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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Company Specific Disclosure Details Unigold Inc. - TSXV:UGD - 1,2,4
GoldQuest Mining Corp. - TSXV:GQC - 1,2,4
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