IN THE BUSINESS OF GOLD
TSX.V - NCAU
OCTOBER 2020
BUSINESS OF GOLD TSX.V - NCAU OCTOBER 2020 Disclaimer No stock - - PowerPoint PPT Presentation
IN THE BUSINESS OF GOLD TSX.V - NCAU OCTOBER 2020 Disclaimer No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained on this presentation. This presentation contains
TSX.V - NCAU
OCTOBER 2020
TSX.V - NCAU
Disclaimer
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained on this presentation. This presentation contains "forward-looking information" concerning Newcore Gold’s (“Newcore “ or the “Company”) future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “seeks”, "believes", "anticipates", "plans", “continues”, "budget", "scheduled", "estimates", "expects", "forecasts", "intends", “projects”, “predicts”, “proposes”, "potential", “targets” and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would", “should” or "might" "be taken", "occur" or "be achieved". Forward-looking statements included in this presentation include statements regarding potential mineralization and mineral resources, the potential development scenarios for the various Gold-Silver Projects, including information with respect to the supporting infrastructure, the potential life of mine, rates of production and the effects of steps taken to mitigate local impacts and the expected completion dates
will be able to obtain financing and on reasonable terms, that its current exploration and other objectives can be achieved, that its exploration and other activities will proceed as expected, that widespread epidemics or pandemic outbreak including the COVID-19 pandemic will have no or minimal impact to Newcore’s business, that its community and environmental impact procedures will work as anticipated, that general business and economic conditions will not change in a material adverse manner, that Newcore will not experience any material accident, labour dispute or failure or shortage of equipment, and that all necessary government approvals for its planned exploration and potential development activities will be obtained in a timely manner and on acceptable terms. There can be no assurance that the forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Newcore’s expectations include, among others, the actual results of current exploration activities being different than those anticipated by Newcore, changes in project parameters as plans continue to be refined, changes in estimated mineral resources, future prices of metals, increased costs of labor, equipment or materials, availability of equipment, failure of equipment to operate as anticipated, accidents, effects of weather and other natural phenomena, risks related to community relations and activities of stakeholders, and delays in obtaining governmental approvals or financing. Although Newcore has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements 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 statements. Newcore does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required by law. This presentation is not an offer to purchase securities and does not constitute an
PEA Disclosure The NI 43-101 Preliminary Economic Assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Preliminary Economic Assessment will be realized. The Enchi Gold Project PEA Technical Report is available on SEDAR and was prepared by Joanne Robinson P.Eng of WSP Canada a professional independent mining engineer registered in Canada and a QP as defined by National Instrument 43-101. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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OVERVIEW
Engineering a Better Gold Company
Led by top-tier leadership with one of the most successful track records in the industry Advancing the 100%-owned Enchi Gold Project in Ghana, Africa’s #1 gold jurisdiction Enchi located along one of West Africa’s most prolific and developed gold trends Significant exploration potential to build on an existing 1.2Moz Inferred resources at 0.72 g/t Au* Maximize shareholder value by significantly expanding our existing gold resource
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*See cautionary statement on slide 1, and slides 11 and 21 for details on Enchi Gold Project resource statements and further disclosure
“Management is aligned with shareholders to create value by significantly expanding
Luke Alexander, President & CEO
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WHY NEWCORE GOLD
What Sets Newcore Gold Apart
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Management
Top-tier record of making money for shareholders, known for building exploration companies into producing miners
Institutional Backing
Clear access to institutional capital, ~20% ownership to date
Incentivized Leadership
Management & insiders own 39% who invested alongside shareholders
Golden Ghana
Proven & stable jurisdiction, #1 for gold in Africa, known for big, successful mines
Quality Asset
1.2Moz open-pit, heap leach gold Inferred resource*, updated September 2020
Expansion Potential
8,000 metre resource expansion and discovery drilling program started in Q3 2020
Structured for Success
80M shares out, no warrants
Strategic Timing
Right commodity. Right time. Right Opportunity.
*See cautionary statement on slide 1, and slides 11 and 21 for details on Enchi Gold Project resource statements and further disclosure
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WHY NEWCORE GOLD
Recent Wins for Shareholders
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“The fundamental characteristic of this company is strength. Strength in management, strength in assets, strength in proven success, strength in the team’s ability to raise large amounts of capital, make decisions and execute quickly on opportunities.”
