Gold Co. Has Experts' Attention With Multiple Catalysts

Goldshore Resources Inc. (GSHR:TSX; GSHRF:OTC; 8X00:FSE) has had a plethora of news in the past couple of months, including the announcement of a CA$5 million public offering, the official filing of a technical report for its Moss Lake Project, the revelation that the company had intersected even more high-grade shears in the Main Zone and QES Zone at Moss Lake, and the announcement of a CA$1 million private placement.

Goldshore Resources is a gold mining junior focusing on the previously mentioned 100%-owned Ontario Moss Lake Property.

The current project is progressing through a 100,000-meter drill program on Moss Lake, a property that, as of November, has a resource estimate of 4.17 million ounces gold (4.17Moz Au) inferred and multiple targets. The property also has all the infrastructure needed to move forward with a district-scale mining camp.

Rick Mills of Ahead of the Heard shared his optimism about the company earlier this year, saying, "the Moss Lake project could easily help the company attain a higher value than most projects that have been targeted by the majors in the area, given the project's economics (were) last updated in 2013."

Why Gold?

Gold equities have been significantly depressed (-30%- to -70%) in the last 12 months, but Goldshore Resources believes this will lead to the biggest bull run of precious metals in a generation.

Ana Gundlach of Kitco recently "reminded investors that due to dollar strength, gold is up in many other currencies." She said, "When you think of gold in dollar terms going sideways, it is going up in a lot of other currencies."

Goldman Sachs announced it has predicted "another banner year for commodities. Raw materials will probably be the best-performing asset class again in 2023, with returns expected to hit 43%. "

Investors may also want to look at the outside forces that may propel gold to the top in the coming years. With the upcoming primaries, a looming recession, and rising inflation, gold is expected to blossom in 2023, according to experts.

In a recent article from Stockhead, Hedley Widdup from Lion Selection Group said, "There has been an expectation that gold should do well out of a crisis . . . The markets haven’t really priced a crisis yet, and maybe they won’t. If they do, I think gold will be a strong performer as the dust settles."

Lastly, in a December 15th newsletter, Goldman Sachs announced it has predicted "another banner year for commodities. Raw materials will probably be the best-performing asset class again in 2023, with returns expected to hit 43%. "

In light of this, experts have kept a keen eye on gold stocks such as Goldshore Resources.

High-Grade Shears in the Main Zone and QES Zone Covering a 3.5 km Strike

Goldshore Resources November results came from seven holes, originally drilled to expand the coverage of the high-grade shears in the Main Zone and QES Zone. This established a massive volume of well-mineralized diorites hosting higher-grade shear-hosted gold mineralization.

• 6.30 g/t Au over 56.85m (MMD-21-008)
• 1.26 g/t Au over 117.12m (MMD-21-004)
• 1.05 g/t Au over 128.3m (MQD-22-014)
• 1.04 g/t Au over 104.2m (NS247)
• 1.17 g/t Au over 78.35m (MMD-22-020)
• 5.31 g/t over 16m (MQD-22-014)
• 3.33 g/t Au over 19m (MMD-22-025)

• 1.47 grams per tonne (1.47 g/t) Au over 30.1m from 530.0m
• 8.45 g/t Au over 5.0m from 576m depth in MQD-22-076, including 36.9 g/t Au over 1.0m from 577m
• 1.07 g/t Au over 24.7m from 369.0m depth in MQD-22-087
• 2.11 g/t Au over 30.75m from 536.9m, including 11.5 g/t Au over 3.1m from 555.2m
• 1.31 g/t Au over 63.6m from 427.0m depth in MQD-22-090A, including 2.07 g/t Au over 32.0m from 439.0m

In light of these results, President and CEO Brett Richards said, "The results from these drill holes in the Main Zone and QES Zone . . . confirm our belief that there are additional high-grade shear zones within the deposit that will potentially add to the shear domain component of the mineral resource that we anticipate will be prioritized in the mining schedule when we move towards conducting a preliminary economic analysis next year."

On December 8, 2022, Barry Allan of Laurentian Bank Securities spoke on the validation of gold mineralization at Goldshores' Moss Lake Project. Allan stated, "We are encouraged by today's drill results and feel they positively contribute to the thesis of possible economic mineralization at the Moss Lake property."

Technical Report at Moss Lake

Maurice Jackson of Proven and Probable said, "I am a proud shareholder, and I'm looking to add to my position under these circumstances. The value proposition is extremely compelling, and I'm not discouraged by the price."

December 12, 2022, Goldshore Resources stated it had officially filed a pursuant to National Instrument 43-101 Standards of Disclosure for Mineral Projects, a technical report titled “NI 43-101 Technical Report — Mineral Resource Estimate for the Moss Lake Project, Ontario, Canada."

