Newcore Gold estimates Enchi resources, Ghana

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Newcore Gold Ltd. [NCAU-TSXV; NCAUF-OTCQX] reported results of an updated, independent NI 43-101 mineral resource estimate for the 100%-owned Enchi gold project in Ghana.

The program 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; defined an inferred mineral resource of 972,000 gold ounces; 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 mineralization.

A fifth deposit was added 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.

This does not include approximately 38,000 metres of drilling which focused on greenfield discoveries and high-grade sulphide mineralization at depth, highlighting the multimillion-ounce potential of the 216-square-kilometre district-scale property; and

The work further supports and de-risks the strong economics outlined in the 2021 preliminary economic assessment (PEA). The resource has an effective date of Jan. 25, 2023, is reported using a constraining resource pit at a gold price of US$1,650/oz, and consists of Indicated mineral resource of 743,500 ounces of gold at an average grade of 0.55 g/t gold and totalling 41,736,000 tonnes.

Inferred resources stand at 972,000 ounces of gold averaging 0.65 g/t gold and totalling 46,556,000 tonnes. Underground inferred resources are of 135,900 ounces gold at 2.42 g/t gold.

Initial inferred mineral resource at Tokosea of 46,900 ounces gold at 0.75 g/t gold. 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 averaging 0.97 g/t gold and an inferred mineral resource of 580,900 ounces of gold  averaging 1.04 g/t gold. This does not include the underground inferred mineral resource of 135,900 ounces averaging 2.42 g/t gold.

The resource builds on the last completed mineral resource estimate (MRE) released on June 8, 2021, 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 mineralization at depth, showcasing the district-scale exploration opportunity at Enchi.

Luke Alexander, president and CEO, stated: “We are thrilled with the outcome of this resource update for our Enchi gold project in Ghana. This resource 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 derisk the project towards future development. 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 multidecade mine with not only near-surface, open-pit oxide gold resources but also resource growth from high-grade sulphide mineralization at depth. We are excited to continue to aggressively advance Enchi, both via a focus on defining the exploration potential with drilling, but also via derisking work such as baseline studies and metallurgical testwork that continues to advance the near-term development potential of the project.”

Greg Smith, vice-president of exploration, stated: “In tandem with derisking 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 deeper sulphide mineralization. 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 multimillion-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.”

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