Goldshore Resources Inc. has signed an impact benefit agreement (IBA) term sheet with Lac des Mille Lacs First Nation

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Goldshore Resources Inc. has signed an impact benefit agreement (IBA) term sheet with Lac des Mille Lacs First Nation, a development that formalizes key principles guiding negotiations toward a final IBA for the Moss gold project in Ontario. The IBA term sheet outlines collaborative efforts on regulatory, environmental, cultural, and financial matters, as well as commitments around employment opportunities and business participation for Lac des Mille Lacs First Nation members.

This agreement follows an early exploration agreement reached between the parties in June 2022 and signifies continued progress toward building partnerships with local Indigenous communities. According to Michael Henrichsen, CEO and director of Goldshore, in the company news release, “This milestone reflects Goldshore’s commitment to building meaningful relationships based on trust and respect.” Chief Judy White Cloud echoed this sentiment, stating, “We are committed to ensuring that the Moss gold project reflects our values and delivers long-term benefits for our nation.”

The Moss gold project is located in a prolific gold jurisdiction in northwestern Ontario. It contains an Indicated Mineral Resource of 1.535 million ounces of gold at an average grade of 1.23 grams per tonne (g/t) and an Inferred Mineral Resource of 5.198 million ounces at 1.11 g/t, as reported in the updated mineral resource estimate effective January 31, 2024. The open-pit resource estimate was constrained using a gold price of US$1,850 per ounce and incorporated site-specific economic assumptions, including power costs of approximately US$0.06 per kilowatt-hour.

Goldshore and Lac des Mille Lacs First Nation have committed to conclude IBA negotiations within 12 months, with both parties emphasizing collaboration and shared value as priorities. The term sheet also reflects increasing industry emphasis on meaningful Indigenous engagement, particularly in areas with active mining exploration and development.

On May 21, Kitco reported that gold futures posted a third consecutive gain, with the June contract rising US$34.50 to close at US$3,319.10. This marked an increase of nearly US$98 over three trading sessions. The article attributed the rally to intelligence reports suggesting that Israel may be preparing to strike Iranian nuclear facilities. “Today’s gains seem to be driven not by trade policies and tariffs, but rather directly from concerning intelligence reports,” the commentary noted, underscoring gold’s appeal during times of geopolitical instability.

One day later, on May 22, FX Empire stated that gold reached US$3,345 in Asian trading as fiscal concerns in the United States intensified. The piece cited a weaker U.S. dollar and Moody’s downgrade of the country’s credit rating to Aa1 due to long-term debt sustainability risks. “A US$3–US$5 trillion tax bill and weak bond auction added pressure to U.S. assets, lifting precious metal demand,” the report explained. A senior commodities analyst added, “With growing uncertainty around U.S. fiscal policy and weakening macro indicators, safe-haven flows are likely to persist.”

Also on May 22, Stockhead highlighted the resilience of gold stocks on Australia’s ASX, where the All Ordinaries Gold Index climbed 3.31% following a 5% jump the day before. This strength came despite a 0.45% decline in the broader ASX index. The report emphasized gold’s counter-cyclical nature, noting that “as uncertainty climbs, so does gold.”

On May 23, Bloomberg commented on the broader market impact of renewed U.S. tariff announcements, noting that “one of the biggest beneficiaries of that US tariff announcement is going to be gold.” As investors moved away from high-beta equities, demand increased for traditional safe-haven assets, including gold, the Japanese yen, and the Swiss franc.

By May 27, the focus extended beyond gold itself. In his What Is Chen Buying? What Is Chen Selling? newsletter, Chen Lin remarked, “Gold is moving up and down like a pinball upon Trump’s tariff news. Platinum is having a big breakout due to China demands. This is encouraging as silver could be the next as investors are spreading their love of gold to other close associates.” Lin also referenced a recent Citi report that took a bearish view of gold, citing strong profits among miners. “One of the key points was that the gold miners are making too much money,” Lin noted. “I don’t agree obviously, but I am only holding gold miners as they don’t need gold prices to move up.”

Analyst Sees Strong Upside for Goldshore’s Moss Project

On April 22, Don MacLean of Paradigm Capital initiated coverage on Goldshore Resources Inc. with a Speculative Buy rating and a target price of CA$1.20 per share. MacLean described the company’s 100%-owned Moss Gold Project in Ontario as “a top contender among the next generation of large Canadian gold mines,” citing the scarcity of high-quality gold assets in stable jurisdictions.

MacLean outlined a large-scale, open-pit development scenario for Moss with an estimated mine life exceeding 15 years. He projected average production of 340,000 ounces of gold annually during the first five years, followed by 279,000 ounces per year over the life of mine. Based on a gold price of US$3,000 per ounce, the project was modeled to deliver a 32 percent internal rate of return (IRR) and remained economically robust down to US$2,370 per ounce, which he identified as the 20 percent IRR threshold.

From a valuation standpoint, MacLean noted that Goldshore was trading at 0.05 times his estimated net asset value (NAV) of CA$6.59 per share, compared to a peer median of 0.10 times. He calculated that the NAV would increase by CA$0.51 for every US$100 per ounce rise in the gold price. At the time of his report, Goldshore had a market capitalization of approximately CA$122 million and a share price of CA$0.345, which equated to a valuation of about CA$21 per resource ounce—roughly half the peer average of CA$40.

Exploration potential was another key point. MacLean described it as “excellent,” emphasizing that the current resource only covers roughly 10 percent of the project’s 35-kilometer structural corridor. He added that large-scale gold systems like Moss often operate “much longer than initially estimated,” supporting its long-term strategic potential.

While MacLean acknowledged possible risks tied to drill spacing and delays in the preliminary economic assessment initially expected in the first half of 2025, he concluded that the CA$1.20 target price represented a potential return of 248 percent from then-current levels, positioning Goldshore as “an attractive opportunity for investors seeking quality exposure to gold price appreciation.”

A Pathway to Production: Near-Term Catalysts at Moss

Goldshore Resources continues to position the Moss gold project as a potential top ten Canadian gold producer. According to the company’s May 2025 corporate presentation, key development milestones are underway to support long-term value creation. These include a Preliminary Economic Assessment (PEA) expected in the second half of 2025, led by G Mining Services, with a focus on maximizing internal rate of return and developing a high-grade starter pit to support early cash flow.

A 20,000-meter drill program was recently completed targeting lateral and depth extensions around the conceptual open pit. Assays from 18 drill holes remain pending and may contribute to future resource expansion updates. Concurrent exploration continues across a 23-kilometer mineralized structural corridor, with the goal of adding additional near-surface ounces.

Infrastructure is another advantage. The Moss gold project benefits from direct access to the Trans-Canada Highway, low-cost power, and proximity to a skilled workforce, providing a strong foundation for future mine development. Goldshore’s permitting efforts are supported by One-eighty Consulting, with over three years of environmental baseline data already collected and a permitting plan in development.

With an updated resource base, active engagement with Indigenous communities, and a defined pathway toward economic studies, Goldshore is advancing the Moss project through a strategic and methodical development process.

Ownership and Share Structure

The company provided a breakdown of its ownership, where 6% of Goldshore is held by management and directors.  

Institutions own approximately 20% of the company. Strategic shareholders own 25% and include Lutry Investments, Brian Paes Braga and members of the SAF Group. 

The rest is with retail investors.  

There are around 343.45 million shares outstanding and the company has a market cap of CA$121.86 million. It trades in a 52-week range of CA$0.15 and CA$0.40.