Unigold Inc. (TSXV:UGD) announced six results from Target A and Target B within the Candelones Extension deposit at its Nieta project in the Dominican
Republic. Results were highlighted by 5m at 7.8 g/t Au, 22.4 g/t Ag, 0.3% Cu and 1.5% Zn (LP16-118) from Target A and 14.7m at 6.5 g/t Au, 2.4 g/t
Ag, 0.9% Cu and 2.4% Zn (LP16-123) from Target B. These 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 campaign the grade and number of ounces contained within the Candelones
deposit is likely to increase. Consequently, we believe Unigold is likely to close the valuation gap to peers as additional exploration results demonstrate
Drill results continue to expand higher grade zones
. Hole LP16-118 was the final hole drilled to test the western continuity of Target
A’s gold-copper rich massive sulphide mineralization, extending it to the West. Results from step out holes LP16-120 and LP16-123, which tested Target
B (Figure 1), suggest sub-vertical continuity of the epithermal feeders that remain untested at depth. Interestingly at Target B, hole LP16-123 returned
1.8 g/t Au, 1.8 g/t Ag, 0.2% Cu and 0.9% Zn over 95.6m including the higher grade intercept of 14.7m at 6.5 g/t Au, 2.4 g/t Ag, 0.9% Cu and 2.4% Zn
which continues to be reminiscent of the grades and widths seen at GoldQuest’s (TSXV:GQC) Romero deposit, which has a higher grade core, with a lower
As the higher grade zones develop, we expect the valuation gap to close. Unigold currently trades at C$5/oz, a discount to peers which
trade at C$56/oz. In our view as Unigold continues to release higher-grade drill results, improving the viability of Nieta, it should re-rate towards
peers. As well, the company expects to finish the current drill program with sufficient funds to initiate a follow-up drill program.
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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