Major Gold Exploration Push Unveils Promising Targets in Ontario

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Goldshore Resources Inc. (TSXV: GSHR; OTCQB: GSHRF ; FWB: 8X00) has announced the awarding of contracts for its upcoming winter exploration programs at the Moss Gold Project in Ontario. The company selected Laframboise Drilling Inc. for its resource expansion diamond drilling program and Forages Technic-Eau Inc. for the top-of-bedrock sonic drilling program. Abitibi Geophysics was engaged to execute geophysical surveys over the project area. These programs are designed to expand the mineral resource estimate (MRE) and enhance the economic feasibility of the Moss deposit.

The resource expansion drilling initiative will cover approximately 15,000 meters within the top 200 meters of the deposit. Its objectives include increasing drill density to convert inferred resources into indicated categories, extending known mineralized zones along strike, and targeting areas where deep mineralization trends closer to the surface. These efforts aim to improve the overall resource base and reduce the strip ratio of the deposit.

The discovery-focused exploration program will evaluate 23 kilometers of structural corridors. These remain largely underexplored due to extensive till and muskeg coverage. The program will include up to 200 sonic drill holes to define new areas of gold mineralization and develop robust drill targets. Complementing this, a geophysical survey will span 235 kilometers of gradient array and 40 kilometers of pole-dipole induced polarization (IP) lines. This will provide a clearer resistivity and chargeability profile of the project and surrounding corridors, aiding in identifying new zones of mineralization.

Goldshore's CEO, Michael Henrichsen, noted the importance of these programs, stating in the news release, "The resource expansion targets we have identified could significantly improve the economic performance of the Moss project, building on our forthcoming preliminary economic assessment (PEA) scheduled for Q1 2025. The discovery-focused geophysical and sonic drill programs will give the company the opportunity to develop robust drill targets that we feel will ultimately lead to a discovery and the uncovering of additional ounces at the project."

Digging Into The Gold Market

On November 13, Joe Vidueira, writing for the Mises Institute, emphasized the resurgence of gold as a critical financial asset. Vidueira noted that 2024 saw gold surpass US$2,500 per ounce, reaching historic price levels and solidifying its position as one of the top-performing assets of the year. He attributed this growth to persistent economic uncertainties and geopolitical tensions. According to Vidueira, central banks played a key role in driving demand, purchasing 1,037 tons of gold in 2023, the second-highest annual total on record. He also referenced a survey by the World Gold Council indicating that 29% of central banks planned to increase their gold reserves, the highest level of interest recorded since the survey's inception in 2018.

Matthew Piepenburg, writing for Von Greyerz AG on November 17, discussed the broader economic context that has supported gold's rise. Piepenburg highlighted how global debt levels and a weakening U.S. dollar have created an environment conducive to gold appreciation. He described the metal's upward trajectory in 2024 as a response to "a fiat bear market," where paper currencies are increasingly viewed as unstable. Piepenburg also noted the strategic moves by BRICS+ nations to reprice gold within the context of de-dollarization, emphasizing the metal's role as a Tier-1 reserve asset.

Then, on November 26, Egon von Greyerz added his thoughts on the site and looked at gold's growing prominence, linking its sustained demand to structural trends in the global financial system. He pointed to the substantial increase in gold holdings by Eastern and Southern central banks and argued that Western central banks, by contrast, are at risk due to hypothecation and re-hypothecation of their reserves. Von Greyerz predicted that gold prices would rise "by multiples" as demand outstrips supply, noting that annual mine production of approximately 3,000 tons is insufficient to meet long-term needs. He also cited gold's historical resilience, observing its role as a consistent store of value amid the devaluation of paper currencies.

The Driving Forces Behind Goldshore Resources

Goldshore Resources' upcoming exploration efforts are bolstered by several favorable factors, as highlighted in the company's November 2024 investor presentation. The Moss deposit has a current mineral resource estimate of 1.535 million ounces of gold in the indicated category at 1.23 grams per tonne (g/t) and 5.198 million ounces in the inferred category at 1.11 g/t, showcasing significant potential for near-surface resource expansion. The company's focus on drilling within the top 200 meters is intended to add ounces to the resource base while optimizing the deposit's strip ratio for economic efficiency.

The project benefits from well-established infrastructure, including highway access, low-cost power at CA$0.08 per kilowatt-hour, and proximity to skilled labor and contractors. These factors enhance the feasibility of large-scale exploration and development activities. Goldshore has also engaged G-Mining Services to prepare a preliminary economic assessment (PEA) by Q1 2025, with an emphasis on identifying a high-grade starter pit to improve capital expenditure payback timelines.

The Moss project's surrounding 23 kilometers of prospective structural corridors provide ample opportunity for new discoveries. The company's winter exploration program is the first systematic effort to evaluate these corridors, employing modern geophysical techniques and targeted sonic drilling to uncover additional mineralized zones. This discovery potential, combined with a strategic approach to resource expansion and operational efficiency, positions Goldshore to advance its flagship project toward increased resource development and future economic studies.

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.