Newcore Gold’s 24% Enchi resource lift: project economics and pit design lens
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Newcore Gold has increased the Enchi project’s pit-constrained resource in southwestern Ghana by 24% to 2.13 million oz., including 1.5 million oz. indicated and 626,000 oz. inferred, supported by a 60,000-metre drilling campaign across a 248-sq.-km land package on the Sefwi-Bibiani belt. Resource pits currently average only 85 metres deep, with most drilling to about 125 metres, and all four deposits remain open along strike and at depth, signalling scope for further expansion. A 2024 PEA outlined a nine-year open-pit, heap-leach operation producing ~122,000 oz./year, with initial capex of $106 million, after-tax NPV of $371 million and 58% IRR at $1,850/oz., ahead of a June prefeasibility study.
Technical Brief
- Resource growth derives from a 60,000-metre drill campaign focused on both conversion and expansion.
- Indicated ounces have more than doubled over three years, materially improving input confidence for mine design.
- All four pit-constrained deposits remain open along strike and down-dip, implying further pit pushback potential.
- Current resource shells average only 85 m depth, with drilling typically to ~125 m, leaving untested deeper mineralisation.
- Enchi lies on Ghana’s Sefwi-Bibiani belt, ~50 km south of Asante Gold’s Chirano mine, benefiting from established regional infrastructure.
- Location is ~300 km from Accra, implying haulage and logistics planning over a relatively long but fully onshore route.
Our Take
With an after-tax NPV of $371 million against initial capital of $106 million, Enchi in southwestern Ghana screens as a relatively high-margin, low-capex open-pit gold project in our database, which could make it competitive for funding even against larger African gold developments.
The shallow average drilling and pit depths at Enchi, combined with a 248 sq.-km land package on the Sefwi-Bibiani belt near Chirano, suggest meaningful upside from deeper and step-out drilling that could extend the current nine-year mine life without materially changing the project’s infrastructure footprint.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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