Blayne Johnson, Lead Director
Calibre Mining – Grew from an exploration stage company to multi- asset gold producer creating $500M of shareholder value and counting Newmarket Gold – Built from a $10M company to $1.2Bn sale of the company to Kirkland Lake Gold 14 months later Integra Gold – Taken out by Eldorado Gold for +$600M making significant returns for shareholders Northern Empire – $10M acquisition to $90M take out in less than 18 months
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WHY NEWCORE GOLD
Top Tier Leadership
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“It is rare to find a board like this in the junior sector: billions raised, startups turned into producers and numerous major wins for shareholders.”
Luke Alexander, President & CEO
Luke Alexander
President, CEO & Director
Doug Forster
Chairman
Kristian Dagsaan
CFO
Blayne Johnson
Lead Director
Greg Smith
VP, Exploration
Omaya Elguindi
Director
Mal Karwowska
VP, Corporate Dev. & IR
Edward Farrauto
Director
Daniel Wilson
Country Manager, Ghana
Doug Hurst
Director
Ryan King
Director
George Salamis
Director
Mike Vint
Director
Previous Experience Management Team Board of Directors
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WHY NEWCORE GOLD
ESG Focus - Aligned with the U.N. Sustainable Development Goals
* The Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including poverty, inequality, climate change, environmental degradation, peace and justice. Information sourced from United Nations
Strong dedication to the environment, good governance, and community relations - adds value for stakeholders and leads to sustainable growth Newcore’s ESG is guided by nine of the U.N. Sustainable Development Goals* Priority is ensuring the health and safety of all employees, contractors and local communities - COVID-19 protocols in place
Computers donated to local school Fixing of local bridges Temperature checks
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$0.00 $0.20 $0.40 $0.60 $0.80 $1.00 01-Apr-20 01-May-20 01-Jun-20 01-Jul-20 01-Aug-20 01-Sep-20 NCAU Share Price (C$)
WHY NEWCORE GOLD
Capital Structure
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Note: Information current as of September 30th, 2020
Share Structure and Market Information 6-Month Share Price Chart
Basic Shares Outstanding 79.9M Options Outstanding 9.6M RSUs/PSUs Outstanding 1.3M Management & Insider Ownership 39% Institutional Ownership ~20% Market Cap (C$) ~$60M Cash-on-Hand (C$) ~$2.0M Last 3-Month Average Daily Volume ~180,000
Institutional Investors Research Coverage
May 19, 2020 Announces $3M non- brokered private placement at a price of $0.20/share; Announces appointment of Luke Alexander as President, CEO & Director and Doug Forster as Chairman June 8, 2020 Announces institutional investors purchase Kinross’ 17% stake at $0.36/share August 12, 2020 Commenced 8,000 metre RC drill program September 14, 2020 Updated Resource Estimate for Enchi September 28, 2020 Initial drill results announced for Enchi
Richard Gray Geordie Mark Craig Stanley Brock Salier Ian Parkinson
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ENCHI GOLD PROJECT
Ghana - Africa’s Top Gold Jurisdiction
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ENCHI GOLD PROJECT
1) Ghana is Africa's largest gold producer, 7th largest worldwide and produces more gold per square km than Nevada* 2) Ghana’s stable, democratic government supports mining 3) Mining and gold are essential to Ghana’s economy and tax base 4) Ghana features the Prolific Bibiani Gold Belt, site of Newcore’s Enchi Project 5) Ghana offers modern infrastructure and skilled mining labor 6) English is the primary language 1 2 3 4 5 6
GHANA
Ghana produced ~5 million ounces of gold in 2019, surpassing South Africa’s 2019 production of 4.2 million ounces* Ghana produces more gold per square kilometer than Nevada*
* Information sources: 2019 production volumes and ranking for Ghana and Africa sourced from the World Gold Council; Nevada details as per the Nevada Division of Minerals - Major Mines of Nevada 2019 publication
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ENCHI GOLD PROJECT
On Trend with Some of Ghana’s Most Prominent Mines
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Data from Goldfarb, et al; 2017, West Africa: The world’s premier Paleoproterozoic gold province, and R. Lipson,et al; 2018, Gold Deposits of the Birimian and Tarkwaian in Ghana. Data from other projects not necessarily reflective of the Enchi Project.
