• Seventeen drill holes tested six areas around the Candelones resource
• Drilling has extended the strike of the Candelones Extension mineralization
a further 200 meters to the east
• Drilling at the Connector Zone identified a possible volcanic vent and
returned elevated copper and zinc grades over broad, sustained intervals
Toronto, Ontario, June 9, 2021 – Unigold Inc. (“Unigold” or the “Company”) (TSX-V:UGD, OTCQX:UGDIF, FSE:UGB1) reports its latest results from 17 exploration drill holes from Candelones on its 100% owned Neita concession in the Dominican Republic. The Company is awaiting assay information for a further 12 drillholes
In February 2021, drilling transitioned from largely infill holes towards testing geophysical anomalies around the defined mineralization at Candelones. These targets covered a number of prospective areas that were largely ignored over the past drilling. Exploration drill holes tested the following targets:
Connector Zone – The Connector zone lies between the Candelones Main mineralization and the Candelones Extension. This gap area was sparsely drilled in the past but forms an 800m wide corridor between the two deposits. Eight drill holes, DCZ20-71 to DCZ21-78, tested coincident Induced Polarity (“IP”) Chargeability and Resistivity anomalies east of the currently identified oxide resource. Drilling intersected what we interpret to be an extensive phreatomagmatic breccia system that may mark a volcanic vent area. Broad intervals of elevated zinc and copper grades occur proximal to the observed breccia and there are intervals of what appears to be intermediate intrusive interlaced throughout the package. The breccia shows a melange of angular fragments and shards of numerous rock types including syenitic and rhyolitic lithologies. Elevated copper and zinc grades were returned over several tens of meters (DCZ20-74, DCZ21-75) with low tenor gold enrichment.
The connector zone is currently interpreted to be a volcanic or hydrothermal vent that may represent the heat source for the younger epithermal systems that overprint
mineralization to the east. This observation has positive implications for future exploration in the immediate vicinity of Candelones.
Candelones Oxide Expansion Drilling – The oxide mineralization at Candelones Main forms the basis for a PEA that shows a 35% after-tax IRR (see NR PR 2021-06, April 26, 2021).
An expansion of the available oxide material may enhance the project economics by extending the project life. Eight holes, DCZOX21-01 through 08, were completed testing for oxide mineralization based on follow up geological mapping east of the oxide resource limit. Results for all shallow oxide holes are pending.
Extension West – Sixteen (16) holes were completed along 300 meters of strike length to the west of the Candelones Extension deposit. These holes were drilled from four platforms and targeted to intersect mineralization beneath historic drilling. No drilling had been conducted in this area since 2013. The silicified dacite breccias encountered in these areas are texturally similar to those found to the east at Target C and Target B. While silicification and other alteration indicated that the drills likely passed through epithermal systems, only low tenor gold and copper was encountered in all reported holes. Results are pending for six holes.
Extension East – Eight (8) holes were completed along a 200 meter strike length to the east of the Candelones Extension, expanding the surface sulphide mineralization intersected in holes LP20-169 (PR2021-04, March 9, 2021) and LP21-171 (PR2021-05, March 29, 2021).
Broad intervals of low to moderate gold values, similar to those intersected in the discovery holes, were returned although gold grades as a whole seem to be decreasing to the east.
The Company plans to continue tracing the low grade mineralization to the east for as long as it persists. This material is shallow and the sustained intervals above a 0.50 g/t gold suggest that this mineralization has the potential to increase both the oxide and nearsurface sulphide resources. Results are pending for the three most easterly holes.
Eastern Oxides – Blind oxide mineralization was encountered while drilling LP20-169 (PR2021-04, March 9, 2021). This mineralization had no surface expression but returned 14 m grading 2.11 g/t gold with 8.2 g/t silver starting from 2 metres below surface. Fifteen shallow vertical holes, covering about 1 kilometre of strike extent, were completed to evaluate the potential of additional oxide resources in this area to the east. Results of all 15 holes are pending.
Extension North – One hole was completed testing a coincident airborne Magnetic low and IP resistivity high response 800 meters north of the Candelones resource envelope.
Higher grade intervals of 1 to 2 metres with chalcopyrite veining assaying between 0.5% to 1.5% copper were intersected. Gold values were generally low. The northerly anomalies are broad and continuous across 2.5 kilometres of strike extent. While the gold grades provided little excitement, the alteration and copper mineralization indicates that the mineralizing systems are persistent into this underexplored area.
Montazo – Montazo is a separate target to the east of Candelones. It appears to be a discrete set of gold-in-soil and geophysical anomalies clustered into an area that is along the trend of the Candelones mineralization, about 3.5 kilomteres to the east. Five holes were completed probing the interpreted andesite-dacite contact at the Montazo target where a coincident, WNW trending IP chargeability anomaly persists for 2000 meters, parallel to the interpreted andesite – dacite contact. A four hole fence of drill holes targeted the southern IP chargeability response and failed to report any significant mineralization.
The Company notes that oxide mineralization at the top of holes MN21-11 and MN21-13 was not initially sampled. This oversight was corrected and the samples for the strongly oxidized dacite breccia from the collar to approximately 20 meters depth has been submitted for analysis. MN21-14, testing a second IP chargeability anomaly 500 meters the north, intersected low tenor gold and silver grades from surface to a depth of 113.0 meters down hole. Oxide mineralization was encountered over the top 11 metres in this hole, returning 0.34 g/t gold and 15.8 g/t silver. It is the Company’s opinion that Montazo remains priority target with an IP chargeability response similar to the Candelones mineralization which hosts a 1.0 million ounce measured and indicated resource with an additional 1.0 million ounces of inferred resource.
Table 1.0 summarizes the results received to date as well as the holes for which results are pending. Figure 1.0 is a drill hole location plan showing the general location of the latest exploration drill holes.
A detailed review of the geophysical and geochemical data is in progress. The latest drill results are being evaluated relative to the historical geochemical and geophysical data searching for potential vectors to assist with exploration drill hole targeting particularly along the Montazo, Guano, Naranja trend to the east of the Candelones Extension
resource. No geophysical work has been completed in this area since 2012. The Company is examining the utility of completing more advanced airborne and ground geophysical surveys to support further drill targeting.