Newcore Gold Announces Updated Mineral Resource Estimate for the Enchi Gold Project, Ghana

-          743,500 Indicated and 972,000 Inferred Gold Ounces

-          Inaugural Indicated Resource De-Risks Project Development; Future Resource Growth from District-Scale Exploration Potential of Both Oxide and Sulphide Mineralisation

March 7, 2023 - Vancouver, BC – Newcore Gold Ltd. ("Newcore" or the "Company") (TSX-V: NCAU, OTCQX: NCAUF) is pleased to announce the results of an updated, independent, Mineral Resource Estimate (the "Resource") prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") for the Company’s 100% owned Enchi Gold Project ("Enchi" or the "Project") in Ghana. The Resource was completed by BBA E&C Inc. ("BBA") of Sudbury, Ontario, Canada. The Resource:

(i)        Successfully outlined an inaugural Indicated Mineral Resource of 743,500 gold ounces with substantial conversion from the Inferred category to the Indicated category, de-risking project development;

(ii)       Defined an Inferred Mineral Resource of 972,000 gold ounces;

(iii)     Established a high-grade underground resource for the first time of 135,900 gold ounces at an average grade of 2.42 g/t gold, proof of concept that outlines the potential for longer-term resource growth from sulphide mineralisation;

(iv)     Added a fifth deposit at Enchi, with an inaugural Inferred Mineral Resource at Tokosea of 46,900 ounces, proving out the potential for mine life extension from the district scale exploration opportunity at the Project;

(v)       Does not include approximately 38,000 metres of drilling which focused on greenfield discoveries and high-grade sulphide mineralisation at depth, highlighting the multi-million-ounce potential of the 216 km2 district scale property; and

(vi)     Further supports and de-risks the strong economics outlined in the 2021 Preliminary Economic Assessment ("PEA").

The Resource has an effective date of January 25, 2023, is reported using a constraining resource pit at a gold price of US$1,650 per ounce, and consists of:

-          Indicated Mineral Resource of 743,500 ounces of gold at an average grade of 0.55 g/t Au and totalling 41,736,000 tonnes; and

-          Inferred Mineral Resource of 972,000 ounces of gold at an average grade of 0.65 g/t Au and totalling 46,556,000 tonnes.

-          Underground Inferred Mineral Resource of 135,900 ounces gold at 2.42 g/t Au.

-          Initial Inferred Mineral Resource at Tokosea of 46,900 ounces gold at 0.75 g/t Au.

-          A higher-grade subset of the open pit Resource, using a 0.50 cut-off grade, consists of an Indicated Mineral Resource of 493,700 ounces of gold at an average grade of 0.97 g/t Au and an Inferred Mineral Resource of 580,900 ounces of gold at an average grade of 1.04 g/t Au. This does not include the underground Inferred Mineral Resource of 135,900 ounces at an average grade of 2.42 g/t Au.

The Resource builds on the last completed Mineral Resource Estimate released on June 8, 2021 (the "June 2021 Resource") and incorporates approximately 34,000 metres of infill and resource expansion Reverse Circulation ("RC") and diamond drilling completed by Newcore between January 2021 and July 2022. Of the 92,583 metres of drilling completed since 2020, approximately 38,000 metres has yet to be incorporated into a mineral resource estimate; this drilling continues to prove out the future resource growth potential at Enchi as these metres highlighted new greenfield discoveries and the potential for high-grade sulphide mineralisation at depth, showcasing the district scale exploration opportunity at Enchi.

Table 1 - Mineral Resource Estimate for the Enchi Gold Project (1)

(1) Notes for Mineral Resource Estimate:

