Unigold drills 102 m of 1.45 g/t Au at Neita

2013-02-13 17:12 ET - News Release

 

Mr. Andrew Cheatle reports

UNIGOLD DRILLS 103 M @ 1.45 G/T GOLD AND 0.43 % COPPER, INCLUDING 39 M @ 2.43 G/T GOLD AND 0.78 % COPPER

Unigold Inc. is releasing additional drill results. Five holes testing anomaly B on the Candelones extension (Lomita Pina) are reported. The Candelones extension is located within the company's wholly owned 22,616-hectare Neita concession, Dominican Republic.

The highlight result is:

  • Drill hole LP 62, which returned 102.9 metres at 1.45 grams per tonne gold, including 38.9 metres at 2.43 grams per tonne gold and 0.78 per cent copper, and also including 8.0 metres at 5.14 grams per tonne gold, 1.05 per cent copper and 1.7 per cent zinc.

 

Recent drill hole results from the Candelones extension are provided.

 

              From      To  Interval    Au    Ag   Cu   ZnHole ID        (m)     (m)       (m) (g/t) (g/t)  (%)  (%)LP 62        59.08  162.00    102.92  1.45  1.98 0.43 0.28includes     59.08   98.00     38.92  2.43  3.39 0.78 0.32includes    139.00  147.00       8.0  5.14  3.31 1.05 1.68LP 61        74.30  145.00      70.7  0.37   1.3  0.0  0.1includes     74.30   80.00       5.7  1.07   1.1  0.0  0.3LP 60       108.50  149.00      40.5  0.48   2.3  0.1  0.1LP 59       111.00  117.00       6.0  2.10   5.1  0.7  0.2LP 58                                                  NSVNote: True widths are estimated to be equal to drill intercept interval. No top cut applied to assay values.

 

"We were very excited to see the results of LP 62. The mineralization is very close to the surface, and the grades are consistent. The increase in copper present in this hole is also very encouraging," commented Andrew Cheatle, president and chief executive officer, Unigold. "A gold-equivalent calculation using metal prices of the day (i) would restate this intersection as 102.92 m at 2.2 g/t Au equivalent starting at 50 m below surface."

(i) Gold price: $1,650 per ounce; copper price: $3.72 per pound; zinc price: 98 cents per pound, assuming 100-per-cent recoveries.

Expanding mineralization at Candelones extension

LP 62 is a 100 m step forward from hole LP 53A, which also returned positive results. The mineralization in hole LP 62 is shallow and intersections are broad. The reported drill results (LP 59, LP 60, LP 61 and LP 62) are from the 100 m step-out systematic drilling program at Candelones. Results continue to expand mineralization to the south and west on induced-polarization anomaly B.

Both IP anomalies A and B remain open.

These drill results have expanded the known mineralization west at Candelones extension. The results continue to support Unigold's interpretation that the Candelones extension zone is open in three directions. Drilling to date continues to demonstrate a very strong correlation between IP chargeability anomalies and mineralization.

To date the company has received assay results from a total of 62 diamond drill holes at Candelones extension over an area having a surface expression of approximately 1,300 metres east-west by 700 metres north-south. Drill holes are on approximate 100 m centres. Forty of these holes have intersected significant gold mineralization, with important credits in silver, copper and zinc.

More targets to test -- more potential for success

Unigold is committed to extending its current mineralization footprint at the Candelones area on the wholly owned Neita concession in the Dominican Republic. The 2013 exploration program will continue to build on the success of the 2012 program through testing IP anomalies identified in the 2011 survey. The company plans to continue expanding known mineralized zones and testing the many coincident soil and IP anomalies with the aim of making new discoveries on the target-rich Neita property.

Beyond the immediate work at Candelones, the company intends to test other regional targets in 2013. Primary targets include Loma de Montazo, Montazo, Rancho Pedro and Naranjo. All of these targets have strong geochemical anomalies and coincident strong IP anomalies. Previous work on the targets did not have the benefit of the 2011 IP survey.

Premier mining destination -- Dominican Republic

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 licence was renewed in 2012 and is in good standing.

Unigold is well financed with approximately $7.5-million in cash.

Quality assurance/quality control

Core drilling is being done primarily with NQ. Samples are logged, split by wet diamond saw and half sent for assaying with the other half stored on site. Sample lengths typically average one m, but vary by geological boundaries. Quality assurance/quality control 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-gram FA AA finish for gold (G6-50). Jim Robinson, CPG, vice-president -- exploration, of Unigold, a qualified person under National Instrument 43-101, has designed and supervised the program and reviewed and approved the contents of this news release