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Enchi Overview

This is a great piece of land in a great neighborhood. A long history of active exploration and mining has defined a prolific, regional structure that stretches hundreds of kilometers - and Enchi covers a significant part of it with district-scale, multi-million ounce potential.

Greg Smith, VP Exploration

Locations: Southwest Ghana
Minerals Gold (Au)
Area 216 km2
Ownership 100%
Status 1.4 million ounce Inferred1 Mineral Resource Estimate, drilling underway to expand resources

Overview: On Trend with Some of Ghana’s Most Successful Mines

The Enchi Gold Project currently hosts an Inferred Mineral Resource of 1.4 million ounces1 of gold in a district hosting several 5 million-ounce gold deposits. This 216 km2 land package covers 40 kilometers of Ghana’s prolific Bibiani Shear Zone. The property remains substantially underexplored, with several high priority geochemical and geophysical anomalies yet to be tested by drilling.

On Structure with the Chirano Mine

The Chirano Mine, owned by Asante Gold (previously Kinross Gold), is located 50 kilometers to the north. Chirano produced ~155,000 ounces of gold in 2021 and ~165,000 ounces of gold in 2020. Enchi is situated on the same regional structure as Chirano with comparable geology, alteration and mineralization.

Depth Potential - Comparison with Chirano Mine

The multi-million-ounce Chirano Gold Mine (owned by Asante Gold) hosts plunging zones of high-grade gold mineralization (see diagram below). The Chirano zones are similar to those found at Enchi, including known zones Sewum, Boin, Nyam and Kwakyekrom. Like Chirano, the zones at Enchi have broad lower grade gold at surface with higher grade core structure extending to depth.

Current Inferred Mineral Resource1

Inferred Mineral Resource for the Enchi Gold Project
Zone Tonnes Grade (g/t Au) Contained Gold (ounces)
Sewum 41,009,000 0.55 725,200
Boin 21,807,000 0.72 504,800
Nyam 4,892,000 0.82 129,000
Kwakyekrom 2,703,000 0.64 55,600
Total 70,411,000 0.62 1,414,600

 

Cut-Off Grade Sensitivity of Pit Constrained Inferred Mineral Resource
Cut-Off (g/t Au) Tonnes Grade (g/t Au) Contained Gold (ounces)
0.10 82,210,000 0.56 1,471,000
0.20 70,411,000 0.62 1,415,000
0.30 55,550,000 0.72 1,293,000
0.40 41,619,000 0.85 1,134,000
0.50 32,689,000 0.98 1,026,000

1 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 oxide, 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 Mineral 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. The resource estimate was prepared by Todd McCracken, P.Geo, of BBA E&C Inc in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. Todd McCracken is an independent qualified person ("QP") as defined by National Instrument 43-101.
10. Mr. Gregory Smith, P.Geo, the Vice-President of Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information.
11. 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 by Todd McCracken, P. Geo. 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.

Excellent Resource Expansion Potential - Laterally and at Depth

Drilling completed at Enchi has averaged a depth of 130 metres to date, with a maximum vertical depth of 300 metres. Most resources and reserves of mines on the Bibiani Trend lie below 200 metres.

Several high-priority gold targets have been identified to expand the already substantial, near-surface oxide resource with multi-million ounce opportunities. Considering the positive results of the latest resource update, the shallow drilling completed to date and number of untested anomalies, there is excellent potential to expand the current resource.

2020 - 2022 Enchi Drilling Program

A 90,000 metre discovery and resource expansion drilling program was completed at Enchi in Q2 2022. The program included both RC and diamond drilling and included the first deeper drilling to be completed on the Project. RC drilling focused on near-surface oxide gold targets while diamond drilling focused on targets at depth. Newcore’s multi-pronged exploration approach delivered on its goals: (i) Successfully outlined the potential resource growth along strike at all four deposits (Sewum, Boin, Nyam, Kwakyekrom); (ii) Encountered strong results at previously drilled zones outside of the resource area (Kojina Hill, Eradi); (iii) Intersected high-grade gold at depth, outlining the potential to delineate underground resources; and (iv) Identified new discoveries from successful first pass drilling on early-stage targets (Sewum South, Tokosea, Sewum Ext. Parallel Structure).

Highlights from the 2020 - 2022 Drill Program at Enchi:

  • Largest drill program to ever be completed at Enchi (92,583 metres) with results highlighting the potential for significant resource growth across the Project.
    • All deposits and targets remain open along strike and at depth, with drill results highlighting the potential for resource growth in both shallow oxides and at depth.
  • Drilling intersected the highest-grade gold interval to date, outside the limits of the pit-constrained mineral resource area.
    • RC hole KBRC250 at Boin intersected 95.16 g/t Au over 2.0 m from 109 m.
  • Deepest Drilling to Date Completed on the Project, Intersected High-Grade Mineralization in the Sulphides.
    • Drilling at Nyam defined two northerly plunging high-grade zones down to a depth of 300 metres which remain open for further expansion. Results include hole NBDD048 which intersected 4.51 g/t Au over 13.0 m from 236 m.
  • Three New Discoveries from First Pass Drilling on New Structures.
    • Drilling on a parallel structure at Sewum Extension, located 200 metres east of the Sewum Deposit, intersected 1.98 g/t Au over 25.0 m from 3.0 m in hole SWRC164.
    • Shallow drilling on two of the largest untested anomalies at Enchi, Sewum South and Tokosea, showcased the potential for additional resource areas across the property.

The 2020 - 2022 drill program consisted of 575 holes representing 92,583 metres. The current Mineral Resource Estimate (completed June 2021) incorporated 20,195 metres of this drilling. Select highlighted assay results from the drill program are below:

A complete list of the 2020 - 2022 drill results, including hole details, can be viewed at:
https://newcoregold.com/site/assets/files/5776/2022_07-ncau-enchi-2020-2022-drill-results-l.pdf 

See July 27, 2022 news release for a detailed overview of the drill program:
https://newcoregold.com/news/newcore-gold-completes-90-000-metre-drill-program-significantly-expanding-the-mineralized-footprint-at-the-enchi-gold-project/ 

An updated Inferred Mineral Resource Estimate was announced in conjunction with an updated Preliminary Economic Assessment Study on June 8, 2021. The update incorporated 20,195 metres of drilling completed as part of the 2020 - 2022 drill program.

The 2020 - 2022 drill program was the largest drill program to ever be completed on the Project and was successful in highlighting the district scale potential across the 216 km2 property and the strong potential to delineate additional resources at Enchi. Results from the drill program will be incorporated into an updated Mineral Resource Estimate expected to be completed by the end of 2022. 

Newcore is now planning the next phase of discovery and resource expansion drilling at Enchi.

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