1. Canadian Institute of Mining Metallurgy and Petroleum ("CIM") definition standards were followed for the resource estimate.
2. The 2023 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids and constrained by pits shell for Sewum, Boin and Nyam. Kwakyekrom and Tokosea used Inverse Distance squared (ID2).
3. Open pit cut-off grades varied from 0.14 g/t to 0.25 g/t Au based on mining and processing costs as well as the recoveries in different weathered material.
4. Heap leach cut-off grade varied from 0.14 g/t to 0.19 g/t in the pit shell and 1.50 g/t for underground based on mining costs, metallurgical recovery, milling costs and G&A costs.
5. CIL cut off grade varied from 0.25 g/t to 0.27 g/t in a pit shell and 1.50 g/t for underground based on mining costs, metallurgical recovery, milling costs and G&A costs.
6. A US$1,650/ounce gold price was used to determine the cut-off grade.
7. Metallurgical recoveries have been applied to five individual deposits and in each case three material types (oxide, transition, and fresh rock).
8. A density of 2.19 g/cm3 for oxide, 2.45 g/cm3 for transition, and 2.72 g/cm3 for fresh rock was applied.
9. Optimization pit slope angles varied based on the rock types.
10. Reasonable mining shapes constrain the mineral resource in close proximity to the pit shell.
11. Mineral Resources that are not mineral reserves do not have economic viability. Numbers may not add due to rounding.
12. The resource estimate was prepared by Todd McCracken, P.Geo, of BBA E&C Inc. in accordance with NI 43-101. Todd McCracken is an independent qualified person ("QP") as defined by NI 43-101.

Updated Mineral Resource Estimate Highlights

-          Inaugural Indicated Mineral Resource Estimate, de-risks Project development.

• Up-dip and down-dip drilling at existing deposits converted a larger than expected portion of the Resource to the Indicated category.

-          First underground resources defined for the Project, highlighting the potential to define meaningful future resources within the high-grade sulphide mineralisation.

• Proof of concept, Project has strong potential to host sulphide mineralisation to depth with the current mineralisation defined to an average depth of only 100 metres.

-          Initial resource estimate at Tokosea, adding a fifth deposit to the Project.

• Drilling continues to identify and prove out new deposits across the Project, highlighting the multi-million-ounce potential of the 216 km2 district scale property.
• Tokosea is located approximately 500 metres to the east of Sewum and within short trucking distance of the proposed heap leach pad location identified in the 2021 PEA, highlighting the opportunity for both mine life extension and production growth from defining additional deposits and resources on the Project.

-          District Scale Exploration Opportunity at Enchi Still Largely Underexplored.

• More than 20 pre-resource targets identified across the 216 km2 land package.
• All deposits and targets remain open along strike and at depth, with potential for resource growth in both shallow oxides and within the sulphide mineralisation.
• Average depth of resource pits is only 70 metres, with drilling testing mineralisation to an average depth of only 100 metres and a limited number of holes testing a maximum depth of 350 metres in one zone (Nyam).

-          Resource supports strong economics outlined in the 2021 PEA.

• The PEA completed in 2021, at a gold price of US$1,650/oz and based on the June 2021 Resource (Inferred Mineral Resource of 1.41 million ounces of gold at 0.62 g/t), outlined a US$212 million after-tax net present value discounted at 5% and a 42% after-tax internal rate of return. The 2021 PEA remains applicable based on the updated Resource however it is preliminary in nature, includes Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

-          Potential for future resource growth. The updated Resource incorporated approximately 34,000 metres of the 72,388 metres of drilling completed post the June 2021 Resource.

• Approximately 38,000 metres of drilling not yet included in the Resource, targeting earlier stage mineralised zones across the Project and deeper sulphide mineralisation.
• First pass drilling completed in 2022 on high priority targets at Enchi resulted in new discoveries that are pre-resource stage, highlighting the potential for resource growth as the Company continues to drill-out these highly prospective areas.
• Potential future resource growth from both near surface oxide mineralisation that is amenable to heap leach processing and from testing sulphide mineralisation to depth.

Please follow the link to view entire original news in English language:

https://newcoregold.com/news/newcore-gold-announces-updated-mineral-resource-estimate-for-the-enchi-gold-project-ghana/

Newcore Gold Best Practice

Newcore is committed to best practice standards for all exploration, sampling and drilling activities. Drilling was completed by an independent drilling firm using industry standard RC and Diamond Drill equipment. Analytical quality assurance and quality control procedures include the systematic insertion of blanks, standards and duplicates into the sample strings. Samples are placed in sealed bags and shipped directly to Intertek Labs located in Tarkwa, Ghana for 50 gram gold fire assay. 

Qualified Person

Mr. Gregory Smith, P. Geo, Vice President of Exploration at Newcore, is a Qualified Person as defined by NI 43-101, and has reviewed and approved the technical data and information contained in this news release. Mr. Smith has verified the technical and scientific data disclosed herein and has conducted appropriate verification on the underlying data including confirmation of the drillhole data files against the original drillhole logs and assay certificates.

