Newcore Gold limited has intersected its strongest drill interval to date beneath the reserve pit shell at its flagship Enchi gold project in Ghana, significantly boosting potential for a larger mining operation than previously defined.
The high-grade results were led by diamond drill hole NBDD088 at the Nyam target deposit, which cut 25.3 metres grading 3.67 grams of gold per tonne from 307.7 metres downhole, directly beneath the pit shell constraining current reserves.
Another key hole, NBDD091, returned 18 metres at 1.26 grams per tonne from 300 metres downhole, including a higher-grade sub-interval of 9 metres at 2.31 grams per tonne.
Located in southwestern Ghana, roughly 290 kilometres west of Accra, the property is demonstrating strong depth growth across multiple target structures.
Confirming the strategic impact, Haywood Securities analyst Marcus Giannini highlighted that the firm maintains its view that “Enchi’s metal endowment will ultimately support a larger scale mining operation than that outlined in the project’s recently released PFS”.
“Importantly, drilling is encountering wide zones of mineralization well above the currently defined resource grade, continuing to support the opportunity to prove out higher-grade gold in future economic studies.”
CEO Luke Alexander
Technical Proof and Depth-Growth Case at Nyam
The latest drilling results incorporate five diamond holes totaling 1,489 metres across four sections spanning 410 metres along strike at the Nyam deposit.
Every hole successfully intersected gold mineralization, with true widths estimated at 75% to 85% of reported core lengths. Hole NBDD088 in particular proves that mineralization remains continuous and robust well below the current pit boundaries that define the project’s maiden mineral reserve.
Historically, drilling across the Nyam deposit reached average vertical depths of only 100 metres, whereas this year’s deepest diamond drilling extended down to 275 metres vertically.
This shallow historical testing leaves substantial room for engineers to reshape proposed pit shells and pull higher-grade feed into future mine schedules.
Geologically, the Enchi project shares key structural controls with Asante Gold’s nearby Chirano mine, situated 50 kilometres to the northeast, where gold mineralization extends beyond 800 metres below surface.
Although additional geological work is necessary to confirm the full comparison, the depth continuity observed at Nyam strengthens the case for deep-seated mineralization across the district.
Prefeasibility Baseline and Mining Economics
Crucially, these new drill results were excluded from Newcore’s June prefeasibility study (PFS) as well as the March resource update, creating clear scope for future reserve expansion.
The June PFS outlined a 5.5-million-tonne-per-year open pit and milling operation designed to produce approximately 953,000 ounces of gold over a 9.3-year mine life.
The baseline model forecasts average annual output of 104,000 ounces, reaching 129,000 ounces annually over the initial three years when processed head grades average 0.8 grams per tonne.
Evaluated at a gold price of $3,800 per ounce, the PFS estimated an after-tax net present value (discounted at 5%) of $496 million, an internal rate of return of 37%, and a rapid 1.6-year capital payback against upfront construction costs of $351 million.
Nyam currently holds indicated resources of 13.5 million tonnes grading 0.66 g/t Au (287,000 ounces) and inferred resources of 5.5 million tonnes at 0.68 g/t Au (120,000 ounces).
Strategic Implications and Valuation Disconnect
Discovered high-grade zones beneath existing pit constraints carry significant commercial implications for Newcore Gold. Incorporating higher-grade ore early in the mine life would elevate overall head grades, lower unit operating costs per ounce, and enhance the project’s net cash flows.
Newcore is operating four rigs on site, balancing shallow infill drilling for resource conversion with deep diamond exploration to uncover higher-grade feeder structures.
Despite these operational achievements, Newcore’s equities reflect a sharp valuation disconnect relative to its peers.
Brokerage calculations by Haywood Securities show Newcore trading at just 0.14 times estimated net asset value, compared to a peer average of 0.44 times.
Similarly, its enterprise value sits at $28 per resource ounce versus the peer average of $213—a valuation gap linked to conservative PFS cost assumptions and broader weakness in junior gold equities.
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