(Kitco News) Newcore Gold is moving its Enchi gold project in Ghana’s Bibiani Shear Zone toward a pre-feasibility study expected in June 2026, as expanded drilling and technical work continue to define both exploration upside and leverage to higher gold prices.
Speaking with Kitco Mining’s Investment Trends, President and CEO Luke Alexander said the company has increased its drill program to 45,000 meters, while much of the project area remains largely untested. “We’re still just scratching the potential across our entry project,” Alexander said. He added that Newcore has “identified over 25 targets to date across the project, of which we’ve only drilled on nine,” underscoring the early stage of exploration across the broader land package.
Following a phase focused on upgrading resources from inferred to indicated, drilling has returned to higher-grade exploration. Alexander notes recent drilling marked the first time visible gold has been encountered by drilling at Enchi, which he described as an important step in confirming the project’s geological model. “They’re proving up our geological understanding of the project,” he said, noting that higher-grade feeder zones have been a key driver of long-term resource growth at other gold operations along the Bibiani Shear Zone.
Alexander also pointed to depth as a significant source of opportunity at Enchi. He said drilling completed to date averages roughly 100 meters vertically, compared with nearby Ghanaian mines that are “mining at eight times deeper than the average vertical on our project.” He added that extending drilling along known structures could support further resource growth as work progresses deeper.
In parallel with exploration, Newcore is advancing engineering and optimization work ahead of the pre-feasibility study. Alexander said the project’s 2024 preliminary economic assessment was completed using a gold price of $1,850 and outlined average annual production of about 122,000 oz over a mine life of roughly nine years, supported by strong economics and a short payback period under those assumptions.
Alexander also highlighted the project’s sensitivity to gold prices, that “For every $100 move in the gold price, we add roughly after tax $50 million to the net present value, the NPV of the project.” He added that updated assumptions and optimization work could materially influence valuation as Enchi advances beyond the PEA stage.
Alexander said the current drill program and pre-feasibility work are fully funded. “The 45,000 meters that we’ve drilled, the PFS work that I’ve talked about, all of that is funded from the cash that we have in the bank today,” he said. He also pointed to the expiry of in-the-money warrants on Feb. 27, 2026, which could provide additional capital to expand drilling and advance work toward a full feasibility study.
Alexander said the company is targeting a potential production decision by 2029, citing Ghana’s established mining framework and government support for mine development as factors that support a relatively accelerated timeline.
Looking ahead, Alexander said key catalysts through 2026 include continued drill results, delivery of the pre-feasibility study, and clarity on the next phase of development. “Once you de-risk projects like this, the market starts to look at them very differently,” he said.
Watch the full interview on Kitco Mining’s YouTube channel for Luke Alexander’s full discussion on Enchi’s exploration potential, gold price leverage, and how rising prices are influencing development decisions across Africa.
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