Newcore Gold Ltd. (TSX-V: NCAU | OTCQX: NCAUF) continues to generate promising results from its flagship Enchi Gold Project in southwestern Ghana. Recent drilling has intersected high-grade gold zones, reinforcing Enchi’s position as a substantial asset in one of West Africa’s most productive gold regions. Below, we discuss the latest drilling results, explore the broader potential of Enchi, and examine the strategic impact on Newcore Gold’s development timeline and value proposition.
Key Drilling Results at Enchi
In Newcore Gold’s November 13 press release, significant new intersections were announced, highlighting promising mineralization in the Boin deposits:
- Boin Deposit: RC hole KBRC301 intersected 204.27 g/t Au over 1.0 m from 59 m (true width unknown), with a contiguous zone of 1.46 g/t Au over 2.0 m from 60 m (sulphide zone).
Drilling continues to encounter wide zones of higher-grade gold mineralization within the sulphide mineralization.
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- Hole KBRC307A intersected a wide zone of gold mineralization of 3.36 g/t Au over 28.0 m from 120 m, including a higher-grade structure of 37.58 g/t Au over 2.0 m from 133 m within a broader zone of 7.76 g/t Au over 11.0 m from 132 m.
- Hole KBRC305 encountered multiple structures within both the oxide and sulphide mineralization, with a higher-grade zone within the sulphides of 1.01 g/t Au over 48.0 m from 151 m including 1.86 g/t Au over 14.0 m from 173 m.
Drilling achieving goal of proving out the continuity of gold mineralization within the near surface oxide/transition zones, with wide mineralized structures encountered.
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- Hole KBRC300 intersected 2.34 g/t Au over 6.0 m from 62 m.
- Hole KBRC304 intersected 0.73 g/t Au over 18.0 m from 41 m.
These findings, characterized by both high-grade sections and wide mineralized zones, add confidence to Enchi’s oxide and sulfide potential. These results not only highlight robust surface gold grades but also extend known mineralized areas laterally and at depth, expanding the mineralized footprint at both Sewum and Boin.
Enchi’s Expanding Resource Profile
The Enchi Gold Project currently spans 248 square kilometers within the prolific Sefwi-Bibiani greenstone belt in Ghana, which has a long history of successful gold production. The belt hosts several multi-million-ounce gold deposits, providing Enchi with an advantageous geological environment. Newcore’s exploration program has already demonstrated significant resource growth potential, with the project remaining open along strike and at depth.
As of the latest report, the Enchi Gold Project has an Indicated Mineral Resource of approximately 743,500 ounces of gold, averaging 0.55 g/t across 41.7 million tonnes, and an Inferred Resource totaling 972,000 ounces at an average of 0.65 g/t across 46.5 million tonnes. The resource is largely composed of near-surface oxide material, ideal for low-cost, open-pit mining with heap leach processing. With an average annual production target of 121,839 ounces, Newcore is advancing the project with a focus on expanding and upgrading these resources, as well as potentially enhancing the grade profile.
Advancing Towards Development
The company’s 2021 Preliminary Economic Assessment (PEA) underscored Enchi’s promising economics, suggesting a $333 million post-tax net present value (NPV) at a gold price of $1,650 per ounce, with an internal rate of return (IRR) of 42%. The PEA’s base case suggests the potential for a 12-year mine life, producing approximately 1.06 million ounces of gold at a life-of-mine average all-in sustaining cost (AISC) of $1,220 per ounce.
Following the PEA, Newcore has been focused on de-risking the project through further drilling and metallurgical studies. Recent metallurgical test work supports gold recoveries as high as 92.4% for oxide material and around 90.1% for transition ore, further enhancing project economics by enabling efficient processing methods. These results indicate that a robust operational model could be established at Enchi, with flexibility for both oxide and sulfide processing.
Strategic Outlook: Near-Term Catalysts and Long-Term Vision
Newcore Gold’s aggressive exploration and development strategy at the Enchi Gold Project continues to aim for significant resource expansion and enhancement in Ghana’s supportive mining environment. The company is executing a comprehensive drilling and exploration program designed not only to confirm near-surface mineralization but also to uncover new mineralized zones across Enchi’s large property footprint. High-grade intersections and extensive mineralized areas remain pivotal for translating these resources into long-term economic potential.
The recent Preliminary Economic Assessment (PEA) highlights a robust project framework, with an estimated initial capital cost of $106 million and an after-tax NPV of $371 million, using a base gold price of $1,850/oz. The projected nine-year mine life focuses on sustainable operations and scalability, achieving an average annual production of approximately 121,839 ounces of gold at an all-in sustaining cost of $1,018/oz.
Looking ahead, Newcore remains committed to ongoing stakeholder engagement, adhering closely to Ghana’s regulatory frameworks to ensure smooth project advancement. Their proactive social and environmental initiatives underscore Newcore’s dedication to responsible and sustainable mining, enhancing both the project’s viability and its long-term community impact in Ghana
June 2024 – Enchi Gold Project PEA Technical Report
Conclusion: Enchi as a Cornerstone Asset
Newcore Gold’s recent drilling successes at Enchi underscore the project’s potential as a cornerstone asset in Ghana’s renowned gold landscape. With a strong foundation of positive PEA results, high gold recovery rates, and expanding mineralized zones, Enchi positions Newcore Gold favorably within the West African mining sector. As the company moves forward with further drilling and resource updates, it strengthens its case as a compelling investment opportunity in the gold sector.
For more details, visit Newcore Gold’s website at newcoregold.com.
By: Rody Lazar
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