Newcore Gold Makes Two New Greenfield Discoveries at its Enchi Gold Project, Ghana

Newcore Gold Drilling Intersects 3.52 g/t Gold over 9.0 Metres, including 7.36 g/t Gold over 4.0 Metres at the Tokosea Gold Target

March 7, 2022, Vancouver, BC – Newcore Gold Ltd. ("Newcore" or the "Company") (TSX-V: NCAU, OTCQX: NCAUF) is pleased to announce two new gold discoveries from the 90,000 metre drill program underway at the Company’s 100% owned Enchi Gold Project ("Enchi" or the "Project") in Ghana. First pass Reverse Circulation ("RC") drilling on two grassroots targets, Tokosea and Sewum South, intersected shallow oxide gold mineralization demonstrating the strong potential to delineate additional resource areas across the 216 km2 property. Drilling at Tokosea (located on the central portion of Enchi) intersected shallow high-grade oxide gold mineralization grading 3.52 grams per tonne gold ("g/t Au") over 9.0 metres ("m") from 74 m, including 7.36 g/t Au over 4.0 m from 77 m. Drilling at Sewum South (located at the southern end of Enchi, one of the largest previously undrilled targets identified on the Project) intersected 0.95 g/t Au over 15.0 m from 25 m, including 2.31 g/t Au over 5.0 m from 25 m.

Highlights from First Pass Drilling at Tokosea and Sewum South

-          Both Tokosea (central portion of Enchi) and Sewum South (southern end of Enchi) are previously undrilled gold targets with very large anomalous areas identified.

• First pass discovery drilling at Sewum South and Tokosea tested gold mineralization to an average depth of only 75 metres.
• The Tokosea and Sewum South gold targets are each outlined on surface by a
• six-kilometre-long and two-to-three-kilometre-wide gold-in-soil anomaly.
• Awaiting assays from an additional 30 RC drill holes completed at Tokosea.

-          Drilling at Tokosea intersected near surface oxidized gold mineralization, including:

• Hole TORC025 intersected two mineralized zones, 3.52 g/t Au over 9.0 m from 74 m, including 7.36 g/t Au over 4.0 m from 77 m in the lower zone, and 1.15 g/t Au over
• 3.0 m from 3 m in the upper zone.
• Hole TORC012 intersected 0.51 g/t Au over 27.0 m from 4 m, including 1.92 g/t Au over 5.0 m from 23 m.

-          Drilling at Tokosea also intersected gold mineralization to depth, into the upper portion of the sulphide mineralization, with results including:

• Hole TORC012 intersected a second structure in the sulphides with 1.73 g/t Au over
• 6.0 m from 125 m, including 4.35 g/t Au over 2.0 m from 125 m.
• Hole TORC020 intersected 0.90 g/t Au over 12.0 m from 74 m, including 4.55 g/t Au over 2.0 m from 76 m.

-          Drilling at Sewum South intersected multiple gold mineralized zones, including higher grade core structures:

• Hole SWRC130 intersected 0.95 g/t Au over 15.0 m from 25 m, including 2.31 g/t Au over 5.0 m from 25 m and a second zone of 1.50 g/t Au over 4.0 m from 14 m.
• Hole SWRC121 intersected 0.53 g/t Au over 24.0 m from 54 m, including higher-grade structures of 1.09 g/t Au over 3.0 m from 54 m and 1.61 g/t Au over 2.0 m from 69 m.

Greg Smith, VP Exploration of Newcore stated, "We are thrilled with the success of inaugural drilling on some of the largest gold anomalies we have identified at Enchi. Both drilling at Tokosea and Sewum South, two prospective early-stage targets on the property, have identified several new areas of gold mineralization with strong results in both near surface oxide and sulphide mineralization. This first pass drilling tested gold mineralization to an average vertical depth of only 75 metres and identified a number of mineralized zones with higher-grade core structures with further potential from follow-on drilling along strike and at depth. We have only just scratched the surface of the gold potential at Enchi. The 90,000 metre drill program underway continues to prove out the significant multi-million ounce potential across this district scale property."

Luke Alexander, President and CEO of Newcore stated, "These two new discoveries along with recent results from a parallel structure at Sewum extension accomplish our stated goal of making new greenfield discoveries as part of our multi-pronged exploration approach. These new discoveries complement prior drill results which outlined near surface resource expansion potential along strike at all four of our existing deposits, strong results from drilling at three previously drilled areas, and high-grade intercepts at depth which have outlined the potential for underground resources. These new discoveries are a real testament to our geological team’s understanding of the structures at our Enchi Gold Project. We will continue to systematically approach the exploration across the Project with the goal of creating value for all our stakeholders."

