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It’s very rare that a world-class gold project comes onto the market.
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It’s even rarer that the average investor can get a stake in such a project cheaper than the well-placed early investors.
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Now such an opportunity has arisen with Goldshore Resources (GSHR.V; GSHRF.OTC).
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The key to this opportunity: Goldshore controls the Moss Lake gold project, with 1.47 million ounces of indicated historical gold resources and 2.51 million ounces of inferred historical resources.
The drills are turning now, and it’s only getting bigger and better.
Simply put, this stands to be one of the biggest and likely most profitable gold projects of the next few years. And the most compelling aspect of the story may well be this: Investors can now get a piece of it for a ground-floor price.
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Make no mistake: Moss Lake is huge.
First discovered in the late 1800s by prospectors who uncovered some high-grade trends, the project passed through a number of owners and corporate entities until the 2000s. That’s when Moss Lake Mines was able to conduct enough drilling to calculate an initial resource estimate.
Then, in the 2010s, the ownership of the original project and surrounding land was amalgamated by Wesdome Gold Mines. Further drilling allowed the owners to prepare and update a preliminary economic assessment (PEA) in 2013.
The long gold bear market and focus on other projects meant that Moss Lake was left aside until the team behind Goldshore was able to secure the project in a transaction that left Wesdome with a 30% ownership position in the new junior.
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| Moss Lake is a huge, yet under-drilled gold project extending over a 20-kilometer-long trend.
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The result: Goldshore now controls a gold project with multiple geological occurrences over a 20-kilometer-long trend. Significant previous drilling has outlined 1.47 million ounces of indicated historical gold resources and 2.51 million ounces of inferred historical resources, according to a 2013 resource estimate.
Note that, because the resource estimate was calculated by previous owners, those resources are still classified as historical, and the company cautions that they therefore cannot be relied upon.
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But, as you’re about to see, Goldshore has recently reported the first drill results of its own, and they’re confirming what the previous owners found.
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Namely, that Moss Lake is a world-class gold project with both size and grade…and it’s growing.
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Rich Exploration Potential Ahead
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One of the first things that hits you when you look at Moss Lake is that the project remains open both laterally and to depth…and a wealth of other targets are in line to be explored.
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| The Moss Lake project offers very significant expansion potential both along trend and at depth — as current drilling is beginning to confirm.
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And that potential is set to be turned into reality over the coming weeks and months, as an exceptionally large drilling program — with 100,000 meters planned by the second quarter of next year — is already under way.
In fact, the company just released results for the initial three holes from this program, and they’re confirming just what everyone had hoped. Consider what the company just reported in late October:
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• Significant Width Increase: Mineralization was intersected over 550 meters in the first hole, which corresponds to an estimated true thickness of 422 meters. That’s a big, 52% increase over the 2013 historical resource model in that area.
• Substantial Depth Extension: Mineralization was intersected between 100 meters and 500 meters below the 2013 historical resource model in the second hole, which represents more than a 100% increase to the known vertical extent of the gold zones in this area.
• Several higher-grade zones identified: Some of the highlight drill intercepts include:
• Hole 1: 31.00 meters at 1.18 g/t gold from 122.0 meters and 16.30 meters at 2.09 g/t gold from 350.7 meters.
• Hole 2: 35.00 meters at 1.09 g/t gold from 100.0 meters depth.
• Hole 3: 57.00 meters at 1.20 g/t gold from 4.0 meters depth and 36.00 meters at 1.15 g/t gold from 182.0 meters depth.
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Brett Richards, President and Chief Executive Officer of Goldshore, noted that “The results from these first holes validate our belief that the Moss Lake gold deposit is very under-explored and geologically misunderstood, given the wide lateral extension indicated by these results.”
Again, the drilling has only just begun, with over 97% of the 100,000-meter drill program still ahead.
In other words, as large as this project is, it’s only set to grow much larger in the weeks ahead.
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Rich Economics Already,
But Poised To Get Better
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The PEA calculated by Moss Lake’s previous ownership in 2013 showed a rich, highly valuable and potentially profitable gold project.
However, the price of gold was already sliding at that time, and a long bear market malaise still lay ahead. So the gold prices used in that PEA were much lower.
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Fast forward to today and, as you can see in the chart above, at today’s gold price that PEA projects the net present value of Moss Lake at well over a billion dollars.
And as already noted, this project stands to get even bigger and better with the work being conducted right now. Which brings us to the next important point….
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Valued
— For Now —
At A Fraction Of Comparable Companies
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Because Goldshore Resources is still the “new kid on the block” in the industry and the new drill results for Moss Lake have yet to be fully appreciated, the company is still trading for just a fraction of comparable companies.
Consider that Goldshore is currently trading for only about C$14 per gold-equivalent ounce. Its cheapest peer companies are trading for about C$22/ounce…while many are trading for C$70/ounce or more.
It’s easy to see that, by merely confirming the previous historical drill results — work that is already being accomplished at this very moment — Goldshore’s market value could multiply.
And that’s without considering any increases in the resource.
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A Ground-Floor Opportunity
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Again, Goldshore is a very young gold company. Its founders raised C$25 million earlier this year at C$0.65/unit and assembled a dream-team of highly successful mining executives and financiers to get behind the company as management, directors and strategic advisors. It’s a veritable “who’s who” of the mining industry.
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It seems like everyone who was anyone in the industry wanted to get behind this company and the Moss Lake project. And they were willing to pay to get a piece of it.
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But here’s the deal: Even though gold is perking up, the junior mining sector has yet to awaken from its doldrums. As a result, Goldshore’s share price is currently well below the price of the last financing.
That means you can still get a stake in this exceptional, multi-million-ounce gold project at a fraction of what comparable companies are currently valued…for a significant discount from the big financing that launched this company…
…And as a massive drill program is confirming the expectations that this project will grow much larger.
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It’s one of those rare occasions where the market has handed everyday investors the kind of ground-floor opportunity usually reserved for seed-stage investors.
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But as the metals continue to rally and drill results flow from the current drill program, this opportunity doesn’t stand to last much longer.
The time to explore it is now, and not a moment longer.
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