Newcore Gold Hits High-Grade Results Below Reserves At Ghana’s Enchi Project

Newcore Gold has reported encouraging high-grade drilling results from the Nyam deposit at its Enchi gold project in Ghana, highlighting the potential to expand mineral resources and improve the project’s long-term production profile.

The latest results come from the company’s ongoing 80,000-metre diamond drilling programme, which is targeting deeper and lateral extensions of known mineralisation beyond the current reserve pit boundaries.

High-Grade Gold Intersected Below Existing Reserve Pits

Recent drilling returned gold grades above the current reserve grade and below the limits of the existing open-pit reserve model.

Key drill intercepts include:

• 3.51 g/t gold over 21 metres from 245 metres, including 5.91 g/t gold over 9 metres from 251 metres.
• 1.61 g/t gold over 14 metres from 278 metres, including 2.94 g/t gold over 7 metres from 284 metres.
• 1.40 g/t gold over 21 metres from 317 metres, including 2.08 g/t gold over 11 metres from 319 metres.

The drilling programme also tested the down-dip and lateral extensions of previously identified high-grade mineralisation at the Nyam deposit.

Greg Smith, Vice President of Exploration at Newcore Gold, said the latest drilling confirms the mineralised system remains open both at depth and along strike.

“These holes successfully intersected gold mineralisation below the reserve pits and in areas that have historically seen limited drilling. As the third largest deposit currently defined at Enchi, Nyam remains open along strike and at depth.”

Drilling Programme Targets Resource Growth

Newcore currently has four drill rigs operating at Enchi as it seeks to increase higher-grade ounces in the early years of the proposed mine plan while expanding the overall mineralised footprint.

The Enchi project currently contains:

Probable reserves: 51.3 million tonnes grading 0.64 g/t gold, containing 1.05 million ounces.
Indicated resources: 83.6 million tonnes grading 0.56 g/t gold, containing 1.5 million ounces.

The current drilling campaign is expected to support future resource updates beyond those included in the latest technical study.

Updated Pre-Feasibility Study Supports Development

Newcore recently completed an updated pre-feasibility study (PFS) incorporating drilling and technical work completed during 2024 and 2025, although it excludes results from the current 2026 drilling programme.

The study estimates:

• After-tax Net Present Value (NPV): US$496 million
• Internal Rate of Return (IRR): 37%
• Mine life: Nine years
• Average annual gold production: 104,000 ounces

The revised mine plan replaces the heap leach processing approach outlined in the 2024 preliminary economic assessment with a conventional milling and carbon-in-leach (CIL) processing facility.

While the updated economics are lower than those presented in the earlier preliminary assessment, the new processing strategy is expected to provide greater flexibility to capture deeper, higher-grade mineralisation.

Analysts See Strong Growth Potential

Mining analysts believe the current pre-feasibility study represents only the initial stage of the project’s development.

SCP Research said the revised mine plan provides a solid foundation but does not fully reflect the upside that could be unlocked through continued drilling beneath the existing pits.

The firm believes additional exploration could extend the mine life while increasing annual production to between 130,000 and 140,000 ounces.

Haywood Securities also maintained its Buy recommendation on Newcore Gold with a target price of C$1.50, noting that higher-grade discoveries remain critical to improving project economics.

According to the firm, the latest drilling results demonstrate the potential for a larger-scale mining operation than currently outlined in the pre-feasibility study.

At midday trading on Thursday, Newcore Gold shares traded at C$0.34, giving the company a market capitalisation of approximately C$103.2 million.