Newcore Gold Completes Pre-Feasibility Study for Enchi Gold Project in Ghana
Newcore Gold Ltd. has completed a pre-feasibility study (PFS) for its Enchi Gold Project in Ghana. The study outlines a conventional open-pit mining operation with processing, indicating significant economic potential.
Vancouver, BC – Newcore Gold Ltd. has concluded a pre-feasibility study (PFS) for its Enchi Gold Project located in Ghana. The study outlines a plan for a conventional open-pit mining operation with integrated milling and carbon-in-leach (CIL) processing, which will serve as the basis for applying for a mining lease later this year.
The PFS indicates a post-tax net present value (NPV5%) of $647 million at a $4,200/oz gold price and a post-tax internal rate of return (IRR) of 45%. Using a gold price of $3,800/oz, the pre-tax NPV5% is $794 million with a pre-tax IRR of 51%.
Initial capital costs are estimated at $351 million. The study forecasts an average annual gold production of approximately 130,000 ounces for the first three years, with an average all-in sustaining cost (AISC) of $1,967 per ounce during that period. Over the projected 9.3-year mine life, the project is expected to produce 953,350 payable ounces of gold at an average grade of 0.64 g/t.
Newcore Gold is currently undertaking an 80,000-meter drilling program at Enchi aimed at growing the mineral resource. Recent drilling results have intersected higher-grade mineralization at depth, which are not yet incorporated into the current study, pointing to potential for future resource expansion.