Newcore Gold Announces 92.4% Gold Recoveries in Column Testwork for the Sewum and Boin Deposits at the Enchi Gold Project, Ghana
NEWS RELEASE
Suite 1560 - 200 Burrard Street www.newcoregold.com
Vancouver, British Columbia V6C 3L6 [email protected]
Newcore Gold Announces 92.4% Gold Recoveries in Column Testwork
for the Sewum and Boin Deposits at the Enchi Gold Project, Ghana
October 12, 2022 TSX-V: NCAU, OTCQX: NCAUF
Vancouver, BC – Newcore Gold Ltd. ("Newcore" or the "Company") (TSX-V: NCAU,
OTCQX: NCAUF) is pleased to announce positive results from three additional column tests
completed as part of the ongoing metallurgical program at the Company’s 100%-owned Enchi
Gold Project ( "Enchi" or the "Project") in Ghana. An average gold re covery of 92.4% was
achieved from column testwork completed on two composite samples from the Sewum Gold
Deposit ("Sewum") and one composite sample from the Boin Gold Deposit ("Boin").
Highlights from Column Test Results
• Three Column Tests Completed, Average Gold Recovery of 92.4% Achieved.
o A total of three column tests (two from Sewum and one from Boin) returned an average
gold recovery of 92.4%, with a recovery range of 89.0% to 98.6%.
• Testwork Further Advances the Understanding of Processing Options for Enchi.
o Testing completed on representative samples from diamond drill core.
o Coarser samples used better represent modelled crush size for heap leach processing.
o Larger sized samples used in the columns with each sample weighing 30 kg.
• Low Reagent Consumption.
o Coarser grind size compared to prior testing contributed to lower consumption for
cyanide as well as lower required amounts of lime and cement per kilogram.
o All samples showed modest cyanide consumption with an average of 0.63 kilograms per
tonne ("kg/t"), with a 1.4 kg/t lime (hydrated) addition to maintain a pH above 10.5.
• Additional Metallurgical Testwork Planned.
o Optimization work to be completed on additional column tests.
o Further planned metallurgical work to consist of a bench-scale test to be completed in
the field on the Project.
o Testing of sulphide mineralization to be completed in 2023.
Greg Smith, VP Exploration of Newcore stated, "This additional set of column tests completed
on diamond drill core material from the Enchi Gold Project returned consistent results with
high recoveries for all three composite samples, highlighting the amenability of Enchi to heap
leach gold recovery. These samples are representative of the oxide and transitional material
from the two largest deposits, Sewum and Boin, which together currently comprise
approximately 87% of the Enchi Inferred Mineral Resource Estimate. Of note these samples
were much coarser than material use d for previous test work and were more in line with the
parameters of the Preliminary Economic Assessment completed in 2021. The coarser material
resulted in a series of positive benefits including continued excellent recover ies, lower
required reagent levels for lime and cement and lower cyanide consumption and slumping."
- 2 -
Metallurgical Testing Summary
A total of three composite samples, two from Sewum and one from Boin, were submitted for
column testwork to the Intertek Lab located in Tarkwa, Ghana, approximately four hours by
paved road from the Enchi Gold Project. Material for the metallurgical sample s consisted of
half diamond drill core from holes drilled specifically to collect material for metallurgical
sampling. The samples were selected to represent the two largest deposits on the Project,
Sewum and Boin, and consisted of blended oxide and transitional material. For each deposit,
individual samples included a range of gold grades and weathering intensities.
Composite KBDD077 was prepared using 15 samples from diamond drill hole KBDD077
drilled at Boin with a total weight of 41.6 kgs. Composite S WDD084A was prepared using 18
samples from diamond drill hole SWDD084 drilled at Sewum with a total weight of 42.5 kgs.
SWDD084B was prepared using 16 samples from a second mineralized interval in diamond
drill hole SWDD084 with a total weight of 38.6 kgs.
Recovery for the three samples averaged 92.4 %, with a range of 89.0% to 98.6%.
