Newcore Gold Begins Reverse Circulation Drill Program at Enchi Gold Project

Newcore Gold Ltd reports the initiation of an 8000-m Reverse Circulation (RC) drill program on its wholly owned Enchi Gold Project situated in Southwest Ghana.

Highlights on the Enchi Gold Project

• Newcore Gold has started an 8000-m RC drilling program targeted at testing the extensions of the prevalent 1.1 million oz gold (Au) Inferred Mineral Resource Estimate (37.4 Mt grading 0.9 g/t) at the Enchi Gold Project.
• The drilling program involves 8000 m in about 60 RC drill holes located at six individual regions on the Enchi Gold Project, such as testing gold targets that are presently not included in the inferred resource.
• The present Inferred Resource of the Enchi Gold Project remains exposed for additional resource expansion to depth and along strike. The 216 km² property contains many more high-priority gold targets.
• A revised mineral resource estimate will include 3400 m of drilling that was completed earlier in 2017–2018 on the Enchi Gold Project and is presently ongoing; it is estimated to be completed in the third quarter of 2020.
• Previous work performed at the Enchi Gold Project has involved resource estimation, RC and diamond drilling (52,385 m in a total of 646 drill holes), and a Preliminary Economic Assessment (PEA) study (NPV Pre-Tax 5%: US$206 million and Post-Tax US$130 million using US$1,560/oz gold).
• Newcore Gold has implemented COVID-19 procedures for the new drilling program.

We are extremely excited to be back on the ground drilling at Enchi for the first time since 2018. The 8,000 m drill program is focused on expanding the current inferred resource as well as testing new gold targets within our extensive 216 km² land package. With its district scale potential, we view exploration at Enchi as an opportunity to create significant value for Newcore Gold shareholders.

Luke Alexander, President and Chief Executive Officer, Newcore Gold Ltd

2020 Enchi Drill Program

The 2020 RC drill program has begun. The work will involve around 60 holes totaling 8000 m. Targets are mainly step-out extensions and exploration drilling on the Nyam, Sewum, and Boin deposits.

Moreover, drilling will be focused at a couple of new zones that lie beyond the Inferred Resource; Kwakyekrom and Kojina Hill, and also Nkwanta—a single gold anomaly that has never been drilled.

All zones denote high-priority targets on the basis of geophysical, geochemical, and geological surface work and historical drilling and trenching.

Newcore Gold will direct a total of 5,400 m (>65% of the program) at extending the prevalent deposits at Nyam, Sewum, and Boin, such as down-dip extensions and holes aimed to extend the zones along strike.

An additional 2,000 m (25% of the program) will be testing the formerly drilled zones with previous gold intercepts, such as 22.0 m grading 0.94 g/t Au at Kwakyekrom and 37.0 m grading 1.34 g/t Au at Kojina Hill.

Initial pass drilling will also be finished on the Nkwanta Anomaly—a 2.5 km x 1.5 km gold-in-soil anomalous zone, where no previous drilling has been performed.

Within the Enchi Gold Project, many additional kilometer-scale surface anomalies have been defined. Additional exploration in 2020 will involve prospecting, trenching, and geochemical sampling.

Owned by Kinross Gold, the Chirano Mine is situated 50 km to the north of the Enchi Gold Project, and in 2019, it produced 201,296 oz of Au equivalent. The Enchi Gold Project is located on the same regional structure as the Chirano Mine with similar mineralization, alteration, and geology.

Enchi Gold Project—Updated Resource Estimate 2020

Newcore Gold has hired WSP Canada, an independent engineering company, to finish an Updated 2020 Mineral Resource Estimate on the Enchi Gold Project.

The results of the drilling program from 2017 to 2018 and several other earlier drill holes, which were not considered in the 2014 Inferred Resource estimate, will now be included in an updated Mineral Resource Estimate. This Mineral Resource Estimate is in process and estimated to be completed in the third quarter of 2020.

Covid-19

The main priority of Newcore Gold is the health and safety of all local communities, contractors, and employees. The company is adhering to all Ghana guidelines and requirements concerning the COVID 19 pandemic.

Newcore Gold has implemented COVID 19 procedures for the 2020 drill program, which include the mandatory use of personal protective equipment, such as facemask, for all the staff, frequent hand washing, maintaining social distancing, and also daily temperature checks at the beginning of every shift.