Gold Co.'s Assay Results More Than Expected
Source: Streetwise Reports
March 28, 2023 (Investorideas.com Newswire) Drilling in Goldshore Resources' Moss Lake property revealed more gold than prior estimates. Read to learn the results, what the sector is doing, and where the company is headed.
Goldshore Resources Inc. (TSXV: GSHR;OTCQB: GSHRF ;FWB: 8X00) has come out with the results of its latest drilling on its Moss Lake gold project, which it says contains more extensive gold resources than previously thought. Goldshore has plans to expand its operations on Moss Lake, including building a new mining camp.
Goldshore is a junior gold development company, and its CEO is Brett Richards. Moss Lake is their primary property, and it is located on the western Canadian side of Lake Superior. Wesdome owns a significant number of shares in the company's Moss Lake project as a strategic investor.
Goldshore Resources Inc. has recently publicized the assay results from seven drill holes in their Moss Lake Project, located in Northwest Ontario. They confirmed the presence of gold mineralization in an area that had not been drilled extensively in the past.
- Drill hole MQD-22-104 found 0.86 g/t gold (Au) over 120.65m at 593m of depth, including 1.33 g/t Au over 54.45m from 657m of depth.
- Drill hole MQD-22-099 found 1.06 g/t Au over 44.3m from 591.15m depth, including 1.55 g/t Au over 27.1m from 594m of depth.
- Drill hole MQD-22-0100 found 0.48 g/t Au over 185.55m from 208.4m depth, including 1.67 g/t Au over 12.75m from 346.25m of depth.
- Drill hole MQD-22-101 found 0.81 g/t Au over 61.35m from 614.65m of depth, including 1.18 g/t Au over 14.65m from 623.35m.
- Drill hole MQD-22-102 found 0.74 g/t Au over 80.95m from 193.05m of depth, including 1.43 g/t Au over 20m from 246.1m of depth.
- Drill hole MQD-22-102 found 0.71 g/t Au over 77m from 190m of depth, including 1.43 g/t Au over 16m from 203m of depth.
- Drill holes MQD-22-100, MQD-22-101, and MQD-22-104 also intercepted parallel mineralized shears fairly close to the surface. MQD-22-100 found 2.23 g/t Au over 11.2m from 119.05m of depth, MQD-22-101 found 5.9 g/t Au over 2.6m from 91m depth, and MQD-22-104 found 2.41 g/t Au over 8.5m from 112.7m of depth.
President and CEO Brett Richards commented on the assay results that "these results continue to support our thesis that the size and scale of the Moss gold project will be large enough to support a material and meaningful update to the mineral resource estimate, which is expected in April 2023."
2022 was an excellent year for gold, with investment demand increasing by 10% and demand for bars and coins increasing by 2%.
Reuben Adams of Stockhead reported in February of 2023 that Gold rose to US$1950 and then fell back down to below US$1920.
The Gold Outlook for 2023 admitted that gold held unexpectedly steady in 2022 when experts had predicted that the price would crash.
The outlook for 2023 is fairly interesting: gold prices are going up while interest rates rise at a greater pace than the gold basis.
According to the Gold Outlook, "there's definitely going to be some buying of physical metal going on. And by 'some,' we mean lots."
Stockhead, in an analysis of Goldshore at the beginning of March, concluded that "though gold swung through ups and downs last year, experts are expecting geopolitical factors such as the upcoming U.S. primaries, the threat of a looming global recession, and soaring inflation" to drive up demand in safe-haven investments, such as gold.
Multiple Short-Term Catalysts
Goldshore reports a number of short-term catalysts. In addition to the results of its more recent drilling, the company is planning to conduct 40K of drilling in 2023.
It is planning a secondary MRE for April of 2023, and a tertiary MRE for the end of the year that will encompass all of Goldshore's drilling. In H1 of 2023, it will conduct a PEA, which they expect will add significant value to Goldshore.
As for the value of its stock, Goldshore stated that "the global macro environment has never been better to own gold equities in the past 25+ years, and the future outlook for gold has an extremely compelling thesis to own gold and gold equities now... gold equities will deliver a multiple of gold returns given their starting point today."
Goldshore is trading at CA$7/oz of global resources, and expects that their plan to build a large mining camp, among other factors, will add significant value to the company.
Said Rick Mills in an interview with Goldshore's CEO, Brett Richards, "it's not often you see a company get off to such a fast start and have so much accomplished in such a short time."
Ownership and Share Structure
Goldshore currently has 165 million shares (I/O), 5 million broker warrants, and its options are 8% of I/O.
Management, directors, and insiders own approximately 17 million shares (11%).
Strategic Investor Wesdome Gold Mines Ltd. (WDO:TSX) has the most stake in the company at 22%, with 43 million shares. Wesdome was given this stake as a part of Goldshore's May 2021 acquisition of Wesdome's Moss Lake Property.
As for institutions, Sprott owns 8 million shares, the GARP Fund owns 7 million shares, and the CD Fund owns 3 million shares. Others own 10 million shares combined.
Goldshore reports that it has CA$7 million in the bank, with a monthly burn rate of CA$1.2 million, and a monthly drilling cost of CA$1.1 million.
As for multipliers, Goldshore works with several IR/marketing firms: HE Capital Markets, 6ix, Stockhouse, MarketOne, CEO.ca, Mezzo Consulting Services (Germany/Austria/Europe), and the German Mining Network. They work with a number of influencers as well, including Capital Analytica, Bart Van Woensel of The Critical Investor, Jim Lewis of Wall Street Silver, Travis of Economic Ninja, Maurice Jackson of Proven and Probable, David Skarica of Addicted to Proficts, Brien Lundin of Gold Newsletter, Gerardo Del Real of Resource Stock Digest, Gwen Preston of Resource Maven, Rick Mills of Ahead of the Herd, Trevor Hall of Mining Stock Daily Podcast, and Rainer Kromarek of German Smart Investor.Barry Allan of Laurentian Bank, Paul Obrien of Velocity Trade Capital, and Stuart MacDougal of Research Capital provide analysis and news about Goldshore.
Goldshore has a market cap of CA$40 million as of December 27, 2022. It trades in the 52 week range between 0.16 and 0.55.
1) Amanda Duvall wrote this article for Streetwise Reports LLC. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Goldshore Resources Inc. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Goldshore Resources Inc., a company mentioned in this article.
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