Skip to main content

Newcore Gold - 80,000m Drill Program Update: High-Grade Oxide Hits At Boin, 98% Drill Hit Rates

The KE Report Oct 9, 2026 18:38

Summary

About 30,000 meters of results are still pending from Newcore Gold's 80,000-meter program, keeping drill news flow heavy.

A 98% drill hit rate points to gold being pervasive across the Enchi property, not confined to a few shoots.

Shallow oxide intercepts averaging nearly four times resource grade could strengthen the earliest years of the mine plan.

Alexander says an $80M US market cap sits well below the ~$650M US NPV (net present value) from the June study.

The full program is funded, with cash visibility into 2027 and geotechnical, metallurgical and environmental work underway.

Key points on Newcore Gold

  • The CEO argues the shares are disconnected from fundamentals: an approximately US$80 million market cap (about C$100 million) as of 2026-10-09 against a post-tax PFS NPV of roughly US$650 million using a gold price near US$4,200/oz.
  • Drill program status: 28,000 m of the 80,000 m program fed the mineral resource estimate completed earlier in 2026 and underpinning the PFS, while roughly 30,000 m of results from the remaining 52,000 m are still outstanding; none of the 2026 results are yet in the resource or the mine plan, and the CEO cites a 98% hole-hit rate as evidence that gold is widespread across the property.
  • Recent Boin assays are both shallow and oxide-hosted: 2.59 g/t over 69 m including about 6.4 g/t over 24 m starting just under 60 m depth on September 17, 2026, which the CEO calls nearly four times the average grade of the global resource and which lifted the stock almost 30% that day, and 1.16 g/t over 41 m starting about 2 m below surface on October 6, 2026, roughly double the project average grade.
  • Mine plan optimization is a stated focus: adding higher-grade near-surface oxide and converting 0.7-0.9 g/t material around and inside existing pits into the first six years of the schedule, which the CEO expects to lift NPV, IRR and payback and lower AISC in a future study; Boin is described as the highest-grade of the four deposits and open along strike over about 6 km.
  • The company is funded for the full 80,000 m program and into 2027, with hydrological, geotechnical, metallurgical, environmental and trade-off studies running in the background toward a construction decision; the March resource stands at over 2.1 million ounces indicated plus inferred, with existing pits constraining resource depth to only about 100 m.

Cory Fleck's takeaways

  • Top takeaway Fleck frames the valuation question, telling Alexander that a large drill program, a de-risked resource and economics up to the pre-feasibility stage sit against a market cap of about C$100 million, and pressing him on where the company should be valued relative to peers.
  • He raises the capital-allocation tension directly, asking whether the market would reward defining a high-grade portion of the resource more than simply growing the resource by around another million ounces, while noting both routes add value.
  • He closes on financing, asking how much cash the company has to fund the roughly 30,000 meters of results still outstanding and what the budget is for the rest of the program.