Unigold (TSXV: UGD) has released the results of 28 holes testing oxide resource potential at its 226-sq.-km Neita concession in the Dominican Republic. The drilling has confirmed oxide mineralization over a strike length of 800 metres and a width of 150 metres, extending down to depths of 20 to 30 metres. The oxides appear open to the north-east with additional drilling planned.
Drill highlights include 21 metres of 1.37 grams gold per tonne from the Candelones Connector zone, as well as 20 metres of 4.07 grams gold and 32 metres of 1.52 grams gold from the Candelones Main zone.
All of these intercepts are in oxidized material.
“We believe the oxide mineralization offers potential as a starter pit, generating early cash flow while underground access is established into higher-grade sulphide mineralization,” Joe Hamilton, the company’s chairman and CEO says in a press release. “Drilling to expand the surface footprint and establish a measured and indicated resource will be designed when the metallurgical test work is completed. In the meantime, both of our diamond drill rigs are exploring the deeper, higher grade sulphide mineralization at the Candelones Extension deposit.”
While the company was planning additional holes to continue testing the footprint of the Candelones Main oxide zone, these holes were postponed to focus on the sulphides at the Candelones Extension.
Unigold has started metallurgical testing of the oxide mineralization to establish process parameters for plant design. A test mining program completed in 2018 indicated that the oxide mineralization was free digging to a depth of at least five meters, the physical limit of the equipment used at the time.
A resource estimate completed in 2013 for the Candelones deposits outlines inferred open-pit oxide resources of 3.6 million tonnes at 0.98 gram gold for a total of 112,000 oz. gold. Inferred open-pittable sulphide resources came in at 30.2 million tonnes at 1.5 grams gold for a total of 1.46 million oz. gold. An additional report released in 2015 estimates inferred sulphide resources for underground extraction of 5.3 million tonnes grading 5.27 grams gold for a total of 894,000 oz. gold.
The Neita concession features numerous targets with multiple potential mineral deposit models; the Candelones zones are interpreted as volcanic-hosted massive sulphide deposits.
Barrick Gold and Newmont own and operate the Pueblo Viejo mine in the country.
At press time, Unigold shares were trading at 17¢, with a 52-week trading range of 9¢ to 27¢. The company has 78 million common shares outstanding for a $12.7-million market capitalization.