This was brought together by Neal Reynolds and Matthew Field, Nat of CSA Global Consultants Canada Ltd, and was made effective on December 9, 2022. 

You can view the report on Sedar. 

US$5 Million Public Offering and US$1 Million Private Placement

Wednesday, December 14, Goldshore Resources published it had entered into an agreement with Research Capital Corporation as the lead agent on behalf of a syndicate of agents. This regarded best-efforts public offering of securities of the company's offered securities for aggregate gross proceeds of up to CA$ 5,000,000.

Allan of Laurentian stated, "We are encouraged by today's drill results and feel they positively contribute to the thesis of possible economic mineralization at the Moss Lake property.

These net proceeds will be used toward working capital and general corporate purposes, while gross proceeds will be used for exploration expenses at Moss Lake. The offer closed on December 22, 2022.

However, this offer was oversubscribed, with so much demand the same month the company released news of a new private placement.

December 23, 2022, Goldshore announced a non-brokered private placement of up to 4,000,000 units at a price of US$0.25 for gross proceeds of up to US$1,000,000. Each unit comprises one common share of the company and one-half common share purchase warrant. Each warrant allows the holder to purchase one common share at an exercise price of US$0.40 at any time up to 24 months from the closing of the offering.  The company plans to use this private placement's financing to further explore its Moss Lake property. 

An Inundation of Catalysts

Goldshore Resources has a plethora of up-and-coming catalysts for 2023. 40km of drilling is planned for the year. The company is set to release drill results every three to four weeks until drilling is completed.

On April 22, 2022, Velocity initiated coverage on the company with an Outperform rating and a target of CA$0.85 per share, saying there was acquisition potential.

The company also has a second MRE (mineral resource estimate) planned in April of 2023 and a PEA (Phase 1 Starter Project) expected to be done in H1 of 2023.

This PEA will focus on surface high-grade shear domain material to sequence first in the mine plan. Goldshore believes it will deliver substantial economics to the valuation of the company, and in turn, the company will present results to the market during the gold conference season (September 2023).

Finally, tertiary MRE will be done at the end of 2023 to encompass all drilling completed and all qualified historical drilling done that can be QA/QC’d and brought into the resource model.

Analysts and Expert Commentary

Goldshore Resources has caught the attention of Paul O'Brien of Velocity Trade Capital. On April 22, Velocity initiated coverage on the company with an Outperform rating and a target of CA$0.85 per share, saying there was acquisition potential.

The Critical Investor also has spoken about the company and marked Goldshore Resources as one of his top picks for 2022.

December 8, 2022, Barry Allan of Laurentian Bank Securities gave the company a speculative Buy rating with a target price of US$2. 

You can see more of what these experts say by clicking "See More Live Data" in the data box above.

Ownership and Share Structure

Approximately 11% of the company's shares are with management and insiders. Out of management, Chairman Galen McNamara holds the most shares at at 2.44% with 4.01 million shares, according to the company.

CEO and Director Brett Richards is next at 2.43%, with 3.97 million shares. Director Victor Cantore has 1.38% with 1.96 million. Director Doug Ramshaw is at 1.10% with 1.57 million shares. Director Shawn Khunkhun has 0.56%, with 0.8 million shares, and Director Brandon Macdonald has 0.25%, with 0.36 million shares.

Goldshore also has an impressive group on its strategic advisory board, including David Garofalo of Gold Royalty and Gold Corp., Craig Perry of Skeena and IsoEnergy, Bryan Slusarchuk of K92 Mining and Turmalina Metals, Leo Hathaway of Luminex Resources Corp., Daniel Kunz of Prime Mining, and Adrian Rothwell of Angold and Kore Mining. All of these advisors are shareholders of Goldshore. 

Among the 14% of institutional investors and strategic investors. Strategic Investor Wesdome Gold Mines Ltd. (WDO:TSX) has the most stake in the company at 27%, with 43 million shares. Wesdome was given this stake as a part of Goldshore's May 2021 acquisition of Wesdome's Moss Lake Property.

Sprott Asset Management LP is at 8.65%, with 12.33 million shares. Commodity Capital AG is at 3.24%, with 4.62 million shares, and U.S. Global Investors Inc. has 0.26%, with 0.38 million shares.

The company has CA$6 million in the bank, with a monthly burn rate of CA$1.2 million, including CA$1.1 million in drilling costs.

Goldshore Resources Corp. has a market cap of $40 million with 165 million shares outstanding. The company has 92.29 million shares in the public float and trades in the 52-week range between CA$0.16 and CA$0.67.

Disclosures:

1) Katherine DeGilio 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.

3) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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.