Table 1. Column Tests – Grade and Average Recovery
Sample Deposit Grade Au g/t Recovery Rate
Composite KBDD077 Boin 0.51 98.6%
Composite SWDD084A Sewum 0.55 89.0%
Composite SWDD084B Sewum 0.85 89.7%
Average 92.4%
Composite samples were homogenized by mixing all material from the individual samples and
crushed to 70% passing 10 mm. Each composite sample was then split to provide four sub -
sample weighting 1,000 grams each, then used for screening and grading analysis, head
sample analysis, and five-day coarse bottle roll leach test.
Screening and Grading Analysis of Head Samples
A size analysis was done on each of the three composite samples. The samples were tested at
seven screen sizes and included analyses for percent mass. The samples were assayed for gold
which showed that gold was present in all size fractions analysed. The distribution shows
relatively consistent gold grades for all size f ractions within a range of 0.41 grams per tonne
gold ("g/t Au") to 1.46 g/t Au, with three outliers grading between 0.27 and 0.29 g/t Au. Results
include 49% to 63% passing 150 microns indicating that agglomeration is warranted, and each
of the three composite samples were agglomerated at 10 kg/t of Portland cement.
Table 2. Size Analysis by Composite Sample
Sieve Composite KBDD077 Composite SWDD084A Composite SWDD084B
% mass Au g/t % mass Au g/t % mass Au g/t
+2mm 25.3 1.06 13.5 0.27 28.4 0.41
+1mm 9.6 1.13 13.7 0.64 13.3 0.42
+250µm 4.0 1.07 5.3 0.94 5.2 0.43
+150µm 3.6 0.49 4.4 0.84 4.1 0.66
+106µm 9.2 1.29 9.5 1.11 8.4 1.46
+75µm 13.7 0.29 12.9 0.44 9.6 0.92
-75µm 34.6 0.28 40.7 1.22 31.2 0.87
- 3 -
Head Sample Analysis
Using the results of the sizing and grading analysis, a head grade was calculated for each of
the composite samples. The results were then compared to the head grade assays which were
completed on the 50 -gram subsamples. The results compared well for the t hree composites
with each having an average grade representative of the average grade of the deposits.
Table 3. Grade Analysis by Composite Sample
Gold Grade g/t KBDD077 SWDD084A SWDD084B Average
Assayed Grade 0.51 0.55 0.85 0.64
Calculated Grade 0.69 0.87 0.70 0.75
Average 0.60 0.71 0.78 0.70
Five Day Coarse Bottle Roll Leach
Simulated heap leach testing was conducted on the composite samples using one -kilogram
sub-samples which underwent leaching for five days. Batch dissolution tests (five days,
intermittent rolling-bottle) was completed under excess leach conditions (50% sol ids, leach
time: five days, pH 10.5, NaCN (sodium cyanide) addition 1 gram/litre). The final residue was
dried, weighed, and assayed for gold. After each of 1, 2, 3, 4 and 5 days of leaching , solution
assays were taken and analyzed, and reagent consumption was calculated (cyanide and lime).
For composite KBDD077, 80.8% of the gold was recovered on the first day , with recoveries
increasing constantly as the days passed to about 94.1% on the fifth day . For composite
SWDD084A, 58.0% of the gold was recovered on the first day, increasing to 75% on the fifth
day. For composite SWDD084B, the dissolution curve was constant over the five days, with
77% of the gold recovered on the first day and 76.3% on the fifth day.
In all cases leaching continued after the first five days with ultimate recoveries expected to
continue to increase with additional time.
Metallurgical Testing - Column Tests
Three 30 kgs closed-cycle column leach tests were conducted on the samples as received. The
test charge was loaded into 150 mm in diameter by 1.5-metre-tall PVC columns. 30 kgs of the
individual samples were agglomerated in a rolling drum using Portland cement at a 10 kg/t
addition rate and then allowed to air dry for three days. After the samples had been air dried,
they were loaded into the columns with the columns tilted at an angle to avoid stacking before
being set upright. The column was then allowed to sit for a day before the initial level was taken
to determine the slump.
