Unigold Inc. (TSX-V:UGD, OTCQX:UGDIF) has provided an update on activities at its 100%-owned Neita concession in the Dominican Republic.
"The filing of an application for the Exploitation Licence over the southern half of the existing Neita Concession is a significant milestone for the Company,” said Unigold CEO Joseph Hamilton in a statement.
“Our strategy for the delivery of a small footprint, low-capital oxide project at Candelones is intended to introduce mining to the local communities while allowing us to build capacity and infrastructure that can be used to develop the larger sulphide resource in the future.”
READ: Unigold outlines 2022 activity in Dominican Republic as it heads towards production decision for Candelones oxide project
Hamilton added: “The large-diameter column test work returned encouraging results that will likely lead to enhanced project economics. Environmental, geotechnical and community programs have commenced and, in conjunction with our completed oxide drilling program, will contribute to our stated objective of delivering a final feasibility study and environmental impact assessment in the third quarter of this year."
Unigold said the first step in achieving commercial production at the Candelones oxide deposits will be the approval of the Exploitation Licence. The application and supporting documentation were filed with the appropriate government organizations on February 25.
The granting of an Exploitation Licence would give Unigold the sole right to extract metallic minerals from the 9,990-hectare concession area for a 75-year period.
Simultaneously, the company has submitted applications to retain the remaining portions of the Neita Phase 2 Concession under a new 5-year exploration licence.
The company said it expects to work closely with government authorities to expedite the issuance of the Exploitation Licence. While the government reviews this application, the company intends to work in parallel to deliver a Feasibility Study and advance in the baseline data collection for an Environmental and Social Impact Assessment (ESIA), both of which should be delivered in the third quarter of 2022.
Oxide metallurgical tests results
Meanwhile, Unigold said it has received the final results from large diameter (3.75 meters by 0.525m) metallurgical column tests utilizing Run-of-Mine (RoM) oxide material which commenced in the middle of 2021. The May 2021 PEA estimated an 80% gold recovery over a 70-day leach cycle with 0.72 kilograms per ton reagent consumption.
The latest test program confirmed that the RoM Oxide mineralization at Candelones is amenable to heap leaching and approximately 95% gold recovery can be expected over 90 days using the reagent concentrations assumed in the PEA. Reducing the reagent concentrations by 40% demonstrated a 91% recovery after 106 days with reagent consumptions 20% lower than the PEA estimate. Leaching was still active when the testing was terminated. These reflect material improvements over the PEA estimates.
In the 4Q of 2021 and the 1Q of 2022, the company said it completed 43 holes totaling 1,292m within the oxide resource limits with the objective of converting Inferred Oxide Resources to Measured and Indicated Resources. Over 90% of the holes intersected strongly oxidized intervals of dacite breccia.
Most of the observed oxide mineralization starts at surface and extends to depths ranging from 5m to 40m. The company has received results for 12 holes to date, all of which confirm the grades estimated in the current Mineral Resource.
The company noted that it remains confident that a substantial portion of the Inferred resource may be converted to the Measured and Indicated category, and these will be incorporated into mine scheduling and ultimately into the feasibility study. The company will provide further information once all assays have been received.
Contact the author: patrick@proactiveinvestors.com
Follow him on Twitter @PatrickMGraham