New Drilling Progress at Nzema Gold Mine in Ghana

According to a report on Mining.com, Newcore Gold encountered a 15-meter ore intersection at a depth of 122 meters in the Boin deposit of its Enchi project in southwestern Ghana, with a gold grade of 3.83 grams per metric ton (g/t).

◎Hole KBRC352 also intersected a 56-meter ore zone in the north-central part of the deposit, with a gold grade of 2.25 g/t.

◎Hole KBRC353 intersected a 24-meter ore zone from the surface, with a gold grade of 2.15 g/t.

◎Hole KBRC355 intersected a 29-meter ore zone at a depth of 26 meters, with a grade of 2.13 g/t.

"The drilling at the Enchi project, which has covered 35,000 meters, continues to yield positive results, with the Boin deposit delivering the best ore intersections to date," said Luke Alexander, the company's President and CEO, in a press release.

"The drilling has not only revealed encouraging widespread mineralization but also demonstrated excellent continuity of orebody distribution. However, the drilling has intermittently intersected ore zones with grades significantly higher than the average grade of the current resource estimate."

The drilling results in the southeastern part of the Boin deposit have also been very positive. Hole KBRC344 intersected a 72-meter ore zone at a depth of 104 meters, with a grade of 1.16 g/t, including a 10-meter ore zone at 114 meters with a grade of 3.06 g/t, and a 38-meter ore zone at 190 meters with a gold grade of 1.74 g/t, including a 7-meter ore zone at 218 meters with a gold grade of 3.67 g/t.

The above results are from the analysis of 17,592 meters of drilling in 142 holes at the Enchi project since the end of last year.

The Enchi gold project, covering an area of 248 square kilometers, is located in the Bibiani shear zone in Ghana, where several gold deposits with multi-million-ounce resources have been discovered. These include the Chirano gold mine operated by Kinross Gold to the north and the Bibiani gold mine operated by Asante Gold to the northeast.

The company stated that the current infill drilling is aimed at upgrading inferred resources to indicated resources ahead of a pre-feasibility study scheduled for later this year.

The Boin deposit is one of five deposits in the Enchi project. Currently, the project has indicated ore resources of 41.7 million mt at a grade of 0.55 g/t and inferred ore resources of 46.6 million mt at a grade of 0.65 g/t.

The Enchi project is located approximately 400 kilometers west of Accra, the capital of Ghana, near the border with the Republic of Côte d'Ivoire.

In April last year, an updated preliminary economic assessment of the Enchi project indicated a net present value of $371 million, based on a gold price of $1,850 per ounce. The initial construction investment is estimated at $106 million. The mine is expected to have a 9-year life, with an annual ore production of 8.1 million mt from an open pit, processed through heap leaching.The full cost is $1,018 per ounce.