Unigold Inc.: Drilling at the Candelones Extension Returns 2.0 g/t Over a 34 Metre True Width and Extends Mineralization Over 3 Kilometres to the South-East
TORONTO, ONTARIO -- (Marketwire) -- 11/30/10 -- Unigold Inc. ('Unigold' or the 'Company') (TSX VENTURE: UGD) is pleased to announce new results on its wholly-owned Neita Property located in the western region of the Dominican Republic. Drillhole LP-10 returned 2.0 g/t of gold over a 34 metre true thickness and extended mineralization along trend for a further 185 metres for a total of 550 metres. This drillhole is approximately three kilometres to the east of the Candelones deposit where Unigold defined a gold mineralized area of 400m by 400m to a depth of 200 metres. The mineralization at Candelones trends southeast where it disappears under younger andesitic volcaniclastics. The mineralization encountered in this latest round of drilling is hosted by a massive barite unit and hydrothermal breccias and is similar to that found at Candelones. Another hole, LP-13, located 100 metres to the southeast has extended the mineralization to depth and returned 10 meters grading 1.1 grams per ton of gold within 54 metres at 0.4 g/t of gold. Mineralization remains open in all directions and at depth.
The alteration zone that encompasses both Candelones and Lomita Pina outcrops over approximately 16 square kilometers. Both areas are contained within magnetic lows which may represent magnetite destruction during the alteration and mineralizing event. Higher gold grades are correlated with white quartz flooding and veins. Geological interpretation implies that the overlying magnetic andesitic volcanoclastic unit may be a capping sequence that pre-dated alteration and mineralization. The underlying rock units, as well as the three kilometre area between Lomita Pina and Candelones, have become high priority exploration targets. Structural mapping suggests that both Candelones and Lomita Pina were emplaced within similar structural domains consistent with the regional patterns. Drill results are shown in the table below.
'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 three kilometre distance between the Candelones resource and this new area of mineralization has become highly prospective and has great implications for the discovery of a large tonnage target,' stated Mr. Daniel Danis, CEO of Unigold Inc.
To view a map of 'Los Candelones - Lomita Pina', please visit the following link:
http://media3.marketwire.com/docs/ugd1130map.pdf
--------------------------------------------------------------------------
Drilling results
--------------------------------------------------------------------------
Hole Length(ii)
Sector - area Azimuth Dip From To (m) g/t Au
--------------------------------------------------------------------------
LP-07(i) Candelones - Lomita Pina 330 -45 92 144 52 1.4
Including 99 126 27 2.3
--------------------------------------------------------------------------
LP-08(i) Candelones - Lomita Pina 330 -60 239 247 8 1.60
--------------------------------------------------------------------------
LP-09(i) Candelones - Lomita Pina 330 -45 37 87 50 1.1
Including 37 56 18 2.1
--------------------------------------------------------------------------
LP-10 Candelones - Lomita Pina 330 -50 95 159 64 1.4
Including 95 129 34 2.0
--------------------------------------------------------------------------
LP-11 Candelones - Lomita Pina 330 -45 156 173 17 0.2
--------------------------------------------------------------------------
LP-12 Candelones - Lomita Pina 330 -45 57 64 7 1.0
201 207 6 1.5
--------------------------------------------------------------------------
LP-13 Candelones - Lomita Pina 330 -45 129 183 54 0.4
Including 137 147 10 1.1
--------------------------------------------------------------------------
(i) These holes were reported previously (Press release June 22, 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 Corozo. More than 2000 metres of drilling is planned. More than 4,000 soil samples and 150 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. Unigold 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, the 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. Unigold benefits from a 16-year tax holiday on all corporate, sales taxes and import duties in the Dominican Republic. The economics of any discovery will be significantly improved by the tax holiday.
Certain statements contained in this document, including statements regarding events and financial trends that may affect our future operating results, financial position and cash flows, may constitute forward-looking statements within the meaning of the federal securities laws. These statements are based on our assumptions and estimates and are subject to risk and uncertainties. You can identify these forward-looking statements by the use of words like 'strategy', 'expects', 'plans', 'believes', 'will', 'estimates', 'intends', 'projects', 'goals', 'targets', and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts. We wish to caution you that such statements contained are just predictions or opinions and that actual events or results may differ materially. The forward-looking statements contained in this document are made as of the date hereof and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ materially from those projected in the forward- looking statements. Where applicable, we claim the protection of the safe harbour for forward-looking statements provided by the (United States) Private Securities Litigation Reform Act of 1995.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
Contacts:
Unigold Inc.
Mr. Daniel Danis
Chief Executive Officer
1 (416) 866-8157
unigold@unigoldinc.com
www.unigoldinc.com