Unigold Provides Update on Engineering and Exploration Programs as Neita advances towards production decision
Unigold Inc. PR2021-01 February 8, 2021 1
UNIGOLD INC.
Ste 2100, 401 Bay Street,
P.O. Box 55, Toronto, ON M5H 2Y4
T. (416) 866-8157
www.unigoldinc.com
PR No. 2021-01
Unigold Provides Update on Engineering and Exploration Programs as Neita
advances towards production decision
• PFS engineering on oxide portion of the Candelones deposit is continuing
with results expected at the end of Q1
• Updated Sulphide resource estimate is underway; includes over 35,000m of
additional drilling since previous estimates in 2015
• Drilling continues to focus on along-strike expansion of known
mineralization at Candelones; new drills will allow depth extension of the
high-grade epithermal mineralization to be tested
• Exploration drilling of regional targets has commenced
Toronto, Ontario, February 8, 20 21 – Unigold Inc. (“Unigold” or the “Company”) (TSX-
V:UGD; OTCQX: UGDIF; FSE:UG B1) is pleased to provide an update on its activities and
targets for the first half of 2021. Work is on -going at the Neita concession in the
Dominican Republic with oxide pre -feasibility engineering, updated mineral resource
estimate of the sulphide mineralization , along-strike and to-depth expansion drilling at
Candelones and drilling of regional exploration targets all in progress.
Joseph Hamilton, Chairman and CEO of Unigold notes: “ We believe that Q1 2021 will be
transformational for Unigold as we complete engineering studies, update mineral resource
estimates and transition into exploration focused on key regional targets. The Company is
actively pursuing 4 initiatives this year in order to demonstrate the value of the Candelones
oxide and sul phide deposits, prove the concept of a mineralize d district at Neita, and to
develop a partnership with the local communities.
In Q1, we hope to demonstrate the value of Candelones through the oxide project PFS and by
increasing the size and confidence of the sulphide mineral resources. We have been
continuously advancing the Candelones mineralization over the past year through drilling,
metallurgical studies and now resource estimation, engineering and cost estimating. Drilling
at Candelones will continue throughout 2021 as we test the known mineraliza tion at depth,
and probe new targets along strike.
Unigold Inc. PR2021-01 February 8, 2021 2
In Q2, we are planning to start the application process for a n exploitation permit at
Candelones. Also in Q2, our comprehensive sulphide m etallurgical testing that is currently
underway should allow us to define a process flowsheet for the sulphide plant. We can then
complete trade -off studies looking at open -pit and underground options for sulphide
extraction. Engineering on both oxides and sulphides will continue throughout t he year in
preparation for starting construction as soon as all permits are assembled, hopefully as early
as Q1 of 2022.
While these studies are necessary to demonstrate the value inherent in our work to date, we
are most excited by our transition back into exploration at some of our high priority regional
targets. Compilation and prioritization of 14 regional target areas is underway. We now have
4 drills at Neita, which has enabled us to dedicate a drill to test other target areas along the
southern gold trend which extends over ten kilometers from Candelones in the west through
to the Guano target area in the east. This marks the first exploration efforts outside of
Candelones since 2012.”
Oxide Pre-Feasibility Engineering programs
Pre-feasibility (PFS) engineering for the oxide portion of the deposit commenced in Q4
of 2020 under the supervision of Micon International Limited. These engineering studies
build on the successful resource estimate and metallurgical results delivered in 2020
(see PR2020-18, Aug 27, 2020; PR2020-11, May 14, 2020 respectively). The PFS assumes
an open pit mine that will extract the 92,000 oz Measured & Indicted Resource (see
PR2020-18, Aug 27, 2020) over a 3 to 4 year period. Metallurgical s tudies showed
excellent recoveries and fast leach times in column tests. Oxide mineralization outcrops
with no pre-stripping required. Results of the PFS should be available towards the end
of Q1.
Development of the 4 -year oxide project is seen to facil itate the ultimate development
of the underlying sulphide resources by allowing the establishment of a trained
workforce in the area , by ensuring that logistics and suppliers are identified , by
establishing baseline infrastructure in the area and by identi fying community, political
and commercial partners in the Dominican Republic.
Upon completion of the PFS, the Company will immediately commence the permitting
process to receive a n Exploitation Licence over the Candelones area. Detailed
engineering, culminating in a Definitive Feasibility Study, will begin shortly after the PFS
results are delivered and is currently scheduled for completion by the end of 2021. The
Company would like to be in a position to commence construction of this project in 2022,
once final permits are received.
