Neita looks good for Unigold
Unigold (TSX: UGD-T) is showing that it may have more on its hands with its Neita property in the Dominican Republic than investors had originally bargained for.
The company released results from three holes that were drilled into the Candelones Extension Zone at the property for metallurgical testing. All three of the cores returned some impressive sections with highlights intercepts including: 423.6 metres at 1.07 grams gold, 1.2 grams silver, 0.1 % copper and 0.2 % zinc; 32 meters grading 2.53 grams gold, 7.8 grams silver, 0.1 % copper and 1 % zinc and 74 meters grading 0.99 grams gold, 2.5 grams silver, 0.1 % copper and 0.3 % zinc.
The results were being treated as especially significant to some on the street for bringing the zone into greater focus.
“The recent metallurgical holes drilled at Candelones Extension demonstrate the continuity of high grade gold-silver-copper-zinc mineralization that is consistent with the geological interpretation defined from previous resource drilling,” Haywood Securities analysts Mick Carew and Tara Hassan wrote in a research note on Unigold.
The two Haywood analyst have not rated Unigold’s stock.
Unigold’s geological interpretation, along with some solid numbers on the scale of the deposit, will come out with its initial resource estimate in the fourth quarter of this year.
As it stands now the company is interpreting mineralization as a volcanic hosted massive sulphide system that exhibits locally stacked mineralized zones occurring near stratabound contacts between Lower Cretaceous andesite and underlying Upper Creaceous dacite volcanics.
On the metallurgical front, drilling to date has gathered roughly 2,000 kg of mineralized material for metallurgical testing. Those tests come on the back of initial testing done last year which estimated gold, silver and base metal recoveries of 85 % to 90 %.
Neita is wholly owned by Unigold and covers has 226 sq. km of the Greater Antilles volcanic arc that extends from the island of Hispaniola through Cuba. The property is located roughly 200-km northwest of Santo Domingo.
Of all that land, Unigold is focusing on the Candelones area, which is made up of both the Candelones Zone and the Candelones Extension Zone.
Exploration got going at Neita back in 2002 and since then Unigold has drilled 92,000 meters. By 2010 its it had identified Candelones and the Candelones Extension as its primary targets and has thus far outlined mineralization over an area of 3-km by 2-km at Candelones.
Candelones is shaping into zone that could one day host a near surface deposit open pit. Previous highlight intercepts at Candelones include: 69.4 metres grading 3.75 grams gold and 77 metres grading 3.81 grams gold.
In Toronto on Oct. 25 the company’s stock was up half a penny to 8.5¢ on 640,000 shares traded.
Category: DR News |