The positive PEA, the results of which were announced on
PEA Highlights (All currencies are reported in
- Strong Project Economics with Low Capital Intensity
- At a gold price of
$1,650 /oz:$333 million pre-tax net present value discounted at 5% ("NPV5%") and a 54% pre-tax internal rate of return ("IRR"),$212 million after-tax NPV5%, and a 42% after-tax IRR. - At a gold price of
$1,850 /oz:$471 million pre-tax NPV5% and a 69% pre-tax IRR, $302 million after-tax NPV5%, and a 54% after-tax IRR. - Initial capital costs estimated at
$97 million , with a short after-tax payback of 2.3 years.
- At a gold price of
- Establishing the Potential for a
Robust Project with Significant Growth Potential- Average annual gold production in years two through five of 104,171 ounces gold;
983,296 ounces gold recovered over an 11-year life of mine ("LOM"). - LOM strip ratio of 2.1 to 1, mined grade of 0.57 g/t gold and recovery of 79%.
- LOM operating costs (1) estimated at
$923 /oz of gold, cash costs (2) estimated at$1,043 /oz of gold, LOM all-in sustaining costs (AISC) (3) estimated at$1,066 /oz of gold.
- Average annual gold production in years two through five of 104,171 ounces gold;
- Updated Mineral Resource Estimate, Including an Initial Resource at Kwakyekrom
- The PEA includes an updated Inferred Mineral Resource Estimate of 70.4 Mt grading 0.62 g/t Au containing 1.4 million ounces gold.
- Incorporates 20,195 metres of drilling completed at Enchi in 2020 and early 2021.
- Additional Exploration Upside from Ongoing 66,000 Metre Drill Program at Enchi
- 46,000 metres of additional drilling was not included in the Mineral Resource Estimate.
- Exploration and drilling activities continue on the
Enchi Gold Project , with drilling testing a series of highly prospective targets directed at extending the existing Mineral Resources along strike and down dip, further drilling of advanced gold targets across the 216 km2 property, and first pass testing of multi-kilometre scale gold anomalies. - Recent drilling results not included in the PEA Mineral Resource Estimate have intersected wide zones of oxide gold mineralization as well as high-grade core structures including 5.40 g/t Au over 9.0 m, 5.78 g/t Au over 7.0 m, 6.25 g/t Au over 6.0 m, 3.31 g/t Au over 9.0 m, and 2.95 g/t Au over 9.0 m and remain open along strike and to depth.
Note: Base case parameters assume a gold price of | |
(1) | Operating costs consist of mining costs, processing costs, and on-site G&A. |
(2) | Cash costs consist of operating costs plus treatment and refining charges, and royalties. |
(3) | AISC consists of cash costs plus sustaining capital (excluding closure costs and salvage value). |
The PEA 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.
Further detail regarding the updated PEA for the Project is summarized in the Company’s news release dated
Qualified Persons
The updated PEA for the
Mr.
About
On Behalf of the Board of Directors of
President, CEO & Director
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(1) | Source: Production volumes for 2020 as sourced from the |
(2) | Notes for Inferred Mineral Resource Estimate: |
1. | CIM definition standards were followed for the resource estimate. |
2. | The 2021 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 used Inverse Distance squared (ID2). |
3. | A base cut-off grade of 0.2 g/t Au was used with a capping of gold grades varied by deposit and zone. |
4. | A |
5. | Metallurgical recoveries have been applied to four individual deposits and in each case three material types (oxide, transition, and fresh rock) with average recoveries of 77% for Sewum, 79% for Boin, 60% for Nyam and 72% for Kwakyekrom. |
6. | A density of 2.20 g/cm3 for oxide, 2.45 g/cm3 for transition, and 2.70 g/cm3 for fresh rock was applied. |
7. | Optimization pit slope angles varied based on the rock types. |
8. | Mineral Resources that are not mineral reserves do not have economic viability. Numbers may not add due to rounding. |
9. | These numbers are from the technical report titled "Preliminary Economic Assessment for the |
Neither the
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: timing of completion of a technical report summarizing the results of the PEA; the development, operational and economic results of the PEA, including cash flows, capital expenditures, development costs, extraction rates, recovery rates, mining cost estimates; estimation of mineral resources; statements about the estimate of mineral resources; magnitude or quality of mineral deposits; anticipated advancement of the
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
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.
Non-GAAP Measures
This news release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including cash costs and AISC per ounce of gold. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. We believe that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate our performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
Source:
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