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Nov. 13, 2013 11:10AM PST
Unigold’s (TSXV:UGD) Candelones prospect in the Dominican Republic is showing new promise after the Toronto-based company yesterday published an initial resource estimate.
Contained within its Neita Concession on the Caribbean island, Candelones shows 1.6 million ounces of open-pittable gold in the inferred category, and 0.4 million ounces underground, for a total inferred resource of 2.0 million ounces.
“We are delighted with the results of our maiden mineral resource estimate at Candelones which we delivered within 18 months of discovering significant gold mineralization, with exceptional continuity, at the Candelones Extension,” said Andrew Cheatle, Unigold’s President and CEO.
“This multi-million ounce mineral resource represents only a small portion of our land position and confirms that the Central Cordillera of the Dominican Republic offers outstanding potential for additional significant discovery: a potential that we intend to capture as we begin to evaluate multiple targets along the Candelones trend and elsewhere within our 22,600 hectare concession.”
According to Unigold, the Neita property lies within the Greater Antilles volcanic arc that extends from the island of Hispaniola through Cuba, as stated on its website:
“The Tireo and Early Cretaceous Los Ranchos and Maimon Formation island arc volcanic sequences define an extremely prospective mineral belt that hosts numerous mines and significant exploration projects, including [Barrick Gold’s (NYSE:ABX, TSX:ABX] Pueblo Viejo with proven and probably reserves of 25.3 million ounces of gold reserves. Unigold considers this belt to be one of the most prospective and underexplored prospective gold regions in the world.”
The news on Tuesday follows a few weeks after Unigold reported some spectacular drill results from the Candelones “Extension Zone”, where Unigold intersected 423.6 meters averaging 1.07 grams per tonne including 38 meters averaging 5.13 g/t.
MINING.com reported that stock in the company soared 30 percent on the news on huge volumes, with 4.6 million shares changing hands by mid-day Oct. 24, against a daily average volume of 478,000 shares.
Earlier this year, Unigold closed a previously announced private placement worth CAD$5 million to International Finance Corporation
Unigold said in its Nov. 12 press release that it has enough funds to meet the objectives set out in its current exploration program.
Securities Disclosure: I, Andrew Topf, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Unigold Inc is a client of the Investing News Network. This article is not paid-for content.
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