Unigold Inc. (“Unigold” or the “Company”) (TSX-V:UGD; OTCQX: UGDIF;
FSE:UGB1) is pleased to provide an update on activities at its 100%
owned Neita concession in the Dominican Republic. The objectives
for 2022 lead the Company firmly towards a production decision at
Candelones.
Joseph Hamilton, CEO, commented, “I am excited
about the work that we have scheduled for 2022. Our objectives
during the year are to deliver a viable, financed oxide project and
to have sufficient permits in place that we can have certainty
regarding the timing of construction and production. Our focus for
the first half of the year will be firmly on the Oxide Project and
the associated permitting. In addition, the return to regional
exploration gives us the opportunity to demonstrate that the Neita
Concession is a mineral district with the potential for multiple
deposits in the future.”
“Our work at the Candelones sulphides will not
cease during 2022. We expect to complete further drilling,
metallurgical testing and process designs later this year. Our
objective would be to schedule a Preliminary Economic Assessment of
the sulphide project once we have assembled sufficient technical
data. We are looking forward to a transformative year for the
Company and expect that we will be able to show how the sulphide
project fits into the oxide development by the end of 2022.”
The first step in achieving commercial
production at the Candelones oxide deposits is to receive an
Exploitation Licence over a portion of the Neita Concession. The
Company has been diligently assembling the required documentation
to support this Licence Application during late November and
December of last year. We expect to be in a position to finalize
and submit the Application by the end of January 2022. The Company
expects to work closely with the Government authorities to expedite
the issuance of the Exploitation Licence. While the government
reviews this application, the Company intends to work in parallel
to deliver a Feasibility Study and advance in the baseline data
collection for an Environmental and Social Impact Assessment
(“ESIA”), both of which should be delivered in Q3 of this year.
The Company received and assessed a number of
proposals from qualified engineering firms to complete a
feasibility study for the oxide portion of the Candelones deposits.
This feasibility study will build on the design parameters
conceptualized in the May 2021 Technical Report titled “Updated
Mineral Resource Estimate and Preliminary Economic Assessment for
the Oxide Portion of the Candelones Project, Neita Concession,
Dominican Republic” (available on the Company’s web site as well as
www.SEDAR.com).
In early December 2021, the Company announced
the expansion of the owner’s team with the appointment of Mr.
Gordon Babcock as COO and Mr. Wes Hanson as VP Exploration. The
Company expects to add to this team throughout 2022 with a view to
having sufficient in-house expertise to be able to commence
construction when all permits have been received.
Detailed topographic surveys of the
conceptualized oxide project area will commence in January 2022 to
be followed by geotechnical studies to assess the plant and pad
placements. Large diameter metallurgical column tests utilizing
Run-of-Mine material commenced in the middle of 2021. While the
Company is expecting a final report towards the end of January
2022, results to date indicate that recoveries over the first 107
days of leaching will likely exceed the recovery assumptions
incorporated into the May 2021 PEA. The Company will report the
final leaching results when assays of the residual column material
are complete. Further metallurgical work on the oxides is planned
to finalize process design for the feasibility study.
The Company has completed a program of 36 holes
totalling 1110 meters of drilling (see Figure 1.0) within the oxide
resource limits in order to convert the Inferred Oxide Resource to
Measured and Indicated Resources. All holes have intersected
strongly oxidized dacite breccia from surface and the observed
oxide mineralization extends to depths ranging from 5.0 meters to
40.0 meters below surface. Assay results are anticipated in Q1,
2022. In conjunction with the strong results from column testing,
the Company is confident that a large portion of the Inferred Oxide
Resources may be converted to Measured and Indicated Resources. The
Company’s objective is to maximize the Measured and Indicated Oxide
Resource in sufficient time to incorporate the results into the
mine scheduling and ultimately into the feasibility study.
Following completion of the geotechnical and
surveying work, the incorporation of completed drilling into the
Resource Estimate and the final metallurgical testing, the Company
will engage appropriate consultants to finalize a feasibility study
with sufficient detail to support project financing discussions.
The Company expects this report to be released in Q3 of 2022.
The Company has delivered the Terms of Reference
(“ToR”) for the ESIA to the appropriate government agencies in the
Dominican Republic. The ToR is the first step in completing the
full ESIA for the oxide development project. Work has commenced on
the baseline study utilizing in-country contractors while the
Company awaits for final approval of the ToR. Environmental studies
will accelerate in Q1 and Q2 of 2022. The Company is targeting Q3
of 2022 to have the final ESIA ready for submission to the
appropriate government authorities.
