Newcore Gold Announces Updated Mineral Resource Estimate for the Enchi Gold Project, Ghana 743,500 Indicated and 972,000 Inferred Gold Ounces Inaugural Indicated Resource De-Risks Project Development; Future Resource Growth from
NEWS RELEASE
Suite 1560 - 200 Burrard Street www.newcoregold.com
Vancouver, British Columbia V6C 3L6 [email protected]
Newcore Gold Announces Updated Mineral Resource Estimate
for the Enchi Gold Project, Ghana
743,500 Indicated and 972,000 Inferred Gold Ounces
Inaugural Indicated Resource De-Risks Project Development; Future Resource Growth from
District-Scale Exploration Potential of Both Oxide and Sulphide Mineralisation
March 7, 2023 TSX-V: NCAU, OTCQX: NCAUF
Vancouver, BC – Newcore Gold Ltd. ("Newcore" or the "Company") (TSX-V: NCAU,
OTCQX: NCAUF) is pleased to announce the results of an updated , independent, Mineral
Resource Estimate (the "Resource") prepared in accordance with National Instrument 43 -101
Standards of Disclosure for Mineral Projects ("NI 43 -101") for the Company’s 100% owned
Enchi Gold Project ("Enchi" or the "Project") in Ghana . The Resource was completed by BBA
E&C Inc. ("BBA") of Sudbury, Ontario, Canada. The Resource:
(i) Successfully outlined an inaugural Indicated Mineral Resource of 743,500 gold ounces
with substantial conversion from the Inferred category to the Indicated category, de -
risking project development;
(ii) Defined an Inferred Mineral Resource of 972,000 gold ounces;
(iii) Established a high-grade underground resource for the first time of 135,900 gold ounces
at an average grade of 2.42 g/t gold , proof of concept that outlines the potential for
longer-term resource growth from sulphide mineralisation;
(iv) Added a fifth deposit at Enchi, with an inaugural Inferred Mineral Resource at Tokosea of
46,900 ounces, proving out the potential for mine life extension from the district scale
exploration opportunity at the Project;
(v) Does not in clude approximately 38,000 metres of drilling which focused on greenfield
discoveries and high -grade sulphide mineralisation at depth, highlighting the multi-
million-ounce potential of the 216 km2 district scale property; and
(vi) Further supports and de-risks the strong economics outlined in the 2021 Preliminary
Economic Assessment ("PEA").
The Resource has an effective date of January 25 , 2023, is reported using a constraining
resource pit at a gold price of US$1,650 per ounce, and consists of:
• Indicated Mineral Resource of 743,500 ounces of gold at an average grade of 0.55 g/t Au
and totalling 41,736,000 tonnes; and
• Inferred Mineral Resource of 97 2,000 ounces of gold at an average grade of 0.65 g/t Au
and totalling 46,556,000 tonnes.
• Underground Inferred Mineral Resource of 135,900 ounces gold at 2.42 g/t Au.
• Initial Inferred Mineral Resource at Tokosea of 46,900 ounces gold at 0.75 g/t Au.
• A higher-grade subset of the open pit Resource, using a 0.50 cut-off grade, consists of an
Indicated Mineral Resource of 493,700 ounces of gold at an average grade of 0.97 g/t Au
and an Inferred Mineral Resource of 580,900 ounces of gold at an average grade of
1.04 g/t Au. This does not include the underground Inferred Mineral Resource of
135,900 ounces at an average grade of 2.42 g/t Au.
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The Resource builds on the last completed Mineral Resource Estimate released on June 8,
2021 (the "June 2021 Resource") and incorporates approximately 34,000 metres of infill and
resource expansion Reverse Circulation ( "RC") and diamond drilling completed by Newcore
between January 2021 and July 2022. Of the 92,583 metres of drilling completed since 2020,
approximately 38,000 metres has yet to be incorporated into a mineral resource estimate; this
drilling continues to prove out the future resource growth potential at Enchi as these metres
highlighted new greenfield discoveries and the potential for high -grade sulphide
mineralisation at depth, showcasing the district scale exploration opportunity at Enchi.
