Last month, Goldshore Resources (GSHR.V) released an updated estimate on its Moss Lake flagship project in Ontario. The project now contains a total of just under 4.2 million ounces of gold in the inferred resource category. The shear zone contains just over 35 million tonnes at an average grade of 2 g/t gold for 2.2 million ounces of gold. The intrusion portion of the open pit contains 87 million tonnes at an average grade of 0.7 g/t for a total gold content of 1.97 million ounces. The average grade of both zones is approximately 1.1 g/t.
The 2022 resource calculation now contains 35% more tonnes and 33% more gold ounces than the 2013 resource estimate despite including just 48 holes completed in the 2021 and 2022 drill campaigns. The assay results from an additional 52 holes remain outstanding and are obviously not yet included in this resource calculation and there’s very little doubt the data from those holes will confirm there’s more gold as there appears to be some low hanging fruit at the strike and dip extensions of the known shears, while there may be parallel shears as well.
Subsequent to the resource update, Goldshore engaged Research Capital as lead agent and bookrunner to raise C$5M. The financing will consist of three separate tranches: a hard dollar unit priced at C$0.25, a flow-through unit priced at C$0.30 and a charity flow-through unit at C$0.35. Each unit includes half a warrant with each full warrant allowing the warrant holder to acquire an additional share at C$0.40 for a period of two years.
Disclosure: The author has a long position in Goldshore Resources but will not participate in the current financing. Please read our disclaimer.
