In the update on Unigold which we sent out two days ago, we said, “Given the significance and the consistency of the results from the last drill program, we are quite confident that these next holes will return similar grades and should act as a fundamental catalyst for an upward move in the stock price.”
So, we were going into these drilling results with high expectations.
Well, tonight at 9:00PM PST, Unigold released these highly anticipated drilling results and they contained the longest, highest grade intersection drilled to date, far exceeding our expectations.
The intercept was 30.0 metres averaging 9.02 g/t gold, 5.1 g/t silver, and 0.63% copper contained within a larger interval of 104.1 metres grading 3.14 g/t gold, 2.1 g/t silver, 0.27% Cu.
This hole is the single best hole drilled on the property to date and helps to prove the thesis that the mineralization throughout the deposit is consistent. The intercept has also likely increased the geological confidence of this area within the easternmost sulphide mineralization recognized to date at Neita, meaning that even more of the 1.9mil ounces of gold in the ‘inferred’ category can now be moved over to the ‘Measured and Indicated’ category.
The table to the right shows a snapshot of the summarized assay results:
Notice how there is not a single assay result in the table with a grade of lower than 4.0 g/t; the highest grade was 19.2 g/t.
To put things into perspective, the current NI 43-101 compliant resource on the Candelones deposit has an average grade of roughly 1.5 g/t. The hole just put out returned grades that are 3 to 12 times higher than the grades exhibited in the resource estimate over a very wide interval (104 metres).
The news releases also goes on to confirm the geological interpretation that the system is strengthening to depth. The deeper Unigold drills, the higher grades they are finding.
With the system being open to depth, the company is now planning to roll out an aggressive 15,000 m drill program which will commence in the next 10 days. All they are waiting for is a drill bit which will allow for deeper drilling. Once the drill bit arrives, Unigold can start to really chase the high-grade at depth.
We expect UGD stock to trade up tomorrow on these positive results.