After-Tax NPV5% of $371 million, After-Tax IRR of 58% at $1,850/oz Gold,
Average Annual Gold Production of ~120,000 ounces
April 25, 2024 TSX-V: NCAU, OTCQX: NCAUF
Vancouver, BC – Newcore Gold Ltd. ("Newcore" or the "Company") (TSX-V: NCAU,
OTCQX: NCAUF) is pleased to announce positive results from the independent, updated
Preliminary Economic Assessment ("PEA") completed for the Company’s 100%-owned Enchi
Gold Project ("Enchi" or the "Project") in Ghana. The PEA was led by Lycopodium Minerals
Canada Limited ("Lycopodium") of Toronto, Canada and provides a base case assessment of
developing Enchi as a low capital intense, open pit, heap leach operation, processing 8.1
million tonnes per annum ("mtpa") utilizing contract mining. The PEA incorporated updated
costing as well as development work completed on the Project since 2021 including a larger
Mineral Resource Estimate completed in 2023, a significant amount of bench-scale and bulk
sample metallurgical testwork and an updated environmental and social baseline study. All
currencies in this news release are reported in U.S. dollars.
Highlights from the PEA at Enchi
• Strong project economics with low capital intensity.
o At a gold price of $1,850/oz: $586 million pre-tax net present value discounted at
5% ("NPV5%") and a 77% pre-tax internal rate of return ("IRR"), $371 million after-tax NPV5%
and a 58% after-tax IRR.
o At a gold price of $2,350/oz: $987 million pre-tax NPV5% and a 127% pre-tax IRR,
$632 million after-tax NPV5% and a 92% after-tax IRR.
o Initial capital costs estimated at $106 million (including a 20% contingency), with a short
after-tax payback of 1.6 years.
• Robust production profile with a low-cost structure driven by a technically
straightforward, open pit, heap leach operation and low strip ratio.
o Average annual gold production of 121,839 ounces; peak gold production in year 6 of
155,188 ounces; 1.1 million ounces gold recovered over a 9-year life of mine ("LOM").
o LOM strip ratio of 2.67 to 1, mined grade of 0.60 g/t Au and gold recovery of 81.8%.
o LOM operating costs (1) estimated at $801/oz of gold, cash costs (2) estimated at $934/oz
of gold, LOM all-in sustaining costs (AISC) (3) estimated at $1,018/oz of gold.
• Economics incorporate significant development work completed since 2021.
o The PEA incorporated the Mineral Resource Estimate completed in 2023 which reflected
the addition of approximately 34,000 metres of Reverse Circulation ("RC") and diamond
drilling completed in 2021 and 2022.
o Significant metallurgical testwork completed to date, highlighting the Project’s
amenability to heap leach processing. Advanced metallurgical testwork consists of more
than 390 tests including bottle rolls, column tests and two bulk-scale pilot heap tests. see & read more on
https://newcoregold.com/site/assets/files/5847/2024_04_25_-_ncau_nr_-_enchi_updated_pea_-_sedar.pdf