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Thursday, December 15, 2016 Derek Macpherson

UGD Continues to Intersect High Grades at Nieta


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Unigold Inc. (TSXV:UGD) announced drill results from five holes at Target A and Target B within the Candelones Extension deposit at its Nieta project in the Dominican Republic. Results were highlighted by 5.2 g/t Au, 3.6 g/t Ag, 0.7% Cu and 0.3% Zn over 2.7m (LP16-128) at Target B and 11.8 g/t Au, 3.5 g/t Ag and 0.2% Cu over 5.9m (LP16-124) at Target A. These additional results continue to support our view that higher grade zones are likely to be defined within the larger Candelones Extension resource and it is likely that as a result of this drill program, the grade and number of ounces contained within the Candelones deposit is likely to increase. Consequently, as additional exploration results demonstrate this potential, we believe Unigold is likely to close the valuation gap to peers.


Drill results continue to return broad widths with a higher grade core. Hole LP16-128 was drilled to test the continuity of Target B and returned a very broad interval of 211.3m at 1.0 g/t Au, 2.4 g/t Ag, 0.1% Cu and 0.5% Zn, including 2.7m at 5.2 g/t Au, 3.6 g/t Ag, 0.7% Cu and 0.3% Zn. Hole LP16-124 was drilled to test Target A’s gold-copper rich massive sulphide mineralization to depth and intersected mineralization 75m lower than targeted (Figure 1), which might be an early indication of that a second massive sulphide lens might exist below the initial one. The hole returned 0.8 g/t Au and 0.1% Cu over 134.0m, including a higher grade intercept of 11.8 g/t Au and 0.2% Cu over 5.9m. Such intersects, that contain a lower grade halo and higher grade core, continue to be reminiscent of the widths and grades observed at GoldQuest’s (TSXV:GQC) Romero deposit.


Continued exploration success, likely to close the valuation gap to peers. At C$3/oz, Unigold currently trades at a steep discount to peers (C$46/oz). We expect the company to initiate a follow-up drill program at Nieta in the new year based on the results from this program and anticipate the next drill program is likely to be followed-up with an updated resource. Based on the results to-date, we expect that resource to result in the overall deposit grade to increase, resulting in more ounces from the same tonnage. As well, the company is likely to complete some additional metallurgical test work in 2017. In our view, this work likely should provide the market with a clearer view of what a potential operation at Nieta may look like and should cause the stock to close the valuation gap to peers.

Company Description: Unigold Inc. (TSXV:UGD) is a Canadian-based, growth-oriented, junior natural resource company focused on exploring and developing its gold projects in the Dominican Republic - a country highly prospective for gold and polymetallic mineralization.
 
Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
 
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Unigold Inc. - TSXV:UGD - 1,2,4
GoldQuest Mining Corp. - TSXV:GQC - 1,2,4

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