en.Wedoany.com Reported - Newcore Gold Ltd (NCAU:TSXV; NCAUF:OTCQX) has released the results of a detailed pre-feasibility study (PFS) for its Enchi Gold Project in Ghana, which has entered a critical phase. Ghana is Africa's largest gold producer, and the current gold market is supported by central bank purchases and geopolitical factors. Gold prices briefly hit a record level above $5,000 per ounce before retreating to around $4,041.90 per ounce on June 29. Analysts at S&P Global noted that gold remains volatile but supported by demand; Brian Taylor of Recycling Today cited a World Bank forecast predicting a 17% rise in global metal prices by 2026.
The Enchi mineral rights block covers 40 kilometers of the Bibiani Shear Zone. The PFS completed by Newcore Gold Ltd is based on a conventional 5.5 million tonnes per year grinding and carbon-in-leach (CIL) operation, utilizing contract mining, replacing the heap leach process assumption in the earlier preliminary economic assessment (PEA).
The PFS outlines a mine life of 9.3 years, with average annual gold production of 104,000 ounces and peak production of 136,709 ounces. At a gold price of $3,800 per ounce, the after-tax internal rate of return is 37%, with an after-tax net present value (NPV) of $496 million at a 5% discount rate; at the spot price of $4,200 per ounce used in the study, the NPV rises to $647 million. Initial capital expenditure is $351 million, with a payback period of 1.6 years at $3,800 per ounce gold, further shortening at higher gold prices. An 80,000-meter drilling program is underway, with four rigs testing depth extensions and high-grade zones below the current pit design. Management and insiders hold 13.35% of shares, institutions hold 24%, and retail investors hold the remaining 312.7 million shares outstanding. Recent proceeds from a $15 million financing provide the company with funding to expand resources and submit a mining lease application in the second half of 2026.
The PFS assumes a conventional carbon-in-leach process rather than heap leaching, aiming to maximize economic returns by improving recovery rates of the Enchi gold mineralization. This process is widely used in the industry and typically achieves higher gold recovery rates than heap leaching for many deposit types, though with higher upfront capital and operating costs. Average production is expected to be approximately 120,000 ounces per year from Years 1 to 3, followed by a long-term average of 104,000 ounces per year; total payable gold over the mine life reaches 953,350 ounces. The study incorporates updated mineral resource estimates, excluding drilling results after 2026.
CEO Luke Alexander noted that the PFS lays the foundation for the mining lease application; Chairman Doug Forster emphasized that there remains significant growth potential beyond the current study. The ongoing drilling program targets shallow high-grade zones and deeper extensions between 200 and 350 meters vertical depth, areas not previously tested in detail. Vice President of Exploration Greg Smith noted that historically, most drilling stopped at the first 150 meters, leaving substantial deep potential across the 248-square-kilometer mineral rights area.
Market reaction to the PFS has been mixed. Chen Lin (What is Chen Buying? What is Chen Selling?) observed that the stock price fell after the release but believes the stock offers value at its current price of around C$0.30, citing potential economic improvements from ongoing drilling. Daniel Flynn of The Gold Advisor gave a "average down" rating, noting that the valuation discount creates an entry opportunity for investors, provided they are comfortable with the development timeline.
Newcore Gold Ltd has a market capitalization of C$118.82 million, with a 52-week price range of C$0.33 to C$0.92. Retail shareholders control the majority of outstanding shares. Upcoming drilling results and the mining lease application are near-term catalysts that could impact valuation.
A pre-feasibility study (PFS) provides a detailed technical and economic assessment of a mining project based on measured and indicated resources, with a confidence level higher than a preliminary economic assessment (PEA) but lower than a feasibility study. The carbon-in-leach method involves grinding ore and using a cyanide solution and activated carbon to recover gold, typically achieving higher recovery rates than heap leaching. The base case uses a gold price of $3,800 per ounce, while the spot scenario of $4,200 per ounce shows significantly higher NPV and faster payback. The company plans to apply for a mining lease by the end of 2026, after which the permitting timeline and further studies will determine construction decisions. Ghana is supportive of mining, but investors should still be aware of the royalty structures and regulatory processes common in this jurisdiction. The PFS provides a solid baseline for Newcore Gold Ltd, with the concurrent drilling program targeting substantial resource growth.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