The leaching parameters used in this column leach test included the addition of approximately
1.4 kg/t of lime which was blended into each feed solution and a cyanide concentration of
1,000 ppm. The initial feed solution was prepared by adding lime to tap water to obtain a
solution pH a bove 10.5 followed by the addition of one gram of sodium cyanide per litre of
solution with a solution application rate of 10L/h/m2 for all samples. The column testwork was
conducted under a closed cycle for 90 days. All solution samples were assayed for g old and
- 4 -
pH and free sodium cyanide was analyzed and recorded. Leach residue was thoroughly
washed, dried, screened and analyzed for gold by fire assay.
A graph showing the leach curve can be viewed at the following link:
https://newcoregold.com/site/assets/files/5791/2022_10-ncau-nr-column-test-graph.pdf
The column tests are aimed at simulating the response to leaching of the sample with the
emphasis on establishing the gold dissolution characteristics (rate and extent), reagent
consumption, and the degree of slumping within the ore bed. All samples showed amenability
to heap leaching, with recoveries averaging 92.4% after 90 days.
The sample s showed low cyanide consumption averaging 0.63 kg/t with a 1.4 kg/t lime
(hydrated) addition to maintain a pH above 10.5. The slumps were within acceptable industry
standards with an overall average of 9.1%. The sample responded well to a percolation rate of
10L/m2/hr with some minimal flooding . The optimum percolation rate will be studied and
optimized.
Table 4. Summary of Column Leach Tests
Composite Leach Time Slump % Reagent Consumption kg/t
NaCN Lime Cement
KBDD077 90 days 5.7% 0.62 1.4 10
SWDD084A 90 days 7.9% 0.65 1.4 10
SWDD084B 90 days 13.6% 0.62 1.4 10
Average 9.10% 0.63 1.4 10
- 5 -
The column leach test program has shown that the gold in the ore samples tested is readily
leachable and amenable to heap leaching. The recoveries achieved are considered high and
are interpreted to indicate the strong amenability to heap leaching. The particle size
distribution and size by size analysis performed on bo th the head and residue after leach
showed that the maximum gold recovery occurred in the finer fractions as compared to the
coarser size fractions.
Screening and Grading Analysis of Tails Samples
A size analysis was done on all the tails from the composite sample column tests. The samples
were tested at seven screen sizes including analyses for percent mass and assayed for gold.
The distribution shows consistently low grades of gold for all size fractions within a range of
0.00 g/t Au to 0.80 g/t Au with two outliers of 1.11 and 1.42 g/t Au.
Table 5. Size Analysis of Tails by Composite Sample
Sieve Composite KBDD077 Composite SWDD084A Composite SWDD084B
% mass Au g/t % mass Au g/t % mass Au g/t
+2mm 13.5 0.18 14.8 0.04 38.2 0.18
+1mm 13.7 0.14 8.0 0.30 9.6 0.17
+250µm 5.3 0.08 3.2 0.00 3.7 0.10
+150µm 4.4 0.05 3.2 0.09 2.8 0.58
+106µm 9.5 0.09 8.9 0.74 7.0 1.11
+75µm 12.9 0.04 22.1 0.80 9.0 1.42
-75µm 40.7 0.01 39.8 0.17 29.8 0.05
Enchi Gold Project Mineral Resource Estimate
The Enchi Gold Project hosts a pit constrained Inferred Mineral Resource of 70.4 million tonnes
grading 0.62 g/t Au containing 1. 41 million ounces gold (see Newcore news release date d
June 8, 2021). Mineral resource estimation practices are in accordance with CIM Estimation of
Mineral Resource and Mineral Reserve Best Practice Guidelines (November 29, 2019) and
follow CIM Definition Standards for Mineral Resources and Mineral Reserves (May 10, 2014),
that are incorporated by reference into National Instrument 43-101 ("NI 43-101"). The Mineral
Resource Estimate was prepared by independent qualified person Todd McCracken, P. Geo.
of BBA E&C Inc. The technical report, titled "Preliminary Economic Assessment for the Enchi
Gold Project, Enchi, Ghana" has an effective date of June 8, 2021, and is available under the
Company’s profile on SEDAR at www.sedar.com.
