Newcore Gold Ltd. · TSXV:NCAU
Newcore Gold — Investor Presentation (June 2021)
33 slides from Newcore Gold's investor presentation, June 2021
Slide 1: In the Business of Gold
IN THE BUSINESS OF GOLD TSX-V: NCAU OTCQX: NCAUF Enchi Gold Project - Updated PEA JUNE 2021
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements This presentation is provided for informational purposes only and the opinions expressed are based upon Newcore Gold Ltd.’s (“Newcore” or the “Company”) analysis and interpretation and are not to be construed as a solicitation or offer to buy or sell the sec
Slide 3: Engineering a Better Gold Company
ENGINEERING A BETTER GOLD COMPANY “Management is aligned with shareholders to create value by significantly expanding our gold resource.” Luke Alexander, President & CEO Top-tier leadership with one of the most successful track records in the industry Advancing the 100%-owned Enchi Gold Project in G
Slide 4: Top-Tier Management with Capital Markets Support
WHY NEWCORE GOLD Top-Tier Management with Capital Markets Support Management & Board of Directors Institutional Backing Track record of making money for shareholders Clear access to institutional capital Own 32%, invested alongside shareholders 35% ownership, invested in the last year Capital Market
Slide 5: Unlocking Value in Ghana with a Low Capex, Robust PEA at Enchi
WHY NEWCORE GOLD Unlocking Value in Ghana with a Low Capex, Robust PEA at Enchi SIMPLE OPEN PIT US$212 MILLION 42% US$97 MILLION AFTER-TAX NPV5% AFTER-TAX IRR INITIAL CAPITAL HEAP LEACH (US$1,650/oz Gold Price) (US$1,650/oz Gold Price) (Low Capital Intensity) 1.0 Mozs Gold 104,000 OUNCES 46,000 METR
Slide 6: Gold Price
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Slide 7: PEA Overview
ENCHI GOLD PROJECT - PEA PEA Overview 2021 PEA KEY PARAMETERS (US$ where applicable) Key Assumptions • Technically simple, open pit, heap leach operation Base Case Gold Price $1,650/oz • Processing 6.6 mtpa, contract mining, low strip ratio Production Profile Total Tonnes Processed (mt) 68.6 • Stron
Slide 8: Gold Production and Cost Profile
ENCHI GOLD PROJECT - PEA Gold Production and Cost Profile • Average annual gold production of ~104,000 ounces in years 2 to 5, with peak production in year 10 • Low sustaining capital, US$6.7 million in each of year 3 and 6 for heap leach pad expansion 140,000 $1,303 $1,400 $1,296 $1,239 $1,235 $1,1
Slide 9: After-Tax Cash Flow Profile
ENCHI GOLD PROJECT - PEA After-Tax Cash Flow Profile • Robust project economics with a short after-tax payback period of 2.3 years at a gold price of US$1,650/oz • Strong leverage to gold prices, after-tax payback drops to 1.9 years at a gold price of US$1,850/oz $450 $422 $395 $350 $318 $303 $286 $
Slide 10: Project Economics - Leverage to Gold Price
ENCHI GOLD PROJECT - PEA Project Economics - Leverage to Gold Price (US$ where applicable) BASE CASE SPOT • Strong project economics provide Gold Price (US$/oz) $1,450 $1,550 $1,650 $1,750 $1,850 $1,950 significant NPV leverage to gold price Pre-Tax NPV5% (US$M) $195 M $264 M $333 M $402 M $471 M $5
Slide 11: Metallurgy and Mining Schedule
ENCHI GOLD PROJECT - PEA Metallurgy and Mining Schedule SUBSET OF MINERAL RESOURCES WITHIN PIT DESIGN & RECOVERIES Tonnes Grade Avg. Recovery Gold Produced • Mining Schedule: Mining to occur in a series of Deposit (mt) (g/t Au) (%) (ozs) Strip Ratio 10 shallow open pits across the four deposits Sewu
Slide 12: Location and Infrastructure