ENCHI
Sefwi-Bibiani Belt
Newmont - Ahafo 15.5Moz Resolute - Bibiani 6.5Moz Kinross - Chirano 5.5Moz Teranga - Afema 2.0Moz Newcore - Enchi 1.1Moz Pelangio - Manfo 500koz
Ashanti Belt
AngloGold - Obuasi 66Moz GoldFields - Tarkwa 25.1Moz GoldFields - Damang 10Moz Golden Star - Wassa 12Moz Golden Star - Bogoso/Prestea 7.5Moz Newmont - Akyem 7.5Moz Cardinal - Namdini 7.4Moz Perseus - Edikan 7.1Moz AngloGold - Iduapriem 6.6Moz
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ENCHI GOLD PROJECT
Project Overview
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resource at 0.72 g/t Au*)
hosted mesothermal gold system
identified, excellent resource expansion and discovery potential
“This is a great piece of land in a great neighborhood. A long history of active exploration and mining has defined a prolific, regional structure that stretches hundreds of kilometers - and Enchi covers a significant part of it with district-scale, multi-million ounce potential.”
Greg Smith, VP, Exploration
more than 40km of the Bibiani Shear Zone, host
deposits
* See slides 11 and 21 for details on Enchi Gold Project resource statements and further disclosure
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ENCHI GOLD PROJECT
2020 Mineral Resource Estimate
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Inferred Resource - Cut-Off Sensitivity
Cut-Off (g/t Au) Tonnes Grade (g/t Au) Contained Au (oz) 0.1 76,700,000 0.56 1,381,900 0.2 66,126,000 0.63 1,330,300 0.3 52,926,000 0.72 1,223,800 0.4 40,096,000 0.84 1,080,600 0.5 30,762,000 0.96 945,800 0.6 23,515,000 1.08 818,200
Work Completed Prior to 2020 - Property Wide
Drilling Type Drill Holes / Trenches Metres Diamond Drilling 189 23,711 RC Drilling 255 29,965 RAB Drilling 319 12,443 Trenches 223 21,786 Total 987 88,160
These numbers are from the independent technical report titled "Enchi Gold Project, Resource Update, Enchi, Ghana", with an effective date of September 11, 2020, prepared by Todd McCracken, P. Geo. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Project and is available under Newcore’s SEDAR profile at www.sedar.com. CIM definition standards were followed for the resource estimate. The September 2020 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids and constrained by whittle pits shell. A base cut-off grade of 0.3 g/t Au was used for reporting resources with a capping of gold grades at 18 g/t. A US$1,500/ounce gold price, open pit with heap leach
technical disclosure.
Inferred Resource
Deposit Tonnes Grade (g/t Au) Contained Au (oz) Boin 19,837,000 0.84 533,000 Sewum 27,600,000 0.60 535,800 Nyam 5,489,000 0.88 155,000 Total 52,926,000 0.72 1,223,800
The September 2020 Mineral Resource Estimate incorporates assay results from:
Drilling variably spaced from 25 to 75 metres apart targeting the Boin, Sewum, and Nyam deposits
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ENCHI GOLD PROJECT
2015 Preliminary Economic Assessment Highlights
Note that the 2015 PEA is no longer current and as such should not be relied upon
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leach gold operation
resource of 721,000 ounces*
updating the PEA given the increase in contained ounces outlined in the 2020 updated Inferred Mineral Resource Estimate
Average Annual Production (Gold Ounces) 61,749 oz Au Metallurgical Recoveries 75% oxide and transition / 73% sulphide Strip Ratio (waste:ore) 3.16 Mine Life 8.7 Years Pre-Production Capital Costs US$84.4M Life of Mine Sustaining Capital Costs US$38.6M Life of Mine Cash Cost per Ounce US$802/oz US$1,170/oz US$1,300/oz US$1,430/oz US$1,560/oz Pre-Tax Payback (years) 3.8 2.8 2.5 2.3 Pre-Tax IRR 20% 34% 47% 59% Pre-Tax NPV5% (US$) $50M $102M $154M $206M After-Tax Payback (years) 4.6 3.4 2.9 2.6 After-Tax IRR 15% 25% 34% 43% After-Tax NPV5% (US$) $28M $62M $96M $130M
Enchi Gold Project 2015 PEA - Base Case US$1,300/oz*
*Note that the 2015 PEA is no longer current and as such should not be relied upon. The above numbers are from the independent technical report titled “Technical Report and Update of the Preliminary Economic Assessment on the Enchi Gold Project”, dated January 27, 2016, which was prepared by WSP Canada Inc. in accordance with NI 43-101 and is available at www.sedar.com under Newcore Gold’s SEDAR profile. Reader’s are cautioned that the PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Refer to Technical Report noted above for complete details and review slide 1 for Cautionary Statements and slide 21 for additional technical disclosure.
