Ghana Explorer Targets Resource Expansion with 35,000m Drill Program

• Newcore Gold is advancing the Enchi project in Ghana, a district-scale exploration project with robust economics outlined in a 2024 Preliminary Economic Assessment (PEA), and is moving toward a Pre-Feasibility Study (PFS) expected in the first half of 2026.
• The company recently raised C$15 million (initially seeking C$12 million), which was institutionally backed, putting them in a strong financial position with ~$17 million in cash and cash equivalents.
• The Enchi project shows strong economics with an after-tax NPV_5% of US$630 million, a 92% IRR, and a 1.1-year payback period at a US$2,350 gold price, while trading at only about 0.1 times its NPV.
• Newcore is expanding its drill program from 10,000 to 35,000 meters, focusing on resource conversion, along-strike expansion, testing parallel structures, and exploring high-grade feeder zones at depth.
• Ghana is described as a tier-one mining jurisdiction with significant operations from major miners like Newmont, Goldfields, and Anglo Gold, with Newcore's Enchi project being one of the top two most advanced greenfield projects in the country.

Newcore Gold is advancing its flagship Enchi gold project in Ghana, positioning itself as one of the top two most advanced greenfield gold projects in the country. In a recent interview, Luke Alexander, President and CEO of Newcore Gold, outlined the company's progress, recent financing success, and strategic plans to advance the project from Preliminary Economic Assessment (PEA) to Pre-Feasibility Study (PFS). The Enchi project presents a compelling investment case based on its robust economics, exploration upside, and location in Ghana - Africa's largest gold producer and globally the sixth-largest gold producer, just behind Canada and the United States.

Strong Financial Position Following Oversubscribed Financing

Newcore Gold recently completed a significantly oversubscribed financing, initially targeting C$12 million but ultimately raising C$15 million. The financing was backed by institutional investors, demonstrating strong support for the company's strategy and the Enchi project's potential.

"We went out for a C$12 million raise at the beginning of February that was on the back of a very productive Indaba that we had. Then stopped in New York on the way back and had some very strong interest from a couple of very large institutional investors out of New York. We then launched a $12 million financing that was quickly oversubscribed, so we increased it to a C$15 million financing.”

The successful financing has put Newcore in an exceptionally strong financial position. Alexander noted that combined with existing cash reserves and in-the-money warrants, the company now has approximately C$17 million in cash. Additionally, he noted that there is potential for a further C$14 million in proceeds from warrant exercises over the next 12 months. This substantial treasury enables the company to aggressively advance the Enchi project through expanded drilling and development activities.

Alexander emphasized that the stock has performed well since the financing, trading up approximately 35% since the announcement, suggesting the removal of financing overhang and market recognition of the company's improved financial position.

Robust Project Economics Underpin Investment Case

The Enchi project's economics, as outlined in the 2024 PEA, present compelling numbers that form the foundation of Newcore's investment case. At a US$2,350 gold price, the project shows an after-tax Net Present Value (NPV) at a 5% discount rate of US$630 million, an Internal Rate of Return (IRR) of 92%, and a payback period of just 1.1 years.

These strong economics exist with the current resource that is comprised of 740,000 ounces of indicated resources and 970,000 ounces of inferred resources. The project is designed as an open-pit heap leach operation with a relatively modest initial capital requirement of US$106 million.

Alexander highlighted that Newcore currently trades at approximately 0.1x the NPV_5% of the project at a gold price of US$2,350, representing a significant discount compared to peer companies at similar development stages. He noted that PEA-stage projects typically trade around 0.2x NPV, while PFS-stage projects trade between 0.4 to 0.6x NPV, suggesting substantial potential value creation as the company advances through development milestones.

"Fundamentally to create a significant rate for shareholders, we don't need to find another ounce on the project, and we can create a fundamental rerate for investors."

Interview with CEO Luke Alexander

Aggressive Drilling Campaign Targeting Resource Growth

Newcore has expanded its drilling program from the initial 10,000 meters to 35,000 meters in 2025. This expanded program has multiple strategic objectives, including resource conversion, expansion, and exploration of new targets.

The initial 10,000-meter program focused primarily on resource conversion, aiming to convert a significant portion of the 970,000 ounces of inferred resources to the indicated category. The goal is to increase indicated resources from the current 740,000 ounces to approximately 1.3 million ounces to support the upcoming PFS.

The additional 25,000 meters of drilling will target three main areas:

1. Systematic step-out drilling along strike of existing deposits
2. Following up on previously drill-tested areas and parallel structures
3. Testing high-grade feeder zones at depth

The company's geology team has identified multiple potential high-grade feeder zones at depth, similar to those found at neighboring large deposits like Chirano (5.1 million ounces), Bibiani (6.5 million ounces), and Newmont's Ahafo project (20 million ounces). While the current resource at Enchi is predominantly within 75 meters of the surface, the deeper drilling will test targets between 200-300 meters depth.

