Newcore Gold Ltd. ("Newcore" or the "Company")
(TSX-V: NCAU, OTCQX: NCAUF) is pleased to announce positive results
from four column tests completed as part of the ongoing
metallurgical program at the Company’s 100%-owned Enchi Gold
Project ("Enchi" or the "Project") in Ghana. An average gold
recovery of 94.7% was achieved from column testwork completed on
two composite samples from the Sewum Gold Deposit ("Sewum") and two
composite samples from the Boin Gold Deposit ("Boin").
Highlights from Column Test
Results
- Four
Column Tests Completed, Average Gold Recovery of 94.7%
Achieved
- A total of four
column tests (two from Sewum and two from Boin) returned an average
gold recovery of 94.7%, with a recovery range of 91.7% to
97.7%.
- Low
Reagent Consumption
- All samples
showed modest cyanide consumption of less than 1 kilogram per tonne
("kg/t"), with a 3 kg/t lime (hydrated) addition to maintain a pH
above 10.5.
- Further
Metallurgical Testwork Ongoing
- Another column
test is underway on a composite sample from the Kwakyekrom
Deposit.
- Additional
bottle rolls and column tests will be completed on samples from
each of the four deposits (Sewum, Boin, Nyam, Kwakyekrom) which
comprise the Inferred Mineral Resource at Enchi.
Greg Smith, Vice President of Exploration of
Newcore stated, "This first set of column tests completed on
material from the Enchi Gold Project returned consistent results
with high recoveries for all four composite samples, highlighting
the amenability of Enchi to heap leach gold recovery. These samples
are representative of the oxide and transitional material from the
two largest deposits, Sewum and Boin, which together currently
comprise approximately 87% of the Enchi Inferred Mineral Resource
Estimate. Further metallurgical testing is ongoing and will include
a range of tests designed to further characterise and optimise the
potential recoveries at the Project."
Metallurgical Testing
Summary
A total of four composite samples, two from Boin
and two from Sewum, were submitted for column testwork to the
Intertek Lab located in Tarkwa, Ghana, approximately five hours by
paved road from the Enchi Gold Project. Material for the
metallurgical samples consisted of the remaining reverse
circulation ("RC") chips collected during the 2020 - 2021 RC
drilling program which had previously been provided to Intertek for
bottle roll tests. Samples for metallurgical testing consisted of 5
kilogram ("kg") splits created using a riffle splitter of the
remaining material from the RC drill chips and are considered
representative. The samples were selected to represent the two
largest deposits on the Project, Sewum and Boin, and consisted of
blended oxide and transitional material. For each deposit, samples
included a range of gold grades, weathering intensities, and came
from various areas of the deposits.
The first composite ("Composite 1") was prepared
using six samples from two drill holes representing approximately
one kilometre of strike length from Boin Central with a total
weight of 15.9 kgs. The second composite ("Composite 2") was
prepared using six samples from two drill holes spaced three
kilometres apart from Boin North and South weighting 15.8 kg. The
third composite ("Composite 3") was prepared using six samples from
two drill holes over 200 metres of Sewum Ridge with a total weight
of 16.0 kg. The fourth composite ("Composite 4") was prepared using
six samples from two drill holes from Sewum CH and Extension spaced
apart by 1.5 kilometres and weighted 17.6 kg.
Recovery for the four samples averaged 94.7 %,
with a range of 91.7% to 97.7%
Table 1. Column Tests – Grade and Average
Recovery
Sample |
Deposit |
Grade Au g/t |
Recovery Rate |
Composite #1 |
Boin Central |
1.49 |
91.95 |
% |
Composite #2 |
Boin North & South |
1.02 |
97.50 |
% |
Composite #3 |
Sewum Ridge |
1.11 |
97.74 |
% |
Composite #4 |
Sewum CH & Extension |
1.51 |
91.70 |
% |
|
|
Average |
94.72 |
% |
Composite samples were homogenized by mixing the
remaining material not used for the bottle roll tests. The entire
composite sample was then split using a riffle splitter to provide
four samples of approximately 4 kgs each. One sample was removed
and again split into a further four fractions of approximately
1,000 grams each, then used for: screening and grading analysis,
head sample analysis, and five-day coarse bottle roll leach
test.
