Mr.
Joseph Del Campo reports
UNIGOLD GRANTED EXPLORATION CONCESSION IN THE DOMINICAN REPUBLIC
The Ministry of Energy and Mines of the Dominican Republic has granted Unigold Inc. the Neita Fase 2 exploration concession. The concession is valid for a three-year period, after which there is a possibility for two additional one-year extensions. The approved concession has a 21,031-hectare footprint and hosts several gold and copper surface geochemical anomalies, most of which have not been extensively explored.
Joseph Del Campo, interim president and chief executive officer of Unigold, commented: "We are very pleased the Dominican government has approved our exploration concession, and we are anxious to resume exploration of the Neita concession to follow up on the promising results at the Candelones Extension returned from our 2016 exploration drilling program. That drilling, targeting higher-grade areas of the inferred mineral resource, was undertaken to evaluate the potential to delimit a higher-grade resource amenable to underground mining. The results included some of the highest-grade intervals to date at the Candelones Extension deposit. It also intersected high-grade, massive sulphide mineralization within the mineral resource footprint. This copper-gold-rich massive sulphide zone remains open at depth and offers an opportunity to increase both the quantity and quality of the mineral resource at Candelones."
Exploration drilling during 2016 focused on high-grade areas within the defined mineral resource footprint with the dual objectives of defining a mineral resource amenable to underground mining and to increase the confidence level of the inferred resource to measured and indicated classification. This targeted approach identified three areas of higher-grade mineralization within the existing mineral resource footprint, all of which remain open and represent an opportunity to increase both the size and quality of the mineral resource estimate. The attached signficant drill intercepts table presents the significant intercepts of the most recent exploration at the Candelones Extension deposit.
SIGNIFICANT DRILL INTERCEPTS -- 2016
Target From To Interval (1) Au Cu
hole ID (m) (m) (m) (g/t) (%)
No.
LP15-93 298.6 314.3 15.7 7.45 1.1
LP15-94 No massive or semi-massive sulphides
LP15-95 252.6 287.5 34.9 6.19 0.6
309.9 314.0 4.1 7.31 1.1
LP15-96 279.0 313.0 34.0 4.15 0.4
324.0 333.0 9.0 4.81 0.7
LP16-101 409.6 419.4 9.8 3.10 0.6
LP16-102 No massive or semi-massive sulphides
LP16-114 256.8 278.0 21.2 6.00 0.9
LP16-115 288.3 294.0 5.7 3.80 1.2
LP16-116 214.0 239.0 25.0 1.50 0.0
LP16-117 290.0 295.0 5.0 1.80 0.6
LP16-118 180.0 185.0 5.0 7.80 0.3
and 252.0 257.0 5.0 3.06 0.9
LP16-124 333.3 339.2 5.9 11.80 0.2
LP16-126 No massive or semi-massive sulphides
LP16-127 No massive or semi-massive sulphides
LP16-97 249.0 264.0 15.0 1.15 0.0
LP16-98 245.8 250.6 4.8 7.32 0.2
LP16-99 276.6 283.0 6.4 4.23 0.2
LP16-100 291.1 300.6 9.5 2.43 0.2
and 307.5 319.5 12.0 7.46 1.4
LP16-119 224.7 264.5 39.8 1.40 0.1
LP16-120 255.2 274.0 18.8 2.00 0.1
and 363.0 369.7 6.7 3.30 1.9
LP16-121 269.5 302.0 32.5 0.90 0.1
LP16-122 No significant values
LP16-123 265.4 280.1 14.7 6.50 0.9
and 371.5 379.5 8.0 9.40 0.9
LP16-128 249.6 274.0 24.4 3.20 0.2
and 333.8 336.5 2.7 5.20 0.7
and 461.0 462.1 1.1 0.60 0.4
LP16-103 117.0 123.0 6.0 8.86 0.2
LP16-104 134.9 138.2 3.3 5.06 0.2
LP16-105 176.0 184.0 8.0 6.30 0.1
LP16-106 141.0 154.3 13.3 1.08 0.1
LP16-107 168.0 311.0 143.0 1.44 0.1
LP16-108 190.0 197.0 7.0 1.30 0.3
LP16-109 165.0 169.0 4.0 10.10 0.2
LP16-110 155.4 160.0 4.6 3.40 0.1
233.0 245.0 12.0 9.70 0.1
LP16-111 250.0 252.0 2.0 5.00 0.2
LP16-112 No significant values
LP16-113 223.1 228.6 5.5 4.10 0.1
(1)Interval is measured downhole and should not be interpreted
as true width.
From 2011 through 2013, the company's exploration effort was directed toward defining an initial mineral resource estimate at the Candelones project composed of the Candelones Main, Candelones Connector and Candelones Extension deposits. The deposits are hosted in intermediate volcanic and volcanoclastic rocks of the Tireo formation. The deposits demarcate the southwestern limit of an interpreted northeast-trending zone of gold enrichment measuring over 10.0 kilometres in strike and up to 2.0 km in width localized along the San Jose-Restauracion thrust fault, where the older rocks of the Tireo formation are thrust over the top of younger, dominantly sedimentary rocks of the Trois Rivieres-Peralta formation. Several gold-in-soil anomalies have been identified along this trend extending from the Candelones deposits in the southwest to the Guano-Naranja showings to the northeast.
