Tell me about Unigold
Unigold Inc. (TSX: V.UGD, Stock Forum) is a successful leading Canadian-based, growth oriented, junior natural resource company focused on exploring and developing its multiple gold projects on the large Neita property in a newly developing gold/copper trend within the Dominican Republic. These exciting projects are located in a proven mining jurisdiction with genuine world-class potential.
Unigold was recently ranked third in the mining sector of over 1,300 companies listed on the TSX Venture Exchange 50. What criteria was involved in this and what does this ranking mean for you?
Yes, being ranked third in the mining sector (and first for gold explorers on the TSX-V) was a great achievement for the entire Unigold team. The criteria used considered share price growth, trading volumes and market capitalization, all of which were positive for us. Of course, this is on the back of solid exploration results delivered throughout the year primarily from our 3 kilometer long Candelones deposit.
What distinguishes you from other gold exploration companies?
There are a number of factors that set us apart from other gold companies in that we did what we said we would do: make and build upon a major discovery (Candelones – Candelones Extension), complete initial metallurgical work, develop community relations and sincerely market the company with investors.
Not to mention, we have worked hard to leverage solid and consistent exploration and corporate results in the exciting and supportive jurisdiction of the Dominican Republic; our exploration team has continued to build upon the foundations set by previous management and remained focused on delivering a world-class gold asset and we have a long standing culture of working with the local communities, whether being closely aligned with land-owners through to developing skills such as diamond drilling.
Tell me about your flagship project and what’s unique about it?
Our flagship property is Neita: 22,600 Ha of some of the most prospective exploration potential – anywhere. It is the sheer size of that potential that impressed me coming on board as CEO and President – my career has included working on multi-million ounce gold deposits with AngloGold, Placer Dome and Goldcorp and I liked the rocks and mineralization systems I was observing at Neita. Next came the first and most important target: Candelones – Candelones Extension. This target is a proven 3 km long soil / geophysical anomaly with gold mineralization drilled at either end and recently in the middle at the Connector Zone. I was also impressed with the consistency and continuity of mineralization both down hole, often drilled over 50 - 90 meters of true thickness from surface and down dip to depths of approximately 300 m. This consistency has enabled us to drill on 100 m centres for a start. A great example is Hole LP28, one of our best that intersected 77 m @ 3.75 g/t gold, including 15 m at 16.4 g/t gold.
The gold – copper - zinc mineralization is interpreted to be a hybrid VMS – Epithermal system occurring over a 70km long trend in the western Dominican Republic and into Haiti. There are over 20 other targets at Neita, all promising that have to be further explored and drilled.
What are your plans for Neita going forward?
We will continue to keep our focus on defining a mineral resource at Candelones in 2013.
Secondly, we will work to make a new discovery or two by using the successful exploration techniques and knowledge amassed over the last 10 years. We will start to systematically test other targets. An obvious one is the 4 km long MGN target, which has many of the characteristics (coincident soil – geophysical anomalies) that is essentially along trend from Candelones.
Thirdly, we will advance the metallurgical studies.
Finally, we will continue to actively market the company and its growth potential.
Tell me about your other project Sabaneta and what are the plans for it going into 2013 and 2014?
With so much going on at Neita it is important to stay focused and deliver results from there.
Sabaneta is located some 20km east of Neita. We hold an option on the property and will continue to seek ways to advance the property with the Dominican Republic companies that hold the mineral rights. Alternatively, we may see a transaction similar to the ones in process at Los Guandules and El Carrizal.
What are some of the challenges you face in this current market?
Yes, it is a challenging market however, we have been able to keep interest in the company through our results and solid and consistent communication of those results.
Who owns the company?
There is strong institutional support including Dundee, Dynamic, Pinetree, RBC, Sprott, Shairco (A Saudi conglomerate) and recently Acuity. Combined with management, insider and director ownership this accounts for over 60% of our outstanding shares.
Why should our audience be interested in Unigold? What’s the biggest risk for investors in your stock?
For the same reasons that I am interested in Unigold: it is on the edge of being a major growth story with both upside in the already discovered deposit, many other exciting exploration targets that will lead to new discoveries and a resultant growth in the share price. Risk? Can I say “not owning enough Unigold Inc. shares?”
Disclosure: Unigold Inc. is a Stockhouse client.