Strategic Plan Launched for Major Gold Project in Ontario

Goldshore Resources Inc. (TSXV: GSHR;OTCQB: GSHRF ;FWB: 8X00) has unveiled a comprehensive strategic plan for the next 12 months, focusing on its flagship Moss Gold Project in Ontario. The company is set to commence a 2,500-meter summer drill program in June 2024. This drill program aims to test targets adjacent to the conceptual open pit from the surface to a depth of 200 meters. CEO Michael Henrichsen expressed confidence in the project, emphasizing the growth possibilities and potential development scenarios. 

Michael Henrichsen, CEO of Goldshore, remarked, "Having spent the last month working with our team and our strategic advisor, SAF Group, I am very confident we have the internal expertise and support needed to meaningfully advance Moss in the next 12 months. I have been very impressed with the growth possibilities at Moss and the optionality that is present with respect to potential development scenarios, particularly with the possibility for higher-grade starter pits that we internally believe will be defined in the PEA study. Moss represents an exceptional opportunity to advance a Tier 1 project adjacent to developed infrastructure in Canada, and I look forward to realizing the full potential of the project in the coming years."

The company plans to complete the much-anticipated PEA by the first quarter of 2025. This assessment will outline a phased approach to production, prioritizing the internal rate of return (IRR) while minimizing initial capital expenditures (Capex). Alongside the drilling activities, Goldshore will conduct systematic geochemical and geophysical surveys across 23 kilometers of mineralized trends within the Moss Block. This area, covering 8 km by 6 km, contains 91% of the project's ounces and is the primary focus of the exploration efforts.

Gold Mining Sector

The gold mining sector is poised for a significant upswing in 2024, buoyed by several positive developments and trends. According to the World Gold Council, gold prices have reached new all-time highs, trading around US$2,300 per ounce. This increase marks an 11% gain year-to-date and a 16% rise over the past 12 months. This rally has been driven by a combination of robust demand from central banks, geopolitical tensions, and economic uncertainties that make gold a preferred investment for hedging against inflation and currency fluctuations.

The sector's outlook remains strong due to anticipated interest rate cuts by the Federal Reserve, which are expected to commence in mid-2024. These cuts are likely to further enhance gold's appeal as a safe-haven asset, as lower interest rates decrease the opportunity cost of holding non-yielding assets like gold. Additionally, as mentioned by WoodMac, the demand for gold continues to rise, particularly in regions experiencing economic instability, such as China, where investors are increasingly turning to gold amid uncertainties in the commercial real estate sector​.

According to J.P. Morgan, gold prices are expected to dip slightly in the near term but will climb to new highs later in the year, with a forecasted peak of US$2,300 per ounce by 2025. This bullish outlook is supported by expected Federal Reserve interest rate cuts and a weaker U.S. dollar, which make gold more attractive to investors globally.

Furthermore, the sector is expected to benefit from the continued emphasis on ESG (Environmental, Social, and Governance) considerations. As reported by Deloitte, the mining industry is increasingly prioritizing sustainable practices, which not only help meet growing regulatory requirements but also enhance access to capital and improve the industry's overall reputation. This focus on sustainability is anticipated to drive long-term value creation for gold mining companies.

Catalysts

Several catalysts are set to drive Goldshore's progress at the Moss Gold Project over the next year. The commencement of the 2,500-meter drill program in late June 2024 is a significant step toward demonstrating the growth potential of the Moss deposit. By targeting zones adjacent to the conceptual open pit, the company aims to define additional high-margin, near-surface ounces that could be included in a future resource estimate update.

The upcoming PEA, expected to be completed by March 31, 2025, will be another crucial milestone. This assessment will provide a detailed project description, enabling efficient advancement of the permitting processes. By utilizing well-defined cost estimates, Goldshore aims to ensure the projected Capex aligns with prefeasibility study standards, enhancing the project's economic viability.

In terms of community and environmental engagement, Goldshore has immediate plans to establish an external permitting team to focus on Indigenous engagement and environmental baseline work. The company will develop a strategic permitting plan over the next three months, aiming to provide a clear roadmap to production that minimizes regulatory risk and efficiently navigates the environmental assessment process.

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, Brian Alexander Paes-Braga owns 12.03% of the company, Brett Allan Richards owns 2.52%, Chairman Galen Stuart McNamara owns 1.57%, former Director Victor Cantore owns 1.04%, Director Shawn Khunkhun owns 0.40%, Director Kyle Jonathan Hickey owns 0.38%, and Vice President of Exploration Peter Alan Flindell owns 0.24%.

Institutions own approximately 15% of the company, as Sprott Asset Management L.P. owns 5.28%, and U.S. Global Investors Inc. owns 0.54%.

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 260 million shares outstanding, with approximately 192.8 million free float traded shares, while the company has a market cap of CA$37.65 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. James Guttman 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. 

For additional disclosures, please click here.