Unigold extends Candelones extension

VANCOUVER — Unigold (UGD-V) has released more results from its now closely-followed drill program at the Candelones project on the western edge of the Dominican Republic.

Hole LP29 hit 89 metres grading 1.72 grams gold per tonne from 326 metres downhole in the Main zone West; hole LP31A, drilled in the same area, returned 122 metres carrying 0.73 gram gold from 257 metres downhole, as well as a lower section of 5 metres grading 1.03 grams gold from 541 metres; and hole LP30, drilled to the east, hit 8 metres averaging 1.67 grams gold from 440 metres down.

Drill holes LP29 and LP31A extend known mineralization at the Candelones Extension to the south, with hole LP29 a 100-metre step out to the southeast from hole LP28 that hit 77 metres grading 3.81 grams gold, and hole LP31A a 100-metre step out of hole LP23 that cut 70 metres carrying 2.10 grams gold.

Hole LP30, meanwhile, was drilled on the southeast edge of known mineralization, some 100 metres east of hole LP17 that hit 109 metres grading 1.73 grams gold. With less encouraging results in the southeast corner, Unigold has stated that it is looking especially to the western side of the system to expand known mineralization, with far more drill holes planned in that direction. Already the company has completed holes LP32 through 37 in the area thanks to the three rigs on site and is waiting on assay results.

So far most of the 31 holes with results out on the Candelones Extension were drilled over a grid area of roughly 400 metres by 500 metres on 100-metre centres. The Extension sits roughly 2 km east of the Candelones Main zone, with very little drill testing in between.

On news of the latest results Unigold’s share price dropped 7¢or 15% to end at 39¢ with 2.9 million shares traded, making it the most-traded stock on the Venture for the day. The fall comes after a rally that saw Unigold’s share price climb from 26¢ on July 10 to a brief high of 52¢ on August 8.

Unigold has attracted its own attention through recent drill results, but has also seen increased interest thanks to the exploits of nearby Goldquest Mining (GQC-V), which has made an exciting new discovery at its Las Tres Palmas project.