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Newcore delivers robust PEA for Enchi gold project in Ghana

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(Kitco News) - Newcore Gold (TSX-V: NCAU, OTCQX: NCAUF) today announced the positive results of an updated independent preliminary economic assessment ("PEA") completed for the company's 100%-owned Enchi gold project in Ghana.

The company said that the updated PEA contemplates an open pit, heap leach operation with a low strip ratio using contract mining and processing 6.6 mtpa. The heap leach facility will be built in three phases. Heap leach feed material will be trucked from four deposits to a central crushing and heap leach facility which will be located near Sewum, the largest currently defined deposit at Enchi.

According to the PEA findings, at a gold price of $1,650/oz, the project generates $333 million pre-tax net present value discounted at 5% ("NPV5%") and a 54% pre-tax internal rate of return ("IRR"), $212 million after-tax NPV5%, and a 42% after-tax IRR.

At a gold price of $1,850/oz, pre-tax NPV5% increases to $471 million and IRR to 69%. Initial capital costs estimated at $97 million, with a short after-tax payback of 2.3 years, the company said.

The PEA also reflects an updated, pit constrained, inferred mineral resource of 70.4 million tonnes grading 0.62 grams per tonne gold containing 1.4 million ounces gold. Only 20,195 metres of drilling from the ongoing 66,000 metre drill program was included in the updated mineral resource estimate, the company noted.

The Enchi gold project is located in southwest Ghana, with the project's 216 km2 land package covering approximately 40 kms of Ghana's prolific Bibiani Shear Zone, a gold belt which hosts several multi-million-ounce gold deposits. Enchi is located 50 km to the south of Kinross' Chirano gold mine.

Newcore believes that the project and economics "have a tremendous amount of upside" from resource expansion both from shallow, near surface oxide mineralisation, but also from the higher-grade structures that the company is starting to define at depth.

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