Newcore Gold Reports Strongest Drill Results Yet at Ghana’s Enchi Gold Project

Drilling at Newcore Gold’s Enchi project in Ghana. Credit: Newcore Gold

Newcore Gold has announced its highest-grade drilling results to date from the Nyam deposit at its Enchi Gold Project in southwestern Ghana, with the latest exploration campaign strengthening the potential for a larger mining operation than outlined in the company’s recently completed prefeasibility study.

The latest diamond drilling programme intersected significant gold mineralisation beneath the current reserve pit, suggesting the deposit remains open at depth and could support future resource growth.

High-Grade Results Extend Mineralisation

The standout result came from drill hole NBDD088, which intersected 25.3 metres grading 3.67 grams of gold per tonne from a depth of 307.7 metres. Another hole, NBDD091, returned 18 metres grading 1.26 grams per tonne from 300 metres, including a higher-grade interval of 9 metres at 2.31 grams per tonne.

According to Newcore Gold, all five recently completed diamond drill holes successfully intersected gold mineralisation, confirming the continuity of the orebody beneath the limits of the current pit design.

The drilling forms part of the company’s ongoing 80,000-metre exploration programme aimed at expanding resources, upgrading confidence levels and identifying higher-grade mineralisation at depth.

Potential for a Larger Mining Operation

Industry analysts believe the latest results strengthen the long-term outlook for the Enchi project.

Haywood Securities noted that the new drilling supports its view that Enchi’s overall mineral endowment is capable of supporting a larger mining operation than currently envisaged in the prefeasibility study released in June.

Importantly, the recent drilling results were not included in the current resource estimate or mine plan, creating an opportunity for future updates to expand pit designs and incorporate additional higher-grade material into production schedules.

Chief Executive Officer Luke Alexander said the latest results continue to demonstrate broad zones of mineralisation with grades significantly above the current resource average, providing confidence that future economic studies could benefit from improved project economics.

Deep Exploration Unlocks New Potential

The latest drilling reached vertical depths of approximately 275 metres, substantially deeper than previous drilling at the Nyam deposit, where most holes averaged only around 100 metres.

The company believes the deeper programme is revealing a growing high-grade system beneath the existing open-pit resource.

Analysts have drawn comparisons between Enchi and the nearby Chirano Gold Mine, located approximately 50 kilometres away, where mining extends more than 800 metres below surface. While Newcore cautions that additional drilling is required before direct comparisons can be made, the geological similarities suggest further exploration upside may exist.

To date, Newcore has completed more than 46,000 metres of its planned 80,000-metre drilling campaign, with four drill rigs currently operating across the project. The programme is targeting both shallow resource expansion and deeper high-grade extensions.

Prefeasibility Study Highlights Strong Economics

The prefeasibility study released in June outlined a conventional 5.5-million-tonne-per-year open-pit mining and processing operation.

The study estimates average annual gold production of approximately 104,000 ounces over a 9.3-year mine life, increasing to around 129,000 ounces annually during the first three years of operation.

Using a gold price assumption of US$3,800 per ounce, the project generated an estimated after-tax net present value of US$496 million, with an internal rate of return of 37% and an estimated capital payback period of approximately 1.6 years. Initial capital expenditure has been estimated at US$351 million.

Current probable reserves at Enchi stand at 51.3 million tonnes grading 0.64 grams of gold per tonne, containing approximately 1.06 million ounces of gold.

Next Steps for Development

Only the initial phase of Newcore’s current drilling programme contributed to the resource estimate underpinning the prefeasibility study, meaning a substantial portion of recent exploration remains to be incorporated into future resource updates.

With a healthy cash position and no outstanding debt, the company is expected to continue advancing exploration while working towards securing a Ghanaian mining lease.

As drilling continues to confirm higher-grade mineralisation beyond the existing resource boundaries, the Enchi Gold Project is steadily strengthening its position as one of Ghana’s emerging gold development projects, with the potential to support increased production and a longer operating life in future mine plans.