Screening and Grading Analysis of Head
Samples
A size analysis was done on all the composite
samples. The samples were tested at seven screen sizes and included
analyses for percent mass. The samples were assayed for gold which
showed that gold was present in all size fractions analysed. The
distribution shows relatively consistent gold grades for all size
fractions within a tight range of 0.80 grams per tonne gold ("g/t
Au") to 1.57 g/t Au, with one outlier grading 2.85 g/t Au. Results
include 40% to 50% passing 150 microns indicating that
agglomeration is warranted, and each of the four composite samples
were agglomerated at 20 kg/t of Portland cement.
Table 2. Size Analysis by Composite
Sample
Sieve |
Composite #1 |
Composite #2 |
Composite #3 |
Composite #4 |
% mass |
Au g/t |
% mass |
Au g/t |
% mass |
Au g/t |
% mass |
Au g/t |
+2mm |
24.05 |
1.46 |
12.57 |
2.85 |
16.93 |
0.99 |
9.49 |
1.03 |
+1mm |
4.50 |
1.11 |
6.63 |
0.93 |
9.22 |
0.90 |
4.21 |
0.99 |
+250µm |
13.85 |
1.29 |
23.30 |
1.11 |
22.85 |
0.80 |
22.95 |
0.81 |
+150µm |
9.01 |
1.17 |
12.61 |
0.81 |
9.53 |
1.03 |
14.04 |
1.01 |
+106µm |
9.12 |
1.24 |
7.40 |
1.13 |
5.84 |
1.31 |
15.61 |
0.80 |
+75µm |
12.15 |
1.57 |
18.13 |
0.98 |
3.66 |
1.13 |
13.62 |
0.86 |
-75µm |
27.32 |
0.97 |
19.35 |
1.32 |
31.97 |
1.55 |
20.08 |
0.93 |
Head Sample Analysis
Using the results of the sizing and grading
analysis, a head grade was calculated for each of the composite
samples. The results were then compared to the head grade assays
which were completed on the 50-gram subsamples. The results
compared well for three of the composites (#1, #2 and #3), with a
wider but acceptable range for Composite #4 (1.51 vs 0.90 g/t
Au).
Table 3. Grade Analysis by Composite
Sample
Gold Grade g/t |
Composite #1 |
Composite #2 |
Composite #3 |
Composite #4 |
Average |
Assayed Grade |
1.49 |
1.02 |
1.11 |
1.51 |
1.28 |
Calculated Grade |
1.25 |
1.30 |
1.14 |
0.90 |
1.15 |
Five Day Coarse Bottle Roll
Leach
A coarse subsample weighting one kilogram was
prepared from each composite, with a five day coarse bottle roll
then completed. Results ranged between 80.6% and 88.0%, with an
average recovery of 85.3%. For Composite #1, 57.5% of the gold was
recovered on the first day with this increasing consistently to
88.0% by the fifth day. For Composite #2, the recovery on the first
day was 45.9%, increasing to 80.6% by the fifth day. For Composite
#3, the dissolution curve was similar to Composite #2 with the
recovery moving from 40% to 84.7% by the fifth day. Composite #4
had an initial day recovery of 50.5%, 62.1% for the second day,
69.8% for the third day, 71.9% for the fourth day, and 87.9% for
the fifth day. In all cases leaching was ongoing after the five
days with ultimate recoveries expected to continue to increase with
additional time.
Metallurgical Testing - Column
Tests
Four 10 kgs closed-cycle column leach tests were
conducted on the samples as received. The test charge was loaded
into 150 mm in diameter by 1.5-metre-tall PVC columns. 10 kg of the
individual samples were agglomerated in a rolling drum using
Portland cement at a 20 kg/t addition rate and then allowed to air
dry for three days. After the samples had been air dried, they were
loaded into the columns with the columns tilted at an angle to
avoid stacking before being set upright. The column was then
allowed to sit for a day before the initial level was taken to
determine the slump.
The leaching parameters used in this column
leach test included the addition of approximately 3 kg/t of lime
which was blended into each feed solution and a cyanide
concentration of 1,000 ppm. The initial feed solution was prepared
by adding lime to tap water to obtain a solution pH of 11.00
followed by the addition of one gram of sodium cyanide per litre of
solution with a solution application rate of 10L/h/m2 for all
samples. The column testwork was conducted under a closed cycle for
60 days for Composites #2, #3, and #4 and 70 days for Composite #1.
