Newcore Gold’s Enchi Project Delivers High-Grade Gold Intercepts: A Catalyst for Resource Expansion?

Newcore Gold ( NGX ) has reported promising drilling results from its Enchi Gold Project in Ghana, intersecting high-grade gold zones that could significantly boost the project’s resource potential. Recent assays from the Nyam Deposit include 2.50 g/t Au over 15.0 metres and 3.00 g/t Au over 10.0 metres, while the Kojina Hill Target yielded 6.80 g/t Au over 2.0 metres in oxidized zones. These results, part of an ongoing 35,000-metre drill program, underscore the project’s exploration upside and its path toward advancing toward a Pre-Feasibility Study (PFS).

Current Status of the Enchi Project

The Enchi Project, covering 248 km² along Ghana’s prolific Bibiani Shear Zone, hosts 743,500 ounces of Indicated Resources (41.7 Mt at 0.55 g/t Au) and 972,000 ounces of Inferred Resources (46.6 Mt at 0.65 g/t Au) as of March 2023. While these figures remain unchanged, the 2025 drilling campaign aims to convert portions of the Inferred Resources to Indicated—a critical step toward advancing the project’s economic viability.

The current 35,000-metre program, 44% complete as of April 2025, focuses on:
1. Infill drilling at deposits like Nyam, Boin, and Sewum to upgrade confidence levels.
2. Exploration drilling at deeper levels and along strike, targeting untested portions of gold-in-soil anomalies.
3. Resource expansion at under-explored targets like Kojina Hill, which lacks a defined resource but has returned strong assays.

Key Drilling Results and Their Implications

Nyam Deposit:
- Recent drilling confirmed continuity of mineralization across a 1.2-km strike and at depth, with intercepts such as NBRC108 (2.50 g/t Au over 15.0m) and NBRC110 (3.00 g/t Au over 10.0m).
- Only 25% of Nyam’s 2.0-km gold-in-soil anomaly has been tested, with mineralization remaining open below 90m depth—a stark contrast to neighboring mines like Chirano, which extend to 1,000m vertically.

Kojina Hill Target:
- Drilling intersected 0.67 g/t Au over 37.0m (including 1.05 g/t Au over 20.0m) and 6.80 g/t Au over 2.0m, highlighting its potential to contribute to future resources.
- Only 50% of its 2.0-km anomaly has been tested, leaving significant exploration upside.

Resource Growth Potential and PFS Milestones

The project’s district-scale potential is bolstered by:
- Untapped depth: Most drilling to date has focused on shallow zones (<125m), while sulfide-rich deeper zones remain largely unexplored.
- Strategic targets: Beyond Nyam and Kojina Hill, deposits like Omanpe and Abotia are undergoing soil sampling and trenching, with early data showing gold anomalies.

The Pre-Feasibility Study, slated for completion in H1 2026, will rely on data from this drilling campaign. Successful infill drilling could increase Indicated Resources, a key metric for attracting financing and advancing toward feasibility.

Investment Considerations

Catalysts for Upside:
- Resource upgrades: Converting Inferred to Indicated Resources could enhance the project’s economics, as Indicated Resources are typically used in PFS calculations.
- Depth potential: If sulfide zones at Nyam and Kojina Hill yield consistent grades, multi-million-ounce growth could follow.

Risks:
- Drilling risks: Exploration remains speculative, and not all targets will reach resource status.
- Commodity price sensitivity: Gold prices below $1,800/oz could impact project economics.

Conclusion: A Project on the Precipice of Expansion

Newcore Gold’s Enchi Project stands at a pivotal juncture. The recent high-grade intercepts at Nyam and Kojina Hill, combined with the project’s vast untested anomalies and district-scale geology, suggest substantial resource growth potential. While the March 2023 resource estimates remain current, the 2025 drilling campaign—particularly its focus on infill and depth—positions the project to deliver a robust PFS in 2026.

Investors should monitor two key catalysts:
1. Updated resource estimates post-PFS, which could redefine Enchi’s value.
2. Drilling results from deeper zones, which may unlock sulfide-rich deposits akin to regional peers.

With 743,500 ounces of Indicated Resources and a land package that hosts 40km of the Bibiani Shear Zone—a structure responsible for multi-million-ounce deposits—the Enchi Project’s trajectory appears promising. For investors seeking exposure to an early-stage gold project with clear growth catalysts, Newcore’s progress in 2025 and beyond warrants close attention.

Disclosure: The author holds no position in Newcore Gold and has no financial ties to the company.