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ENCHI GOLD PROJECT
2020 Exploration & RC Drilling Program*
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targets, focused on testing extensions of known resource areas as well as exploration targets
extending deposits down-dip and along strike
previously drilled zones, outside of resource area
anomalous zone, no previous drilling
planned, with numerous targets identified
*See Newcore Gold’s news release dated August 12, 2020 for further details ** See slides 11 and 21 for details on Enchi Gold Project resource statements and further disclosure
Deposits Targets Shear Zone Eradi 3 geo-chemical anomalies over 3 km long, limited drilling, 1.15 g/t Au over 10 m Kojina Hill New gold zone outside of resource estimate, 1.14 g/t Au over 68 m and recent drilling 0.87 g/t Au over 29 m Kwakyekrom New gold zone, 0.94 g/t Au over 22 m, open Morchekrom 2.01 g/t Au over 29 m, limited drilling
BOIN
Inferred Mineral Resource: 19.8Mt at 0.84 g/t Au for 533,000 ounces **
NYAM
Inferred Mineral Resource: 5.5Mt at 0.88 g/t Au for 155,000 ounces **
SEWUM
Inferred Mineral Resource: 27.6Mt at 0.60 g/t Au for 535,800 ounces **
Nkwanta
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ENCHI GOLD PROJECT
Exploration Potential - 25 New Targets
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survey identified over 25 new exploration targets, with only 6 of them drill tested to date
extremely well with Airborne including resource zones Boin, Nyam and Sewum which remain
strike
SOIL MAP
Compilation Map Geology with Soil Anomalies
AIRBORNE MAP
Airborne Geophysics Electromagnetics
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ENCHI GOLD PROJECT
Exploration Potential - Targets
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Geophysical anomalies, Tokosea South, Sewum Mine extension, structural trends, gold anomalies
UNTESTED TARGETS ADDITIONAL TARGETS ADVANCED TARGETS DRILL TESTED ZONES
Beekokrom, Alatakrom, Gyasikrom, Achimfo, Omampe, Adamansu, Amonie, Kwahhu, Agyaka, Charleskrom, Abotia Nkwanta, Sewum South, Tokosea Kojina Hill, Kwakyekrom, Morchekrom, Eradi
DEPOSITS
Boin, Sewum, Nyam
*See slides 11 and 21 for details on Enchi Gold Project resource statements and further disclosure
Enchi Gold Project
Targets Across Property
identified and prioritized
BOIN SEWUM NYAM
Eradi Kwakyekrom Kojina Hill Morchekrom
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ENCHI GOLD PROJECT
2020 Drill Results - Highlights*
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*See Newcore Gold’s news release dated September 28, 2020 for further details
Results received for 13 holes (1,576 metres) Successfully intersected shallow oxide gold mineralization
Hole ID Zone/Deposit From (m) To (m) Length (m) Au (g/t) KBRC139 Boin 1.0 17.0 16.0 0.69 KBRC141 Boin 10.0 21.0 11.0 0.34 and 48.0 95.0 47.0 1.67 including 49.0 58.0 9.0 2.96 and incl. 75.0 85.0 10.0 3.63 KBRC146 Boin 7.0 10.0 3.0 0.24 and 30.0 62.0 32.0 0.92 including 42.0 54.0 12.0 1.78 and incl. 59.0 61.0 2.0 0.52 KBRC150A Boin 72.0 74.0 2.0 0.59 and 87.0 108.0 21.0 1.19 and 136.0 139.0 3.0 1.01 and 145.0 162.0 17.0 0.44
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ENCHI GOLD PROJECT
Resource Expansion Potential - Near Surface
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BOIN
Average vertical depth 50 m Maximum vertical depth 150 m
NYAM SEWUM
Targets (for all three deposits) Open along strike Potential to expand to depth Internal “Un-drilled” segments
as demonstrated by Boin and Sewum Long Sections
clear gaps
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ENCHI GOLD PROJECT
Depth Potential - Chirano Comparable
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Gold Mine ~50km Northeast hosts plunging zones of high grade gold mineralization
Enchi Gold Project including known zones Boin, Sewum and Nyam
both Chirano and Enchi Gold Project (Boin/Nyam/Sewum)
zones previously drilled to an average depth of ~50 metres, with a maximum depth of ~150 metres
Enchi Deposits Open for expansion to depth
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NEWCORE KEY TAKEAWAYS Right Asset. Right Jurisdiction. Right Commodity.
