using the Company’s established assaying protocol. In addition, bottle
roll and cyanide leach analyses will be completed to provide an initial estimate of metallurgical
recovery.
Figure 3.0 – Candelones Main Oxide Resource Section A-A’ Looking North
The assay results will be compared directly to the results returned by the drill hole on which the
test pit is centered. The Company believes this will provide an indication as to w hether or not
the observed core loss in diamond drilling has understated the grade of the oxide resource.
The Company is currently identifying suitable excavators in the Dominican Republic that would
be able to complete the planned test pit program.
Assuming that the results of the test pit program confirm there is an opportunity to increase the
grade of the oxide resource, then the Company would initiate efforts to mobilize a reverse
circulation drill to site and complete a close spaced drill program alo ng the two oxide trends.
The objective of that drill program would be to establish the limits of the oxide resource and
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complete a measured and indicated mineral resource estimate that would support a Pre -
feasibility level study.
Figure 4.0 – Candelones Connector Oxide Resource Section B-B’ Looking East
High Grade Sulphide Opportunity
Exploration drilling during 2016 focused on high grade areas within the defined mineral resource
footprint with the dual objectives of defining a mineral resource amen able to underground
mining and to increase the confidence level of the inferred resource to measured and indicated
classification. This targeted approach identified three areas of higher grade mineralization
within the existing mineral resource footprint, all of which remain open and represent an
opportunity to increase both the size and quality of the mineral resource estimate.
Table 2.0 presents the significant intercepts of the most recent exploration at the Candelones
Extension deposit.
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Table 2.0 – Significant Drill Intercepts - 2016
Target Hole ID From To Interval (1) Au Cu
(#) (m) (m) (m) (g/t) (%)
"Target A" - Au-Cu rich
massive to semi-massive
sulphides-flat lying,
plunging 30 degrees NE,
historical drilling overshot
this massive sulphide
system which remains open
down plunge to the east.
LP15-93 298.6 314.3 15.7 7.45 1.1
LP15-94 No massive or semi massive sulphides
LP15-95 252.6 287.5 34.9 6.19 0.6
309.9 314.0 4.1 7.31 1.1
LP15-96 279.0 313.0 34.0 4.15 0.4
324.0 333.0 9.0 4.81 0.7
LP16-101 409.6 419.4 9.8 3.10 0.6
LP16-102 No massive or semi massive sulphides
LP16-114 256.8 278.0 21.2 6.00 0.9
LP16-115 288.3 294.0 5.7 3.80 1.2
LP16-116 214.0 239.0 25.0 1.50 0.0
LP16-117 290.0 295.0 5.0 1.80 0.6
LP16-118 180.0 185.0 5.0 7.80 0.3
and 252.0 257.0 5.0 3.06 0.9
LP16-124 333.3 339.2 5.9 11.80 0.2
LP16-126 No massive or semi massive sulphides
LP16-127 No massive or semi massive sulphides
"Target B" -Stacked vertical
feeder, upper Zn-Ag-Au-Cu
mineralization; lower Au-Cu
massive to semi-massive
sulphides similar to
“Target A”.
LP16-97 249.0 264.0 15.0 1.15 0.0
LP16-98 245.8 250.6 4.8 7.32 0.2
LP16-99 276.6 283.0 6.4 4.23 0.2
LP16-100 291.1 300.6 9.5 2.43 0.2
and 307.5 319.5 12.0 7.46 1.4
LP16-119 224.7 264.5 39.8 1.40 0.1
LP16-120 255.2 274.0 18.8 2.00 0.1
and 363.0 369.7 6.7 3.30 1.9
LP16-121 269.5 302.0 32.5 0.90 0.1
LP16-122 No significant values
LP16-123 265.4 280.1 14.7 6.50 0.9
and 371.5 379.5 8.0 9.40 0.9
LP16-128 249.6 274.0 24.4 3.20 0.2
and 333.8 336.5 2.7 5.20 0.7
and 461.0 462.1 1.1 0.60 0.4
"Target C" - Au-Ag-Zn rich
semi-massive sulphides -
open to the west - historical
drilling interpreted to have
overshot this higher grade
mineralization.
LP16-103 117.0 123.0 6.0 8.86 0.2
LP16-104 134.9 138.2 3.3 5.06 0.2
LP16-105 176.0 184.0 8.0 6.30 0.1
LP16-106 141.0 154.3 13.3 1.08 0.1
LP16-107 168.0 311.0 143.0 1.44 0.1
LP16-108 190.0 197.0 7.0 1.30 0.3
LP16-109 165.0 169.0 4.0 10.10 0.2
LP16-110 155.4 160.0 4.6 3.40 0.1
233.0 245.0 12.0 9.70 0.1
LP16-111 250.0 252.0 2.0 5.00 0.2
LP16-112 No significant values
LP16-113 223.1 228.6 5.5 4.10 0.1
(1) - Interval is measured down hole and should not be interpreted as true width.
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Jeremy S. Brett, M.Sc., P.Geo. of MPH Consulting Limited (“MPH”), the Company’s Senior
Geophysical Consultant, has reviewed the IP data acquired by Insight Geophysics Inc. in 2011.
They have advised the Company of the following:
Inversion of the data by MPH indicates that IP accurately depicts the mineral resource
envelop at Candelones (Reference Figures 5.0 and 6.0);
The 2011 IP data is not optimally oriented to isolate the massive sulphide mineralization
intersected in 2016. The NE orientation of the massive sulphide mineralization places it
in the null of the N-S oriented IP gradient lines (Reference Figure 1.0);
The 2011 IP survey included N-S Insight Sections on roughly 400 metre spacings. This
line spacing was not adequate to resolve the high grade, sub vertical feeders identified
by recent drilling; and
The 2011 survey was designed to evaluate the IP responses to a depth of 300 metres
from surface. Deeper looking Insight Section data is required to resolve the Massive
Sulfide body.
Figure 5.0 - Candelones Extension IP Survey Inversions with Resource Shell looking NNW
MPH has recommended a follow up IP survey with the following design considerations:
Close spaced IP gradient lines on 100 metre centres;
Lines would be oriented parallel and perpendicular to the massive sulphide
mineralization; and
The survey would be designed to evaluate to a maximum depth of 500 metres from
surface.