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(Kitco News) – Newcore Gold (TSX-V: NCAU, OTCQX: NCAUF) today announced the positive results of an updated Preliminary Independent Economic Assessment (“PEAâ€) completed for the Enchi Gold Project held at 100 % by the company in Ghana.
The company said the updated PEA envisions an open pit heap leach operation with a low stripping ratio using contract mining and processing of 6.6 mtpa. The heap leach facility will be constructed in three phases. Heap leach feedstocks will be trucked from four fields to a central crushing and heap leach facility to be located near Sewum, the largest deposit currently defined at Enchi.
According to the PEA findings, at a gold price of $ 1,650 / oz, the project generates $ 333 million of pre-tax net present value discounted at 5% (“NPV5%”) and an internal rate of return before 54% tax (“IRR” “), $ 212 million after-tax NPV 5% and an after-tax IRR of 42%.
At a gold price of $ 1,850 / oz, the 5% pre-tax NPV rises to $ 471 million and the IRR to 69%. Initial capital costs are estimated at $ 97 million, with a short after-tax return on investment of 2.3 years, the company said.
The PSE also reflects an updated inferred mineral resource, limited in the pit, of 70.4 million tonnes grading 0.62 grams of gold per tonne containing 1.4 million ounces of gold. Only 20,195 meters of drilling from the ongoing 66,000-meter drill program was included in the updated mineral resource estimate, the company noted.
The Enchi Gold Project is located in southwestern Ghana, with a 216 km2 plot of land covering approximately 40 km of Ghana’s prolific Bibiani Shear Zone, a gold belt that is home to several multi-million gold deposits. ounces. Enchi is located 50 km south of Kinross’ Chirano gold mine.
Newcore believes the project and the economy “have a huge advantage” in expanding resources from both shallow and near-surface oxide mineralization, but also higher grade structures as the company begins. to be defined in depth.
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