Newcore Gold is advancing its Enchi gold project in Ghana toward a mining lease and feasibility study, but President and CEO Luke Alexander says the market has yet to fully recognize the project’s value. Speaking at the 2026 Precious Metals Summit in Beaver Creek on September 22, Alexander noted that Newcore’s market capitalization stood at about US$80 million at the time, which he believes undervalues the project’s potential.
The June 24 prefeasibility study (PFS) outlined an open-pit mine with a 5.5-million-tonne-per-year carbon-in-leach plant, using contract mining. At a base-case gold price of US$3,800, the study projected an after-tax net present value (NPV) of US$496 million at a 5% discount rate and a 37% after-tax internal rate of return. At US$4,200 gold, those figures rose to US$647 million and 45%. Initial capital is estimated at US$351 million, significantly higher than the US$106 million in the 2024 preliminary economic assessment, which used heap leaching. Alexander defended the switch, calling carbon-in-leach the industry standard in Ghana and West Africa.
While some shareholders were disappointed by the increased capital expenditure, Alexander highlighted growing interest from technically focused and strategic groups. He suggested that a strategic investment or takeover could help close the valuation gap. Higher gold prices also boost the project’s economics, with the study’s sensitivity table showing an after-tax NPV of US$963 million at US$5,000 gold. Alexander also noted that recent policy changes in Ghana, including a sliding-scale royalty and contract mining requirements, are already factored into the study.
Newcore has completed 50,470 meters of drilling in 319 holes, with about 33,000 meters remaining. Some of the best intercepts have come since the PFS, including a 69.0-meter section grading 2.59 grams per tonne gold. The company aims to identify higher-grade material earlier in the mine life and is exploring deeper zones for long-term potential. With the PFS establishing 1.06 million ounces of reserves, Newcore can now apply for a mining lease, positioning Enchi as one of Ghana’s most advanced large-scale mining projects.