Canadian Gold Project Increases MRE with 23% of the Global Resource in the Indicated Category

Goldshore Resources Inc. (TSX.V:GSHR; OTCQB:GSHRF; FWB:8X00)  has released an updated MRE for the company's 100%-owned Moss Gold project that has analysts re-evaluating the company. The Moss Gold Project is fully funded through 2025, with CA$4 million in treasury at the time of this article.

Goldshore has just published that the project, located in Ontario, Canada, holds an Indicated 1,535,000 ounces of gold (Au) at grades of 1.23 grams per tonne (g/t) and 5,198,000 ounces of Au at grades of 1.11 g/t. An NI 43-101 technical report supporting the announcement will be forthcoming in March 2024.

The company noted that it closed a private placement deal worth CA$3,750,000 in November 2023 and that it is well positioned with working capital for the next 24 months. The company intends to use this work to support several initiatives, including metallurgical test work to validate the heap leachability of the deposit, to be then followed by a new preliminary economic assessment (PEA). 

In a discussion with Streetwise Reports, CEO Brett Richards stated, "I think the takeaway from the MRE is quite simple: 23% of our resource is now indicated, so a quarter of our resource is at a much higher confidence level, which is advancing the project through its stages of development in quality and quantity, as we have communicated over the past few years."

The project also hosts an additional 5,198,000 ounces of Au at 1.11 g/t in the Inferred category. Together, these two adjustments in the overall global resource amount to a combined grade increase of approximately 11%, painting a picture of a higher quality resource on the Moss Gold Project than the previous MRE in 2023.

Technical Analyst Clive Maund rated the company as a "Strong Buy for all timeframes" on February 8, 2024, and continued that the company's stock "is equally attractive for investors or speculators at this juncture."

Goldshore also claims to have a clearer picture of the shear structures that host most of the gold on the project. As a result of utilizing implicit modeling techniques, the company now believes that 94% of the tonnes and ounces are contained within these mineralized shear structures.

The updated MRE also indicated that the site has greater potential for greater pit depth as the depth is currently model-constrained — meaning there is significant potential to increase all of the pits at depth, in addition to their being long term upside for underground development on the project.

Looking forward, Goldshore hopes to use this updated MRE as a launching point for a push towards an industry beacon of Tier 1 status and a new Preliminary Economic Assessment. The company CEO, Brett Richards, stated that the company was currently conducting metallurgical test work to validate heap leachability of the low-grade material in the deposit, and the economic viability of recovery is approximately. 50% recovery in a dump leach or heap leach environment. 

He commented, "Given the preliminary met test work we have done to date (course bottle rolls), I'm optimistic and pretty confident heap leach is going to work, and we will be able to determine to what extent when we get the test results back (expected in May and June 2024)."

Pricey to Pricier

Mining Discovery reported on January 23, 2024, that gold is expected to find support from central banks, which have bought the commodity as a hedge against the falling U.S. dollar. Gold may be a solid bet for institutions hoping to protect against hard times.

As Mining Discovery noted, "An economic downturn accompanied by more rate cuts than currently expected might send gold to new record highs."

Eric Fry with Investor Place also highlighted gold as a safe-haven investment and believes that it will do well for the same reason central banks seem to think it will do well: a weakening American dollar, rate cuts by the Federal Reserve, and rising global conflicts. Fry encouraged investors to buy in now before prices rise and said, "I'm expecting gold stock valuations to move from pricey to pricier as the year progresses."

Comparable Companies

Goldshore is comparable to a number of other projects in the area shown in the chart below, with Marathon Gold Corp. (MOZ:TSX; MGDPF:OTCMKTS ) being the one with the largest market cap, a company currently trading at US$0.59 a share.

Marathon has some of the highest grades out of this list as well, sitting right next to Perpetua Resources Corp. (PPTA:TSX; PPTA:NASDAQ), US$2.78 a share, and Mayfair Gold (MFGCF:OTCMKTS), US$1.65 a share.

While Goldshore has the smallest market cap attributed to its resource, its current resource has shown high grades, with an even larger Inferred amount of gold equivalent at 5,198 thousand ounces, higher than all but one on this table.

Goldshore Rated "Outperform"

Technical Analyst Clive Maund rated the company as a "Strong Buy for all timeframes" on February 8, 2024, and continued that the company's stock "is equally attractive for investors or speculators at this juncture."

Maund believes that Goldshore is on the brink of a big breakout and that the recent dip may present an opportunity for investors to break into the stock before things really build momentum. Maund commented, "The point to grasp here is that this post-breakout dip has afforded would-be buyers the perfect opportunity to swoop in and pick up the stock at a very low price before the expected bull market gets going in earnest."

Velocity Trade Capital Research Commentary reviewed Goldshore recently and gave the company an "Outperform" rating with a share target of CA$0.33. The report seemed enthusiastic about the recent adjustment in the company's indicated resource as a catalyst.

Goldshore's current investor presentation revealed several very interesting catalysts. Goldshore expects to begin discovery drilling on new targets in Q2 of 2024, initially at Vanguard, as part of its earn-in obligations to Thunder Gold. The company will also commence with resource development drilling (market willing) in H2 of 2024 or in H1 of 2025, all subject to its market cap / share price and the state of the junior mining capital markets for raising capital.

Goldshore also anticipates finishing up with metallurgical studies in Q2 of 2024 and will begin these drilling initiatives thereafter. The company has an updated resource estimate expected in H2 of 2025 and ongoing environmental baseline studies through 2024 and 2025 that it expects to continue through to permitting and Pre-Feasibility Study. 

Additionally, Goldshore brought in a new strategic partner in Q4 2023 — SAF Group, whereby several principals of the organization funded US$3,000,000 of the US$3,750,000 raised, with the CEO and other members of the Board picking up the balance. One of the principals of SAF Group is now the single largest shareholder with 31M shares or 11.6% of the company. 

Ownership and Share Structure

The company provided a breakdown of its ownership, where 26% of Goldshore is held by management and insiders.

According to Refinitiv, Director Brian Alexander Paes-Braga owns 11.91% of the company with 31.28 million shares, while CEO Brett Allan Richards owns 3.78% of the company with 6.54 million shares, Chairman Galen Stuart McNamara owns 2.36% of the company with 4.09 million shares, former Director Victor Cantore owns 1.57% of the company with 2.71 million shares, Director Shawn Khunkhun owns 0.60% of the company with 1.04 million shares, Director Kyle Jonathan Hickey owns 0.58% of the company with 1.00 million shares, and Vice President of Exploration Peter Alan Flindell owns 0.35% of the company with 0.60 million shares.

Institutions own approximately 29% of the company, as Sprott Asset Management L.P. owns 7.93% of the company with 13.72 million shares, and U.S. Global Investors, Inc. owns 0.58% of the company with 1.00 million shares.

The SAF Group has committed to supporting the company in future financings to raise capital for drilling campaigns — if and when the company’s share price and market conditions warrant a capital raise. 

Refinitiv reports that there are 247.22 million shares outstanding, with approximately 195.85 million free float traded shares, while the company has a market cap of CA$22.34 million and trades in the 52-week period between CA$0.09 and CA$0.33.

Important Disclosures:

1. Goldshore Resources Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. 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.
3. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Clive Maund: 

1. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed.

Clivemaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.