Newcore Gold Ltd. (TSX-V: NCAU, OTCQX: NCAUF) has announced a significant 24% increase to the mineral resource estimate for its Enchi Gold Project in Ghana, boosting the project’s total gold inventory to 2.13 million ounces. The updated resource, prepared in accordance with National Instrument 43-101 standards, now comprises 1.5 million indicated ounces and 626,000 inferred ounces.
This marks a substantial increase from the previous estimate of 1.72 million ounces published in January 2023, with indicated ounces more than doubling over the past three years. The upgrade incorporates approximately 28,000 metres of infill reverse circulation drilling completed in 2024 and 2025, along with additional diamond drilling for metallurgical, geotechnical, and hydrogeological purposes.
Luke Alexander, President and CEO of Newcore Gold, highlighted that the substantial conversion of resources to the indicated category significantly de-risks the project and will form the foundation for the pre-feasibility study currently underway. The Enchi project covers a 248-square-kilometre land package along Ghana’s prolific Sefwi-Bibiani gold belt, which hosts several multi-million-ounce producing mines.
All four pit-constrained deposits – Sewum, Boin, Nyam, and Kwakyekrom – remain open along strike and at depth, with most drilling to date reaching only an average depth of 125 metres. Recent drilling at the Boin deposit has returned exceptional high-grade intercepts, including 3.54 grams per tonne gold over 23 metres and visible gold grades exceeding 147 grams per tonne over one metre intervals.
A 2024 preliminary economic assessment previously outlined a nine-year open-pit, heap-leach operation capable of producing approximately 122,000 ounces annually. Based on a 5% discount rate and a $1,850 per ounce gold price, the project demonstrated an after-tax net present value of $371 million with a 58% internal rate of return.
Initial capital was estimated at $106 million, with an after-tax payback period of just 1.6 years. The company is currently advancing a 60,000-metre drilling campaign at Enchi targeting high-grade potential at depth, with the pre-feasibility study targeted for completion by the end of June 2026.
Haywood Securities mining analyst Marcus Giannini characterized the resource update as a positive de-risking event that reflects a successful resource conversion campaign and solid overall resource growth. Giannini further noted that the project has significant untapped potential, with ample room for additional resource growth from strike and depth extensions across existing zones and regional targets. The resource estimate was calculated using a $3,200 per ounce gold price, reflecting robust market conditions amid a strong gold price environment supported by central bank buying and global economic uncertainty.
Ghana remains Africa’s largest gold producer and a well-established mining jurisdiction, factors that continue to attract junior explorers and developers seeking scalable projects with existing infrastructure. Newcore shares traded 3.2% lower at 60 Canadian cents following the announcement, giving the company a market capitalization of approximately C$171 million.
The stock has traded between C49.5 cents and C92 cents over the past year. As the company advances toward its pre-feasibility study milestone, investors will be watching closely for continued resource growth from the ongoing drill program and the economic parameters to be outlined in the upcoming study.
