Goldshore Resources Inc. (TSX.V:GSHR; OTCQB:GSHRF; FWB:8X00) has released an updated mineral resource estimate for the company’s 100%-owned Moss Lake project that has analysts reevaluating the company. Goldshore now believes that the project, located in Ontario, Canada, holds an indicated 1,535,000 ounces of gold (Au) at grades of 1.23 grams per tonne (g/t).
The project is believed to host an additional indicated 5,198,000 ounces of gold at 1.11 g/t Au. Together, these two adjustments in the indicated resource amount to an overall grade increase of approximately 11%, painting a picture of a higher quality resource on Moss Lake than previously thought.
Goldshore also claims to have a clearer picture of the shear structures that host most of the gold on Moss Lake. The company now believes that 94% of the indicated gold tonnes and ounces are contained within these mineralization structures. The updated MRE also indicated that the site has greater potential for greater pit depth and the expansion of all the mineralized zones on the project.
Looking forward, Goldshore hopes to use this updated MRE as a launching point for a push towards Tier 1 status and a new Preliminary Economic Assessment.
Pricey to Pricier
Mining Discovery reported on January 23, 2024, that gold is expected to find support from central banks, which have bought the commodity as a hedge against the falling U.S. dollar. Gold may be a solid bet for institutions hoping to protect against hard times, as Mining Discovery commented, “an economic downturn accompanied by more rate cuts than currently expected might send gold to new record highs.”
Eric Fry with Investor Place also highlighted gold as a safe-haven investment, and believes that it will do well for the same reason central banks seem to think it will do well: a weakening American dollar, rate cuts by the Federal Reserve, and rising global conflicts. Fry encouraged investors to buy in now before prices rise, and said, “I’m expecting gold stock valuations to move from pricey to pricier, as the year progresses.”
Goldshore Rated "Outperform"
Technical Analyst Clive Maund rated the company as an “immediate strong speculative buy” in April of 2023. Maund commented, “Being still very close to the second low of a largish Double Bottom at a time when the sector is really coming to life, Goldshore is viewed as being a very attractively priced junior here.”
Velocity Trade Capital Research Commentary reviewed Goldshore more recently, and gave the company an “outperform” rating with a share target of CA$0.33. The report seemed enthusiastic about the recent adjustment in the company’s indicated resource as a catalyst.
Ownership and Share Structure
Refinitiv provided a breakdown of the company’s ownership and share structure, where management and insiders own approximately 27.32% of the company. According to Refinitiv, Brian Alexander Paes-Braga owns 18.08% of the company with 31.28 million shares, while Brett Allan Richards owns 3.78% of the company with 6.54 million shares, Galen Stuart Mcnamara owns 2.36% of the company with 4.09 million shares, Victor Cantore owns 1.57% of the company with 2.71 million shares, Shawn Khunkhun owns 0.60% of the company with 1.04 million shares, Kyle Jonathan Hickey owns 0.58% of the company with 1.00 million shares, and Peter Alan Flindell owns 0.35% of the company with 0.60 million shares.
Institutions own approximately 19.55% of the company, as Wesdome Gold Mines Ltd. owns 11.04% of the company with 19.10 million shares, Sprott Asset Management L.P. owns 7.93% of the company with 13.72 million shares, and U.S. Global Investors, Inc. owns 0.58% of the company with 1.00 million shares.
Refinitiv reports that there are 173.02 million shares outstanding with 105.85 million free float traded shares, while the company has a market cap of CA$14.06 million and trades in the 52 week period between CA$0.09 and CA$0.33.
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