Unigold Inc. PR2021-01 February 8, 2021 3
Sulphide Resource Update
In addition to the surface oxide mineralization, Unigold has identified a substantial
sulphide resource at Candelones. The Company has completed over 34,770 meters of
additional sulphide in-fill and delineation drilling in approximately 90 drillholes since the
last sulphide resource calculation. Many of these drill holes intersected what the
Company believes is higher-grade, epithermal mineralization returning average grades
that exceed the historic average resource grade (NI43 -101 reports are available at
www.unigoldinc.com, or at www.sedar.com under Unigold’s Company Filings).
The recognition of high-grade (>5 g/t Au) epithermal mineralization overprinting earlier
low-grade (< 2 g/t Au) disseminated mineralization has presented a unique opportunity
for the Company to study both open-pit and underground extraction scenarios. The first
step is to update the mineral resource estimate incorporating all drilling and
metallurgical results to the end of 2020 . The Company is optimistic that the updated
mineral resource estimate may show an increase in both tonnes a nd average grade
while upgrading a portion of the Inferred resources to the Measured & Indicated
categories. The resource estimate will attempt to break-out the higher-grade portions of
the deposit and report these separately from the lower grade dissemina ted
mineralization. The Company expects to complete the resource estimate towards the
end of Q1/2021. Once the mineral resource estimate is complete, trade-off studies to set
design parameters for the sulphide mineralization will be completed in Q2 with the goal
of providing a PEA for the deposit towards the end of 2021.
The Company continues to receive assay results from holes drilled in Q4/2020. All holes
drilled before the end of 2020 will be included in the updated mineral resource estimate.
Results from the analytical lab currently have a turnaround time of about 6 weeks.
Results for 7 holes are shown in Table 1 below (Ref. Figure 1.0). A further 8 holes are still
outstanding.
Unigold Inc. PR2021-01 February 8, 2021 4
Table 1.0 – Candelones Sulphide Drilling
Target Hole (#) From(m) To (m) Interval
(m)
Au
(g/t)
Ag
(g/t)
Cu
(%)
Zn
(%)
A - B
LP20-159 276.00 320.00 44.00 0.65 0.98 0.13 0.00
including 314.00 320.00 6.00 1.81 3.80 0.49 0.00
and 331.00 334.00 3.00 3.10 3.73 0.00 1.39
and 344.00 392.00 48.00 0.48 0.67 0.05 0.00
including 371.00 375.00 4.00 1.25 1.35 0.13 0.00
A -B
LP20-161 289.00 375.00 86.00 0.47 0.83 0.07 0.08
including 289.00 297.00 8.00 0.47 1.43 0.26 0.00
and 324.00 359.00 35.00 0.80 1.25 0.07 0.19
including 356.00 359.00 3.00 2.26 9.30 0.08 1.76
A-B
LP20-163 268.00 427.00 159.00 1.02 1.30 0.11 0.07
including 344.00 400.00 56.00 2.01 1.40 0.19 0.00
including 370.00 377.00 7.00 3.04 2.40 0.39 0.00
and 386.00 396.00 10.00 4.31 2.70 0.27 0.00
and 500.00 509.00 9.00 0.30 0.50 0.07 0.00
C LP20-152 162.50 175.00 12.50 1.05 9.20 0.14 0.69
C LP20-154 No Significant Values - Intermediate Dike from collar
C LP20-158 167.00 188.00 21.00 0.20 0.36 0.02 0.02
and 338.00 355.00 17.00 0.15 0.32 0.00 0.00
C
LP20-182 133.00 167.00 34.00 1.07 0.95 0.11 0.43
including 154.00 166.00 12.00 1.81 1.29 0.16 0.81
and 185.00 292.00 107.00 0.31 0.65 0.04 0.09
(1) Interval represents drilled length in meters and not true width.
Drillholes LP20 -159, LP20-161 and LP20 -163 were drilled in Q4 2020 testing the 100
meter gap between Targets A and B, 300 to 350 meters from surface . All three holes
intersected typic al low -grade, disseminated mineralization over broad intervals with
occasional, meter scale intervals of higher -grade mineralization associated with semi -
massive to net textured pyrite -rich sulphides. LP20 -163 intersected 10.0 meters
averaging 4.31 g/t Au, 2.7 g/t Ag, 0.27% Cu and 0.0% Zn, demonstrating similar copper
enrichment with zinc depletion observed in the central core of Target A, 50 meters to the
east. The current exploration model is that higher grade mineralization may been faulted
downward through this gap.
