Unigold Inc. (“Unigold” or the “Company”) (TSX-V:UGD; OTCQX: UGDIF;
FSE:UGB1) 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
sulphide deposits, prove the concept of a mineralized 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 mineralization
at depth, and probe new targets along strike.
In Q2, we are planning to start the application
process for an exploitation permit at Candelones. Also in Q2, our
comprehensive sulphide metallurgical 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
the 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 studies 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 facilitate 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
identifying community, political and commercial partners in the
Dominican Republic.
Upon completion of the PFS, the Company will
immediately commence the permitting process to receive an
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.
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 and 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
disseminated 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.
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
typical 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.
Figure 1.0 – Longitudinal Section –
Candelones Extension
Deposit: https://www.globenewswire.com/NewsRoom/AttachmentNg/bd72d6cf-396b-4484-9333-ab8afb172a9f
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 Candelones 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 potential 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.
Figure 1: Geology and
target areas in the Neita
Concession: https://www.globenewswire.com/NewsRoom/AttachmentNg/9d152719-e4d4-4e96-a54a-ffc3c3eed594
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
Candelones. 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
resistivity 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 meters 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.
About Unigold Inc. – Discovering Gold in the
CaribbeanUnigold 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.
Forward-looking StatementsCertain statements
contained in this document, including statements regarding events
and financial trends that may affect our future operating results,
financial position 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 “may”,
“interpreted”, “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 caution 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.
For further information please visit www.unigoldinc.com or contact:
Mr. Joseph Hamilton
Chairman & CEO
jhamilton@unigoldinc.com
416.866.8157
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