All solution samples were assayed for gold and pH and free sodium
cyanide was analyzed and recorded. Leach residue was thoroughly
washed, dried, screened and analyzed for gold by fire assay.
The column tests are aimed at simulating the
response to leaching of the sample with the emphasis on
establishing the gold dissolution characteristics (rate and
extent), reagent consumption, and the degree of slumping within the
ore bed. All samples showed amenability to heap leaching, with
recoveries achieving more than 90% after 60 days for Composites #2,
#3, and #4. Composite #1 achieved a recovery in excess of 90% after
an additional 10 days of leaching.
A graph showing the leach curve can be viewed at
the following link:
https://newcoregold.com/site/assets/files/5716/2021_07_-_ncau_nr_-_column_test_graph.pdf
All samples showed modest cyanide consumption of
less than 1 kg/t with the addition of 3 kg/t lime (hydrated) to
maintain a pH above 10.5. The slump for all samples was above 10%,
which may have been a result of lower binder concentration as a
result of the fine nature of the material tested. The samples
responded well to a percolation rate of 10 L/m2/hr with some
minimal flooding. The optimum percolation rate will be investigated
and optimized further.
Table 4. Summary of Column Leach
Tests
Sample ID |
Leach Time |
Slump % |
Reagent Consumption kg/t |
NaCN |
Lime |
Cement |
Composite #1 |
70 days |
12.6 |
|
0.793 |
% |
3 |
20 |
Composite #2 |
60 days |
16.7 |
|
0.798 |
% |
3 |
20 |
Composite #3 |
60 days |
33.3 |
|
0.825 |
% |
3 |
20 |
Composite #4 |
60 days |
14.3 |
|
0.817 |
% |
3 |
20 |
|
Average |
19.2 |
% |
0.81 |
% |
3 |
20 |
The column leach test program has shown that the
gold in the ore samples tested is readily leachable and amenable to
heap leaching. The recoveries achieved are considered high and are
interpreted to indicate the strong amenability to heap leaching.
The particle size distribution and size by size analysis performed
on both the head and residue after leach showed that the maximum
gold recovery occurred in the finer fractions as compared to the
coarser size fractions. The agglomeration and percolation rates
will be further tested and optimized. Further work is planned to
define the specific leach characteristics for different parts of
the four deposits which comprise the Mineral Resource Estimate at
Enchi.
Screening and Grading Analysis of Tails
Samples
A size analysis was done on all the tails from
the composite sample column tests. The samples were tested at seven
screen sizes including analyses for percent mass and assayed for
gold. The distribution shows consistently low grades of gold for
all size fractions within a tight range of 0.00 g/t Au to 0.18 g/t
Au, with one outlier grading 0.31 g/t Au. Results are reflective of
the high overall recoveries obtained for the column tests with a
minimal amount of gold remaining in the tails.
Table 5. Size Analysis of Tails by
Composite Sample
Sieve |
Composite #1 |
Composite #2 |
Composite #3 |
Composite #4 |
% mass |
Au g/t |
% mass |
Au g/t |
% mass |
Au g/t |
% mass |
Au g/t |
+2mm |
12.94 |
0.10 |
9.99 |
0.14 |
12.96 |
0.00 |
5.98 |
0.31 |
+1mm |
8.30 |
0.18 |
13.41 |
0.06 |
11.22 |
0.10 |
12.54 |
0.06 |
+250µm |
21.16 |
0.04 |
24.24 |
0.04 |
23.42 |
0.02 |
25.31 |
0.02 |
+150µm |
7.64 |
0.06 |
10.47 |
0.01 |
7.53 |
0.02 |
10.05 |
0.02 |
+106µm |
5.23 |
0.00 |
5.85 |
0.01 |
7.21 |
0.00 |
11.19 |
0.00 |
+75µm |
17.36 |
0.00 |
12.22 |
0.01 |
5.22 |
0.00 |
12.24 |
0.02 |
-75µm |
27.36 |
0.00 |
23.82 |
0.02 |
32.44 |
0.00 |
22.69 |
0.02 |
Assayed
Grade |
0.04 |
|
0.04 |
|
0.02 |
|
0.04 |
Calculated Grade |
0.04 |
|
0.04 |
|
0.02 |
|
0.04 |
Enchi Gold Project Mineral Resource
Estimate
The Enchi Gold Project hosts a pit constrained
Inferred Mineral Resource of 70.4 million tonnes grading 0.62 g/t
Au containing 1.41 million ounces gold (see Newcore news release
dated June 8, 2021). The Mineral resource estimation practices are
in accordance with CIM Estimation of Mineral Resource and Mineral
Reserve Best Practice Guidelines (November 29, 2019), and follow
CIM Definition Standards for Mineral Resources and Mineral Reserves
(May 10, 2014), that are incorporated by reference into National
Instrument 43-101 ("NI 43-101"). The Mineral Resource Estimate was
prepared by independent qualified person Todd McCracken, P. Geo. of
BBA E&C Inc. The technical report, titled "Preliminary Economic
Assessment for the Enchi Gold Project, Enchi, Ghana" has an
effective date of June 8, 2021 and is available under the Company’s
profile on SEDAR at www.sedar.com.
