Goldshore Resources senior geologist Joey Garcia inspecting historic core samples from the Moss Lake gold project in Ontario. Credit: Goldshore Resources.[/caption]
Emerging Canadian junior Goldshore Resources ticks all the boxes to be a highly successful gold exploration and development company, says Brett Richards, Goldshore’s president and CEO.
Goldshore has assembled a “star-studded” management team, board of directors, and group of advisors, he says, who have extensive mining industry experience and strong track records of value creation, major discoveries, and project development and execution. “We also have a large-scale, potentially world-class project, which we’ll be advancing in a gold market that will remain buoyant for some time come, and have strong financial backing and cash position.”
In January, Goldshore announced the reverse takeover of Sierra Madre Developments. The combined company plans to change its name to Goldshore Resources and trade on the TSX Venture Exchange under the ticker GSHR.
Once the business combination is complete, in addition to Richards, Goldshore’s management will include Gavin Copper, current CFO of District Metals (TSXV: DMX), as CFO and corporate secretary, and Peter Flindell, who spent 12 years with Newmont (TSX: NGT; NYSE: NEM), as vice president of exploration.
The company’s board will comprise Richards; Doug Ramshaw, president of Minera Alamos (TSXV: MAI); Victor Cantore; Galen McNamara, president of Summa Silver (TSXV: SSVR; US-OTC; SSVRF); Shawn Khunkhun, president and CEO of Dolly Varden Silver (TSXV: DV; US-OTC; DOLLF); Brandon Macdonald, CEO of Fireweed Zinc (TSXV: FWZ); and Wesdome Gold Mines’ (TSX: WDO) Michael Michaud, vice president of exploration, and Heather Laxton, chief governance officer.
The advisory board will include David Garofalo, former CEO of Goldcorp until its sale to Newmont in 2019, and Skeena Resources (TSX: SKE; US-OTC: SKREF) Chairman Craig Parry.
At the same time the amalgamation of Goldshore and Sierra Madre was announced, Goldshore also announced its acquisition of 100% of the Moss Lake gold project from Wesdome for $52 million.
Under the deal, Wesdome will receive $12.5 million in cash and the greater of $19.5 million worth of shares or 30% of Goldshore on closing. It will also receive a further $20 million in shares in milestone payments, a 1% net smelter return (NSR) royalty on all metal production from Moss Lake, as well as the two nominees on Goldshore’s board.
The 14,292-hectare Moss Lake project in Ontario, about 130 km northwest of Thunder, hosts a multi-million-ounce gold asset and brownfield and greenfield exploration and resource growth potential.
“We’ve already identified several prospective areas for follow-up that we believe will unlock the true value of the asset,” says Richards, who was previously CEO at Midnight Sun Mining (TSXV: MMA) and Roxgold (TSX: ROXG; US-OTC: ROGFF) and has over 34 years of experience in mining and metals, including mine financing, development, as well as significant experience in mergers and acquisitions in the mining industry.
The project lies within a highly prolific mining jurisdiction, which hosts several world-class projects, including Kirkland Lake Gold’s (TSX: KL; NYSE: KL; ASX: KLA) Detour Lake gold mine, the Cote gold project, owned by Iamgold (TSX: IMG; NYSE: IAG) and Sumitomo Metal Mining, and New Gold’s (TSX: NGD; NYSE-AM: NGD) Rainy River gold-silver mine.
The Moss Lake project hosts the Moss Lake and East Coldstream deposits; the past-producing North Coldstream mine, which produced 102 million lb. of copper, 44,000 oz. of gold, and 440,000 silver ounces; and the Hamlin zone, a significant occurrence of copper and gold mineralization that also shows potential for an iron-oxide-copper-gold deposit. All of which occur over a 20-km-plus mineralized trend.
Goldshore’s mantra is “speed to market,” says Richards. “With extensive historical exploration work already completed on the property, we plan to accelerate the development of the project and quickly take it to the point where we can partner with someone to bring it into production.”
The Moss Lake deposit, which has a historic resource estimate of 39.8 million measured and indicated tonnes grading 1.1 grams gold per tonne and 50.4 million inferred tonnes grading 1.1 grams gold, has been drilled over 2.5 km of strike and down to a depth of 300 metres.
With a historic measured and indicated inventory of 3.5 million tonnes at 0.85 gram gold and an inferred resources of 30.5 million tonnes grading 0.78 gram gold, East Coldstream has been drilled over 1.3 km of strike and to depths of 200 metres.
The company, he continues, is currently in the process of extensive data compilation, an airborne geophysical survey of the property, drill permitting, and the preparation of a drill program.
It plans to begin 25,000-50,000 metres of drilling starting in June and slated for completion by the end of this year or early into next year, with an additional 25,000-50,000 planned for completion in 2022.
Contingent on the results of the drilling campaigns, it also plans to complete an updated mineral resource for the project around the fall of 2022 and start a prefeasibility study in the second half of the year.
In February, Goldshore raised $25 million in a brokered private placement for up to 33.6 million subscription receipts, sold at 65¢ each, and flow-through subscription receipts sold at 75¢ each.
“We have de-risked this portion of the project with the first capital raise and, once the acquisition of Moss Lake is approved, we’ll have around $17 million in the treasury, which will be more than enough to fund our work program going forward,” says Richards.
The preceding Joint Venture article is PROMOTED CONTENT sponsored by Goldshore Resources and produced in co-operation with Canadian Mining Journal. Visit goldshoreresources.com for more information.
November 21, 2024
November 20, 2024
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