Table 1 - Mineral Resource Estimate for the Enchi Gold Project (1)
Zone Classification Tonnes Au Grade (g/t) Contained Au (ounces)
Sewum Indicated 20,925,000 0.48 323,300
Inferred 21,798,000 0.53 373,100
Boin Indicated 13,020,000 0.62 258,200
Inferred 15,884,000 0.68 349,600
Nyam Indicated 7,791,000 0.65 162,000
Inferred 2,681,000 1.21 104,700
Kwakyekrom Inferred 4,244,000 0.72 97,700
Tokosea Inferred 1,949,000 0.75 46,900
Total Indicated 41,736,000 0.55 743,500
Total Inferred 46,556,000 0.65 972,000
(1) Notes for Mineral Resource Estimate:
1. Canadian Institute of Mining Metallurgy and Petroleum ("CIM") definition standards were followed for the
resource estimate.
2. The 2023 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 and Tokosea used Inverse Distance squared (ID2).
3. Open pit cut-off grades varied from 0.14 g/t to 0.25 g/t Au based on minin g and processing costs as well as
the recoveries in different weathered material.
4. Heap leach cut-off grade varied from 0.14 g/t to 0.19 g/t in the pit shell and 1.5 0 g/t for underground based
on mining costs, metallurgical recovery, milling costs and G&A costs.
5. CIL cut off grade varied from 0.25 g/t to 0.27 g/t in a pit shell and 1.5 0 g/t for underground based on mining
costs, metallurgical recovery, milling costs and G&A costs.
6. A US$1,650/ounce gold price was used to determine the cut-off grade.
7. Metallurgical recoveries have been applied to five individual deposits and in each case three material types
(oxide, transition, and fresh rock).
8. A density of 2.19 g/cm3 for oxide, 2.45 g/cm3 for transition, and 2.72 g/cm3 for fresh rock was applied.
9. Optimization pit slope angles varied based on the rock types.
10. Reasonable mining shapes constrain the mineral resource in close proximity to the pit shell.
11. Mineral Resources that are not mineral reserves do not have economic viability. Numbers may not add due to
rounding.
12. The resource estimate was prepared by Todd McCracken, P.Geo, of BBA E&C Inc . in accordance with NI 43-
101. Todd McCracken is an independent qualified person ("QP") as defined by NI 43-101.
Updated Mineral Resource Estimate Highlights
• Inaugural Indicated Mineral Resource Estimate, de-risks Project development.
o Up-dip and down -dip drilling at existing deposits converted a larger than expected
portion of the Resource to the Indicated category.
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• First underground resources defined for the Project, highlighting the potential to define
meaningful future resources within the high-grade sulphide mineralisation.
o Proof of concept , Project has strong potential to host sulphide mineralisation to depth
with the current mineralisation defined to an average depth of only 100 metres.
• Initial resource estimate at Tokosea, adding a fifth deposit to the Project.
o Drilling continues to identify and prove out new deposits across the Project, highlighting
the multi-million-ounce potential of the 216 km2 district scale property.
o Tokosea is located approximately 500 metres to the east of Sewum and within short
trucking distance of the proposed heap leach pad location identified in the 2021 PEA,
highlighting the opportunity for both mine life extension and production growth from
defining additional deposits and resources on the Project.
• District Scale Exploration Opportunity at Enchi Still Largely Underexplored.
o More than 20 pre-resource targets identified across the 216 km2 land package.
o All deposits and targets remain open along strike and at depth, with potential for
resource growth in both shallow oxides and within the sulphide mineralisation.
o Average depth of resource pits is only 70 metres, with drilling testing mineralisation to
an average depth of only 100 metres and a limited number of holes testing a maximum
depth of 350 metres in one zone (Nyam).
• Resource supports strong economics outlined in the 2021 PEA.
o The PEA completed in 2021, at a gold price of US$1,650/oz and based on the June 2021
Resource (Inferred Mineral Resource of 1.41 million ounces of gold at 0.62 g/t), outlined
a US$212 million after-tax net present value discounted at 5% and a 42% after-tax internal
rate of return . The 2021 PEA remains applicable based on the updated Resource
however it is preliminary in nature, includes Inferred Mineral Resources that are
considered too speculative geologica lly to have economic considerations applied to
them that would enable them to be categorized as mineral reserves, and there is no
certainty that PEA results will be realized. Mineral resources are not mineral reserves and
do not have demonstrated economic viability.
