Goldshore Resources is a junior gold development company that is tri-listed. Trading here in Canada on the TSXV. The company has managed to stay well-financed and supported by a strong management group.
The company is currently focusing on its Moss Lake Gold Project, looking to take the area to new stages of exploration.
To talk more about the company and the Moss Lake Project, we’re joined by the company’s CEO, Brett Richards.
Thanks very much for stopping by the Market Herald, Brett.
TMH: For investors that are not familiar with Goldshore Resources, can you enlighten viewers on the Moss Lake Project’s location and size?
BR: Yes, for sure. We acquired the Moss Lake Project from Wesdome Gold Mines back in 2021, and subsequent to the acquisition, we embarked on a very large drill campaign of about a hundred thousand meters, of which we are about 75% of the way through. The Moss Lake project is about a hundred kilometres west of Thunder Bay, and it is on the Trans Canada Highway. So we have access to tremendous infrastructure: we have $0.10 kwh grid power; we have international rail, an international port about a hundred kilometres away, as well as being close to suppliers, a potential workforce and all services needed to run a district scale mining camp. So, we are very well situated with a very large land package in a very, very good area to build a large business.
TMH: Your Mineral Resource Estimate at Moss Lake was very successful. Can you talk to us about the results?
BR: So, what we acquired from Wesdome had a large land package in a highly mineralized area of the Shebandowan Greenstone Belt, with a 4-million-ounce historic resource. A historic resource is just a guide for explorers – whereby it was a current resource 10 years ago, but the QA/QC and traceability of the work done to build that resource; are not all available. So, you don’t build upon a historic resource – you let it guide you to highly successful drilling. So we started using this as a guide to our drilling campaign, and we quickly determined a very high-grade shear domain contained within the lower-grade global resource and focused on grade. On November 15, 2022 – we announced a current resource from about 50% of the drilling we had done to date and announced a 4.17-million-ounce resource at Moss Lake, grading 1.1 grams per tonne. But the real story here is the high-grade shear domain where we have 2.2 million ounces at 2.0 grams per tonne – which is contained within the larger 4.17M oz global resource. This is a very exciting development, which could lead us to become one of the highest-grade open pit development projects in Canada. Very exciting!!!
TMH: When investors look at your MRE results compared to some of your peers, what key takeaways should they focus on?
BR: Well, when I look at projects for investment ideas and origination, I look at 4 key criteria, and I am invested in about 40 junior mining companies, Goldshore being my largest holding. First, I look at the jurisdiction for licence/mining code stability and legal stability. Next, I look for size, scale, and potential for long-term sustainable growth versus having a captive resource. This includes land size/land availability (future growth) and location. Next, I look for access to infrastructure (mostly power/roads) in an effort to determine the “do-ability factor” of building a mine. Finally, I look at the deposit and quality of the ore body – which always comes down to grade, metallurgy and ore type. These factors are very important in determining investment-grade projects. At Goldshore, we tick every one of those criteria boxes strongly. So the takeaway for investors is: “if you want to leverage to gold because you feel that it’s a good hedge in this market, whether it’s inflationary, stagflationary, or weak US dollar environment – whatever it is, you buy gold. But if you want exposure and leverage to gold – you buy Goldshore Resources. Because not only does Goldshore Resource tick all of those boxes, the size and scale of the resource under licence are still unknown, and the upside could be 10’s of millions of ounces. So Goldshore can very quickly become a highly desirable Tier One asset.
TMH: What impact do you expect your PEA to have on your market cap later in the year?
BR: This is a speculative answer, but it is my opinion – and to date, I have been 100% correct on my assertions and assumptions when we have been developing Moss Lake. We have three big catalysts coming out this year. We have an updated MRE coming out in April, which is going to have the remaining data from our 75,000-meter drill program. Still, the single biggest catalyst in the short history of this company is going to be what I think is going to be a game changer for this company, which is the preparation and presentation of the economic results of a PEA. We have broken this deposit up into what I think the market is going to be very receptive to, and that is a lower CapEx / phased approach to building Moss Lake. So, our PEA is going to be focused on around a 15,000 tpd operation with a 350 to 400 million CapEx project that will deliver 140-160K ounces a year for 10+ years and all in sustaining costs that are going to be below a thousand dollars. So, if you do the simple mat and you add all that up – you can fast forward very quickly on valuation metrics that will come out of the PEA, and if you do a two times cash flow, that’s a 300-million-dollar company. If you do 0.3 times NPV, it’ll be a 300-million-dollar company. So, when I say game-changing, we’re a 35-million-dollar market cap today, and when we put the PEA out, I think we’re going to rerate significantly from where we are today. Our timing on releasing the PEA results is around the first week of September. Our last catalyst will be an updated MRE again at the end of 2023 (or into 2024).
