Newcore Gold – A dive into the PEA for the Enchi Gold Project showing profitability and near term growth
Luke Alexander, President and CEO of Newcore Gold (TSX.V:NCAU – OTCQX:NCAUF) joins us to breakdown the PEA that was released yesterday. We discuss the profitability at a base case for gold of $1,650/oz and up to $1,850/oz. We also focus on some of the other fundamentals within the PEA including initial capital cost, the 200,000oz increase in the resource, and the amount of drilling that has been completed to date but was not included in the PEA.
If you have any follow up questions for Luke regarding Newcore Gold please email us at Fleck@kereport.com or Shad@kereport.com.
Click here to read over the full news release highlighting the PEA.
With 1.4 Million ounces of Gold so far in that PEA, but about 46,000 meters of drilling from their on-going 66,000 meters drill program, then I believe they want to get all that exploration work done first, and then come out with an updated PEA/updated resource estimate next year.
Luke has mentioned that their goals are to target growing their resource to a 3-4 million ounce deposit, which would be more of interest to the big boy producers. At that point, then they’ll make a decision about whether to move forward with construction, or see if their are JV partners that want in, or possibly be taken over at that point.
For the foreseeable future they are going to be in exploration growth mode, and I’m watching as a happy shareholder to see how the drilling at depth goes and if they can hit higher grades down deeper that would be amenable to underground mining. That would give them a 2 prong approach with the open pit oxide resources near the surface, and then a second phase of underground mining at depth. They still have a lot of drilling to do this year, and next near to see how it all shakes out and how it grows, but it’s a development stage company I’m happy to hold for the medium term, similar to Orezone.
We also had (MAU) Montage Gold on today, which is also in West Africa and just did their resource update and PEA, which I don’t own, but believe is another solid West African development-stage company.
We also had (THX) Thor Explorations on first yesterday (Monday) and in addition to their Segilola project in Nigeria moving to first gold pour in July, they also have a monster development stage Douta/Makosa Tail project in Senegal growing, that they are working on a maiden resource for later in the year. I own it as much for the optionality on that large development project (and their lessor discussed South Hounde project in Burkina Faso) as I do for the production project in Nigeria.
Just a few West African ideas to mull over, and that we’ve had on the show in the last 2 days.
Ever Upward!
Thanks Ex……I don’t follow much outside of Canada usually. I lucked into orezone when I was looking at pot stock warrants.
Good timing as I’m looking for my next west Africa play…….would be nice if you discussed the financial situation with all the drilling planned and what the goal is moving forwards as to whether they plan to take it into production and what that timeline might be