Goldshore/GSHR

As Goldshore Resources Inc. continues its ongoing 15,000-meter drill program at its Moss Gold Project in Northwest Ontario, the company's chief executive officer is making sure to point out that its results aren't included in its upcoming Preliminary Economic Assessment (PEA) for the site.

The PEA will be a "base-case scenario" which the company plans to build on as it continues its exploration.

"Our goals of the program are to add ounces in the top 200 meters, convert waste to ore, and reduced the strip ratio of the deposit," Chief Executive Officer Michael Henrichsen in a short video posted to the company's website. "All of these will have a very positive impact on the economic performance of the asset."

Significant results from initial drilling at Moss include a 79-meter intercept grading 1.28 grams per tonne (g/t) gold (Au) from 27 meters depth in hole MMD-24-133, with notable higher-grade zones such as 32.3 meters at 1.73 g/t Au. Another standout result was a 21.85-meter intercept grading 0.66 g/t Au from just 4.5 meters depth in hole MMD-24-134. These findings highlight the potential for improved resource classification and economic viability of the deposit.

"What we really see is in these results, we had thicker mineralization than we expected from the resource model," Henrichsen said. "That was obviously quite important. The shear zones widen. We saw higher grades than the resource model was anticipating. So obviously another good outcome."

The Moss Gold Project currently hosts an updated mineral resource estimate of 1.535 million ounces (Moz) of gold (Indicated) at 1.23 g/t Au (gold) and 5.198 Moz of gold (Inferred) at 1.11 g/t Au, based on data from January 2024.

*On January 6, technical analyst Clive Maund highlighted the company's accomplishments and potential in an analysis published on Streetwise Reports.

According to Maund, "Goldshore Resources has already delineated a substantial gold resource in Ontario, its flagship Moss Project, which I believe is well on its way to becoming a district-scale project with very significant expansion potential."

Expanding Mineralization at the Surface

The primary focus of the drill program is to expand mineralization within the top 100–200 meters from the surface, targeting areas currently modeled as waste.

Henrichsen said it's important to know that the PEA can be improve on.

"Quite often in PEAs, you have an economic performance and it kind of degrades as you move through the studies into pre-feasibility and feasibility," he said. "Our intention here is to hopefully be able to improve upon that as we move forward, and these drill results will be a big part of that."

Henrichsen said the company will have plenty of future catalysts over the next several months as the PEA is expected at the end of the quarter and they will continue to release new drilling results "probably on a two-week cadence."

In his analysis, Maund emphasized that the Moss Project benefits from strong infrastructure, proximity to major highways, and reliable power supply, which collectively enhance its operational efficiency and long-term prospects.

"A high-grade starter pit will provide significant cash flow to fund the project's advancement," he noted.

This cash flow is expected to support the development of the Moss Project, which features favorable metallurgy with high gold recovery rates. Additionally, Maund pointed out that the project's open-pit configuration contributes to relatively low extraction costs, further enhancing its economic viability.

The company's capital structure was another focal point of Maund's analysis. While acknowledging the seemingly high number of shares outstanding, he explained that "more than half of them are owned by board and management, institutional investors, and strategic investors," which underscores a strong alignment of interests between stakeholders and management.

Lastly, Maund observed the positive trajectory of Goldshore's stock performance, noting that its steady growth had culminated in a strong base pattern, setting the stage for future gains. He concluded that the company's achievements over the past year, combined with the broader strength of the precious metals market, provided a compelling opportunity for investors.

The Catalyst: Gold's Best Start Since 2023

Gold is continuing to shine as a hedge against inflation and instability. The gold market is experiencing its best start since 2023 and is on track for its strongest monthly performance since September, which could signal another big year for the metal, Neils Christensen reported for Kitco on Tuesday.

Eric Strand, founder of the boutique precious metals firm AuAg Funds, said he expects gold prices to surpass US$3,000 an ounce this year, Christensen wrote.

"We predict that gold will break the US$3,000 level during the year and potentially finish even higher, with a realistic target of US$3,300," Strand said.

Gold prices declined more than 1% on Monday after hitting near-record highs last week, Anmol Choubey reported for Reuters on Monday.

Spot gold was down 1.3% at US$2,736.75 per ounce Monday afternoon after prices had risen to near-record high levels on Friday. U.S. gold futures settled 1.5% lower at US$2,738.40 per ounce.

Sharp declines in global equity markets have driven risk-averse moves across other asset classes, with U.S. Treasury yields dropping to three-week lows and the dollar index hitting its lowest levels since December 18, Choubey reported.

"This (sell-off) is very much driven by the broad equity market rather than just the normal interest rates or currency. We're seeing a bit of a liquidity crunch," Bart Melek, head of commodity strategies at TD Securities, told Choubey.

Ownership and Share Structure

The company provided a breakdown of its ownership, where 6.4% of Goldshore is held by management and directors. 

Institutions own approximately 15% of the company. The largest shareholder in this category is Sprott Asset Management LP, with 4.59% or 13.72 million shares.

Strategic shareholders own 35%. Brian Paes-Braga is the largest shareholder in this category, with 11.48% or 34.31 million shares. 

The rest is with retail investors. 

The company reports that there are around 298.9 million shares outstanding, while the company has a market cap of CA$93.93 million as of close January 16, 2025.