• Potential for future resource growth. The updated Resource incorporated approximately
34,000 metres of the 72,388 metres of drilling completed post the June 2021 Resource.
o Approximately 38,000 metres of drilling not yet included in the Resource , targeting
earlier stage mineralised zones across the Project and deeper sulphide mineralisation.
o First pass drilling completed in 2022 on high priority targets at Enchi resulted in new
discoveries that are pre-resource stage, highlighting the potential for resource growth as
the Company continues to drill-out these highly prospective areas.
o Potential future resource growth from both near surface oxide minerali sation that is
amenable to heap leach processing and from testing sulphide mineralisation to depth.
Luke Alexander, President and CEO of Newcore stated, "We are thrilled with the outcome of
this resource update for our Enchi Gold Project in Ghana. This res ource builds on the strong
economics we established for the Project in 2021, with a substantial portion of the resource
now in the Indicated category that not only improves the resource confidence but also
continues to de -risk the Project towards future de velopment. This resource update has also
shown proof of concept with underground resources established for the first time. This is a
significant milestone as it highlights the longer -term potential at Enchi to host a multi -decade
mine with not only near-surface, open pit oxide gold resources but also resource growth from
high-grade sulphide mineralisation at depth. We are excited to continue to aggressively
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advance Enchi, both via a focus on defining the exploration potential with drilling, but also via
de-risking work such as baseline studies and metallurgical testwork that continues to advance
the near-term development potential of the Project."
Greg Smith, VP Exploration of Newcore stated, "In tandem with de-risking and advancing the
defined resources at our Enchi Gold Project, we continue to prove out the significant future
potential of this district scale exploration opportunity. With first pass drilling on one of our
largest anomalies we were able to define a fifth deposit, Tokosea, on the Project. And with over
38,000 metres of drilling that has yet to be included in the resource, we believe the drilling that
has been completed on earlier stage targets continues to highlight the future resource growth
potential from both near surface oxide as well as d eeper sulphide mineralisation. With the
success we have had to date via the drill bit we expect it will only be a matter of time before we
unlock the multi-million-ounce gold potential at Enchi, a district scale exploration opportunity
that is located on a prolific belt that hosts a number of large-scale gold mines."
A property map showing the location of deposits and targets at Enchi can be viewed at:
https://newcoregold.com/site/assets/files/5804/2023_03-enchi-property-target-map.pdf
The updated Mineral Resource Estimate was prepared by independent qualified person Todd
McCracken, P. Geo. of BBA. Mineral resources are not mineral reserves and do not have
demonstrated economic viability. There is no certainty that any mineral resource will be
converted into a mineral reserve. The resource estimate is based on the combination of
geological modeling, geostatistics and conventional block modeling using the Ordinary Krig
methodology of grade i nterpolation for Sewum, Boin , and Nyam. Kwakyekrom and Tokosea
used Inverse Distanced squared. The mineral resources were estimated using a block model
with parent blocks of 10m x 10m x 10m with sub-blocks to 2.5m x 2.5m x 2.5m. A capping study
was made us ing histograms, probability plots, quantile plots and deciles plots to define the
capping values resulting in variable capping values by deposit and zone.
Summary of Drilling Completed in 2021 and 2022 at Enchi
Newcore completed 72,388 metres of drilling in 447 holes between January 2021 and July
2022. This drilling:
(i) Successfully expanded mineralisation along strike at all previously defined deposits
(Sewum, Boin, Nyam, Kwakyekrom);
(ii) Intersected high-grade gold in the upper portion s of the sulphide mineralisation, with
underground resources defined for the fist time at Nyam, Kwakyekrom and Sewum; and
(iii) Continued to highlight the district scale size potential at Enchi with first pass drilling at
Tokosea culminating in a n initial Inferred Miner al Resource Estimate, adding a fifth
deposit to the Project.
