Unigold Inc. (TSX.V: UGD, OTCQX: UGDIF) ("Unigold" or the
"Company") is pleased to announce an updated mineral resource
estimate for the Candelones Project, part of the Company’s 100%
owned Neita Concession in the Dominican Republic. The updated
estimate shall be incorporated into the Preliminary Economic
Assessment (“PEA”) currently being finalized by Micon International
Limited (“Micon”) with a targeted release date of May 31, 2021. The
resource estimate disclosed herein supercedes the estimate
disclosed on April 26, 2021.
The updated mineral resource was estimated by
Mr. W. Lewis, P.Geo.; Mr. A. San Martin, MAusIMM (CP) and Mr. R.
Gowans, P.Eng. of Micon. Micon is independent of Unigold and
Messrs. Lewis, San Martin and Gowans 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).
Joe Hamilton, Chairman and CEO of Unigold notes:
“The delivery of this sulphide resource, in conjunction with the
recent delivery of a PEA for our starter oxide project, fulfills a
key step in our strategy to become a producer in the Dominican
Republic. We have converted 66% of the existing resource at
Candelones Extension to the measured and indicated classification
and added approximately 20% to our available resource base.
This estimate conforms to the 2019 CIM Best Practice Guidelines for
Mineral Resource Estimation which requires, for the first time, the
rigorous application of costing, engineering, mining and recovery
assumptions to early stage resource calculations.
“As compared to our historic 2013 mineral
resource estimate, we have been successful in moving about 310,000
ounces from the underground classification into the pit constrained
resource and added another 200,000 ounces of gold from new
drilling. In addition, we have estimated the silver and
copper resources for the first time. Silver and copper are
principally contained with the higher-grade late-stage epithermal
mineralization that we have been drilling since 2016. The sulphide
resource at Candelones is open for expansion to the east, west and
to depth. We continue to drill at Candelones and will use this
resource estimate to inform our drilling as we move swiftly to
convert the inferred mineralization to the measured and indicated
category.
“We are very encouraged by this estimate, and we
are continuing with our oxide feasibility programs, sulphide
metallurgical studies, permitting in the Dominican Republic and
comprehensive community engagement activities. Drilling is
currently focused on step out exploration to expand the
near-surface mineralization to the east and west of this resource
and on multi-element anomalies at Montazo, 1500 meters to the
east.”
The estimate is based on a total of 460 holes
(114,000 meters) and includes 123 holes (36,000 meters) completed
since 2015. Approximately 92% of the holes added to this estimate
are infill holes completed at the Candelones Extension deposit. Six
exploration holes, targeted to expand the resource along strike,
were completed in time to be included in this estimate. Fifty
percent of those holes intersected near surface mineralization.
This recently discovered mineralization, including new oxide
mineralization, has the potential to enhance available resources
for both the oxides and sulphides at Candelones. Fifteen holes
(5,600 meters) were excluded from this estimate as assay results
were unavailable.
The mineral resource estimate has been prepared
in accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”) Estimation of Mineral Resources and Mineral
Reserves Best Practice Guidelines, November 29, 2019 and has an
effective date of May 10, 2021. The key parameters supporting the
mineral resource are summarized in Table 1.0. The mineral resource
estimate for the oxide starter pit is summarized in Table 2.0. The
mineral resource estimate of the sulphide mineralization is
summarized in Table 3.0. The mineral resources disclosed
herein shall be included in the Technical Report summarizing the
Preliminary Economic Assessment of the Candelones Oxide Project
which is currently in progress with an anticipated completion date
of May 31, 2021.