Enchi Drill Program
A 5,000 metre discovery and resource expansion drill program, following up on the success
achieved to date from drilling at Enchi, commenced in Q3 2022. Diamond drilling will focus on
continuing to define the higher -grade sulphide mineralization at depth with a goal of
delineating the potential for high-grade underground resources at Enchi. Reverse Circulation
("RC") drilling will target near-surface oxide and shallow sulphide mineralization with a goal of
outlining additional resource growth along strike and depth at all deposit areas. RC drilling will
also be planned to follow -up on discoveries made as part of the recently completed 90,000
metre drill program. Additional exploration work is also on -going, including metallurgical
testwork and trenching of high-priority surface anomalies.
- 6 -
A 90,000 metre discovery and resource expansion drill program (commenced in August 2020)
was completed at Enchi in Q2 2022. The program included both RC and diamond drilling and
included the first deeper drilling on the Project. Newcore’ s multi -pronged exploration
approach delivered on the goals set out at the start of drilling: (i) successfully outlined potential
resource growth along strike at all four existing deposits (Sewum, Boin, Nyam, Kwakyekrom);
(ii) encountered strong results at previously drilled zones that are outside of the resource area
(Kojina Hill and Eradi) ; (iii) drilling intersected high-grade at depth which has outlined the
potential for underground resources; and (iv) identified new discoveries from successful first
pass drilling on early stage kilometre-scale gold -in-soil anomalous targets (Sewum South ,
Tokosea). The total planned drill program consisted of 575 holes representing 92,583 metres.
Newcore Gold Best Practice
Newcore is committed to best practice standards for all exploration, sampling and drilling
activities. Drilling was completed by an independent drilling firm using industry standard RC
and Diamond Drill equipment. Analytical quality assurance and quality c ontrol procedures
include the systematic insertion of blanks, standards and duplicates into the sample strings.
Samples are placed in sealed bags and shipped directly to Intertek Labs located in Tarkwa,
Ghana for 50 gram gold fire assay.
Qualified Person
Mr. Gregory Smith, P. Geo, Vice President of Exploration at Newcore, is a Qualified Person as
defined by NI 43 -101, and has reviewed and approved the technical data and information
contained in this news release. Mr. Smith has verified the technical and scientific data disclosed
herein and has conducted appropriate verification on the underlying data including
confirmation of the drillhole data files against the original drillhole logs and assay certificates.
About Newcore Gold Ltd.
Newcore Gold is advancing its Enchi Gold Project located in Ghana, Africa’s largest gold
producer (1). The Project currently hosts an Inferred Mineral Resource of 1.41 million ounces of
gold at 0.62 g/t (2). Newcore Gold offers investors a unique combination of top-tier leadership,
who are aligned with shareholders through their 24% equity ownership, and prime district
scale exploration opportunities. Enchi’s 216 km2 land package covers 40 kilometres of Ghana’s
prolific Bibiani Shear Zone, a gold belt which hosts several 5 million -ounce gold deposits,
including the Chirano mine 50 kilometers to the north. Newcore’s vision is to build a
responsive, creative and powerful gold enterprise that maximizes returns for shareholders.
On Behalf of the Board of Directors of Newcore Gold Ltd.
Luke Alexander
President, CEO & Director
For further information, please contact:
Mal Karwowska | Vice President, Corporate Development and Investor Relations
+1 604 484 4399
www.newcoregold.com
- 7 -
(1) Source: Production volumes for 2021 as sourced from the World Gold Council
(2) Notes for Inferred Mineral Resource Estimate:
1. CIM definition standards were followed for the resource estimate.
2. The 2021 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model
with mineralized zones defined by wireframed solids and constrained by pits shell for Sewum, Boin and Nyam.