Approximately 50% of the infill and resource expansion drilling was incorporated into the
Resource. The drilling that has yet to be included focused on greenfield areas with high priority
exploration targets: pre-resource areas (including Kojina Hill, Eradi and Sewum South) ; wide
spaced step out drilling along strike of existing deposits (Boin, Nyam, Kwakyekrom and
Tokosea); and down dip of the current deposits (below the currently modelled pit shells) where
additional drilling is required to allow for sufficient spacing to expand the mineralisation to
depth. These metres highlight the potential for future resource growth at Enchi as New core
continues to prove out the multi-million-ounce potential of the 216 km2 district scale property.
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The Resource for Enchi incorporates assay results from 243 diamond drill holes totaling 39,499
metres, 848 RC holes totaling 110,079 metres, 319 RAB holes totaling 12,424 metres and
187 trenches totaling 18,315 metres, variably spaced from 25 to 100 metres apart targeting
the Sewum, Boin, Nyam , Kwakyekrom and Tokosea deposits. The data base comprises both
historic and drill holes and trenches completed by Newcore from 2020 to July 2022.
The resource now includes five deposits (Sewum, Boin, Nyam, Kwakyekrom, Tokosea), each of
which are open along strike and down dip. A number of additional exploration targets have
also been identified outside of the existing resource area that present an opportunity for
significant resource growth.
A full technical report, which is being prepared in accordance with NI 43-101, will be filed and
available under the Company’s SEDAR profile at www.sedar.com, and on Newcore’s website,
within 45 days of this news release.
Mineral Resource Estimate with Open Pit and Underground Details
The Resource established the first underground resources at Enchi, highlighting the potential
to define meaningful resource growth from further exploration at depth of sulphide
mineralisation. Enchi is located on a prolific gold belt that hosts multiple gold mines and
deposits that have proven out gold mineralisation to significant depths. Drilling to date at Enchi
has only tested mineralisation to an average depth of 100 metres, with only a handful of holes
testing a maximum depth of 350 metres in one zone (Nyam).
Table 2a – Mineral Resource Estimate by Deposit and Mining Method (1)
Category/Zone Type Tonnes Au Grade (g/t) Contained Au (ounces)
Indicated
Sewum Open Pit 20,925,000 0.48 323,300
Boin Open Pit 13,020,000 0.62 258,200
Nyam Open Pit 7,791,000 0.65 162,000
Total Indicated 41,736,000 0.55 743,500
Inferred
Sewum Open Pit 21,154,000 0.47 317,600
Underground 644,000 2.68 55,500
Boin Open Pit 15,884,000 0.68 349,600
Nyam Open Pit 1,852,000 0.68 40,600
Underground 829,000 2.41 64,000
Kwakyekrom Open Pit 3,970,000 0.64 81,000
Underground 274,000 1.86 16,300
Tokosea Open Pit 1,949,000 0.75 46,900
Total Inferred 46,556,000 0.65 972,000
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Table 2b – Mineral Resource Estimate by Mining Method (1)
Category/Type Tonnes Au Grade (g/t) Contained Au (ounces)
Indicated
Open Pit 41,736,000 0.55 743,500
Total Indicated 41,736,000 0.55 743,500
Inferred
Open Pit 44,809,000 0.58 836,000
Underground 1,747,000 2.42 135,900
Total Inferred 46,556,000 0.65 972,000
(1) See note under Table 1
Mineral Resource Estimate Sensitivity
BBA also evaluated the pit constrained , open pit, Mineral Resource Estimate for Enchi at a
range of cut-off grades between 0.1 g/t Au and 0.5 g/t Au (Table 3 below). The tables below
do not include the underground Inferred Mineral Resource Estimate of 135,900 ounces at an
average grade of 2.42 g/t Au.
Table 3a – Cut-Off Grade Sensitivity
Pit Constrained Open Pit Indicated Mineral Resource Estimate (1)
Cut-Off Grade Tonnes Au Grade (g/t) Contained Au (ounces)
0.1 47,702,000 0.50 768,200
0.2 36,549,000 0.61 716,700
0.3 28,258,000 0.72 650,600
0.4 21,240,000 0.84 571,600
0.5 15,838,000 0.97 493,700
Table 3b – Cut-Off Grade Sensitivity
Pit Constrained Open Pit Inferred Mineral Resource Estimate (1)
Cut-Off Grade Tonnes Au Grade (g/t) Contained Au (ounces)
0.1 55,202,000 0.50 881,000
0.2 38,924,000 0.64 805,300
0.3 28,950,000 0.78 726,000
0.4 22,348,000 0.91 652,900
0.5 17,307,000 1.04 580,900
(1) See note under Table 1. Does not include Underground Inferred Mineral Resource Estimate of 135,9 00
ounces at an average grade of 2.42 g/t Au.
