Intersections At Candelones Extension Deposit In Dominican Republic

TORONTO - Unigold Inc. reported results from its ongoing drill program at the Candelones Extension deposit, part of the Company’s 100% owned Neita Concession in the Dominican Republic.

LP20-148 and LP20-150 were step out holes targeted at the western end of the proposed pit in order to follow high grade mineralization to depth and along strike.  Previous drilling in this area had returned high grade mineralization within 60 metres of surface in LP52 (15.8 meters averaging 11.36 g/t Au, 38.3 g/t Ag, 0.36% Cu and 5.11% Zn) and in LP20-146 (9.5 meters averaging 14.14 g/t Au, 46.6 g/t Ag, 0.26% Cu and 3.2% Zn).  The current holes were collared to the south and west, and positioned to extend this mineralization to depth.

LP20-148, 25 meters to the south of LP52, intersected 18.5 meters averaging 10.18 g/t Au, 4.5 g/t Ag, 0.19% Cu and 1.53% Zn within a broader interval of 74.7 meters averaging 3.41 g/t Au, 3.7 g/t Ag, 0.07% Cu and 0.56% Zn. Mineralization starts at about 60 metres below surface.  This hole extends the high grade mineralization found at the andesite-dacite contact and is once again accompanied into the footwall by a broad halo of disseminated gold mineralization.

A second, deeper interval of high grade mineralization was intersected in LP20-150 starting at about 125 meters below surface.  This hole intersected 10.5 meters averaging 12.94 g/t Au, 15.6 g/t Ag, 0.27% Cu and 3.03% Zn within a broader interval of 145.0 meters averaging 1.97 g/t Au, 6.2 g/t Ag, 0.07% Cu and 0.58% Zn.  LP20-150 ended in pyrite-dominant massive sulphide mineralization, returning 2.25 g/t Au over 3.60 meters at the bottom of the hole.  This is the first time that massive sulphides have been observed at the west end of the proposed pit.  The textures and alteration are similar to the massive sulphides that have been delineated 800 metres to the east.

Re-logging of the historical core in the vicinity of these new massive sulphides has identified a thick sequence of anhydrite stockwork that seals the host dacitic volcanoclastics. There are no drill holes testing the underlying dacite host rocks at depth below this anhydrite zone. The Company believes that the newly discovered massive sulphides, in conjunction with the anhydrite stockwork encountered here, is significant and may be marking a new area of mineralization. In comparison, historic drilling 800 metres to the east has defined an anhydrite stockwork immediately above the 350 m by 30 m gold-copper massive sulphide lens that averages greater than 4.0 g/t Au with greater than 0.5% Cu. Based on re-logging of historic drillholes, the anhydrite stockwork at the west end appears to be 3-5 times larger than that found above the known massive sulphide mineralization.