Unigold Inc. PR2021-01 February 8, 2021 5
Figure 1.0 – Longitudinal Section – Candelones Extension Deposit
Unigold Inc. PR2021-01 February 8, 2021 6
Drillholes LP20-152, 154 and 158 were a fence of holes testing the eastern limit of Target
C. LP20-152 intersected low tenor mineralization approximately 50 m east of LP52 at the
same elevation, approximately 150m from surface. LP20-154, targeted 100 meters below
LP20-152, collared in and remained in a previously unrecognized, late mafic dike. LP20 -
158, bisected the initial holes on this drill section, intersecting mostly late mafic dike. It
is interpreted that this hole traveled along the hanging wall boundary of the dike. Given
the lack of visual sulphide mineralization in these holes they were not prioritized for
analytical submission.
LP 20-182 was positioned as a 50 m step -out hole to the west of Target C . This hole
intersected a 34 m section of elevated gold, silver, copper and zinc in epithermal
mineralization before passing into a broad zone of underlying disseminated
mineralization.
Regional Exploration Programs
Regional exploration on the Neita Concession between 2002 and 2010 identified 14 high
priority target areas based on airborne magnetics, ground geophysics, surface
geochemistry and geological mapping and sampling. Work between 2010 and 2020
concentrated on the Candelones area with little attention given to the identified regional
exploration targets.
The Company believes that the Neita concession represents a mineralized district that
may contain several economic gold and gold-copper deposits. The Company intends to
systematically explore the highest priority regional targets over the next two years and
has started a program of data compilation, groundwork and drilling. One drill has been
moved to test the 1500m gap between the eastern limit of the Can delones Connector
and the currently defined western limit of the Candelones Extension mineralization
(Target C) where minimal historical drilling has been completed. The Company currently
believes that this gap is the result of faulting and that there is p otential for additional
resource additions at depth. A second drill has been moved to the Montazo target area,
approximately 1500 meters east of the Candelones Extension mineralization. This drill is
testing IP chargeability highs with coincident resistivity lows along an andesite – dacite
contact; a similar response to that observed at the Candelones Extension.
The geology of the southern part of the Neita concession is shown in Figure 1.
Unigold Inc. PR2021-01 February 8, 2021 7
Figure 1: Geology and target areas in the Neita Concession
Unigold Inc. PR2021-01 February 8, 2021 8
The Montazo, Rancho Pedro, Juan de Bosque and Guano-Naranja targets are located
between 3 and 7 kilometers to the east of Candelones, along an identified gold trend
that also extends west into Haiti. The areas are peripheral to a mapped rhyolite dome
that is cored by a quartz -feldspar porphyry intrusive. Gold -in-soil geochemical
anomalies are both larger and higher amplitude than those found over known
mineralization at Candelon es. Coincident anomalies of gold pathfinder elements (Ag,
Cu, Zn, As, Ba) are also observed at each of the target areas. A limestone unit overlies
the Tireo Formation and truncates the gold -in-soil anomalies to the south and south -
east at these locations. The Company believes that mineralization at Rancho Pedro and
Juan de Bosque may extend under the mapped limestone cover. Induced polarization
chargeability and resistivity anomalies have identified anomalies peripheral to the gold-
in-soil anomalies; a situation observed at the Candelones Extension area and which led
to the discovery of high-grade epithermal mineralization.
Other targets that will be assessed over time include Km6 ( gold-in-soil anomalies with
surface grab samples of epithermal style mineralization running up to 10 g/t ), Loma de
Montazo ( largest and highest amplitude chargeability and resisti vity anomaly on the
concession located 1.5 km northwest of Candelones deposit along the regional litho -
structural trend). Minimal drilling at Loma de Montazo to date has failed to adequately
explain the IP anomalies. Corozo, historically interpreted to be a potential porphyry
gold-copper target, is defined by soil and rock geochemistry and alteration mapping .
Minimal historical drilling to date has returned broad intervals of low tenor gold and
copper in an intense quartz stockwork.
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 meters and a maximum sample length of 1.5 metres is
employed with most samples averaging 1.0 met ers in length except where geological
contacts dictate. Certified standards and blanks are randomly inserted into the s ample
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 i n
Vancouver, B.C. Canada. All samples are analyzed for gold using a 50 gram lead