Unigold grows Candelones gold zones in the DR

Unigold (UGD-V) has released more results from its now closely followed drill program at the Candelones gold project on the northwestern portion of the Dominican Republic.

Hole 29 hit 89 metres grading 1.72 grams gold per tonne from 326 metres downhole in the West Main zone; hole 31A, drilled in the same area, returned 122 metres of 0.73 gram gold from 257 metres downhole, as well as a lower section of 5 metres of 1.03 grams gold from 541 metres; and hole 30, drilled to the east, hit 8 metres of 1.67 grams gold from 440 metres.

Drill holes 29 and 31A extend known mineralization at the Candelones Extension to the south, with hole 29 a 100-metre stepout to the southeast from hole 28 that hit 77 metres grading 3.81 grams gold, and hole 31A a 100-metre stepout of hole 23 that cut 70 metres carrying 2.10 grams gold.

Hole 30, meanwhile, was drilled on the southeast edge of known mineralization 100 metres east of hole 17, hitting 109 metres of 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 more drill holes planned in that direction. The company has completed holes 32 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 400 by 500 metres on 100-metre centres. The Extension sits 2 km east of the Candelones Main zone, with a bit of 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 that day. The fall comes after a rally that saw Unigold’s share price climb from 26¢ on July 10 to a high of 52¢ on Aug. 8.

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