This news release reports results for 55 holes totalling 5,698 m, including 26 RC holes totalling 2,848 m (TORC001 to TORC026) targeting the Tokosea Gold Target and 29 RC holes totalling 3,120 m (SWRC114 to SWRC142) targeting the Sewum South Gold Target. 49 of the 55 holes intersected gold mineralization. Both Tokosea and Sewum South are targets at Enchi with no prior drilling.

Select assay results from the 55 holes of the drill program reported in this release are below:

Table 1 - Enchi Gold Project Drill Highlights

Notes:

1. See detailed table for complete results
2. Intervals reported are hole lengths with true width estimated to be 75 - 85%
3. Length-weighted averages from uncut assays

A property map showing the location of Tokosea and Sewum South can be viewed at:

https://newcoregold.com/site/assets/files/5762/2022_03-enchi-property-target-map-soils-l.pdf

Plan maps showing the drill hole locations can be viewed at:

https://newcoregold.com/site/assets/files/5762/2022_03-ncau-nr-enchi-plan-maps-l.pdf

Cross sections showing drill results and highlights for holes TORC025, TORC012, SWRC130 and SWRC131 can be viewed at:

https://newcoregold.com/site/assets/files/5762/2022_03-ncau-crosssections-l.pdf

A complete list of the 2020 – 2022 drill results released to date, including hole details, can be viewed at:

https://newcoregold.com/site/assets/files/5762/2022_03-ncau-enchi-2020-2022-drill-results-l.pdf

For the total planned 90,000 metre drill program, assay results have now been received and released for 493 holes representing 79,175 metres.

Drilling at Tokosea

Tokosea is a large, previously undrilled gold target at Enchi, located in the central portion of the property to the north of the Sewum Gold Deposit. Tokosea is outlined on surface by a six-kilometre-long and two-to-three-kilometre-wide gold-in-soil anomaly. First pass drilling at Tokosea consisted of 26 RC holes totalling 2,848 m (TORC001 to TORC026) designed to test gold-in-soil and trench anomalies. The wide spaced drilling tested several targets within a four-kilometre-by-two-kilometre area, with 23 of the 26 holes intersecting gold mineralization.

A total of 12 holes (TORC010 to TORC016, TORC022 to TORC026) tested a strike length of 1.75 km of the central structure within the anomalous area at Tokosea, including an area associated with historic artisanal open pit and underground workings. Additional structures have been identified west, east, and north of the central structure.

Drilling intersected mineralization within both the oxide and sulphide zones. Hole TORC025 completed on the northern end of the drill tested area at Tokosea intersected two mineralized zones in the oxides, 3.52 g/t Au over 9 m from 74 m, including 7.36 g/t Au over 4 m from 77 m in the lower oxidized zone, with an additional intercept of 1.15 g/t Au over 3 m from 3 m in the upper oxidized zone. On the same section, hole TORC026 collared 75 metres west of TORC025 intersected the down dip continuation of the upper zone (from TORC025) with 0.52 g/t Au over 11 m from 43 m, including 2.88 g/t Au over 1 m from 45 m and the down dip extension of the lower zone with 1.36 g/t Au over 2 m from 87 m.

Drilling on the central portion of the anomaly included hole TORC016 collared one kilometre to the south of TORC025 (on the same structure) which intersected 0.84 g/t Au over 11 m from 43 m, including 6.81 g/t Au over 1 m from 53 m in oxide mineralization. Hole TORC012 collared 500 m to the south of TORC016 intersected 0.51 g/t Au over 27 m from 4 m, including 1.92 g/t Au over 5 m from 23 m in the oxides along with a lower zone in the sulphides of 1.73 g/t Au over 6 m from 125 m including 4.35 g/t Au over 2 m from 125 m.

A total of 9 holes (TORC001 to TORC009) tested a series of subparallel structures on the western portion of the anomaly at Tokosea. Up to five separate mineralized structures occur across a 200-metre-wide area located approximately 500 metres west of the central structure. To date the structures have been tested by two sections of holes spaced 200 metres apart. Drill results include three holes intersecting mineralization within the oxide zone: TORC007 with an upper zone of 0.36 g/t Au over 31 m from 36 m, including 0.67 g/t Au over 8 m from 37 m and a lower zone of 0.34 g/t Au over 26 m from 87 m; TORC003 collared 250 m to the north of TORC007 intersected 0.81 g/t Au over 11 m from 38 m including 2.73 g/t Au over 2 m from 44 m; and TORC008 collared 200 m to the west (on a sub-parallel structure) of TORC003 intersected 0.34 g/t Au over 18 m from 33 m and 0.81 g/t Au over 11 m from 38 m, including 2.73 g/t Au over 2 m from 44 m.

