Newcore Gold Announces 94.7% Gold Recoveries in Column Testwork for the Sewum and Boin Deposits at the Enchi Gold Project, Ghana
NEWS RELEASE
Suite 413 - 595 Burrard Street, P.O. 49167 www.newcoregold.com
Vancouver, British Columbia V7X 1J1 [email protected]
Newcore Gold Announces 94.7% Gold Recoveries in Column Testwork for
the Sewum and Boin Deposits at the Enchi Gold Project, Ghana
July 15, 2021 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 four column tests completed as
part of the ongoing metallurgical program at the Company’s 100%-owned Enchi Gold Project
("Enchi" or the "Project") in Ghan a. An average gold recovery of 94.7% was achieved from
column testwork completed on two composite samples from the Sewum Gold Deposit
("Sewum") and two composite samples from the Boin Gold Deposit ("Boin").
Highlights from Column Test Results
• Four Column Tests Completed, Average Gold Recovery of 94.7% Achieved
o A total of four column tests (two from Sewum and two from Boin) returned an average
gold recovery of 94.7%, with a recovery range of 91.7% to 97.7%.
• Low Reagent Consumption
o All samples showed modest cyanide consumption of less than 1 kilogram per tonne
("kg/t"), with a 3 kg/t lime (hydrated) addition to maintain a pH above 10.5.
• Further Metallurgical Testwork Ongoing
o Another column test is underway on a composite sample from the Kwakyekrom Deposit.
o Additional bottle rolls and column tests will be completed on samples from each of the
four deposits (Sewum, Boin, Nyam, Kwakyekrom) which comprise the Inferred Mineral
Resource at Enchi.
Greg Smith, Vice President of Exploration of Newcore stated, " This first set of column tests
completed on material from the Enchi Gold Project returned consistent results with high
recoveries for all four composite samples, highlighting the amenability of Enchi to heap leach
gold recovery. These samples are representative of the oxide a nd transitional material from
the two largest deposits, Sewum and Boin, which together currently comprise approximately
87% of the Enchi Inferred Mineral Resource Estimate. Further metallurgical testing is ongoing
and will include a range of tests designed to further characterise and optimise the potential
recoveries at the Project."
Metallurgical Testing Summary
A total of four composite samples, two from Boin and two from Sewum, were submitted for
column testwork to the Intertek Lab located in Tarkwa , Ghana, approximately five hours by
paved road from the Enchi Gold Project. Material for the metallurgical samples consisted of
the remaining reverse circulation ( "RC") chips collected during the 2020 - 2021 RC drilling
program which had previously been provided to Intertek for b ottle roll tests. Samples for
metallurgical testing consisted of 5 kilogram ("kg") splits created using a riffle splitter of the
remaining material from the RC drill chip s and are considered representative. The samples
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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 , samples included a
range of gold grades, weathering intensities, and came from various areas of the deposits.
The first composite ("Composite 1 ") was prepared using six samples from two drill holes
representing approximately one kilometre of strike length from Boin Central with a total weight
of 15.9 kgs. The second composite ("Composite 2") was prepared using six samples from two
drill holes spaced three kilometres a part from Boin North and South weighting 15.8 kg . The
third composite ("Composite 3") was prepared using six samples from two drill holes over 200
metres of Sewum Ridge with a total weight of 16.0 kg . The fourth composite ("Composite 4")
was prepared using six samples from two drill holes from Sewum CH and Extension spaced
apart by 1.5 kilometres and weighted 17.6 kg.
Recovery for the four samples averaged 94.7 %, with a range of 91.7% to 97.7%
Table 1. Column Tests – Grade and Average Recovery
Sample Deposit Grade Au g/t Recovery Rate
Composite #1 Boin Central 1.49 91.95%
Composite #2 Boin North & South 1.02 97.50%
Composite #3 Sewum Ridge 1.11 97.74%
Composite #4 Sewum CH & Extension 1.51 91.70%
Average 94.72%
Composite samples were homogenized by mixing the remaining material not used for the
bottle roll tests. The entire composite sample was then split using a riffle splitter to provide four
samples of approximately 4 kgs each. One sample was removed and again split into a further
four fractions of approximately 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 all the 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 fractions within a tight range of 0.80 gram s per tonne gold
("g/t Au") to 1.57 g/t Au , with one outlier grading 2.85 g/t Au. Results include 40 % to 50%
passing 150 microns indicating that agglomeration is warranted, and each of the four
composite samples were agglomerated at 20 kg/t of Portland cement.