2020 - 2021 Enchi Drilling
Program
A 66,000 metre discovery and resource expansion
drilling program is underway at Enchi. The program includes both RC
and diamond drilling and will include the first deep drilling
planned on the Project. This drill program includes testing
extensions of the existing resource areas while also testing a
number of high priority exploration targets outside of the Inferred
Mineral Resource. Drilling is focused on step out extensions and
exploration drilling at the Sewum, Boin, Nyam and Kwakyekrom
Deposits. Additional drilling is planned at previously drilled
zones that are outside of the resource area (Kojina Hill and
Eradi), along with first pass drilling to test a series of
kilometre-scale gold-in-soil anomalous zones with no prior drilling
(Nkwanta, Sewum South and other anomalies). All zones represent
high priority targets based on geological, geochemical and
geophysical surface work and previous trenching and drilling.
COVID-19 Protocols
Newcore’s first priority is the health and
safety of all employees, contractors, and local communities. The
Company is following all Ghana guidelines and requirements related
to COVID-19. The Company has implemented COVID-19 protocols for its
ongoing drill program consisting of the mandatory use of personal
protective equipment (including facemasks for all employees),
maintaining social distancing, frequent hand washing, and daily
temperature checks at the start of each shift.
Newcore Gold Best Practice
Newcore is committed to best practice standards
for all exploration, sampling and drilling activities. Drilling was
completed by an independent drilling firm using industry standard
RC and Diamond Drill equipment. Analytical quality assurance and
quality control procedures include the systematic insertion of
blanks, standards and duplicates into the sample strings. Samples
are placed in sealed bags and shipped directly to Intertek Labs
located in Tarkwa, Ghana for 50 gram gold fire assay.
Qualified Person
Mr. Gregory Smith, P. Geo, Vice President of
Exploration of Newcore, is a Qualified Person as defined by NI
43-101, and has reviewed and approved the technical data and
information contained in this news release. Mr. Smith has verified
the technical and scientific data disclosed herein and has
conducted appropriate verification on the underlying data including
confirmation of the drillhole data files against the original
drillhole logs and assay certificates.
About Newcore Gold Ltd.
Newcore Gold is advancing its Enchi Gold project
located in Ghana, Africa’s largest gold producer(1). The Project
currently hosts an Inferred Mineral Resource of 1.4 million ounces
of gold at 0.62 g/t(2). Newcore Gold offers investors a unique
combination of top-tier leadership, who are aligned with
shareholders through their 32% equity ownership, and prime district
scale exploration opportunities. Enchi’s 216 km2 land package
covers 40 kilometres of Ghana’s prolific Bibiani Shear Zone, a gold
belt which hosts several 5 million-ounce gold deposits, including
Kinross’ Chirano mine 50 kilometers to the north. Newcore’s vision
is to build a responsive, creative and powerful gold enterprise
that maximizes returns for shareholders.
On Behalf of the Board of Directors of
Newcore Gold Ltd.
