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By: AllPennyStocks.com
New developments in the search for gold are taking on the tone of a travelogue,
with new sites the world over proving to be rich in the shiny yellow metal,
where many of us thought riches could be found in only certain spots.
This week, the journey takes us to the Dominican Republic, in the Caribbean,
across the border from quake-stricken Haiti, where (quietly) a Laval,
Quebec-based company has come upon rich deposits of the metal whose price only
seems to be climbing by the day. In the second week of June, Unigold Inc. (TSX Venture:UGD)
told eager investors of its adventures on its wholly-owned Neita Property, in
the western region of the Dominican Republic.
UGD told the world that the gold zone was grading 2.3 grams per ton (g/t) gold
over 27 metres (true thickness) and is included in a 52-metre intercept (true
thickness) grading 1.4 g/t gold.
One hole, located 100 metres to the northwest, has also intercepted the same
structure and returned 29 metres grading 0.7 g/t gold from the same zone.
Results from two other holes are pending. Drilling was positioned to follow up
on trenching results that returned 34 metres at 2.2 g/t gold, as reported in
February of last year.
Unigold is a public company whose principal activity is to explore, discover,
and develop gold deposits. Its main focus to date has been on its 100% owned 226
square kilometers property in the Dominican Republic. The Dominican has provided
unique opportunities because of its exceptional geology and attractive business
climate.
Mining has been targeted as an important industry, and in recent years the
democratically-elected government has liberated its tax, ownership, import
restrictions, and mining laws in order to stimulate foreign investment. Despite
hosting one of the largest gold and silver mines in the world, the rest of the
country has remained relatively unexplored for mineral deposits.
Appropriately, UGD has concentrated its energies on not only Neita, but also on
the Los Guandules property, adjacent to Neita’s southeast corner, where
extensive soil samples and stream sampling have revealed gold and copper-gold
anomalies. Gold values on the property have assayed up to 8 g/t. To the east of
that plot of land lies the Sabaneta development, which begat UGD’s involvement
in the Dominican Republic in the first place in the summer of 2002, when the
government granted the company exploration rights. UGD has discovered gold
showings in outcrop assaying up to 9 g/t.
The company’s stock is dead in the centre of a 52-week trading range at 25
cents. The price peaked at 37 cents last March, having slid to 13.5 cents last
August. The news on June 14 of the rich strike at Neita drew buyers like moths
to a flame, buyers who traded in nearly half-a-million shares in the same day.
As more investors “explore” what UGD has discovered, heavier volumes and higher
prices may ensue. Small-cap investors anxious for more gold exposure should
adopt a sense of urgency and have a look at this company before that happens.
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