A total of 5 holes (TORC017 to TORC021) tested a structure in the southern portion of Tokosea. The area is possibly the extension of the central structures or an additional sub-parallel zone.  Results include three holes intersecting mineralization within the upper portion of the sulphide zone: TORC020 intersected 0.90 g/t Au over 12 m from 74 m, including 4.55 g/t Au over 2 m from 76 m; TORC021 collared 100 m to the south of TORC020 intersected 1.30 g/t Au over

5 m from 72 m, including 4.17 g/t Au over 1 m from 74 m; and TORC019 collared 150 m to the south of TORC021 intersected 0.87 g/t Au over 7 m from 84 m.

Drilling continues at Tokosea, with additional assay results pending for 30 drill holes.

Drilling at Sewum South

Sewum South is one of the largest previously undrilled gold anomalies identified at Enchi, with the target located at the southern end of the property. Sewum South is outlined on surface by a six-kilometre-long and two-to-three-kilometre-wide gold-in-soil anomaly. First pass drilling at Sewum South consisted of 29 RC holes totalling 3,120 m (SWRC114 to SWRC142) designed to test gold-in-soil and trench anomalies. The wide spaced drilling tested several targets within a three-kilometre-by-two-kilometre area, with 26 of the 29 holes drilled intersecting gold mineralization.

Drilling intersected mineralization within both the oxide and sulphide zones. Hole SWRC130 collared in the central portion of the Sewum South Target intersected 0.95 g/t Au over 15 m from 25 m, including 2.31 g/t Au over 5 m from 25 m and a second zone of 1.50 g/t Au over 4 m from 14 m. On the same section, hole SWRC131 collared 50 metres east of SWRC130 intersected the down dip continuation of the zone with 1.57 g/t Au over 8 m from 42 m. Hole SWRC129, collared 75 metres west of SWRC130, intersected a sub-parallel structure with 0.51 g/t Au over 16 m from 19 m, including 1.64 g/t Au over 2 m from 19 m and 0.94 g/t Au over 3 m from 30 m. Hole SWRC121, collared 500 metres south of SWRC130 targeted the strike extension of the mineralized structures, intersected 0.53 g/t Au over 24 m from 54 m including 1.09 g/t Au over 3 m from 54 m and 1.61 g/t Au over 2 m from 69 m.

Additional drilling has highlighted the potential for additional mineralization across this prospective target area. Hole SWRC118, collared one kilometre south of SWRC121 and the hole drilled the furthest south on the target, intersected a mineralized zone with multiple structures interpreted to be approximately 400 to 500 metres east of the main structure at Sewum. Additional strong results from the southernmost holes drilled at the Sewum South target include hole SWRC117, collared 75 metres east of SWRC118, which intersected 0.75 g/t Au over 6 m from 20 m, and hole SWRC115, collared 400 metres north of SWRC118, which intersected 0.97 g/t Au over 3 m from 61 m.

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). 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 - 2022 Enchi Drilling Program

A 90,000 metre discovery and resource expansion drilling program is underway at Enchi (anticipated completion in Q2 2022). The program includes both RC and diamond drilling and includes the first deeper drilling 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 also focused on 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 (Sewum South, Tokosea and Nkwanta). All zones represent high priority targets based on geological, geochemical and geophysical surface work and previous trenching and drilling.

Tokosea Gold Target

The Tokosea Target is located in the central portion of the Enchi Gold Project and is one of the largest anomalous areas with gold-in-soil and associated geophysical anomalies. Tokosea is located 15 kilometres southeast of the town of Enchi, with nearby roads and power and further access provided by a series of drill roads. Tokosea is outlined on surface by a six-kilometre-long and two to three-kilometre-wide gold-in-soil anomaly. An airborne geophysical anomaly coincident with the area defines a series of sub-parallel and intersecting structures. Historic artisanal small scale open pit and underground mining has occurred on individual structures dating as far back as the early 20th century. The area was untested by drilling prior to the current drill program.  As part of the current drill program results have been received and released for 26 RC holes totalling 2,848 metres.

Sewum South Gold Target

The Sewum South Target is located at the southern end of the Enchi Gold Project and is one of the largest undrilled anomalous areas on the Project.  Sewum South is located 15 kilometres south of the town of Enchi, with nearby roads and power and further access provided by a series of drill roads. The area is one-to-two kilometres south and east of the Sewum Deposit.  Sewum South is outlined on surface by a six-kilometre-long and two to three-kilometre-wide gold-in-soil anomaly. An airborne geophysical anomaly coincident with the area defines a series of sub-parallel and intersecting structures. The area was untested by drilling prior to the current drill program. As part of the current drill program results have been received and released for 29 RC holes totalling 3,120 metres.

Drill Hole Locations

Table 2 - Enchi Gold Project Drill Hole Location Details

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 1.41 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 27% 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 Alexander

President, CEO & Director

For further information, please contact:

Mal Karwowska | Vice President, Corporate Development and Investor Relations

+1 604 484 4399

[email protected]  

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 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.