Unigold Drilling at the Candelones Extension in the Dominican Republic Returns 2.1 Grams Per Tonne Gold (g/t Gold) Over an 18 Metre True Width and Extends Mineralization to the East and to Depth
TORONTO, ONTARIO -- (Marketwire) -- 06/22/10 -- Unigold Inc. ('Unigold' or the 'Company') (TSX VENTURE: UGD)(NASDAQ-DUBAI: UGD) is pleased to announce new results on its wholly-owned Neita Property located in the western region of the Dominican Republic. The results from hole LP-09 have extended mineralization 175 metres east of the discovery drill hole (press release June 14, 2010). The gold zone at the discovery location returned 27 metres (true thickness) grading 2.3 g/t gold within a larger 52 metre interval grading 1.4 g/t gold. This new intercept 175 metres to the east grades 2.1 g/t gold over 18 metres (true thickness) and is included in a 50-metre intercept (true thickness) grading 1.12 g/t gold. Gold in both holes is hosted by a massive barite unit and hydrothermal breccias. Another hole, LP-08, located 100 metres to the South has extended the mineralization to depth and returned 8 metres grading 1.6 g/t gold. Mineralization remains open in all directions and at depth.
The discovery at Lomita Pina is located 3 kilometres South-East of Unigold's Los Candelones deposit. Drilling was positioned to follow-up on trenching results that returned 34 metres at 2.2 g/t gold (press release Feb 24, 2009). Lomita Pina is part of a large epithermal alteration zone which covers an area of more than 16 square kilometres. Mineralization at Lomita Pina is strikingly similar to that found at Candelones and the area is believed to be an extension of the Candelones deposit which has been displaced along a fault corridor. The entire zone at Lomita Pina is covered by a volcano-sedimentary sequence made of andesitic pyroclastic units and a sequence of impure limestone and detritic sediments. Geological interpretation implies that this pyroclastic may be a capping sequence that was later altered by epithermal systems. The underlying rock units, as well as the 3 kilometre area between Lomita Pina and Candelones, have become high priority exploration targets. Drill results are shown in the table below.
Mr. Daniel Danis, the President of Unigold Inc., states 'We are extremely encouraged by these excellent drill results from the extension of the newly discovered zone in the Candelones sector. We will continue with our drilling program on that new discovery and will expand our efforts should results continue to be encouraging. The entire 3 kilometre distance between the Candelones resource and this new area of mineralization has become highly prospective. We expect that geophysical and geochemical anomalies from this area will be prioritized and follow-up work will commence immediately.'
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Drilling results
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Length(ii)
Hole Sector - area Azimuth Dip From To (m) g/t Au
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LP01(i) Candelones - Lomita Pina 315 -45 11 17 6 3.1
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LP02(i) Candelones - Lomita Pina 315 -45 42 51 9 1.0
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227 229 2 0.9
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LP03(i) Candelones - Lomita Pina 315 -50 nsv
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LP04(i) Candelones - Lomita Pina 5 -60 75 77 2 1.3
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LP05(i) Candelones - Lomita Pina 330 -45 41 70 29 0.7
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LP06(i) Candelones - Lomita Pina 340 -45 139 141 2 0.6
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LP07(i) Candelones - Lomita Pina 330 -45 92 144 52 1.4
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Including 99 126 27 2.3
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LP08 Candelones - Lomita Pina 330 -60 239 247 8 1.60
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LP09 Candelones - Lomita Pina 330 -45 37 87 50 1.1
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Including 37 56 18
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(i) These holes were reported previously (Press release June 14, 2010)
(ii) Reported length or thickness is believed to be true thickness
Work programs for the next quarter will concentrate on drilling at the Candelones Extension, Noisy and Rancho Pedro. More than 4000 metres of drilling is planned. More than 2000 soil samples and 50 kilometres of geophysical surveys are planned as follow-up work at Neita. Detailed geological mapping, structural mapping and alteration re-interpretation are underway and will continue in the next quarter. The Company is currently awaiting an environmental permit to proceed with exploration on Sabaneta. The Company expects that this permit will be granted shortly and exploration within this important concession will commence in the next quarter.
The foregoing scientific and technical information has been prepared and reviewed by Daniel Danis, M.Sc., the President and CEO of Unigold. Mr. Danis is a 'qualified person' within the meaning of National Instrument 43-101. All samples were assayed at Acme Analytical Laboratories facility in Chile utilizing standard fire assay procedure.
About Unigold Inc.
Unigold Inc. is exploring to find and develop gold deposits on its 100-per-cent-owned 226 km2 Neita Property located in the Dominican Republic. Having the largest land package in the Dominican Republic, the goal is to target bulk tonnage, open pit able, oxide gold deposits within a very similar geological setting to the world class Pueblo Viejo gold project located 150 kilometres to the south-east. The economics of any discovery will be significantly improved by the fact that Unigold is benefiting from a 16-year holiday on all corporate taxes, sales taxes and import duties in the Dominican Republic.
Certain statements contained in this press release may be deemed 'forward-looking statements'. All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential', 'scheduled' and similar expressions, or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, results of exploration and development activities, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in the Corporation's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. The Corporation cautions that the foregoing list of important factors is not exhaustive. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forwardlooking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Unigold Inc.
Mr. Daniel Danis
President and C.E.O
+1-450-667-4766
unigold@unigoldinc.com
www.unigoldinc.com