Newcore Gold (NCAU.V) has started a 58,000 meter drill program on its Enchi gold project in Ghana, and the initial assay results have been rolling in in the past few weeks. After releasing assay results with a headline result of 28 meters containing 1.52 g/t gold, the more recent update published at the end of November continues to show excellent drill results. Hole 17, for instance, encountered 45 meters of 1.38 g/t gold starting at a depth of just 8 meters down-hoe. Within this interval, there was a narrower but higher grade zone of 6 meters containing 6.25 g/t in the sulphide layer less than 50 meters down-hole. That’s clearly positive but it also means the average gold grade in the remaining 39 meters of the 45 meter interval was just 0.63 g/t.
The assay results of the five holes released at the end of November can be found below, and as you can see the gold exploration company has detected decent grades over decent widths.
And there’s more to come. Newcore has barely started its 58,000 meter drill program and a second and third drill rig should have arrived on site by now. NCAU has been lucky with its timing as it tapped the market for C$15M at C$0.80 per share in a bought deal financing announced in October. Excellent timing as the share price barely traded at or above those levels since raising the money, and is currently trading approximately 15% below that price level. As of the end of September, Newcore had about C$1.4M in working capital and this should have increased to around C$15M including the bought deal financing. We expect the company to end the year with a working capital position of around C$10-11M, which means it won’t have to tap the equity markets anytime soon.
Disclosure: The author has a long position in Newcore Gold. Please read our disclaimer.
