Newcore Gold: PFS for Very Robust Gold Project in Ghana Coming in June 2026

Key Concepts

• Enchi Gold Project: A district-scale exploration project located in Ghana.
• PFS (Pre-Feasibility Study): A comprehensive study used to determine the economic viability of a mining project, serving as a major valuation catalyst.
• CIL (Carbon-in-Leach): A gold extraction process chosen for the project due to superior recovery rates (89–98%) compared to heap leaching.
• Inferred vs. Indicated Resources: Categories of mineral resources; "Indicated" provides higher confidence for economic studies like a PFS.
• High-Grade Feeder Zones: Geological structures that often contain higher concentrations of gold and are key to expanding the total resource size.
• Leverage to Gold Price: The sensitivity of a project's Net Present Value (NPV) to fluctuations in the market price of gold.

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1. Project Overview and Strategy

New Core Gold is advancing the Enchi Gold Project in Ghana. The company is currently executing a 60,000-meter drill program. The strategy is divided into two phases:

• Infill Drilling (Completed): 28,000 meters focused on converting "Inferred" resources to "Indicated" status to de-risk the project for the upcoming PFS.
• Exploration Drilling (Ongoing): 32,000 meters targeting high-grade structures and testing strike extensions to grow the overall resource.

2. Resource Growth and Geological Thesis

The company’s geological thesis is based on the potential for deep, high-grade mineralization, similar to neighboring deposits like Bibiani (6.5M oz) and Newmont’s Ahafo mine (20M oz).

• Current Depth: The current resource is constrained by pits averaging only 85 meters in depth.
• Growth Potential: Management believes the project can reach 5 million ounces or more by targeting deeper high-grade feeder zones, as seen in successful regional peers.
• Recent Results: Notable intercepts include 146 g/t over 1 meter and 175 g/t over 1 meter, confirming the presence of high-grade material below existing pits.

3. PFS and Technical Methodology

The upcoming PFS (due June 2024) marks a shift in processing strategy:

• CIL vs. Heap Leach: Based on metallurgical test work showing 89–98% recoveries, the company has opted for a CIL (Carbon-in-Leach) plant.
• Economic Benefits: While CIL has higher initial CAPEX, it allows for better mine sequencing, enabling the extraction of higher-grade material in early years, which improves the project's NPV and cash flow.
• Sensitivity: Every $100 move in the gold price increases the project's after-tax NPV by approximately $50 million USD, representing significant leverage for shareholders.

4. Management and Financial Position

• Skin in the Game: Management and the board own 13% of the company, ensuring strong alignment with shareholders.
• Track Record: The leadership team includes co-founders of Caliber Mining (acquired by Equinox) and Newmarket Gold (acquired by Kirkland Lake Gold for $1.4 billion), demonstrating a history of successful project development and exit strategies.
• Funding: The company is fully funded for the 60,000-meter drill program and the PFS, with approximately $12 million USD in the bank as of the interview date.

5. Milestones and Timeline

• June 2024: Release of the Pre-Feasibility Study (PFS).
• 2027 (H2): Target for a full Feasibility Study.
• 2028: Planned construction.
• 2029: Targeted commencement of production.

Synthesis

New Core Gold is transitioning from a junior explorer to a developer by de-risking the Enchi project through a rigorous infill drilling program and a shift to a CIL processing model. With a proven management team, a strong cash position, and significant leverage to the gold price, the company views the upcoming PFS as the primary catalyst for a market re-rating. The project remains open at depth and along strike, providing a clear pathway to grow the resource toward the 5-million-ounce target.