The positive PEA, the results of which were announced on
Highlights from the PEA at Enchi
- Strong project economics with low capital intensity.
- At a gold price of
$1,850 /oz:$586 million pre-tax net present value discounted at 5% ("NPV5%") and a 77% pre-tax internal rate of return ("IRR"),$371 million after-tax NPV5% and a 58% after-tax IRR. - At a gold price of
$2,350 /oz:$987 million pre-tax NPV5% and a 127% pre-tax IRR, $632 million after-tax NPV5% and a 92% after-tax IRR. - Initial capital costs estimated at
$106 million (including a 20% contingency), with a short after-tax payback of 1.6 years.
- At a gold price of
- Robust production profile with a low-cost structure driven by a technically straightforward, open pit, heap leach operation and low strip ratio.
- Average annual gold production of 121,839 ounces; peak gold production in year 6 of 155,188 ounces; 1.1 million ounces gold recovered over a 9-year life of mine ("LOM").
- LOM strip ratio of 2.67 to 1, mined grade of 0.60 g/t Au and gold recovery of 81.8%.
- LOM operating costs (1) estimated at
$801 /oz of gold, cash costs (2) estimated at$934 /oz of gold, LOM all-in sustaining costs (AISC) (3) estimated at$1,018 /oz of gold.
- Economics incorporate significant development work completed since 2021.
- The PEA incorporated the Mineral Resource Estimate completed in 2023 which reflected the addition of approximately 34,000 metres of Reverse Circulation ("RC") and diamond drilling completed in 2021 and 2022.
- Significant metallurgical testwork completed to date, highlighting the Project’s amenability to heap leach processing. Advanced metallurgical testwork consists of more than 390 tests including bottle rolls, column tests and two bulk-scale pilot heap tests.
- Significant longer-term growth potential from the district-scale exploration opportunity at Enchi.
- Enchi’s property covers 248 km2 along a prolific gold belt that hosts multi-million-ounce gold mines.
Newcore has identified more than 20 pre-resource targets across the property and with less than 10% of the property explored. The district scale exploration opportunity at Enchi remains largely underexplored and untested. - All deposits and targets remain open along strike and at depth, with potential for resource growth in both shallow oxides and within the sulphide mineralization.
- Enchi’s property covers 248 km2 along a prolific gold belt that hosts multi-million-ounce gold mines.
Note: All currencies in this news release are reported in
(1) Operating costs consist of mining costs, processing costs and mine 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).
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 PEA for the Project is summarized in the Company’s news release dated
Qualified Persons
The PEA for the
Lycopodium Mineral Canada Ltd. :Preetham Nayak ,P.Eng . (Infrastructure and Project Economics), Ryda Peung,P.Eng . (Metallurgy and Mineral Processing)Micon International Limited : Kerrine Azougarh,P.Eng . (Mining)- SEMS Exploration:
Simon Meadows Smith ,P.Eng /P.Geo (Geology and Mineral Resources)
Mr.
About
(1) Source: Production volumes for 2022 as sourced from the
On Behalf of the Board of Directors of
President, CEO & Director
For further information, please contact:
+1 604 484 4399
info@newcoregold.com
www.newcoregold.com
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-IFRS Financial Measures
The Company has included certain non-IFRS financial measures in this news release, such as initial capital cost, sustaining capital cost, total capital cost, cash costs and AISC, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. As a result, these measures may not be comparable to similar measures reported by other companies. Each of these measures used are intended to provide additional information to the reader and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Non-IFRS financial measures used in this news release and common to the gold mining industry are defined below.
Cash Costs and Cash Costs per Ounce
Cash costs are reflective of the cost of production. Cash costs reported in the PEA consist of mining costs, processing costs, mine site G&A, treatment and refining charges and royalties. Cash costs per ounce is calculated as cash costs divided by payable gold ounces.
AISC and AISC per Ounce
AISC is reflective of all of the expenditures that are required to produce an ounce of gold from operations. AISC reported in the PEA includes cash costs plus sustaining capital, but excludes closure costs, corporate general and administrative costs and taxes. AISC per ounce is calculated as AISC divided by payable gold ounces.
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