TOWN OF ENCHI ENCHI GOLD PROJECT - PEA Location and Infrastructure • Town of Enchi: Located 10 km west of the Project • Paved road and powerline crosses central portion of the Project leading to the town of Enchi • Fuel, accommodations, food, supplies available • Labour: Region has a long history of
Slide 13: Proposed Site Layout
ENCHI GOLD PROJECT - PEA Proposed Site Layout • Material to be trucked from the four deposits to a central crushing and heap leach facility at Sewum • Heap leach facility to be built in three phases over six years, with excess capacity available Notes: See news release dated June 8, 2021 for further
Slide 14: Capital Cost - Low Capital Intensity
ENCHI GOLD PROJECT - PEA Capital Cost - Low Capital Intensity • Capital cost estimate based on open pit mining utilizing CAPITAL COST ESTIMATE DETAILS (US$M) contract mining and heap leach processing at 6.6 mtpa Description Initial Sustaining Closure LOM Direct Costs • Initial Capital Costs Mining $
Slide 15: Operating Cost - Simple, Open Pit, Heap Leach
ENCHI GOLD PROJECT - PEA Operating Cost - Simple, Open Pit, Heap Leach • Costs based on a detailed annual mining and processing OPERATING COST ESTIMATE DETAILS (US$ where applicable) Operating Costs LOM (US$M) US$/tonne leached US$/oz Au schedule, incorporated haul distances and pit depths Mining $4
Slide 16: 2021 Mineral Resource Estimate
ENCHI GOLD PROJECT - PEA 2021 Mineral Resource Estimate Inferred Mineral Resource Estimate The June 2021 Mineral Resource Estimate Deposit Tonnes Grade (g/t Au) Contained Au (oz) incorporates assay results from: Sewum 41,009,000 0.55 725,200 • 182 diamond drill holes (22,725 metres) Boin 21,807,000
Slide 17: Project Growth Opportunities
ENCHI GOLD PROJECT - PEA Project Growth Opportunities • Current Deposits: Expansion of open pits at Sewum, Boin, Nyam and Kwakyekrom through further drilling • All deposits open for resource expansion both at depth and along strike • Additional Drilling: Only 20,195 metres of drilling included in th
Slide 18: Enchi Gold Project Exploration
Slide 19: On Trend with Some of Ghana's Most Prominent Mines
ENCHI GOLD PROJECT On Trend with Some of Ghana’s Most Prominent Mines Sefwi-Bibiani Belt Newmont - Ahafo 15.5Moz Resolute - Bibiani 6.5Moz Kinross - Chirano 5.5Moz Endeavour - Afema 2.0Moz Newcore Gold - Enchi* 1.4Moz ENCHI Pelangio - Manfo 500koz Ashanti Belt AngloGold - Obuasi 66Moz Gold Fields -
Slide 20: 66,000 Metre RC & Diamond Drill Program Underway
Deposits Targets ENCHI GOLD PROJECT Shear Zone 66,000 Metre RC & Diamond Drill Program Underway* • Testing multiple targets, focused on expanding near surface oxide ERADI | To be Drilled in 2021 3 geo-chemical anomalies over resources while defining potential of broader property 3 km long with limit
Slide 21: Sewum Gold Deposit
ENCHI GOLD PROJECT - EXPLORATION Sewum Gold Deposit • Drilling has expanded the drill tested strike extent to 3.5 kms, with the current pit constrained mineral resource defined across a strike extent of 2.4 kms • ~50% of the surface anomaly is untested to date • Drilling has intersected widespread g
Slide 22: Boin Gold Deposit
ENCHI GOLD PROJECT - EXPLORATION Boin Gold Deposit • Drilling has expanded the drill tested strike extent to 4 kms, with the current pit constrained mineral resource defined across a strike extent of 3 kms • ~50% of the surface anomaly untested • Wide-spaced exploration drilling has extended gold mi
Slide 23: Boin Gold Deposit - North
