Unigold (TSX.V: UGD) delivers a robust PEA for the Candelones Oxide Project. All in Sustainable Costs of US$744/oz Gold, with a Pre-tax Initial Rate of Return of 50%.

The company has had a busy year, they have been aggressively drilling and developing the Neita concession, which is the largest single project within the 75km-wide Cretaceous-age Tireo-formation volcano sedimentary rocks, known for hosting major gold-copper-silver deposits.

On March 29/21, the company reported that they extended mineralization 250 meters to the East Intersecting near surface mineralization including 18.0 meters averaging 2.08 g/t Au.

Highlights include:

• Candelones mineralization is shown to continue into undrilled areas east of the known resource envelope;
• LP21-171 and 173 were collared 250 meters east of the former limit of the Candelones Extension drilling;
• Both holes intersected mineralization within 50 meters of surface;
• LP21-171, drilled to the south, intersected anomalous mineralization over189.5 meters, averaging 0.56 g/t Au, starting at a depth of 56.5 meters;
• LP21-173, drilled to the north from the same setup, intersected 27.7 meters averaging 0.47 g/t Au, starting at a depth of 29.3 meters;
• Drilling is on-going with drills also targeting the depth extensions of high-grade mineralization at Targets B and C, and probing the near-surface mineralization at Target D.

Unigold's (TSX.V: UGD) PEA Highlights:

• PEA assumes 5,000 tonnes per day (“tpd”) run-of-mine heap leach operation;
• Average annual payable gold production of 31,000 oz
• 50% Pre-Tax Internal Rate of Return (“IRR”), 35% After-Tax IRR
• US$50 Million Pre-Tax Net Present Value (“NPV”), US$34 Million After-Tax NPV
• After-Tax Payback Period 1.8 years from start of production
• Average annual after-tax free cash flow of US$23 Million
• Initial capital expenditure (“Capex”) of US$36 Million (includes US$5 Million for EPCM and indirect costs in addition to US$5 Million as contingency)
• AISC of US$744/oz Au
• Average gold recovery of 75%; total cash operating cost of US$13/tonne
• Creation of approximately 100 direct jobs and 50 indirect jobs during operation
• Direct taxes payable to Government of $24 million over life of mine

Joseph Hamilton, Chairman and CEO of Unigold notes: "The Candelones Oxide project has been designed as a small footprint, environmentally friendly operation that will establish the Company in the local area of the Dominican Republic. The economics are compelling enough that this is being considered as a stand-alone operation providing near term cash flow as the Company continues to expand and evaluate the larger sulphide resource which the Company believes offers a longer-term development opportunity. The Company will move to rapidly develop both projects over the next few years as it concurrently moves the oxide project through required community consultation, environmental studies, detailed engineering and permitting while completing metallurgy, preliminary design and market studies for the sulphide project. Recent exploration drilling at the Candelones Extension identified additional potential for oxide resource expansion to the east of the known deposit while continuing to expand the available sulphide resource.

The resource mined in this PEA includes inferred mineral resources which contribute approximately 27% to the life of mine production schedule. The Company intends to complete the additional drilling recommended by our lead consultant, Micon, to rapidly upgrade this inferred resource to measured and indicated status, allowing it to be included in the planned Feasibility Study. The Company intends to transition directly into a Feasibility Study on the oxide project as soon as possible. Additional oxide material has been collected and is being shipped to Canada for large diameter, run of mine column tests to confirm the recovery assumptions used in the PEA. We are targeting the end of 2021 to have all materials and studies assembled to allow the Government to proceed with permitting of this project."

The current resources stands at:

As we progress into the summer, Unigold (TSX.V: UGD) will continue to develop and drill the Candelones project, and focus on moving the resources up into Measured and Indicated categories. As of today, Unigold (TSX.V: UGD) is trading at $0.30, giving it a market cap of $37.5M.

DISCLAIMER: Unigold is a paid marketing client*

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