12:02 PM EDT, 04/25/2024 (MT Newswires) -- Newcore Gold ( NCAUF ) reported Thursday what it termed "positive" results of an independent, updated preliminary economic assessment (PEA) for the Enchi gold project in Ghana.

Highlights of the PEA cited an after-tax net present value of US$371 million based on a 5% discount rate, with a 58% internal rate of return at a gold price of US$1,850 per ounce. Initial capital costs were estimated at US$106 million (including a 20% contingency), with the payback period projected at 1.6 years.

Thursday's statement cited average annual gold production of 121,839 ounces; peak gold production in year six of 155,188 ounces; and 1.1 million ounces gold recovered over a 9-year life of mine.

"The PEA confirms the opportunity at Enchi to develop an open pit, heap leach operation with robust economics. This is a notable milestone and an important step in advancing the development of our Enchi Gold Project in Ghana towards a construction decision," chief executive Luke Alexander said in a release.

The company's shares at last look were up C$0.025 to $0.22 on the TSX Venture Exchange.

Price: 0.22, Change: +0.03, Percent Change: +12.82