Luke AlexanderPresident, CEO & Director
For further information, please
contact:
Mal Karwowska | Vice President, Corporate
Development and Investor Relations+1 604 484
4399info@newcoregold.com www.newcoregold.com
(1) Source: Production volumes for 2020 as
sourced from the World Gold Council
(2) Notes for Inferred Mineral Resource
Estimate:
1. CIM definition
standards were followed for the resource estimate.2. The 2021
resource models used ordinary kriging (OK) grade estimation within
a three-dimensional block model with mineralized zones defined by
wireframed solids and constrained by pits shell for Sewum, Boin and
Nyam. Kwakyekrom used Inverse Distance squared (ID2).3. A base
cut-off grade of 0.2 g/t Au was used with a capping of gold grades
varied by deposit and zone.4. A US$1,650/ounce gold price,
open pit with heap leach operation was used to determine the
cut-off grade of 0.2 g/t Au. Mining costs of US$1.40 for oxides,
US$2.10 for transition, and US$2.60 for fresh rock per mined tonne
and G&A and milling costs of US$6.83/milled tonne. The Inferred
Mineral Resource Estimate is pit constrained.5. Metallurgical
recoveries have been applied to four individual deposits and in
each case three material types (oxide, transition, and fresh rock)
with average recoveries of 77% for Sewum, 79% for Boin, 60% for
Nyam and 72% for Kwakyekrom.6. A density of 2.20 g/cm3 for
oxide, 2.45 g/cm3 for transition, and 2.70 g/cm3 for fresh rock was
applied.7. Optimization pit slope angles varied based on the rock
types.8. Mineral Resources that are not mineral reserves do
not have economic viability. Numbers may not add due to rounding.9.
These numbers are from the technical report titled "Preliminary
Economic Assessment for the Enchi Gold Project, Enchi, Ghana", with
an effective date of June 8, 2021, prepared for Newcore Gold by BBA
E&C Inc. in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects and is available under
Newcore’s SEDAR profile at www.sedar.com.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary Note Regarding
Forward-Looking Statements
This news release includes statements that
contain "forward-looking information" within the meaning of the
applicable Canadian securities legislation ("forward-looking
statements"). All statements, other than statements of historical
fact, are forward-looking statements and are based on expectations,
estimates and projections as at the date of this news release. Any
statement that involves discussion with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions,
future events or performance (often, but not always using phrases
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes"
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved)
are not statements of historical fact and may be forward-looking
statements. In this news release, forward-looking statements
relate, among other things, to: statements about the estimation of
mineral resources; results of our ongoing metallurgical testwork
program; results of our ongoing drill campaign, magnitude or
quality of mineral deposits; anticipated advancement of mineral
properties or programs; and future exploration prospects.
These forward-looking statements, and any
assumptions upon which they are based, are made in good faith and
reflect our current judgment regarding the direction of our
business. The assumptions underlying the forward-looking statements
are based on information currently available to Newcore. Although
the forward-looking statements contained in this news release are
based upon what management of Newcore believes, or believed at the
time, to be reasonable assumptions, Newcore cannot assure its
shareholders that actual results will be consistent with such
forward-looking statements, as there may be other factors that
cause results not to be as anticipated, estimated or intended.
Forward-looking information also involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking information. Such
factors include, among others: risks related to the speculative
nature of the Company’s business; the Company’s formative stage of
development; the Company’s financial position; possible variations
in mineralization, grade or recovery rates; actual results of
current exploration activities; fluctuations in general
macroeconomic conditions; fluctuations in securities markets;
fluctuations in spot and forward prices of gold and other
commodities; fluctuations in currency markets (such as the Canadian
dollar to United States dollar exchange rate); change in national
and local government, legislation, taxation, controls, regulations
and political or economic developments; risks and hazards
associated with the business of mineral exploration, development
and mining (including environmental hazards, unusual or unexpected
geological formations); the presence of laws and regulations that
may impose restrictions on mining; employee relations;
relationships with and claims by local communities; the speculative
nature of mineral exploration and development (including the risks
of obtaining necessary licenses, permits and approvals from
government authorities); and title to properties.
Forward-looking statements contained herein are
made as of the date of this news release and the Company disclaims
any obligation to update any forward-looking statements, whether as
a result of new information, future events or results, except as
may be required by applicable securities laws. There can be no
assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information.
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