Table 2. Size Analysis by Composite Sample
Sieve Composite #1 Composite #2 Composite #3 Composite #4
% mass Au g/t % mass Au g/t % mass Au g/t % mass Au g/t
+2mm 24.05 1.46 12.57 2.85 16.93 0.99 9.49 1.03
+1mm 4.50 1.11 6.63 0.93 9.22 0.90 4.21 0.99
+250µm 13.85 1.29 23.30 1.11 22.85 0.80 22.95 0.81
+150µm 9.01 1.17 12.61 0.81 9.53 1.03 14.04 1.01
+106µm 9.12 1.24 7.40 1.13 5.84 1.31 15.61 0.80
+75µm 12.15 1.57 18.13 0.98 3.66 1.13 13.62 0.86
-75µm 27.32 0.97 19.35 1.32 31.97 1.55 20.08 0.93
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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 three of the composites
(#1, #2 and #3), with a wider but acceptable range for Composite #4 (1.51 vs 0.90 g/t Au).
Table 3. Grade Analysis by Composite Sample
Gold Grade g/t Composite #1 Composite #2 Composite #3 Composite #4 Average
Assayed Grade 1.49 1.02 1.11 1.51 1.28
Calculated Grade 1.25 1.30 1.14 0.90 1.15
Five Day Coarse Bottle Roll Leach
A coarse subsample weighting one kilogram was prepared from each composite, with a five
day coarse bottle roll then completed. Results ranged between 80.6% and 88.0% , with an
average recovery of 85.3%. For Composite #1, 57.5% of the gold was recovered on the first
day with this increasing consistently to 88.0% by the fifth day. For Composite #2, the recovery
on the first day was 45.9% , increasing to 80.6% by the fifth day. For Composite #3, the
dissolution curve was similar to Composite #2 with the recovery moving from 40% to 84.7% by
the fifth day . Composite #4 had an initial day recovery of 50.5%, 62.1% for the second day,
69.8% for the third day, 71.9% for the fourth day , and 87.9% for the fifth day. In all cases
leaching was ongoing after the five days with ultimate recoveries expected to continue to
increase with additional time.
Metallurgical Testing - Column Tests
Four 10 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. 10 kg of the
individual samples were agglomerated in a rolling drum using Portland cement at a 20 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
3 kg/t of lime which was blended into each feed solution and a c yanide concentration of
1,000 ppm. The initial feed solution was prepared by adding lime to tap water to obtain a
solution pH of 11.00 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 60 days for Composites #2, #3, and #4 and 70 days for
Composite #1. All solution samples were assayed for gold and pH and free sodium cyanide
was analyzed and recorded. Leach residue was thoroughly washed, dried, s creened and
analyzed for gold by fire assay.
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 achieving more than 90% after 60 days for Composites #2,
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#3, and #4. Composite #1 achieved a recovery in excess of 90% after an additional 10 days of
leaching.
A graph showing the leach curve can be viewed at the following link:
https://newcoregold.com/site/assets/files/5716/2021_07_-_ncau_nr_-_column_test_graph.pdf
All samples showed modest cyanide consumption of less than 1 kg/t with the addition of 3 kg/t
lime (hydrated) to maintain a pH above 10.5. The slump for all samples was above 10%, which
may have been a result of lower binder concentration as a result of the fine nature of the
material tested. The samples responded well to a percolation rate of 10 L/m2/hr with some
minimal flooding. The optimum percolation rate will be investigated and optimized further.
