Newcore Continues to Find Higher-Grade Gold Outside the Boin Pit

Trevor Hall (0:17)

Welcome back into Mining Stock Daily, everybody. Getting a corporate update here from Newcore Gold. They do trade on the Venture Exchange with NCAU and on the OTCQX with NCAUF. This is kind of a follow-up with the previous time.

We did speak with the company just prior to Beaver Creek, and this is a follow-up because the new drill holes out of the Boin deposit just keep on coming and they are continued to be positive, not only for that deposit, but also for the entire Enchi Gold Project. Happy to welcome in CEO Luke Alexander for this go-around. Luke, good to see you once again. How was your Beaver Creek?

Luke Alexander (0:56)

Yeah, Beaver Creek was good. It was extremely busy. I'm sure that's been the feedback from a lot of the interviews that you've had. We had a extremely busy schedule. It was the first conference we had done since our PFS was put out. So we spent a lot of time explaining the under underpinning of value that our project creates with that PFS. But then ultimately we were talking a lot about the exploration upside as well as obviously the recent drill results we've been getting, which really highlight the opportunity for us to optimize mine plans and future studies. So it was a very productive beaver creek and extremely busy, which is ultimately the reason why we go to these things.

Trevor Hall (1:40)

All right. Well, let's chat about the work and the data that has been put into the Boin deposit here. Continued mineralization, intersecting shallow gold mineralization above the mineral reserve grade. That's one positive, but also intersecting more mineralization outside of the pit resource mineral reserve estimates. So that's also another positive here.

Luke, Boin is really continuing to impress and kind of highlight itself here with all the deposits on Enchi. Maybe walk us through the most important aspects outside of what I just mentioned here.

Luke Alexander (2:19)

Yeah, so as a reminder, Boin is our second largest deposit. It is the highest grade deposit on our project. These holes that we put out here, 24 holes represent about 3,300, 3,400 meters of drilling, and 22 of the 24 holes hit mineralization. So again, it speaks to the fact that we are getting very good drill success across our project. To date, 98% of the holes have intercepted mineralization. These holes specifically, reason they are important is they are step outs beyond our current reserve pit. One of the things we spent a lot of time talking to investors about at the Beaver Creek Conference, was the fact that we've identified a number of areas across our project, where we see an opportunity to bring higher grade material into a future reserve pit. What that will do is displace some of the lower grade material that we're seeing in years four, five and six of the mine plan. And by replacing it with this higher grade material, obviously that could increase the overall production profile, and ultimately add to the overall NPV of the project and bolster the economic. So this would be a great example of that.

Hole 407, which we put out within this press release here, intercepted 1.16 grams over 41 meters, and that starts only two meters below surface. Within that, we had 2.5 grams over 13 meters from 25 meters below surface. This hole does sit within the oxide material, so really soft material that when it comes time to milling, will pass through the mill very efficiently, which again is a real benefit. So when we go back and look at our PFS and the optimization that we've been talking with a number of investors about, this is a great example of future mine planning. My expectation is the software will get pulled to these type of results given their near surface. They can be mined early in the mine plan, and they're sitting about 50 percent above the average grade at our Boin deposit.

So yeah, really encouraged by these results, as well as that last set of results we put out, which again, relatively shallow, well above average grade results coming out there as well.

Trevor Hall (5:00)

Luke, you as always do a really good job of putting out the cross-sections within all these drill results.

What's really meaningful, I mean, there are some deeper holes, like I'm looking at hole 373 right now, that had some deeper intersections, 59 meters of 0.57 and then within that 60 meters of 0.94, that's within that fresh rock. But as we continue to watch these drill results and the graphics you guys provide, the images, is the team actively working on adjusting that resource pitch shell on the go here with the amount of drill data that's coming in from this huge program?