Proactive Investors - Newcore Gold (TSX-V:NCAU, OTCQX:NCAUF) is advancing the Enchi project in Ghana, Africa's largest gold producer. With a large land package in the prolific Bibiani gold belt with neighbours such as Newmont Gold, investors are eagerly waiting to see an updated look at the project's economics in a high gold price environment.
At PDAC 2024, CEO Luke Alexander joined Proactive's Angela Harmantas to discuss the next steps at Enchi.
Proactive: We are at PDAC 2024. I'm joined now by Luke Alexander, who's the CEO of Newcore Gold (TSX-V:NCAU, OTCQX:NCAUF). Luke. It's lovely to meet you. Thanks for joining us.
LA: Thanks for having me.
Tell us a little bit about the company. You've got the Enchi project in Ghana, a big gold-producing country.
Ghana is Africa's largest gold producer, sixth globally. Newcore Gold (TSX-V:NCAU, OTCQX:NCAUF), a TSX listed company with a district scale exploration project that is fundamentally underpinned by a robust PEA from 2021, with an update expected in H1 2024 to incorporate a larger resource.
How does Enchi stack up against some of the bigger projects in the Bibiani gold belt?
With 200 million ounces discovered, Ghana hosts significant operations by top producers. Three of the top 10 largest gold producers on the planet have operations there. Newmont, the biggest gold producer globally, has a significant project called Ahafo to the north of us. There are a number of five million-ounce-plus deposits along trend from us. Newcore Gold benefits from a large land package, with over 95,000 meters drilled in three years and a couple of resource updates. We’re planning to put out an updated preliminary economic assessment in the first half of 2024.
Given gold's performance, how do you view the project's economics?
Our 2021 PEA outlined $100 million in capex for 100,000 ounces of production and a $300 million NPV at $1,850 gold price. The upcoming PEA will reflect a larger, de-risked resource. We’ve also done a lot of metallurgical testwork and social impact studies, which are critical aspects to derisking the project and be an integral part of our upcoming PEA.
Thank you, Luke, for your insights.
You're welcome.