Mineral Resource Estimate by Mineralisation Type
The weathering profile varies by area at Enchi with depth of oxide mineralisation typically
20 to 30 metres but can reach up to 100 metres in some areas. Given most drilling to date has
focused on the top 150 metres of mineralisation, the majority of the current Resource is hosted
within the oxide and transition material.
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Table 4 – Mineral Resource Estimate by Mineralisation Type (1)
Category Tonnes Au Grade (g/t) Contained Au (ounces)
Indicated
Oxide 14,365,000 0.52 241,000
Transition 19,046,000 0.50 306,000
Fresh 8,325,000 0.73 196,500
Total Indicated 41,736,000 0.55 743,500
Inferred
Oxide 15,913,000 0.44 224,300
Transition 14,894,000 0.50 237,600
Fresh 15,749,000 1.01 510,000
Total Inferred 46,556,000 0.65 972,000
(1) See notes under Table 1
Metallurgical Testwork
Approximately 60% of the Resource consists of oxide and transition material which is amenable
to heap leach processing. This processing method is supported by a significant amount of
metallurgical testwork, including eight column tests and dozens of bottle roll tests, completed
over the past two years on mineralised samples from both oxide and transitional zones. The
mineralised material used for metallurgical testwork included a range of gold grades,
weathering intensities (closely related to depth) , as well as samples from different areas from
each of Sewum and Boin (the two main deposits that comprise the majority of the Resource).
Column testwork (reported October 12, 2022 and July 15, 2021 ) was completed on
composites consisting of blended oxide and trans itional material and achieved average
recoveries of 93.2%. Testing was completed on representative samples that are indicative of
the modelled crush size for heap leach processing, with coarser grind sizes providing for lower
consumption of cyanide as well as lower required amounts of lime and cement per kilogram.
Bottle r oll testwork completed in 2020 (reported January 7, 2021 ) consisted of 49
representative oxide and transitional samples from Sewum and Boin , with an average gold
recovery of 89.4% achieved from the 24-hour bottle roll tests. Most of the samples (38 of 49)
were selected from the moderately and highly weather categories which represent the largest
component of the weathered profile at Enchi, with those samples achieving an average
recovery rate of 91.5%.
Additional metallurgical testwork is underway as part of the current work program at Enchi.
This testwork continues to advance and de -risk the Project to improve the understanding of
optimal processing options for Enchi. In addition to optimization work that is being completed
on additional column tests, a bench-scale, bulk sample metallurgical test work program is
underway with anticipated completion in H1 2023. Th is testwork will process 20 tonnes of
representative mineralized material using the optimi zed reagent levels as determined by the
results of the column testwork.
Sample selection is also under way for metallurgical testing of sulphide minerali sation which
will be completed in 2023.
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Baseline Environmental and Social Study Update
The Company anticipates completion of an updated Baseline Environmental and Social Study
in H1 2023. The updated study is being completed by a qualified independent engineering
firm building on the work previously completed in 2015. The study includes comp ilation of
social baseline data, collection of physical environmental baseline data, engagement with
relevant stakeholders, gathering of relevant supplementary data, as well as recommendations
for next steps. Specific field work included surface water quality and use, ground water quality
testing, climate, air quality and noise, geology, soil sampling and analysis, terrestrial ecological
survey, and an aquatic biology/biodiversity assessment. The socio -economic baseline survey
also includes interviews with key informants, focus group discussions, general surveys, and
stakeholder engagement and consultations. This is an important step in further advancing and
de-risking the Enchi Gold Project towards a future production decision.
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 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 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 Indicated Mineral Resource of 743,500 ounces of
gold at 0.55 g/t and an Inferred Mineral Resource of 972,000 ounces of gold at 0.65 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 km 2 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