Positive Gold Intercepts Boost Exploration Amid Economic Assessment Progress
Goldshore Resources Inc. (TSXV: GSHR; OTCQB: GSHRF ; FWB: 8X00) has extended mineralization along the Moss Deposit and Kawa trends. Read why investors are taking interest in this and other recent company announcements.
Goldshore Resources Inc. (TSXV: GSHR; OTCQB: GSHRF ; FWB: 8X00) has reported assay results from the 2024 field programs that concentrated on extending mineralization along the Moss trend and evaluating the exploration potential along the Kawa trend.
Sampling has focused on largely undercover areas, yielding favorable results including the following:
Discovery of additional high-grade mineralized areas north of the Moss Deposit at the Superion and West Span prospects, including grab assays of 15.4 grams per tonne gold (g/t Au) and 10.5 g/t Au.Discovery of a new mineralized shear outside of the drilling envelope close to the Southwest Zone of the Moss Deposit returning a surface assay of 12.3 g/t Au.Expanded mineralized intercepts at the Moss Nose and Kawa prospects through assaying of unsampled historical drill core returning individual values as high as 7.88 g/t Au over 0.65m in ML-02-001.Additional mineralized outcrops were discovered at the Moss Nose prospects, with grab samples returning up to 3.39 g/t Au.Identified mineralization at surface over 4.5km along the Kawa trend with channel samples at the Deaty prospect returning 0.92 g/t over 2.85m.The company also reported progress on the PEA for the Moss project. After a completed site visit to assess potential infrastructure locations by G Mining Services Inc., the mineral resource model has been confirmed for use in the PEA study. Currently, the company is reviewing several mining and milling scenarios to determine the best steps forward.
Since the publishing of the updated mineral resource estimate in February, Goldshore noted that the company's share price has seen strong performance and outperformed the VanEck Junior Gold Miners ETF by 155%.
Looking At The Gold Sector
With gold prices remaining stable above US$2,500 in anticipation of U.S. inflation data, the gold market has been heavily influenced by both global economic factors and investor sentiment.
On September 10, Reuters noted that "gold prices held firm above the US$2,500 level" as market participants awaited Federal Reserve decisions on interest rate cuts. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold. This only further supports the sector's growth. According to Chief market analyst at Exinity Group, Han Tan, any dip in gold prices would likely see "bulls buying the dip once more, as they have consistently done since mid-August."
The key advancements that Goldshore Resources has made with its exploration activities around the Moss gold deposit focused heavily on the Boundary zone and Southwest extension.
As reported by Fortune on September 11, "the identification of a significant fault in the Southwest extension of the Moss deposit provides further exploration targets in the Moss Nose area, which adds potential for future expansion." This further strengthens Goldshore's position in a gold market that has seen steady demand despite global economic uncertainty.
The dynamics of the gold market are shifting globally, with China exerting increasing influence. According to Jesse Colombo in a September 7 report, Chinese traders on the Shanghai Futures Exchange were instrumental in driving gold prices higher earlier in the year. "Chinese speculators have really grabbed gold by the throat," said John Reade, the World Gold Council's chief market strategist, as China's economic conditions prompted a shift toward gold. Colombo also suggested that the recent gold price movements could lead to another rally, with gold potentially surging toward US$3,000 once key technical levels are breached.
Goldshore Catalysts
Goldshore Resources continues to advance its strategic exploration and development plans by outlining resource expansion targets at the Moss Deposit.
These identified targets are located within the top 200 meters from surface and either within or directly adjacent to the conceptual open-pit shell as defined in the current mineral resource estimate (MRE).
Michael Henrichsen, CEO of Goldshore, commented, "We are very pleased with the mineral resource Expansion Targets that have been delineated, which represents an opportunity to not only increase the ounce profile of the Moss Deposit but also to reduce the overall strip ratio in a potential mining scenario. We view the drilling of these targets as a critical step to potentially improving the economic performance of the deposit on the back of the PEA, currently in progress with G Mining Services, being released as we continue to look to add ounces in the top 200m from surface."
The company believes that the approval of the mineral resource model and the site visit by G Mining Services represent key steps forward in advancing the PEA. With the anticipated environmental approval and continued drilling success, Goldshore says it is poised to further its exploration and development initiatives.
Streetwise Ownership Overview*
Goldshore Resources Inc. (TSXV: GSHR;OTCQB: GSHRF ;FWB: 8X00)
*Share Structureas of 8/19/2024Source: Goldshore Resources Inc.Henrichsen noted the strong performance of the company's share price, bolstered by insider and strategic shareholder support. According to the company, this shareholder backing, which includes significant open market purchases, has been instrumental in transitioning shares into the hands of long-term investors aligned with the company's growth strategy.
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$86.7M million as of close August 16, 2024.
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Important Disclosures:
Goldshore Resources Inc. is a billboard sponsor of Streetwise Reports.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. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 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.