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Unigold Announces Exploration Drill Program at Candelones Extension Targeting Potential High Grade Feeder Systems

November 24, 2015
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TORONTO, ONTARIO--(Marketwired - Nov 24, 2015) - Unigold Inc. ("Unigold" or the "Company") (TSX VENTURE:UGD) is pleased to announce that it shall undertake a diamond drilling program testing high grade mineralization at the Candelones Extension deposit, part of the Company's wholly owned, 22,600 hectare Neita Concession in the Dominican Republic. Drilling will commence in December 2015 and continue into the first quarter of 2016.

Initial exploration of the Candelones Extension deposit was undertaken with the objective of defining a large tonnage, low grade, open pittable mineral resource. As a result, diamond drilling was completed on 100 metre spaced centers.

On November 12, 2013, (UGD PR# 2013-22) the Company announced an initial Inferred Mineral Resource estimate for the Candelones Project (Main, Connector and Extension deposits) of:

39,493,000 tonnes averaging 1.59 g/t Au (2,014,000 ounces Au)

This initial mineral resource estimate considered exploitation of the three deposits (Main, Connector and Extension) comprising the Candelones Project by means of open pit mining.

On February 24, 2015, (UGD PR# 2015-02) the Company announced an updated Inferred Mineral Resource for the Candelones Extension deposit of:

5,274,000 tonnes averaging 5.27 g/t Au (894,000 ounces Au); 0.35 % Cu (41,175,000 lbs Cu)

The updated mineral resource considers exploitation of the Candelones Extension deposit by means of underground mining methods.

Both mineral resources were estimated by Mr. W. Lewis, P.Geo. and Mr. A. San Martin, MAusIMM(CP) of Micon International Ltd. ("Micon"), 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 CIM Standards"). The mineral resource estimate is based on a long term gold price of US$ 1,200 per ounce, a long term copper price of US$ 3.00 per pound and an economic cut-off grade of 3.50 g/t Au. The estimate assumed exploitation of the Candelones Extension deposit by means of underground mining.

The current estimate includes numerous, high grade intervals, each of which may represent a potential feeder system for the gold and copper mineralization identified to date at the Candelones Extension deposit. The Company believes that there is excellent potential to identify feeder structures due to the wide spaced nature of the historic drilling. Structurally controlled channels could be present with a different orientation than the lower grade mineralization that was the focal point of the initial exploration effort.

The Company intends to test some of these high grade target areas over the course of the proposed exploration program.

Joseph Del Campo, Interim President and CEO of Unigold notes: "We are very excited to resume active drilling operations testing the high grade target areas identified at the Candelones Extension deposit. We believe there is excellent potential to not only increase the mineral resource estimate but also increase the confidence level of the resource from inferred to measured and indicated. That allows the Company to transition into a pre-feasibility study if the drill results are consistent with our expectations. We believe that the Candelones Extension offers significant exploration potential and this initial drill program will provide critical data to allow us to continue to advance the flagship discovery within our 100% owned Neita Concession."

Table 1.0 summarizes the high grade results obtained to date that will be tested during the planned drill program.

Figure 1.0 highlights the location of the initial drill targets at the Candelones Extension.

Table 1.0 - Significant Historical Drill Results - Candelones Extension

TargetHole IDFromToIntervalAuCu
Area(m)(m)(m)(g/t)(%)
ALPMET-01314336226.930.6
LP1728529166.050.8
LP27331.33342.75.022.3
BLP22A228230219.62NA
LP282632781516.362.6
CLP4324024449.670.1
LP521151301511.360.4
LP57260270106.70.7
LP89230.5233.5310.742.1

With information currently available, the true widths of the drill hole intersections cannot be determined.

Figure 1.0 - Candelones Extension Deposit - Plan View:http://media3.marketwire.com/docs/1034224.pdf.

The Company shall also complete a limited amount of regional exploration drilling testing a new target area to the north of the Candelones Extension deposit where regional mapping has identified new litho-structural targets.

Premier Mining Destination - Dominican Republic

The Dominican Republic is host to world-class gold and base metal mines and deposits. The government supports development and exploration in the mining sector. In addition, the country has well established Mining Laws and Environmental Laws. Unigold's wholly owned flagship property, Neita is compliant with all mineral and environmental requirements and work is conducted to internationally accepted environmental and social standards. The Neita concession exploration license was renewed in 2012 and is in good standing.

Unigold has sufficient funding to meet the goals and objectives established for the current exploration program.

QA/QC

Diamond drilling at the Candelones Project included both HQ and NQ diameter core for sampling. Holes were typically started with larger diameter HQ core and the hole diameter is reduced to NQ at depth. Samples are logged, split by wet diamond saw, and half sent for assaying with the other half stored on site. Sample lengths typically average 1 m, but vary by geological boundaries. Continuous chip samples from trenches are typically 3 m to 5 m in length. QA/QC included inserting certified standards and blanks into the sample stream at industry standard intervals. Samples are prepped by ACME Analytical Labs in the Dominican Republic, with assaying performed through ACME's laboratory in Santiago, Chile. Analytical procedures include a 36-element ICP-ES analysis (1E) and a 50 g FA AA finish for gold (G6-50).

Wes Hanson P.Geo., Chief Operating Officer of Unigold, has reviewed and approved the contents of this press release.

About Unigold Inc. - Discovering Gold in the Caribbean

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.

For Further Information please visit www.unigoldinc.com.

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