Unigold (TSXV: UGD) Investor Update

Unigold is exploring its high-grade Candelones project (Neita Concession) in the Dominican Republic. The Company’s resource sits at 2 Moz grading 1.6 g/t Au and is about to put out a PFS on the oxides and a resource update on the sulphides, which we view as a MAJOR catalyst for the stock.
Why we like UGD
- Valuation: UGD is trading at $16/EV vs Peer Group Mean at $40 and Median at $38. This valuation will be even lower after the new resource is out.
- Late-Stage Exploration: greater than 120,000 metres drilled and greater than $42M spent on exploration. The current resource stands at 2 Moz grading1.6 g/t Au, but there is significant exploration upside. The hit rate remains high as the system thesis continues to play out. UGD is well positioned to be taken out or built in this cycle, unlike a lot of earlier stage exploration companies that will take years to delineate their projects to the point that a Major might be interested.
- Exploration Upside/Building Ounces: The first part of the current 15,000 metre drill program focused on delineation drilling at Targets A and B. The Company is now focused on exploration at Target C and the gap area between Targets A and B. The Target C footprint has expanded by 15% to 20% so far, with 75 metre steps to the east and down. A new zone discovered further into the footwall at Target C, on the other side of the dike, creates another potential mining horizon approximately 25 metres from the Target C main zone. A lower grade bulk tonnage resource also continues to grow with three wide hits around Target C.
- Takeover Potential: Barrick is in-country with its Pueblo Viejo joint venture with Newmont, which represents a significant portion of the Dominican Republic’s GDP, particularly in 2020 when tourism suffered. In 2020, ABX paid ~$400M to the Dominican government in taxes, royalties and advances. Pueblo is a world-class gold mine that will eventually require expansion or additional ore. Barrick recently staked land next to UGD’s Candelones project.

Видео Unigold (TSXV: UGD) Investor Update канала Adelaide Capital