The longest and highest-grade intercept drilled so far at Ungiold's (TSXV: UGD) Nieta concession in the Dominican Republic "suggests that sulphide mineralization may have a steeper plunge to the northeast than originally interpreted, but, most importantly, it suggests that the system is strengthening to depth," CEO Joe Hamilton says.
Drill hole 20-147 returned 30 metres averaging 9.02 grams gold per tonne, 5.1 grams silver per tonne and 0.63% copper, within a larger interval of 104 metres grading 3.14 grams gold, 2.1 grams silver and 0.27% copper.
"The top of this sulphide mineralization starts about 150 below surface and has been drilled to a depth of about 350 metres below surface," Hamilton noted in a press release. "There is additional potential to expand this mineralization at depth."
Hamilton said the company is awaiting a shipment of parts for its owner-operated drills, which should enable the company to increase the maximum depth capacity of its drills and chase the high-grade mineralization to depth.
Exploration drilling of about 15,000 metres will resume in August, and the company has ordered an additional two drills, with 1200 metre drill capability, which should be operational by the end of September, he said.
"The recognition of a second stage, late epithermal sulphide mineralization that overprints older primary mineralization has allowed us to focus drilling on these higher-grade resources," Hamilton said in the news release. "We believe that we have identified up to four of these sulphide-rich zones within a 3 km strike length."
The Neita concession, Unigold's flagship project in the Dominican Republic, totals 226 sq. km. and is 220 km northwest of the capital city of Santo Domingo. The project is 100 km from the country's second-largest city, Santiago de los Caballeros.
The assay result sent shares of the company up 10.2% to a new 52-week high of 65 ? per share. The exploration company has an $80 million market capitalization based on 123 million common shares outstanding.