Modern Mining September 2022

GOLD

Newcore’s Enchi project – a star in the making

Hot on the heels of its recent resource upgrade, gold explorer Newcore Gold has completed a further $5-million injection to firm up the resource base of the highly prospective, well-located Enchi Gold project that will take it up the value-curve. “But, will an improved value proposition be attractive enough to see the new kid on the mining block develop the project into a 5 moz asset, or is it eager to off-load the lucrative asset to a mid-tier or mining major waiting in the wings to take it off the explorer’s hands,” asks Modern Mining’s Nelendhre Moodley.

CEO Luke Alexander.

L ocated on one of Ghana’s two prolific gold producing belts, the Enchi project is situated in the southwest of the country along the Bibiani Shear Zone. Southern Ghana is considered one of the world’s most productive regions for gold discoveries, with both gold majors, Gold Fields and AngloGold Ashanti, and a host of explorers enjoying success in the area. “The Enchi project is a 1,4-million-ounce asset in a district hosting several 5-million ounce gold depos its. The project stretches along more than 40 km of the Bibiani Shear Zone,” says Newcore’s CEO Luke Alexander. Located on a 216 km² tenement, the district-scale Enchi project has already identified four deposits and an additional five mineralised zones and priori tised numerous targets for further investigation. The TSXV-listed explorer recently completed a

90 000-metre drill programme that significantly expanded the mineralised footprint of the Enchi Gold project and, according to Alexander, Newcore’s multi-pronged exploration approach delivered on its goals

of successfully outlining the potential resource growth along strike at all four deposits (Sewum, Boin, Nyam, Kwakyekrom). “Our multi-pronged exploration approach deliv ered on the objectives we set out at the start. We outlined near surface resource expansion poten tial along strike at all four of our existing deposits; achieved strong results from drilling at previously drilled areas; encountered high-grade intercepts at depth, which outlined the potential for delineat ing underground resources, and made three new Greenfield discoveries. We have only just scratched

Newcore Gold has completed a further $5-million injection to firm up the resource base of the Enchi Gold project. Right: The Enchi project is a 1,4-million-ounce asset in a district hosting several 5-million ounce gold deposits.

the surface of the gold potential at Enchi. We look forward to continuing to unlock the value of Enchi through exploration. In fact, the next phase drill programme is already planned for later this year,” Alexander explains Newcore raised $5 million in July, increasing its cash position to $6.5 million which will fund its next phase of drilling and resource update in Q4 of 2022. The Enchi project area is a substantially underexplored area consisting of several high priority geochemical and geophysi cal anomalies yet to be tested by drilling. “Considering the positive results from the latest resource update and the large number of untested anomalies, there is excellent potential to expand the current resource,” says Alexander. “Further to this, the recently completed drilling pro gramme identified high-grade gold zones at depth. To date, Enchi has been drilled

20  MODERN MINING  September 2022