ENCHI GOLD PROJECT - EXPLORATION Boin Gold Deposit - North • Drilling on the northern extension has extended the drill tested portion of the gold mineralization by 400 metres to the north • Intersected wide zones of mineralization including high- grade core structures and multiple sub-parallel struc
Slide 24: Nyam Gold Deposit
ENCHI GOLD PROJECT - EXPLORATION Nyam Gold Deposit • Drilling has expanded the drill Pit Shell tested strike extent to 1.8 kms, Outline with the current pit constrained mineral resource defined across a strike extent of 1.4 kms • ~40% of the surface anomaly is untested to date • The deepest intersec
Slide 25: Kwakyekrom Gold Deposit
ENCHI GOLD PROJECT - EXPLORATION Kwakyekrom Gold Deposit • Drilling has expanded the drill tested strike extent to 1.3 kms, Pit Shell Outline with the current pit constrained mineral resource defined across a strike extent of 500 metres • ~40% of the surface anomaly is untested to date • Interpreted
Slide 26: Exploration Potential - 25 Identified Targets
ENCHI GOLD PROJECT - EXPLORATION Exploration Potential - 25 Identified Targets • VTEM airborne geophysical AIRBORNE MAP SOIL MAP Airborne Geophysics Electromagnetics Compilation Map Geology with Soil Anomalies survey identified over 25 exploration targets, with only 6 of them drill tested to date •
Slide 27: Exploration Potential - Targets
ENCHI GOLD PROJECT Exploration Potential - Targets • Numerous targets identified and prioritized DEPOSITS Sewum, Boin, Nyam, Kwakyekrom DRILL TESTED ZONES Kojina Hill, Eradi ADVANCED TARGETS Nkwanta, Sewum South, Tokosea ADDITIONAL TARGETS Beekokrom, Alatakrom, Gyasikrom, Achimfo, Omampe, Adamansu,
Slide 28: Depth Potential - Chirano Comparable
ENCHI GOLD PROJECT Depth Potential - Chirano Comparable • Kinross’ multi-million ounce Chirano Gold Mine, located • Both properties exhibit numerous targets, with only 6 ~50km northeast of Enchi, hosts plunging zones of high- of 25 targets drilled to date at Enchi and never drilled grade gold minera
Slide 29: Key Takeaways
KEY TAKEAWAYS Top-Tier Management & Board of Directors, Own 32% of Equity Strong Capital Structure & Capital Markets Support Established Resource Base in a Multi-Million Ounce Gold District Robust PEA: Simple, Open Pit, Heap Leach with Low Capital Intensity 66,000 Metre Drill Program Ongoing to Unlo
Slide 30: In the Business of Gold - Contact Information
IN THE LEARN MORE ABOUT THE NEWCORE OPPORTUNITY BUSINESS OF GOLD CONTACT INFORMATION Mal Karwowska, VP, Corporate Development & IR TSX-V: NCAU Office: +1 (604) - 484 - 4399 Email: info@newcoregold.com OTCQX: NCAUF www.newcoregold.com
Slide 31: Gold Production, Grade and Recovery Profile
ENCHI GOLD PROJECT - PEA Gold Production, Grade and Recovery Profile 150,000 80% 79% 85% 83% 79% 0.90 78% 78% 78% 77% Heap Leach Feed Grade (g/t Au) & 74% 74% 0.80 Gold Production (ounces) 120,000 0.70 0.73 Gold Recovery (%) 0.60 90,000 0.63 0.63 0.63 0.63 0.58 0.50 0.55 0.52 0.48 0.45 0.40 60,000 1
Slide 32: Enchi Gold Project 2021 PEA - Summary of Cash Flow
Enchi Gold Project 2021 PEA - Summary of Cash Flow Units Total/Average Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 REVENUES ($1,650/oz Gold Price) Gold Production ozs 983,296 - 50,660 104,638 104,034 104,286 103,728 79,964 87,639 83,3
Slide 33: Enchi Gold Project Technical Disclosure
APPENDIX Enchi Gold Project Technical Disclosure 2021 Inferred Mineral Resource Estimate 2021 Preliminary Economic Assessment 1. CIM definition standards were followed for the resource estimate. 1. The Preliminary Economic Assessment (“PEA”) is based upon the Company’s 2021 Mineral Resource Estimate