Newcore Gold Expands Drilling Program and Prepares for Major Resource Upgrade

Newcore Gold (TSXV: NCAU; OTCQX: NCAUF) has significantly expanded its drilling efforts to 35,000 metres at the Enchi gold project in Ghana, as reported by CEO Luke Alexander in a recent video interview. This increase aims to bolster the company’s resource base and valuation.

During the Prospectors and Developers Association of Canada’s annual event, Alexander noted that upgrading and expanding resources could positively impact the company’s overall valuation. He aims to complete a prefeasibility study by mid-2026, which may provide a clearer picture of the project’s potential.

“A lot of these greenstone-hosted deposits grow as we discover high-grade feeder zones at depth,” Alexander mentioned last month. These feeder zones can significantly enhance the value of the resource as the company continues its exploration.

Support from institutional investors, following a C$15-million financing in February, enhances Newcore’s ability to upgrade and expand its January 2023 resource figures. Currently, the Enchi project boasts an indicated resource of 41.7 million tonnes grading 0.55 grams of gold per tonne, equating to 743,500 contained ounces. Additionally, there are 46.6 million inferred tonnes at a grade of 0.65 grams per tonne, totaling 972,000 ounces.

A 2024 preliminary economic assessment demonstrated a robust $371-million after-tax net present value at a 5% discount rate, with an impressive 58% internal rate of return based on a gold price of $1,850 per ounce. This assessment outlines a low-capex, open-pit, heap-leach operation capable of producing 1.1 million ounces over a nine-year period. Recent drilling results have highlighted notable intercepts, including 1 metre at 204 grams of gold and 60 metres at 1.85 grams of gold from surface.

For further insight, watch the entire conversation featuring The Northern Miner’s western editor, Henry Lazenby.