Kwakyekrom used Inverse Distance squared (ID2).
3. A base cut-off grade of 0.2 g/t Au was used with a capping of gold grades varied by deposit and zone.
4. A US$1,650/ounce gold price, open pit with heap leach operation was used to determine the cut -off grade of
0.2 g/t Au. Mining costs of US$ 1.40 for oxides, US$2.10 for transition, and US$2.60 for fresh rock per mined
tonne and G&A and milling costs of US$ 6.83/milled tonne. The Inferred Mineral Resource Estimate is pit
constrained.
5. Metallurgical recoveries have been applied to four individual dep osits and in each case three material types
(oxide, transition, and fresh rock) with average recoveries of 77% for Sewum, 79% for Boin, 60% for Nyam and
72% for Kwakyekrom.
6. A density of 2.20 g/cm3 for oxide, 2.45 g/cm3 for transition, and 2.70 g/cm3 for fresh rock was applied.
7. Optimization pit slope angles varied based on the rock types.
8. Mineral Resources that are not mineral reserves do not have economic viability. Numbers may not add due to
rounding.
9. These numbers ar e from the technical report titled " Preliminary Economic Assessment for the Enchi Gold
Project, Enchi, Ghana", with an effective date of June 8, 2021, prepared for Newcore Gold by BBA E&C Inc. in
accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and is available under
Newcore’s SEDAR profile at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking Statements
This news release includes statements that contain "forward -looking information" within the meaning of
the applicable Canadian securities legislation ("forward -looking statements"). All statements, other than
statements of historical fact, are forward -looking statements and are based on expectations, estimates
and projections as at the date of this news release. Any statement that involves discussion with respect to
predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or
performance (often, but not always using phrases such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including
negative variations) of such words and phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact
and may be forward-looking statements. In this news release, forward -looking statements relate, among
other things, to: statements about the estimation of mineral resources; results of our ongoing
metallurgical testwork program; results of our drill campaign, magnitude or quality of mineral deposits;
anticipated advancement of mineral properties or programs; and future exploration prospects.
These forward-looking statements, and any assumptions upon which t hey are based, are made in good
faith and reflect our current judgment regarding the direction of our business. The assumptions
underlying the forward -looking statements are based on information currently available to Newcore.
Although the forward -looking statements contained in this news release are based upon what
management of Newcore believes, or believed at the time, to be reasonable assumptions, Newcore
cannot assure its shareholders that actual results will be consistent with such forward-looking statements,
as there may be other factors that cause results not to be as anticipated, estimated or intended. Forward-
looking information also involves known and unknown risks, uncertainties and other factors which may
cause the actual results, performance o r achievements of the Company to be materially different from
any future results, performance or achievements expressed or implied by the forward -looking
information. Such factors include, among others: risks related to the speculative nature of the Company’s
business; the Company’s formative stage of development; the Company’s financial position; possible
variations in minerali zation, grade or recovery rates; actual results of current exploration activities;
- 8 -
fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot
and forward prices of gold and other commodities; fluctuations in currency markets (such as the Canadian
dollar to United States dollar exchange rate); change in national and local government, legi slation,
taxation, controls, regulations and political or economic developments; risks and hazards associated with
the business of mineral exploration, development and mining (including environmental hazards, unusual
or unexpected geological formations); the presence of laws and regulations that may impose restrictions
on mining; employee relations; relationships with and claims by local communities; the speculative
nature of mineral exploration and development (including the risks of obtaining necessary li censes,
permits and approvals from government authorities); and title to properties.
Forward-looking statements contained herein are made as of the date of this news release and the
Company disclaims any obligation to update any forward-looking statements, whether as a result of new
information, future events or results, except as may be required by applicable securities laws. There can
be no assurance that forward -looking information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking information.