Alexander noted that for the first time in several years, the market has begun to reward the company's exploration results, with the stock rising approximately 14% following the January 30th release of results that included 1.85 g/t gold over 62 meters from surface.

Path to Production with Multiple Value Creation Opportunities

Newcore is advancing its Enchi project along a clear development pathway, with several value-creation milestones ahead. The company aims to complete the PFS in the second half of 2025, with final publication expected in the first half of 2026.

The company's development strategy outlines a phased approach to production. Initial development focuses on the oxide and transitional material amenable to heap leach processing. As the sulfide resource grows, the company envisions adding a CIL plant in years five or six, potentially increasing production to 200,000-250,000 ounces annually.

This staged approach provides significant operational flexibility and reduces initial capital requirements. Alexander highlighted that the company has been conservative in its PEA assumptions, providing room for optimization as the project advances to PFS. For example, the PEA assumes 50% of transitional material requires crushing, but observations suggest this figure may be closer to 20%, potentially delaying some capital expenditures and improving project economics.

Strategic Optionality: Build, Sell, or Grow

Newcore's management emphasizes the strategic optionality available to the company as it advances the Enchi project. Unlike many development-stage companies that rely solely on acquisition as an exit strategy, Newcore has multiple potential paths forward.

The company's strong financial position, supportive institutional shareholders, and manageable capital requirements provide the option to develop and operate the mine independently. With projected after-tax cash flows of approximately US$100 million annually in the first three years of production, Newcore could rapidly pay back capital and fund extensive future exploration from operating cash flow.

Simultaneously, the project's attractive size and economics make it a potential acquisition target, particularly for mid-tier producers looking to add approximately 120,000 ounces of annual production in a premier mining jurisdiction. While major producers typically target assets with at least 250,000 ounces of annual production, the Enchi project could become increasingly attractive to them as the resource grows.

Alexander noted that management and the board own approximately 15% of the company, ensuring strong alignment with shareholders' interests. This insider ownership reinforces the commitment to pursuing the strategy that maximizes shareholder value, whether through independent development or eventual sale.

The Investment Thesis for Newcore Gold

• Undervalued Based on Current Economics: Trading at approximately 0.1x NPV_{(5%, US$2,350 gold)} (US$70 million market cap vs. US$630 million NPV), well below the typical 0.2x multiple for PEA-stage projects and 0.4-0.6x for PFS-stage projects.
• Clear Path to Value Re-Rating: Advancing from PEA to PFS by H1 2026 provides a clear catalyst for value re-rating without requiring additional resource growth.
• Exceptional Project Economics: 92% IRR and 1.1-year payback period at US$2,350 gold demonstrate robust economics that can withstand cost pressures or gold price fluctuations.
• Significant Exploration Upside: Expanded 35,000-meter drill program targeting resource growth through step-out drilling, testing parallel structures, and exploring high-grade feeder zones at depth.
• Strong Financial Position: Recently raised C$15 million with total treasury of approximately C$17 million, fully funding the company through PFS completion and extensive exploration.
• Premier Mining Jurisdiction: Located in Ghana, Africa's largest gold producer, with operations from major mining companies demonstrating the country's attractiveness for mining investment.
• Strategic Optionality: Capability to either develop the project independently with manageable US$106 million initial capex or in a position for acquisition as resource and production profile grows.
• Aligned Management: 15% insider ownership ensures management interests are aligned with shareholders in pursuing maximum value creation.
• Staged Development Approach: Initial heap leach operation with modest capital requirements, followed by potential addition of CIL plant to increase production and process sulfide material.
• Institutional Backing: Recent financing was backed by institutional investors, and grew the institutional ownership of Newcore to 55%, providing validation of the project's quality and the company's strategy.

Macro Thematic Analysis

Ghana stands as Africa's premier gold mining jurisdiction, producing approximately 5 million ounces annually as Africa's largest gold producer and the sixth-largest globally. The country has attracted significant investment from major mining companies including Newmont, Goldfields, and AngloGold Ashanti, alongside increasing Chinese investment from companies like Chifeng, Shandong, and Zijin. This concentration of major mining companies underscores Ghana's attractiveness as a mining destination, supported by its 30+ year democratic stability, favorable mining code, and productive geological potential along the Sefwi-Bibiani belt.

Recent major investments include Newmont's billion-dollar expansion of its Ahafo North project and Zijin's billion-dollar acquisition of Newmont's Akyem asset. These transactions demonstrate continuing confidence in Ghana's long-term mining potential and regulatory environment. For junior companies like Newcore Gold, Ghana offers the advantage of established mining infrastructure, skilled local workforce, and a demonstrated pathway to permitting and construction, as evidenced by Shandong's rapid three-year timeline from acquisition to production at the Namdini project. As Luke Alexander noted: 

"You're not going to find another country in Africa, and potentially globally, where you have so many major mining companies focused on one jurisdiction. All of those major companies that I mentioned combined would have larger political risk and security risk teams than our entire company combined, and they can deploy capital in any jurisdiction on the planet... and they've decided to invest that capital into Ghana."