The Company’s Environmental and Social
Governance (“ESG”) activities continued throughout the second half
of 2021 with education and school support programs, road and bridge
rehabilitation, community dental and health clinics, support for
local amateur sport teams, water and well rehabilitation and
community education programs completed during that time. The
efforts of the Company will continue throughout 2022 with numerous
infrastructure, forestry, agriculture, river rehabilitation and
community health programs planned for the first half of the
year. An information office is being developed in the
local community in order to provide a central location for
community engagement and is expected to be operational in Q2 2022.
In addition, the Company expects to release its inaugural ESG
report in early 2022.
Throughout 2021, the Company retained a
multi-disciplinary team of specialist consultants to review all
geochemical, geological and geophysical data available over the
concession area. This data reflected approximately C$40 million of
direct costs over 18 years of exploration. In conjunction with this
data review, the Company initiated a field mapping, sampling and
trenching program over select targets in order to set priorities
for our future drill programs. A number of these targets will be
tested throughout 2022. The Montazo porphyry target was highlighted
during detailed review of the topographic, geophysical,
geochemical, and geological data.
Dr. Annick Chouinard reviewed the geochemical
data and confirmed multiple hydrothermal anomalies are present
throughout the Concession. Dr. Chouinard identified a copper-rich
center with an arsenic halo at Montazo, approximately 3 kilometres
to the east of the Candelones deposits. This geochemical signature
is within a footprint measuring 4500 x 3000 meters and is centered
over an area of interpreted magnetite destruction. Argillic to
advanced argillic alteration and soil anomalies extend locally to
merge with several known gold targets, including Guano-Naranjo,
Montazo and Rancho Pedro, forming a large prospective area of
approximately 7 km by 4 km. The Company views this area as a
mineral district with the potential to host several styles of
gold-copper deposits.
Further work by Jeremy S. Brett, M.Sc., P.Geo.,
Senior Geophysical Consultant, Jeremy S. Brett International
Consulting Ltd., and Betka Ondercova, M.Sc., GIT, Geophysical
Consultant, Unigold, identified a discrete, 500 meter diameter
semi-circular magnetic high within the geochemical district. The
central magnetic high is interpreted to be the response from a
discrete body at about 250 to 300 m below surface that persists for
over 2000 meters vertically. The peripheral area to the magnetic
high has a much lower response which is interpreted to reflect
alteration and magnetite destruction. The Company believes that
these interpretations point to a buried porphyry target which is
central to many of the gold and copper showings that have been
identified in the acid volcanics of the Upper Tireo volcanic
rocks.
Two shallow drill holes from 2013 and 2014
exploration programs intersected alteration on the edge of the
interpreted porphyry (see Figure 2.0). Drillhole MTZ14-05 was
located immediately above the interpreted porphyry center and
returned argillic alteration marked by silica and potassium
enrichment to about 250m depth. Drillhole MTZ13-05A was located
approximately 300m south of the interpreted magnetic core with
propylitic alteration noted from surface to about 288m depth.
Drilling to test the interpreted porphyry will be initiated in
January 2022. Two to three holes totalling 1500 meters are planned.
The primary objective of this drilling is to confirm the presence
of alteration typical of major porphyry systems.
In order to better display the wealth of
exploration and drilling data and to allow investors to understand
the geometry of the deposits at Candelones, the Company engaged
Vrify Technologies Inc. (vrify.com) in Q4 2021 to import the
Company’s entire dataset onto the Vrify platform. This information
is now available to view in 3D in a simple and effective web-based
system. Investors are encouraged to visit the Vrify website or gain
access through the Unigold website to get a better understanding of
the spatial relationships of the identified mineral deposits within
the Neita concession.
Wes Hanson P.Geo., VP Exploration of Unigold has
reviewed and approved the contents of this press release.
For further information please visit http://www.unigoldinc.com
or contact: Mr. Joseph HamiltonChairman & CEOT. (416)
866-8157
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. For more information, please visit
https://www.unigoldinc.com/profile/forward-looking-statement.
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.
Figure 1.0 – Candelones Oxide Pit Area showing historic
drilling and collars of recent infill drilling is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/f8058ab0-80c7-4397-b675-88dd8205634e
Figure 2.0 – Drill Hole Locations – Montazo Porphyry
Target is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/b9f09faf-881f-4a0a-8abb-41176d8ad6a0
jhamilton@unigoldinc.com
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