Newcore Gold Drilling Intersects 0.61 g/t Gold Over 50.0 Metres, including 1.36 g/t Gold over 9.0 Metres, at the Enchi Gold Project, Ghana

Highlights 

• Drilling at Kwakyekrom has intersected wide zones of mineralization, including high-grade core structures, extending the zone down dip:
  • Deepest intercepts to date on the central portion of the target, with holes KKRC051 and KKRC056 crossing the main structure approximately 150 metres vertically below surface.
  • Hole KKRC051 intersected 0.61 g/t Au over 50.0 m from 148 m to 198 m, including
    1.36 g/t Au over 9.0 m from 164 m to 173 m (sulphide zone).
• Drilling continues to expand the gold mineralization within the near surface oxide zone and upper portions of the sulphide mineralization at Kwakyekrom:
  • Hole KKRC055 intersected two gold mineralized zones, 1.21 g/t Au over 4.0 m from 8 m to 12 m (oxide zone) and 0.94 g/t Au over 13.0 m from 108 m to 121 m (sulphide zone).
  • Hole KKRC048, completed on the southern limit of the previous tested area, intersected two gold mineralized zones 1.29 g/t Au over 15.0 m from 58 m to 73 m (upper sulphide zone) and 1.86 g/t Au over 11.0 m from 111 m to 122 m (sulphide zone).
  • Hole KKRC065, the most southernly drilled hole to date and a 500-metre step-out to the south from prior drilling, intersected 0.90 g/t Au over 11.0 m from 94 m to 105 m (sulphide zone).
• Metallurgical testing returned an average gold recovery of 79.8% from bottle roll testing completed on oxide material from Kwakyekrom.
• Newcore is in the final stages of completing an updated PEA study for the Project, with completion targeted before the end of Q2 2021.

Greg Smith, Vice President of Exploration of Newcore stated, «Drilling at Kwakyekrom continues to define and grow the potential extent of gold mineralization, both along strike and down dip. With these results including the deepest intercepts to date on the central portion of the target, we have now crossed the main gold-bearing structure at a vertical depth of approximately 150 metres below surface. In addition, we continue to extend the known mineralization along strike with this set of drill results encountering mineralization 500 metres to the south of prior drilling. Further drilling is planned in 2021 at this priority exploration target which is one of the most advanced exploration targets on the property without an existing resource.»

This news release reports drill results for 22 RC holes (4,022 m) targeting the Kwakyekrom Gold Target at Enchi, with 21 of the 22 holes intersecting gold mineralization.

Select assay results from the 22 holes of the drill program reported in this release are below:

The remaining 11 holes (KKRC044 to KKRC049, KKRC055, and KKRC062 to KKRC065) targeted the southern strike extent of the Kwakyekrom Gold Target. This drilling continues to expand the gold mineralization within the near surface oxide zone and upper portions of the sulphide mineralization. Hole KKRC055 was drilled near the southern edge of the previously drill tested portion of the structure and intersected two gold mineralized zones, 1.21 g/t Au over 4.0 m from 8 m to 12 m (oxide zone) and 0.94 g/t Au over 13.0 m from 108 m to 121 m (sulphide zone). Hole KKRC048 completed 100 metres south of KKRC055, at the southern extent of the previous drilling, intersected two gold mineralized zones, 1.29 g/t Au over 15.0 m from 58 m to 73 m (upper sulphide zone) and 1.86 g/t Au over 11.0 m from 111 m to 122 m (sulphide zone).  KKRC046, collared an additional 100 metres south of KKRC048 intersected 0.50 g/t Au over 24.0 m from 55 m to 79 m (upper sulphide zone). KKRC065, located 400 metres south of KKRC048, is the most southernly hole drilled on the target to date and intersected 0.90 g/t Au over 11.0 m from 94 m to 105 m (sulphide zone).

A plan map showing the drill hole locations can be viewed at:
https://newcoregold.com/site/assets/files/5692/2021_05_18-ncau-nr-enchi-plan-map-kwakyekrom-l.pdf

A total of 43,380 metres in 261 holes have been completed as part of the ongoing 2020 – 2021 drill program at Enchi. For the total planned 66,000 metre drill program, assay results have now been received and released for 202 holes representing 32,867 metres.

The Enchi Gold Project hosts a pit constrained Inferred Mineral Resource of 52.9 million tonnes grading 0.72 g/t Au containing 1.22 million ounces gold (see Newcore news release dated September 14, 2020). The 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 is detailed in a technical report titled «Enchi Gold Project, Resource Update, Enchi Ghana» with an effective date of October 21, 2020, prepared by Todd McCracken and Greg Smith and filed on SEDAR at www.sedar.com.

Metallurgical Testwork
The 2021 metallurgical testwork completed to date on the Kwakyekrom Gold Target at Enchi consisted of a series of bottle roll tests completed by Intertek Minerals Limited on 25 representative oxide samples from the ongoing drill program. An average gold recovery of 79.8% was achieved from 24-hour bottle roll tests, with 18 of the 25 samples achieving a recovery greater than 80% and averaging 86.9%.

The 25 samples were selected from RC drilling completed in 2020 and used a total of six individual drill holes covering a strike length of approximately 400 metres. Samples included a range of gold grades (from 0.26 g/t Au to 4.32 g/t Au, with an average of 1.02 g/t Au) and a range of weathering intensities correlating with depth (from 5.0 m to 45.7 m, with an average depth of 22.8 m). The samples were selected from the moderately and highly weathered categories which represent the largest component of the weathered profile at the Project. There was no significant relationship noted between the recovery rate and the sample grade or sample depth.

Further metallurgical testing, including column tests, is ongoing as part of the current work program at Enchi.

Updated PEA Study
Newcore has engaged BBA Engineering Ltd. independent engineering consultants to prepare an updated NI 43-101 Preliminary Economic Assessment («PEA») study for the Project. The study is progressing and is in the final stages of completion, with results anticipated by the end of Q2 2021. The updated PEA will incorporate approximately 18,000 metres of drilling completed in 2020.

2020 – 2021 Enchi Drilling Program
A 66,000 metre discovery and resource expansion drilling program is underway at Enchi. The program includes both RC and diamond drilling and will include the first deep drilling planned 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 Boin, Sewum, and Nyam Deposits. Additional drilling is planned at previously drilled zones that are outside of the resource area (Kojina Hill, Kwakyekrom and Eradi), along with first pass drilling to test a series of kilometre-scale gold-in-soil anomalous zones with no prior drilling (Nkwanta, Sewum South and other anomalies). All zones represent high priority targets based on geological, geochemical and geophysical surface work and previous trenching and drilling.

Kwakyekrom Gold Target
The Kwakyekrom Gold Target had seen limited past drilling and does not currently have a defined mineral resource. Kwakyekrom is one of the most advanced exploration targets being tested by Newcore as part of the 2020 – 2021 drill program, with 7,666 metres of drilling in 49 RC holes completed to date as part of the ongoing 66,000 metre drill program. Kwakyekrom 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 Kwakyekrom structure is interpreted to be an extension of the Nyam structure and is located five kilometres south of Nyam. The zone is outlined on surface by a four-kilometre-long and one-to-two-kilometre-wide gold in soil anomaly. An airborne geophysical anomaly coincident with the Kwakyekrom Gold Target is a sharp break in the conductivity trend.

Drill Hole Locations

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.