On April 22, 2025, Paradigm Capital analyst Don MacLean initiated coverage of Goldshore Resources Inc. (GSHR:TSX.V; GSHRF:OTCQB; 8X00:FWB) with a Speculative Buy rating and a CA$1.20 price target, highlighting the company's Moss gold project in Ontario as a top contender among the next generation of large Canadian gold mines amid a scarcity of quality, large deposits in safe jurisdictions.
Goldshore's 100%-owned Moss project is located approximately 100 kilometers west of Thunder Bay, Ontario, with excellent infrastructure including proximity to the Trans-Canada Highway and access to low-cost power. The project hosts a significant resource of 6.7 million ounces of gold, with the pit-constrained portion containing 5.8 million ounces at 1.07 g/t (22% indicated, 78% inferred). The analyst's interpretation suggests a mineable resource of 4.6 million ounces at 0.88 g/t.
MacLean envisions the Moss project as a large, long-life (15+ years) open-pit mine capable of producing 340,000 ounces of gold per year in the first five years and 279,000 ounces per year over the life of mine, with second-quartile all-in sustaining costs (AISC). At a gold price of US$3,000/oz, the project demonstrates an attractive 32% internal rate of return (IRR) and remains economically viable down to US$2,370/oz (above the analyst's 20% IRR threshold).
From a valuation perspective, Goldshore is trading at just 0.05x the analyst's net asset value (NAV) of CA$6.59 per share (at US$3,000/oz gold), which is half the developer peer group median of 0.10x. The NAV is sensitive to gold prices, increasing by CA$0.51 per share for every US$100/oz increase in gold price. At the share price of the time of the report of CA$0.345, Goldshore's market capitalization is CA$122 million, representing just CA$21 per resource ounce compared to the peer group median of CA$40 per ounce.
The Moss project offers excellent exploration upside, with the current resource covering just 10% of the project's 35 kilometers of shear structures. The analyst notes that large deposits like Moss often produce for much longer than initially estimated, adding to the project's strategic appeal for potential acquirers and government stakeholders.
Key risks include uncertainty around the vertical continuity of the mineralized structures given the current 30-70 meter drill spacing for indicated resources and up to 100 meters for inferred resources. Additionally, the timing of major catalysts represents another risk, as the targeted H1 2025 preliminary economic assessment (PEA) may be deferred to Q3-Q4 to incorporate additional exploration results.
With the share price of CA$0.345, the CA$1.20 target price represents a potential return of 248%, making Goldshore an attractive opportunity for investors seeking quality exposure to gold price appreciation.
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Important Disclosures:
- 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.
- 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.
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Disclosure for Paradigm Capital, Goldshore Resources Inc., April 22, 2025
Goldshore Resources Inc. GSHR-CA 2,3 Note: Please refer to above table for applicable disclosure numbers. 1. The analyst has an ownership position in the subject company. 2. Paradigm Capital Inc. has assumed an underwriting liability for, and/or provided financial advice for consideration to the subject companies during the past 12 months. 3. Paradigm Capital Inc. expects to receive or intends to seek compensation for investment banking services from the subject companies in the next 3 months. 4. Paradigm Capital Inc. has greater than a 1% ownership position in the subject company. 5. The analyst has a family relationship with an Officer/Director of subject company. 6. A partner, director, officer, employee or agent of Paradigm Capital Inc. is an officer or director of the issuer. Paradigm’s disclosure policies and research distribution procedures can be found on our website at www.paradigmcap.com. Paradigm Capital Inc. research is available on Bloomberg, CapitalIQ, FactSet and LSEG or at www.paradigmcap.com. Issued by Paradigm Capital Inc. Research Rating System Paradigm Capital Inc. uses the following rating recommendation guidelines in its research:
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