Table 1.0 –Summary of Key Economic
Parameters
Candelones Parameters |
Oxides (PEA) |
Sulphides |
Oxides |
Transition |
Au price $/oz |
$1,700 |
|
$1,700 |
|
$1,700 |
|
Ag price $/oz |
$20.00 |
|
$20.00 |
|
$20.00 |
|
Cu price $/lb |
$4.00 |
|
$4.00 |
|
$4.00 |
|
Au recovery |
80% |
|
50% |
|
84% |
|
Ag recovery |
|
|
55% |
|
Cu recovery |
|
|
87% |
|
Open Pit Mining Cost $/t |
$2.35 |
|
$3.61 |
|
$2.85 |
|
Mill Cost $/t |
$7.40 |
|
$7.40 |
|
$25.00 |
|
G&A Cost $/t |
$2.39 |
|
$2.39 |
|
$2.39 |
|
Open Pit Overall Cost $/t |
$12.14 |
|
$13.40 |
|
$30.24 |
|
Underground Mining Cost $/t |
|
|
$60.00 |
|
Underground Overall Cost $/t |
$69.79 |
|
$69.79 |
|
$87.39 |
|
Open Pit Au Cut-off g/t |
0.28 |
|
0.49 |
|
0.66 |
|
Au Eq. Cut-off g/t |
|
|
0.65 |
|
Open Pit NSR Cut-off ($) |
$12.14 |
|
$13.40 |
|
$20.24 |
|
Underground Au Cut-off (g/t) |
1.6 |
|
2.55 |
|
1.9 |
|
Underground Au-Eq Cut-off (g/t) |
1.6 |
|
2.55 |
|
1.89 |
|
Underground NSR Cut-off ($) |
$69.79 |
|
$69.79 |
|
$77.39 |
|
Notes relating to
Mineral Resource Estimate |
Pit constrained resources are reported within an optimized pit
shell; underground resources are reported within continuous and
contiguous shapes which lie adjacent to and below the ultimate open
pit shell and interpreted to be recoverable utilizing standard
underground mining methods. |
The pit constrained resource is reported within an optimized
pit shell that assumed a maximum slope angle of 45 degrees. Open
pit mining recovery was assumed to be 100%. Open pit dilution was
assumed to be 0%..Underground mining recovery was assumed to be
100%. Underground dilution was assumed to be 0%. |
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 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 quantity 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." |
All procedures, methodology and key assumptions supporting this
mineral resource estimate shall be fully disclosed in a Technical
Report that shall be available on SEDAR and the Company’s website
within forty five (45) days of the effective date of the mineral
resource estimate. |
The reader is reminded that mineral resources are not mineral
reserves and therefore do not have demonstrated economic
viability. |
Table 2.0 - PEA Oxide Resource Estimate – Effective Date
May 10, 2021
Effective Date |
Deposit |
Mining Method |
Mineralization Type |
Category |
Tonnes (x1,000) |
Au g/t |
Au oz (x1,000) |
Strip Ratio |
May 10, 2021 |
CMC |
Open Pit (Starter) PEA |
Oxide (Heap Leach) |
Measured |
1,851 |
0.82 |
49 |
0.13 |
Indicated |
1,616 |
0.82 |
42 |
Total Measured + Indicated |
3,467 |
0.82 |
91 |
Oxide (Heap Leach) |
Inferred |
1,154 |
0.6 |
22 |
Transition (Heap Leach) |
478 |
0.87 |
13 |
Total Inferred |
1,632 |
0.68 |
36 |
Table 3.0 – Summary Sulphide Resource Estimate –
Effective Date May 10, 2021
Effective Date |
Mining Method |
Category |
NSR$ Cut-off |
Tonnes (x1,000) |
AuEq g/t |
Au g/t |
Ag g/t |
Cu % |
AuEq oz (x1,000) |
Au oz (x1,000) |
Ag oz (x1,000) |
Cu lb (x1,000) |
Strip Ratio |
MAY 10 2021 |
Open Pit |
Measured |
20 |
6,280 |
2.22 |
1.90 |
3.28 |
0.18 |
449 |
383 |
662 |
25,042 |
6.24 |
Indicated |
20 |
13,098 |
1.63 |
1.40 |
4.18 |
0.12 |
688 |
591 |
1,762 |
34,201 |
M+I |
20 |
19,378 |
1.82 |
1.56 |
3.89 |
0.14 |
1,137 |
974 |
2,425 |
59,243 |
Inferred |
20 |
23,042 |
1.52 |
1.35 |
2.59 |
0.09 |
1,125 |
1,004 |
1,916 |
43,229 |
Underground |
Measured |
77 |
759 |
3.15 |
2.65 |
1.88 |
0.29 |
77 |
65 |
46 |
4,836 |
|
Indicated |
77 |
348 |
2.73 |
2.35 |
2.32 |
0.22 |
31 |
26 |
26 |
1,652 |
M+I |
77 |
1,107 |
3.02 |
2.56 |
2.02 |
0.27 |
107 |
91 |
72 |
6,488 |
Inferred |
77 |
755 |
2.67 |
2.38 |
2.31 |
0.16 |
65 |
58 |
56 |
2,649 |
Total Measured and Indicated |
20,484 |
1.89 |
1.62 |
3.79 |
0.15 |
1,244 |
1,065 |
2,497 |
65,731 |
Total Inferred |
23,797 |
1.55 |
1.39 |
2.58 |
0.09 |
1,190 |
1,063 |
1,972 |
45,878 |
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.
W. Lewis P.Geo., A. San Martin MAusIMM (CP) and
R. Gowans, P.Eng of Micon have reviewed and approved the contents
of this press release. Messrs. Lewis, San Martin and Gowans
are unaware of any political, environmental or other risks that
could materially affect the potential development of the mineral
resource estimate.
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, 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. 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 in 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 island 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 gold
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 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 “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
T. (416) 866-8157
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