Top Tier Management Group Top Gold Jurisdiction in Africa Established Gold Resource Base in a Top-Tier Gold District Potential for Significant Resource Growth Capital Structure to Drive Share Price on Value Creation
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CONTACT INFORMATION Mal Karwowska, VP, Corporate Development & IR Office: +1 (604) - 484 - 4399 Email: info@newcoregold.com www.newcoregold.com
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APPENDIX
Enchi Gold Project Technical Disclosure
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2015 Preliminary Economic Assessment 1. The Preliminary Economic Assessment (“PEA”) is based upon the Company’s 2014 Mineral Resource Estimate for the Enchi Project reported in 2014 and detailed in National Instrument 43-101 Technical Report with an effective date of March 17,
mine with heap leach feed material trucked from three proximal deposits (Boin, Nyamebekyere, Sewum) to a central crushing and process facility. The processing of 3.0 million tonnes per year of heap leach material would result in the production of gold doré. 2. The financial models were completed using a base case gold price of US$1,300 per ounce. The Base Case Pre-Tax economic evaluation has an IRR of 33%, payback of capital in 2.8 years and a NPV of US$102 million at a discount rate of 5%. 3. The PEA includes an initial capital cost of US$72.7 million, a contingency of US$11.8 million (20% of direct costs); sustaining capital of US$38.6 million including a contingency of US$5.3 million and reclamation and closure costs of US$18.3 million. 4. The Financial Model was completed on a 100% Project basis and includes a 5% NSR to the Ghanaian Government and a 2% NSR to Red Back Mining Ghana, a subsidiary of Kinross Gold (subsequently sold to Maverix Metals Inc.). 5. The After-Tax financial model includes a 35% corporate tax, demonstrating a base case NPV of US$62 million at a discount rate of 5%. The Government of Ghana has the right to a 10% free carry interest in the Project. 6. Gold recoveries of 75% for oxide and transitional and 73% for sulphide were utilized. 7. Cash cost includes all operating costs, royalties, refining charges, environmental monitoring, tenure fees as well as general and administration costs. Cash cost excludes any capital cost, either initial or sustaining and closure and remediation costs. 8. Numbers may not add due to rounding. 9. The PEA is preliminary in nature, and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the PEA will be realized.
2016 with Effective Date: June 30, 2015. Prepared by: Todd McCracken, P.Geo, Joanne Robinson, P.Eng., Mireno Dhe Paganon, Eng., Bruce White, Pr.Eng., Jean-Sébastien Houle, Eng. of WSP Canada Inc. All QP’s are independent of Newcore Gold Ltd. and Qualified Persons ("QP") as defined by National Instrument 43-101.
101, and is responsible for the accuracy of the technical data and information. 2020 Inferred Mineral Resource Estimate 1. CIM definition standards were followed for the resource estimate. 2. The 2020 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids and constrained by whittle pits shell. 3. A base cut-off grade of 0.3 g/t Au was used with a capping of gold grades at 18 g/t. 4. A US$1,500/ounce gold price, open pit with heap leach operation was used to determine the cut-off grade of 0.3 g/t Au. Mining costs
US$9.84/milled tonne. The Inferred Mineral Resource Estimate is pit constrained. 5. A density of 2.45 g/cm3 was applied. 6. Numbers may not add exactly due to rounding. 7. Mineral Resources that are not mineral reserves do not have economic viability. 8.
Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information. 9. The resource estimate was prepared by Todd McCracken, P.Geo. of
under NI 43-101.
"Enchi Gold Project, Resource Update, Enchi, Ghana", with an effective date of September 11, 2020, prepared by Todd McCracken, P. Geo. in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Project and is available under Newcore’s SEDAR profile at www.sedar.com.