Jun 8, 2023
Reaching new heights: Goldshore Resources eyes tier 1 status
The prospects for gold are stronger than they have been for years, with investors increasingly turning to the precious metal as a hedge against inflation. Ongoing geopolitical uncertainty and economic upheaval has driven significant upswings in gold prices that is expected to continue for the foreseeable future. With prices hovering around the $2000 mark, several established junior mining projects are gaining renewed attention for their profit potential.
Goldshore Resources Inc. (TSXV: GSHR | OTCQB: GSHRF | FWB: 8X00) is an emerging junior gold development company that has been showing considerable promise. A recent update on its Moss Gold Project in Northern Ontario has exceeded initial estimates as it prepares for its next phase of development.
The company acquired Goldshore from Wesdome Gold Mines in 2021. The site covers an 8 km-long belt where gold mineralization has been intersected, but sparsely drilled to date.
Since then, Goldshore has completed a 79,000-metre drill program, and in May the company announced an updated mineral resource estimate (MRE) summary of the Moss Gold Project, reporting a 44% global inferred growth to 6.00Moz at 1.02 g/t since November 2022. The high-grade shear domain has increased in contained metal and tonnage by 52% and 63% respectively to 3.35 M oz Au at 1.84 g/t within 56.5Mt (open pit only).
“I can confidently say that after two years of drilling, we have a real project here,” says Brett Richards, CEO and Director of Goldshore Resources.
In addition, Goldshore has announced a maiden mineral resource estimate for the East Coldstream deposit located approximately 10 km from the Moss deposit, and all part of the Moss Gold Project site.
The results indicate clear expansion potential through strike extensions in both directions, he explains. “Our findings to date illustrate the potential size and scale of this project. Given the significant upside potential, we are now moving on to a preliminary economic assessment which will be taking place over the course of the next six months.”
The Moss Gold Project fulfills the five key attributes for evaluating mining projects, says Richards. “We have a top-quality management team with a strong track record of success in other mining projects, a prime location in a low-risk jurisdiction with a rich gold mining history, strong metrics of the potential size and scale, access to infrastructure, and a viable profit-worthy grade resource. We tick all the boxes.”
The team has is now assessing targets for the next development and exploration phase. “The 2022 program revealed 30 key priority targets of precious and base metal mineral opportunities on the land package,” notes Richards. “We are in an ideal position to experience continued growth over the next six months.”
He says they will continue to follow a methodical, low-risk approach that has served them in good stead since 2021. “We set out to understand the deposit quite well. We’ve done that. Now we need to put a project around what we have learned and are well funded to take us through to the PEA.”
“Goldshore’s strategy is clear,” says Barry Allan, a Toronto-based mining analyst. “The plan is to see how much there actually is at this site and de-risk it. The last drilling shows a system that could be quite substantial in ultimate size. It looks like there could be a lot more material there.”
“It’s all about value creation for shareholders in a positive market,” says Richards. “Given the current gold pricing environment is well beyond the projected project break-even point at $1000, there is a lot of room for margin at these levels. I don’t believe the gold pricing environment will pull back any time soon.”
All signs point to extensive potential to grow Moss in a big way, he adds. “We have 11 km of strike and Moss is 3.5 km of that, which means we have 4 km in each direction where there is mineralization. We need to drill, infill, and evaluate that.”
“Threshold in open pit mining is all about grade, and the grade at Moss Lake is good,” says Allan. “The asset has already shown the grade was actually much better quality than originally thought and continues to suggest it may be even bigger.”
“With gold trading where it is today and looking at the size and scale of the growth potential of the company, we are going to deliver exceptional leverage to investors over a short period of time,” Richards believes. “We are trading at $6 per ounce today. Our peer group trades at $30 per ounce for low grade open pit development projects. High grade projects trade at $70 to $110 per ounce, indicating there is tremendous scope for us to achieve those levels.” All this indicates that there is no better time to invest in Goldshore than right now.
“We have all the elements to deliver on a project with tremendous upside and potential,” he concludes. “The May announcement was a milestone for the company, but there will be many more to come. We are on a journey to becoming a Tier 1 asset.”
Learn more about Goldshore Resources Inc. on their website as well as: