This is a great piece of land in a great neighborhood. A long history of active exploration and mining has defined a prolific, regional structure that stretches hundreds of kilometers - and Enchi covers a significant part of it with district-scale, multi-million ounce potential.
Greg Smith, VP Exploration
|Status||1.2 million ounce inferred1 gold resource, drilling underway to expand resources|
Overview: On Trend with Some of Ghana’s Most Successful Mines
The vast Enchi Gold Project hosts a 1.2 million-ounce inferred1 gold resource in a district hosting several 5 million-ounce gold deposits. This 216km2 land package covers 40 kilometers of Ghana’s prolific Bibiani Shear Zone. The property remains substantially underexplored, with some of the highest geophysical anomalies yet to be tested by drilling.
On Structure with the Chirano Mine
The Chirano Mine, owned by Kinross Gold, is located 50 kilometers to the north. Production at Chirano in 2019 totaled 201,296 ounces of gold equivalent. Enchi is situated on the same structure as Chirano with comparable geology, alteration and mineralization.
Depth Potential - Comparison with Chirano Mine
The multi-million-ounce Chirano Gold Mine (Kinross Gold), located 50 kilometres northeast of Enchi, hosts plunging zones of high-grade gold mineralization (see diagram below). The Chirano zones are similar to those found at Enchi, including known zones Boin, Sewum and Nyam. Like Chirano, the zones at Enchi have lower grade gold at surface. Drilling completed at Enchi has averaged a depth of only 50 metres to date, with a maximum vertical depth of 175 metres. The zones remain open to depth.
The Current Enchi Resource1
|Cut-Off (g/t Au)||Tonnes||Grade (g/t Au)||Contained Gold|
1 Inferred Resource Disclaimer:
1. CIM definition standards were followed for the resource estimate.
2. The 2020 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids and constrained by whittle pits shell.
3. A base cut-off grade of 0.3 g/t Au was used with a capping of gold grades at 18 g/t.
4. A US$1,500/ounce gold price, open pit with heap leach operation was used to determine the cut-off grade of 0.3 g/t Au. Mining costs of US$2.27/mined tonne and G&A and Milling costs of US$9.84/milled tonne. The Inferred Mineral Resource Estimate is pit constrained.
5. A density of 2.45 g/cm3 was applied.
6. Numbers may not add due to rounding.
7. Mineral Resources that are not mineral reserves do not have economic viability.
8. The resource estimate was prepared by Todd McCracken, P.Geo, of WSP Canada Inc. Todd McCracken is an independent qualified person ("QP") as defined by National Instrument 43-101.
9. Mr. Gregory Smith, P.Geo, the Vice-President of Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information.
10. These numbers are from the technical report titled "Enchi Gold Project, Resource Update, Enchi, Ghana", with an effective date of October 21, 2020, prepared by Todd McCracken, P. Geo. and Greg Smith, P. Geo in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and is available under Newcore's SEDAR profile at www.sedar.com.
Excellent Resource Expansion Potential - Laterally and at Depth
Drilling completed at Enchi has averaged a depth fo 50 metres to date, with a maximum vertical depth of 175 metres and has not gone deeper than 200 metres. Most resources and reserves of mines on the Bibiani Trend lie below 200 meters.
Several high-priority gold targets have been identified to expand the already substantial, near-surface oxide resource with multi-million ounce opportunities:
Considering the positive results of the latest resource update, the shallow drilling completed to date and number of untested anomalies, there is excellent potential to expand the current resource.
For 2020, Newcore Gold initially announced plans to conduct 8,000 metres of drilling to expand the current resource, with a significant increase announced in early November 2020 to expand the drill program by 50,000 metres. Both discovery and resource expansion drilling is planned. The principal targets will be the Boin, Nyam and Sewum Zones which constitute the existing resource as well as Kojina, Nkwanta and Kwakyehkrom where work has been done and geophysical anomalies exist. An updated Inferred Mineral Resoure Estimate was announced September 14, 2020 and included drilling completed in 2017 and 2018.
The expanded drill program for 2020 - 2021 will include both RC and diamond drilling and will include the first deep drilling planned on the project. RC drilling will be focused on near-surface oxide gold targets while diamond drilling will focus on targets at depth.