Newcore Gold’s Enchi PFS: economics, capex and cost signals for mine planners
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Newcore Gold shares fell nearly 25% to C$0.36 after the Enchi pre-feasibility study in Ghana cut project economics despite using a higher base gold price of US$3,800/oz. The PFS estimates an after-tax NPV (5%) of US$496 million and 37% IRR, with initial capex tripling to US$351 million and life-of-mine operating costs jumping to US$1,689/oz and AISC to US$2,290/oz, for a 5.5 Mtpa open-pit/CIL operation. Probable reserves of 51.3 million tonnes at 0.64 g/t support a 9+ year mine life at 104,000 oz/year, with all four pits and targets still open along strike and at depth.
Technical Brief
- PFS adopts a March 2026 resource of 83.6 Mt indicated at 0.56 g/t Au (1.5 Moz).
- Inferred resource adds 40+ Mt at 0.49 g/t Au for 626,000 oz contained gold.
- Four open-pit deposits contribute 51.3 Mt of probable reserves at 0.64 g/t Au (>1 Moz).
- Mine design remains conventional open-pit with standard milling and carbon‑in‑leach (CIL) processing.
- Processing throughput has been reduced from 8.1 Mtpa in the PEA to 5.5 Mtpa in the PFS.
- Life-of-mine operating cost and AISC have both more than doubled relative to the 2024 PEA.
- Newcore plans to use the PFS as the technical basis for a mining lease application in 2026.
- Ongoing 80,000 m drilling campaign in 2026 is excluded from the PFS resource and reserve base.
- All current deposits remain open along strike and at depth in oxide, transition and fresh domains.
Our Take
The 2026 resource update in Ghana lifting Enchi’s pit‑constrained gold inventory by 24% (to 2.13 Moz in our coverage) suggests the disappointing PFS economics are being judged more on cost inflation and mine design than on geological endowment.
With Newcore Gold’s market capitalisation around C$114 million versus an after‑tax NPV of US$496 million, the current valuation implies a steep risk discount that could make Enchi a takeover or joint‑venture target if a larger Ghana‑experienced operator is willing to re‑optimise the 5.5 Mtpa development case.
Codelco’s presence in the article, alongside its recent work on electrified haulage and Copper Mark certification in Chile, signals that any potential involvement at Enchi would likely emphasise low‑carbon power and fleet choices, which could partially offset the higher upfront capex profile over the nine‑year mine life.
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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