Newcore Gold Ltd (NCAU:TSXV; NCAUF:OTCQX) announced the results of its Pre-Feasibility Study (PFS) for the Enchi Gold project in Ghana on June 24, 2026. The PFS was completed under the assumption of a standard milling and carbon-in-leach (CIL) operation processing 5.5 million tonnes per year via contract mining. Newcore will use the results of the PFS to apply for a mining lease later in 2026, as the government in Ghana has shown support for advancing the project toward production.
Luke Alexander, President and CEO of Newcore, said in the release, "Completion of the Pre-Feasibility Study is an important milestone in advancing the Enchi Gold Project in Ghana toward a mining lease. The study is a culmination of the drilling and technical work completed in 2024 and 2025 that continues to de-risk the project, including an updated Mineral Resource Estimate (MRE) and a realignment of the processing method to maximize the project's economic value. The PFS outlines a nearly 10-year mine life averaging 104,000 gold ounces per year with peak gold production of 136,709 ounces, rapid payback of project capital in 1.6 years, and an after-tax IRR of 37% at a US$3,800/oz gold price. With a favorable and streamlined mine permitting process in Ghana, and a government that has shown strong support for project development, we will continue to drive development of Enchi toward production, while remaining focused on the larger district scale and high-grade opportunities that will further expand Enchi's size, scale, and long-term value. The PFS provides a strong foundation on which to build value, as we continue to advance Enchi with a parallel strategy of development in tandem with exploration to unlock the significant value potential of the project."
Highlights from the study include:
- US$647 million after-tax net present value at a 5% discount rate, and a 45% after-tax internal rate of return at a spot gold price of US$4,200. The company also highlighted: "US$794 million pre-tax NPV5%and a 51% pre-tax IRR at a gold price of US$3,800/oz (ounce). US$496 million after-tax NPV5% and a 37% after-tax IRR at a gold price of US$3,800/oz. Initial capital cost of US$351 million, with a short after-tax payback of 1.6 years at a gold price of US$3,800/oz, and 1.4 years at a spot gold price of US$4,200/oz."
- An approximate annual gold production of 120,000 ounces from years 1-3, with an opportunity to incorporate higher-grade mineralization as drilling continues.
- Transition to open-pit mining, creating an average annual gold production of approximately 104,000 ounces, with 953,350 ounces of payable gold produced over a 9.3-year life of mine.
- Continuation of the 2025 drill program, intending to total 80,000 meters.
Doug Forster, Chairman of Newcore, stated, "Completion of a PFS for our Enchi Gold Project is an important achievement for the company and project, but it is only the first step in unlocking significant value for our shareholders. We believe Enchi has significant growth potential beyond what has been captured in the PFS. The Study is based on a Mineral Resource Estimate that does not include the significant discoveries achieved by drilling in 2026, with results from our ongoing 80,000-meter drill program intersecting high-grade mineralization at depth and extending gold mineralization well below the limits of the pits that constrain the current resource. Having recently completed a US$15 million equity financing, Newcore is funded to aggressively pursue numerous opportunities to add significant additional value to the Enchi Gold Project, including mine life extension from conversion of Inferred Mineral Resources, continued discovery and expansion of high-grade zones encountered at depth below the PFS pits, and follow-up drilling on high-priority targets across the 248 km2 property that have prior drilling but do not currently have defined mineral resources."
Ghana is Africa's largest gold producer, and Newcore is focused on its Enchi land package that covers 40 km of the Bibiani Shear Zone, which produces several multi-million-ounce gold deposits.
Gold Low But Hanging On
In January 2026, gold surged to a record high, hitting over US$5,000 per ounce, but has recently fallen due to a rise in inflation and a stronger U.S. dollar. However, after a deep dip below US$4,000 per ounce last week, prices have risen to US$4,041.90 per ounce on June 29. Anjana Anil of Reuters reported that, "Markets project an 80% chance of a rate hike in December, compared with an 85% chance before the release of the PCE data and a 61% chance before the Fed's policy statement last week," before adding that, "The main focal point will still remain inflationary pressures moving forward. That's some of the reason why we've seen gold deteriorate over the course of the last several sessions."
In April, S&P Global wrote, "Gold is expected to remain volatile but structurally supported, with central bank demand and geopolitical risk helping to establish a price floor above recent correction lows."
Despite the volatility of gold and silver, the sector as a whole is only showing signs of improvement. On May 7, 2026, Brian Taylor of Recycling Today said that the World Bank Group has predicted that overall global metals prices will rise by 17% in 2026, which would mark the first overall market increase since 2022.
Experts Believe Stock is the Right Price
On June 25, Chen Lin of What is Chen Buying? What is Chen Selling? weighed in on the news, saying: "NCAU.v shares crashed after the PFS. What happened? In 2024, they announced the Preliminary Economic Assessment, using heap leach, and it was overwhelmingly positive. The share hit almost CA$1. They raised a lot of money at CA%0.50 and above. This week, they announced PFS using the CIL plant. The market hated it!"
Chen presented solutions, though. "First, they could always revert back to heap leach. The market doesn't like to invest in Ghana after the recent royalty hike. . . management got it. Second, they are drilling shallow, high-grade deposits nearby. The PFS calls for a 0.8g/t higher grade for the first three years. They have been hitting very good results this year. The economics can improve with new drilling. So, I would be a buyer here at mid-to-low CA0.30. I think it is a good price for an emerging producer at one third of the peak price."
Daniel Flynn of The Gold Advisor gave the company an "Average Down" rating the same day, writing: "We don't say 'average down' very often, but given the current valuation discount, it remains a clear 'Buy' to us. If you're willing to give Newcore time to deliver its wider plan, rather than be put off by the headline cost increases, this weakness looks like an opportunity to enter or bring down your average price."
Streetwise Ownership Overview*
Newcore Gold Ltd (NCAU:TSXV; NCAUF:OTCQX)
| Date | Old Symbol | Old Shares | New Symbol | New Shares |
|---|---|---|---|---|
| 08/10/20 | PCR | 1 | NCAU | 1 |
| 12/09/14 | PCR | 4 | PCR | 1 |
| 09/19/11 | PCR | 1 | PCR | 2 |
| 07/14/11 | PCR.P | 1 | PCR | 1 |
A Huge Drill Campaign Underway
Greg Smith, VP Exploration of Newcore, stated, "With the PFS for Enchi now completed, we have an active year ahead as drilling continues on the project with a focus on resource growth. With an 80,000-meter drill program underway and four drill rigs active at the site, testing numerous high-priority targets both at surface and at depth, we believe a compelling opportunity exists to expand both the size and grade of the resource. Importantly, most drilling to date has focused on shallow mineralization within the first 150 vertical meters. Recent drilling, including the deepest holes drilled to date, has successfully intersected gold mineralization within a vertical depth of 200 to 350 meters, highlighting the potential for the system to extend well below the current resource. With the current drill program focused on testing depth extensions, the drilling underway represents an important step toward continuing to unlock the significant potential of Enchi."
Ownership & Share Information1
Newcore Gold Ltd. has a market cap of CA$118.82 million, with 312.70 million shares outstanding. The company's 52-week range is CA$0.33-CA$0.92.
Institutions own 24% of shares, while Management & Insiders own 13.35%. The remaining 62.65% of shares are held by Retail.
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Important Disclosures:
- Cori Fisher wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