TMH: Can you speak to the potential of your overall land holding over the 35 km mineralized trend?
BR: This is the part of the big story here. Although we have a large land package of over 17,000 ha, we are creating a phased project and only identifying a 3.5km strike as the area of focus. There are known mineralization for over 11km and geological confidence in mineralization over the entire 35km trend. So, when speaking about size and scale – we have a land package that can deliver a multi-generational district-scale mining operation. So, phase one of our project is going to be what I just talked about in the PEA, but these pits can grow to three and four times the size of the current resource now because we know there’s mineralization very similar to Moss Lake along this trend. The trend continues beyond 11 kilometres and goes all the way to Coldstream and East Coldstream and into the property, we’re earning into at White Metals. So the resource potential here is in the double-digit millions of ounces with, yes, it will require a lot of drilling to prove up. I know that just arms waving until it can be proven, but I think this has the framework of being a Tier One asset, but we’re just taking the first steps with a phased project approach.
TMH: As the project moves to commercialization, who are the key team members that will make this successful when moving the mine towards production?
BR: Well, we put together a very significant team and board, a real balance of CEOs and CFOs who have been there and done that. I’ve got 35 years in this business. I’ve built three mines globally, and Pete Flindell, who’s my VP of exploration, he and I have built two mines together. I think, quite frankly, we’re going to be in a position to bolt on a couple of people on a project team we have worked with in the past, and with the strength of our board/board’s network – as there are many people on our board who have built mines as well. So I think we’re going to be well positioned to take this through the various development stages that we’ll be in 2023, 2024, and beyond. So, I’m getting ready to build a mine.
TMH: And to add to that, it sure helps to build a business with someone you’ve worked with before.
BR: Yes, absolutely, and there are several of them I’ve worked with on other projects. Pete and I have been together for 15 years. We’ve been on seven or eight different projects together. We’ve built two mines, and quite frankly, I know it’s going to take a few years as you have to go through the various stages of development, but my mindset is that we’re going to be prepared to build Moss Lake, and that’s the thinking right now.
TMH: Is there anything else you’d like investors to be aware of that we haven’t covered today?
BR: Yes, I think there has been no better time to get into Goldshore. Today we’re trading at about a 35-million-dollar market cap, as I mentioned. We’re cashed up. We’ve got some runway. We’ve got a great program this year with a lot of little catalysts (regular drill results) and 3 major catalysts. So, the value we are going to ultimately create in 2023 is astounding and exciting. There is no better time to invest in gold to protect against negative yield and negative sectors – and no better way to leverage that exposure than to invest in Goldshore Resources. So this is going to be an exciting year, market willing, and we need a little wind in our sails because last year, the capital market sail for Goldshore was pretty collapsed. So, we need the market cooperates, and we need to deliver on our goals to the investors – and if we do that, Goldshore will deliver significant returns for the market and about its peer group. Our project doesn’t need a $1,800 or $2,000 gold price to be successful, as we sensitize down as low as $1,200 – so we can protect the downside of the investment; and display the upside to the market when we put our PEA out. Even at a $1,500 gold price, this is a project that would get built – but today, we are up and down around $1,900, with many banks’ consensus prices over $2,000 for 2023. So, I don’t think you find a better investment thesis put there – Goldshore is simply one of those special projects that come along once or twice in a career. I don’t see many development-stage projects out there that are better.
Thanks again for joining us, Brett.
Again, we’ve been speaking with Brett Richards, CEO of Goldshore Resources. You can follow the company on the TSXV under the symbol GSHR or visit their website at goldshoreresources.com.
I am Brieanna McCutcheon for the Market Herald Canada. Thanks for watching.
FULL DISCLOSURE: This is a paid article produced by The Market Herald.