Exploration work to date has established both an open-pittable and an underground inferred mineral resource at the Candelones project. The attached summary of historical mineral resource estimates table summarizes the historical mineral resource estimates.
SUMMARY OF HISTORICAL MINERAL RESOURCE ESTIMATES -- CANDELONES PROJECT
Date, Classification Source/ Deposit Tonnes Au Au oz Strip
press release, number mineralization (x1,000) (g/t) (x1,000) ratio
type
Nov. 12, 2013 (1, 3, 4, 5) Inferred Open pit Main 2,448 0.92 72 1.3
UGD-2013-22 Connector 1,108 1.12 40 1.3
Extension - 0.00 - 0.0
Subtotal 3,556 0.98 112 1.3
Inferred Open pit Main 5,003 1.16 186 1.3
sulphide Connector 980 1.08 34 1.3
Extension 24,223 1.59 1,241 7.6
Subtotal 30,206 1.50 1,461 6.4
Inferred Underground Main 704 2.21 50 0.0
sulphide Connector 50 2.49 4 0.0
Extension 4,977 2.42 387 0.0
Subtotal 5,731 2.39 441 0.0
Inferred Total 39,493 1.59 2,014 n/a
Feb. 24, 2015 (2, 3, 4, 6, 7)
UGD-2015-2 Inferred Underground
sulphide Extension 5,274 5.27 894 n/a
1. Mineral resources were estimated by W. Lewis, PGeo, and A. San Martin, MAusIMM (CP), of Micon
International Ltd., a Toronto-based consulting company, independent of Unigold. Both Mr. Lewis
and Mr. San Martin 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). The 2014 estimate is based on a long-term gold price of $1,500
(U.S.) per ounce and economic cut-off grades of 0.32 gram per tonne gold (oxide), 0.56 g/t
(sulphide) and 1.25 g/t (underground sulphide). Open-pit resources are reported within an
optimized pit shell. Underground resources are reported beneath the defined optimized pit shell.
2. Mineral resources were estimated by Mr. W. Lewis, PGeo, and Mr. San Martin, MAusIMM (CP), of
Micon International, a Toronto-based consulting company, independent of Unigold. Both Mr. Lewis
and Mr. San Martin 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). The 2014 estimate is based on a long-term gold price of $1,200
(U.S.) per ounce, a long-term copper price of $3 (U.S.) per pound and an economic cut-off grade
of 3.50 g/t Au and assumed exploitation of the Candelones Extension deposit by means of
underground mining.
3. The mineral resource estimates are classified as inferred. CIM standards define a mineral
resource as "a concentration of material in or on the Earth's crust in such form and quantity
and of such grade or quality that it has reasonable prospects for economic extraction." The CIM
standards further define an inferred mineral resource as "that part of a mineral resource for
which quantity and grade or quality can be estimated on the basis of geological evidence and
limited sampling and reasonable assumed but not verified, geological and grade continuity." The
CIM standards state, "Due to the uncertainty that may be attached to inferred mineral resources,
it cannot be assumed that all or part of an inferred mineral resource will be upgraded to an
indicated or measured mineral resource as a result of continued exploration.
4. Micon has not identified any legal, political, environmental or other risks that could
materially affect the potential development of the mineral resource presented.
5. The procedures, methodology and key assumptions supporting this mineral resource estimate
are included in the technical report titled: "NI 43-101 Technical Report Mineral Resource
Estimate for the Candelones Project, Neita Concession, Dominican Republic," with an effective
date of Nov. 4, 2013. The technical report is available on SEDAR, as well as the company's
website.
6. The procedures, methodology and key assumptions supporting this mineral resource estimate
are included in the technical report titled "NI 43-101 Technical Report Mineral Resource
Estimate for the Candelones Extension Deposit, Candelones Project, Neita Concession,
Dominican Republic," with an effective date of Feb. 24, 2015. The technical report is
available on SEDAR, as well as the company's website.
7. Contains 41,175,000 pounds copper grading 0.35 per cent.
Quality assurance/quality control
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 and 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 metre and a maximum sample length of 1.5 metres are employed with most samples averaging 1.0 metre in length except where geological contacts dictate. Certified standards and blanks are randomly inserted into the sample stream and constitute approximately 5 to 10 per cent 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 multiacid ICP-ES analysis method.
Wes Hanson, PGeo, chief operating officer and technical director of Unigold, who is a qualified person under the definitions established by National Instrument 43-101, has reviewed and approved the contents of this press release.
About Unigold Inc.
Unigold is a Canadian-based mineral exploration company traded on the TSX Venture Exchange under the symbol UGD, focused primarily on exploring and developing its gold assets in the Dominican Republic.
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