New Drill Program Set To Begin for Promising Gold Exploration

Source: Streetwise Reports 06/24/2024

Goldshore Resources Inc. (TSXV: GSHR; OTCQB: GSHRF ; FWB: 8X00) is set to initiate its summer drill program on June 25, 2024. Read on to find out how this 2,500-meter drilling project marks the start of a new direction.

Goldshore Resources Inc. (TSXV: GSHR; OTCQB: GSHRF ; FWB: 8X00) is set to initiate its summer drill program on June 25, 2024. The planned 2,500-meter drilling aims to test two targets adjacent to the current conceptual open pit outlined in the company’s Mineral Resource Estimate (MRE) from February 6, 2024. This program seeks to demonstrate the growth potential for high-margin ounces from the surface to 200-meter depth.

This drill program marks the beginning of a broader exploration initiative in the “Moss Block,” a significant area measuring approximately 8 km by 6 km around the Moss deposit. This deposit accounts for 91% of the ounces in the Project’s MRE. The initial drill holes will assess the potential of the Boundary Zone and SW Extension to expand the Moss MRE and enhance the current open pit shell.

Michael Henrichsen, CEO of Goldshore, expressed his enthusiasm in the company’s news release, stating, “We are excited to demonstrate the potential for additional ounces at shallow depths adjacent to the open pit. Our goal is to put the company in a position to quickly add ounces that have the potential to improve the economic performance of the deposit by targeting higher grade mineralization and reducing the strip ratio.”

Henrichsen details more in this video.

The Boundary Zone, situated 100-200 meters south of the conceptual pit boundary, has shown promising historical drill results, including intercepts of 31.4 meters of 5.28 grams per tonne gold (g/t Au and 21.5 meters of 4.27 g/t Au. The mineralized zone could potentially extend over 800 meters based on anomalous rock chip and soil samples. The company plans to drill six holes totaling 1,500 meters to further explore and confirm the mineralization in this area.

Similarly, the SW Extension, located along the southwest margin of the conceptual open pit, has shown encouraging drill results, such as 17.2 meters of 1.91 g/t Au and 16.9 meters of 1.47 g/t Au. Goldshore plans to drill four holes in this area with the aim of extending the deposit by 300 meters.

Positive Outlook on Gold Investments

According to Matthew Piepenburg in his June 19 article “The Decline of the U.S. Dollar: Navigating the Shift Towards Gold and Commodities,” “Gold, now recognized as a Tier-1 asset, is being bought by central banks and sophisticated investors at objectively rising (historical) levels because it is a measurably superior store of value than any fiat currency or sovereign I.O.U.” This recognition underscores gold’s enduring appeal as a safe haven, particularly in uncertain economic climates.

The increasing accumulation of gold by central banks is also noteworthy. Piepenburg highlighted, “The evidence is undeniable: more global central banks prefer to save in physical gold rather than U.S. debt obligations.” This trend indicates a growing preference for tangible assets over fiat currencies, driven by gold’s intrinsic value and stability.

Further supporting this view, Stewart Thomson, in his article “De-dollarization & Deglobalization: Got Gold?” on 321 Gold, suggested that the gold market is on the cusp of a significant breakout. “Technically, an upside breakout is favored, with a US$2600 target for gold,” he notes, pointing to a bullish outlook that suggests substantial appreciation potential.

He also emphasized the critical support levels in the gold market, stating, “The US$2150-$1985 area is arguably the most important support zone in the entire history of the U.S. gold market,” highlighting the market’s resilience and strong foundation (Thomson, June 18, 2024).

The growing demand for gold is also fueled by global economic shifts. As Piepenburg observed, “Dozens of BRICS+ countries are conducting trade outside the U.S. dollar, using local currencies for local goods, and then settling any net surpluses in physical gold — which is priced more fairly in Shanghai compared to London or New York.” This move toward de-dollarization and the use of gold for settlements signifies a pivotal shift in global trade practices, further enhancing gold’s status as a reliable store of value.

Thomson also pointed out the immense buying opportunities in the current gold market, noting, “The US$1228-$1033 price area was a gargantuan buy zone . . . and US$2150-$1985 is even bigger!” This statement underscores the significant growth potential and investor interest in gold at these price levels.

Additionally, the interplay between gold and emerging industries is becoming increasingly apparent. According to a June 18 report on Katusa Research, “With the global space industry set to double by 2030, we can expect demand for gold to rise.” This forecast links the burgeoning space sector with a potential surge in gold demand, driven by the metal’s use in advanced technologies.

Moreover, the current market conditions present strategic investment opportunities. As noted in the same article, “The gold price is high, but mining stocks are still cheap. It’s the perfect time to get a list of gold stocks on your radar right now.” Despite the rising gold prices, the relative affordability of mining stocks presents a timely entry point for investors.

Company Catalysts

In addition to the drill program, Goldshore has announced several market communications engagements. The company has engaged Independent Trading Group (ITG), Inc. to provide market-making services at a monthly fee of US$6,000 starting June 10, 2024. ITG’s role will be crucial in maintaining the liquidity and visibility of Goldshore’s shares in the market.

Furthermore, Goldshore has enlisted Earthlabs Media Inc. for a six-month term beginning June 13, 2024. Earthlabs will produce featured articles and videos detailing the company’s activities, for which they have been compensated US$75,000. This initiative is expected to enhance Goldshore’s investor outreach and public engagement.

Additionally, DCWL Media Ventures Ltd. has been hired to create a video showcasing Goldshore’s projects, for which they received US$7,500. This video will serve as an informative tool for both current and prospective investors, highlighting the company’s ongoing and future endeavors. [OWNERSHIP_CHART-10291]

Goldshore’s strategic engagements with these market communications firms underscore its commitment to maintaining transparency and fostering strong relationships with its investor community. As the company advances its exploration efforts, these catalysts are poised to support its growth trajectory and enhance shareholder value.

Ownership and Share Structure

The company provided a breakdown of its ownership, where 38% of Goldshore is held by management and insiders.

Institutions own approximately 15% of the company.

The rest is with retail investors.

Goldshore also noted that 54% of the in-the-money warrants are held by management, insiders, and strategic partners, representing CA$4.94 million in potential funding.

The company reports that there are around 261 million shares outstanding, while the company has a market cap of CA$64 million and trades in the 52-week period between CA$0.09 and CA$0.28.

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Important Disclosures:

1. Goldshore Resources Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. 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.
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. 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.

( Companies Mentioned: TSXV: GSHR;OTCQB: GSHRF ;FWB: 8X00, )