Unigold Inc. (TSX-V:UGD, OTCQX:UGDIF), a gold explorer focused on its Neita concession property in the Dominican Republic, has released the results of an exploration drill on the Candelones deposits.
Highlighted in the new data were holes LP21-204 and LP21-206, which were described as collared 50 meters west of the Candelones Extension resource envelope.
The recent drill is part of an exploration program designed to test the mineralization in the sparsely drilled area.
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“This drilling demonstrates that high-grade mineralization extends beyond the envelope that defines the most recent Mineral Resource Estimate. Previous exploration efforts in this area intersected lithologies that suggested we are getting closer to a volcanic vent,” Joe Hamilton, chairman and CEO of Unigold said in a statement.
Hamilton went on to note that previous drilling had informed the company’s ability to detect the new discovery.
“Our increased understanding of the structure opens up approximately 1000 meters of potential strike extension to the west,” he said. “There is minimal historic drilling through this gap, and we believe these latest holes suggest that we have the possibility to increase the mineral resource at Candelones to the west through further drilling.”
The Candelones mineralization is believed to have been continuous during its formation but has since been displaced by “post-mineral faulting that parallels the island-wide north-westerly tectonic fabric”.
According to the company: “Hole LP21-206 [is] undercutting the other drillhole by about 50 meters. The upper hole, LP21-204, intersected a zone of intermediate epithermal barite-quartz alteration that carried significant gold, silver and sphalerite.“
Understanding the complex geological history of the area has allowed Unigold to identify these intersections and has also opened up a large area to the north-west of the deposit that remains undrilled.
Unigold has since deployed field crews to assess regional exploration targets while awaiting assay results from exploration drilling. Follow-up drill holes will be prioritized once results of the surface field work is completed.
Additionally, the gold company also offered an update on the ongoing work on the Candelones Oxide starter project.
“Metallurgical testing of run-of-mine composite material through large diameter leach columns is in progress,” read the release. “Follow-up drilling is planned to convert the inferred resources within the oxide starter pit to indicated status in advance of commencing feasibility work.”
Contact the writer at georgia@proactiveinvestors.com
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