Table 4. Summary of Column Leach Tests
Sample ID Leach Time Slump %
Reagent Consumption kg/t
NaCN Lime Cement
Composite #1 70 days 12.6 0.793% 3 20
Composite #2 60 days 16.7 0.798% 3 20
Composite #3 60 days 33.3 0.825% 3 20
Composite #4 60 days 14.3 0.817% 3 20
Average 19.2% 0.81% 3 20
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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 par ticle size
distribution and size by size analysis performed on both the head and residue after leach
showed that the maximum gold recovery occurred in the finer fractions as compared to the
coarser size fractions. The agglomeration and percolation rates wi ll be further tested and
optimized. Further work is planned to define the specific leach characteristics for different parts
of the four deposits which comprise the Mineral Resource Estimate at Enchi.
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 tight range
of 0.00 g/t Au to 0.18 g/t Au, with one outlier grading 0.31 g/t Au. Results are reflective of the
high overall recoveries obtained for the column tests with a minimal amount of gold remaining
in the tails.
Table 5. Size Analysis of Tails by Composite Sample
Sieve Composite #1 Composite #2 Composite #3 Composite #4
% mass Au g/t % mass Au g/t % mass Au g/t % mass Au g/t
+2mm 12.94 0.10 9.99 0.14 12.96 0.00 5.98 0.31
+1mm 8.30 0.18 13.41 0.06 11.22 0.10 12.54 0.06
+250µm 21.16 0.04 24.24 0.04 23.42 0.02 25.31 0.02
+150µm 7.64 0.06 10.47 0.01 7.53 0.02 10.05 0.02
+106µm 5.23 0.00 5.85 0.01 7.21 0.00 11.19 0.00
+75µm 17.36 0.00 12.22 0.01 5.22 0.00 12.24 0.02
-75µm 27.36 0.00 23.82 0.02 32.44 0.00 22.69 0.02
Assayed Grade 0.04 0.04 0.02 0.04
Calculated Grade 0.04 0.04 0.02 0.04
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 ). The 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 Reserv es (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.
2020 - 2021 Enchi Drilling Program
A 66,000 metre discovery and resource expansion drilling program is underway at Enchi. The
program includes both RC and diamond drilling and will include the first deep drilling planned
on the Project. This drill program includes te sting extensions of the existing resource areas
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while also testing a number of high priority exploration targets outside of the Inferred Mineral
Resource. Drilling is focused on step out extensions and exploration drilling at the Sewum,
Boin, Nyam and Kwak yekrom Deposits. Additional drilling is planned at previously drilled
zones that are outside of the resource area (Kojina Hill and Eradi), along with first pass drilling
to test a series of kilometre-scale gold-in-soil anomalous zones with no prior drilling (Nkwanta,
Sewum South and other anomalies). All zones represent high priority targets based on
geological, geochemical and geophysical surface work and previous trenching and drilling.
COVID-19 Protocols
Newcore’s first priority is the health and safety of all employees, contractors, and local
communities. The Company is following all Ghana guidelines and requirements related to
COVID-19. The Company has implemented COVID-19 protocols for its ongoing drill program
consisting of the mandatory use of personal protective equipment (including facemasks for all
employees), maintaining social distancing, frequent hand washing, and daily temperature
checks at the start of each shift.
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 Di amond Drill equipment. Analytical quality assurance and quality control 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 of 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. 4 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 32% 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 Kinross’ 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
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For further information, please contact:
Mal Karwowska | Vice President, Corporate Development and Investor Relations
+1 604 484 4399
www.newcoregold.com
(1) Source: Production volumes for 2020 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 Min eral Resource Estimate is pit
constrained.
5. Metallurgical recoveries have been applied to four individual deposits 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 are 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 ex pectations, 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: stat ements about the estimation of mineral resources; results of our ongoing
metallurgical testwork program; results of our ongoing 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 they are based, are made in good
faith and reflect our current judgment regarding the direction of our business. The assumptions
underlying the forward -looking statemen ts 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
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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 or 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 mineralization, grade or recovery rates; actual re sults of current exploration activities;
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 dol lar to United States dollar exchange rate); change in national and local government,
legislation, 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 nat ure of mineral exploration and development (including the risks of obtaining
necessary licenses, 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.