Newcore Gold Expands Enchi Resource by 24% in Ghana, Strengthening Project Economics

A view of Newcore Gold’s Enchi project in Ghana. Credit: Newcore Gold.

Canadian mining firm Newcore Gold has announced a 24% increase in mineral resources at its Enchi gold project in Ghana, reinforcing the asset’s potential as a large-scale gold development.

The updated estimate lifts Enchi’s total resource to 2.13 million ounces of gold, as the company moves closer to completing a pre-feasibility study (PFS).

Significant Resource Growth at Enchi Project

According to Newcore Gold, the updated resource includes:

• 1.5 million ounces (indicated)
• 626,000 ounces (inferred)

This marks a notable increase from the 1.72 million ounces reported in 2023, with indicated resources more than doubling over the past three years—an important milestone in reducing project risk.

The Enchi project, located in southwestern Ghana, spans a 248-square-kilometre land package, highlighting its district-scale exploration potential.

Ongoing Drilling Unlocks Further Upside

The resource upgrade comes as Newcore advances an expanded 60,000-metre drilling programme, aimed at unlocking additional value across the project.

All four key deposits remain:

• Open along strike
• Open at depth

Current pit designs average 85 metres deep, while drilling has only reached around 125 metres, suggesting significant untapped mineralisation below current levels.

Strategic Location in Prolific Gold Belt

Enchi is situated along the Sefwi-Bibiani gold belt, a highly prospective region known for hosting several major gold operations.

The project lies approximately:

• 300 km from Accra
• 50 km south of Asante Gold’s Chirano mine

Ghana remains Africa’s leading gold producer, offering a well-established mining framework, infrastructure, and investor-friendly environment.

Strong Project Economics Support Development

A 2024 preliminary economic assessment (PEA) outlined robust project fundamentals:

• Annual production: ~122,000 ounces
• Mine life: 9 years (open-pit, heap-leach operation)
• After-tax NPV: $371 million (at $1,850/oz gold)
• Internal Rate of Return (IRR): 58%
• Initial capital cost: $106 million
• Payback period: 1.6 years

These metrics position Enchi as a potentially high-return, low-cost gold project.

Pre-Feasibility Study Expected by June 2026

Newcore CEO Luke Alexander said the significant upgrade in indicated resources is a key step toward advancing the project:

“The substantial conversion of resources to the indicated category de-risks the project and will form the basis for the pre-feasibility study.”

The company expects to release the PFS by the end of June 2026, a critical milestone that will further define the project’s development pathway.

Market Reaction and Outlook

Despite the positive update, Newcore shares dipped slightly amid broader market weakness, bringing its market valuation to approximately C$173 million ($126 million).

However, analysts remain optimistic. According to Haywood Securities, the resource growth reflects both successful drilling and strong upside potential across the broader district.

Conclusion

The 24% resource increase at Enchi underscores its emergence as a significant gold asset in West Africa. With ongoing drilling, strong project economics, and a forthcoming pre-feasibility study, Newcore Gold is positioning the project as a key growth driver in Ghana’s mining sector.