Unigold intersects high grade outside resource envelope at Candelones project

Drilling in a new zone to the west of the Candelones Extension deposit has yielded a 16 metre intercept grading 10.78 grams gold per tonne, 68.9 grams silver per tonne, 0.24% copper, and 2.35% zinc starting from a depth of 336 meters in drillhole LP21-204, Unigold Inc. (TSXV: UGD; US-OTC: UGDIF) reports.

The intercept was within a broader 97 metre interval averaging 2.52 grams gold, 12.1 grams silver, 0.12% copper and 0.63% zinc, and the drillhole was collared 50 metres west of the Candelones Extension resource, part of the company’s 100%-owned 21,031-hectare Neita concession in the Dominican Republic.

A second hole, LP21-206, drilled from the same platform and which undercut LP21-204 by about 50 metres, intersected 5 metres averaging 5.89 grams gold, 2.20 grams silver, 0.29% copper and 2.75% zinc, within a 30 metre interval grading 2.31 grams gold, 2.29 grams silver, 0.41% copper and 0.83% zinc.

“Previous exploration efforts in this area intersected lithologies that suggested we are getting closer to a volcanic vent,” Joe Hamilton, Unigold’s chairman and CEO, stated in a press release. “Although the previous drilling failed to find high-grade mineralization, it increased our understanding of the structure in this area and led directly to this new discovery. Our increased understanding of the structure opens up approximately 1000 metres of potential strike extension to the west. There is minimal historic drilling through this gap, and we believe these latest holes suggest that we have the possibility to increase the mineral resource at Candelones to the west through further drilling.”

In addition to the exploration drilling, Unigold continues to work on its Candelons Oxide starter project with metallurgical testing of run-of-mine composite material through large diameter leach columns.

In 2013, Unigold reported an initial mineral resource for the Candelones Main, Connector and Extension deposits of 39.5 million inferred tonnes grading 1.6 grams gold per tonne for 2 million oz. contained gold. The estimate included an at-surface oxide resource of 3.6 million tonnes averaging 0.98 gram gold per tonne for about 112,000 ounces.

In 2015 the company updated the resource for the Candelones Extension deposit only, and outlined 5.2 million inferred tonnes grading 5.27 grams gold per tonne and 0.35% copper for 894,000 oz. of contained gold and 41.2 million lb. copper.

Over the last year Unigold has traded in a range of 12¢ and 62¢ a share and at presstime was trading at 13.5¢. The junior has a market cap of about $18 million.