About Newcore Gold Ltd.

Newcore Gold is advancing its Enchi Gold Project located in Ghana, Africa’s largest gold producer (1). The Project currently hosts an Indicated Mineral Resource of 743,500 ounces of gold at 0.55 g/t and an Inferred Mineral Resource of 972,000 ounces of gold at 0.65 g/t (2). Newcore Gold offers investors a unique combination of top-tier leadership, who are aligned with shareholders through their 24% equity ownership, and prime district scale exploration opportunities. Enchi’s 216 km2 land package covers 40 kilometres of Ghana’s prolific Bibiani Shear Zone, a gold belt which hosts several 5 million-ounce gold deposits, including the Chirano mine 50 kilometers to the north. Newcore’s vision is to build a responsive, creative and powerful gold enterprise that maximizes returns for shareholders.

On Behalf of the Board of Directors of Newcore Gold Ltd.

Luke Alexander

President, CEO & Director

For further information, please contact:

Mal Karwowska | Vice President, Corporate Development and Investor Relations

+1 604 484 4399

[email protected]

www.newcoregold.com 

(1) Source: Production volumes for 2021 as sourced from the World Gold Council

(2) Notes for Mineral Resource Estimate:

1. Canadian Institute of Mining Metallurgy and Petroleum ("CIM") definition standards were followed for the resource estimate.
2. The 2023 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids and constrained by pits shell for Sewum, Boin and Nyam. Kwakyekrom and Tokosea used Inverse Distance squared (ID2).
3. Open pit cut-off grades varied from 0.14 g/t to 0.25 g/t Au based on mining and processing costs as well as the recoveries in different weathered material.
4. Heap leach cut-off grade varied from 0.14 g/t to 0.19 g/t in the pit shell and 1.50 g/t for underground based on mining costs, metallurgical recovery, milling costs and G&A costs.
5. CIL cut off grade varied from 0.25 g/t to 0.27 g/t in a pit shell and 1.50 g/t for underground based on mining costs, metallurgical recovery, milling costs and G&A costs.
6. A US$1,650/ounce gold price was used to determine the cut-off grade.
7. Metallurgical recoveries have been applied to five individual deposits and in each case three material types (oxide, transition, and fresh rock).
8. A density of 2.19 g/cm3 for oxide, 2.45 g/cm3 for transition, and 2.72 g/cm3 for fresh rock was applied.
9. Optimization pit slope angles varied based on the rock types.
10. Reasonable mining shapes constrain the mineral resource in close proximity to the pit shell.
11. Mineral Resources that are not mineral reserves do not have economic viability. Numbers may not add due to rounding.
12. The resource estimate was prepared by Todd McCracken, P.Geo, of BBA E&C Inc. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. Todd McCracken is an independent qualified person ("QP") as defined by National Instrument 43-101. A full technical report, which is being prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, will be filed and available under Newcore’s SEDAR profile at www.sedar.com within 45 days of this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This news release includes statements that contain "forward-looking information" within the meaning of the applicable Canadian securities legislation ("forward-looking statements"). All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often, but not always using phrases such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: statements about the estimation of mineral resources; results of our drill campaign, results of our exploration work including trench results, results of metallurgical testwork, magnitude or quality of mineral deposits; anticipated advancement of mineral properties or programs; and future exploration prospects.

These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. The assumptions underlying the forward-looking statements are based on information currently available to Newcore. Although the forward-looking statements contained in this news release are based upon what management of Newcore believes, or believed at the time, to be reasonable assumptions, Newcore cannot assure its shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended.  Forward-looking information also involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others: risks related to the speculative nature of the Company’s business; the Company’s formative stage of development; the Company’s financial position; possible variations in mineralisation, grade or recovery rates; actual results of current exploration activities; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold and other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, unusual or unexpected geological formations); the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); title to properties; and impact of the COVID-19 pandemic. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category. The quantity and grade of the reported indicated mineral resource in this estimation is uncertain in nature and there has been insufficient exploration to define this indicated mineral resource as a measured mineral resource and it is uncertain if further exploration will result in upgrading it to a measured mineral resource category.

Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.