2021 marks the inaugural year for Canadian gold developer Goldshore Resources Inc. (TSXV: GSHR) (OTC: GSHRF) (FRA: 8X00).
In January, Goldshore, then a private company, signed a deal with Wesdome Gold Mines Ltd. to acquire 100% of the Moss Lake project in Ontario. It later went public following a reverse takeover by the company formerly known as Sierra Madre Developments Inc.
At the time the deal was announced, Brett Richards, President and CEO of Goldshore, stated:
“We fully believe that Goldshore has assembled the best positioned team to advance Moss Lake which has significant resource growth potential along its 20km+ trend.”
The transactions also left Wesdome with a 30% equity stake in Goldshore, thus becoming a strategic partner in the Moss Lake gold project.
Moss Lake Project
Located near Thunder Bay, the Moss Lake property has seen extensive historical exploration dating back to the late 1800s.
Prospecting resulted in the discovery of multiple high-grade gold occurrences and the North Coldstream copper-gold-silver deposit, from which 2.7 million tonnes was mined up to 1950, at grades of 1.89% Cu, 0.56 g/t Au and 5.59 g/t Ag.
Gold exploration intensified during the 1970s with Falconbridge and exploration of the Snodgrass Lake prospect. The original Moss Lake showing was stripped and washed by the Tandem/Storimin joint venture in 1985.
Between 1986 and 1990, extensive drilling and 1,000m of underground development work were completed by several groups, along with the first resource estimates and metallurgical work.
During the 1990s, Moss Lake Gold Mines continued exploration with several modest drill campaigns and further geochemical/ geophysical surface programs, along with an updated resource estimate in 2010.
A PEA was completed by Moss Lake Gold Mines in 2013, ownership was amalgamated by Wesdome Gold Mines in 2014, and the Coldstream and Hamlin properties were later added in 2016. More exploration and drill programs in 2016 and 2017 confirmed extensions of mineralization along strike.
The Moss Lake project now consists of 282 mining claims for a total area of 14,292 hectares, hosting a number of gold and base metal rich deposits, all of which occur over a mineralized trend exceeding 20 km in length.
The property is in an excellent jurisdiction with a number of major gold deposits nearby (see below), including Detour (Kirkland Lake Gold) with 15.7Moz proven and probable at 0.82 g/t Au, New Gold’s Rainy River with 2.6Moz P&P at 1.06 g/t Au, and Cote’s (IAMGOLD & Sumitomo) 7.3Moz P&P at 1.0 g/t Au.
In comparison, Moss Lake’s historical (2013) resource estimate is 1.47Moz measured and indicated at 1.08 g/t Au, and 2.51Moz inferred at 0.98 g/t Au, for a combined 3.98Moz. This estimate covers the Moss Lake and East Coldstream deposits, both of which have expansion potential as confirmed by previous drilling.
In an interview with AOTH earlier this year, Goldshore CEO Brett Richards said: “We have a very large land package in a very good jurisdiction. We have 4Moz of historical resources and we’ve already identified a number of targets along strike and a 20 km known mineralized trend. We have been gifted a very good starting point.”
Richards also noted that the Moss Lake project, despite having a number of companies’ fingerprints on it, is massively under-explored with limited drilling to date.
“The historical drilling goes down to 250m but this deposit (historically) is 2 km long and about three-quarters of a km wide, and we see significant expansion potential in every direction,” he added.
The 20 km mineralized trend contains multiple zones and targets ready for follow-up, with infill and expansion drilling considered necessary. From the schematic below, Goldshore believes there is significant exploration potential below and lateral to the indicated resource in yellow and the inferred portion in green.
Analysis of VTEM geophysical survey (below) shows the Moss Lake deposit is wide open at strike, with a significant fault system running for quite a distance.
“We could theoretically add several kilometers of this laterally. That’s going to take a lot of drilling so what we want to do is test it, we’ll know soon with our first drill results, because that’s the orientation of how we’ve drilled the first few holes. When we understand the lateral extension, we will drill it to be able to bring these results into our resource statement,” Richards continued.
2021 Drilling Program
This summer, the Goldshore team embarked on a massive 100,000m drilling campaign to test the extent of gold mineralization at Moss Lake.
Initial results from geophysical surveying showed that the Moss Lake deposit is wide open at strike, with a significant fault system running for quite a distance.
This was confirmed when the first set of assays were received in October, with widespread mineralization reported from the first three holes of the program.
Among the highlights, hole MMD-21-001 intersected 550m, which corresponds to an estimated true thickness of 422m and a 52% increase over the historical resource model.
Mineralization was also intersected between 100-500m below the 2013 historical resource model in MMD-21-002, representing a +100% increase to the known vertical extent of the gold zones in this area.
Additionally, there were several higher-grade zones identified. Two of the best intercepts included: 57m at 120 g/t Au from 4.0m; and 36m at 1.15 g/t Au from 182m.
These results helped to validate Goldshore’s belief that the Moss Lake deposit is very much underexplored and misunderstood, given the wide lateral extension being indicated. The company’s exploration model suggests that there exists “significant exploration potential below and lateral to the current resource.”
Then in December, more assays were released, this time for two additional holes drilled to validate the gold mineralization at Moss Lake. The latest results were highlighted by a number of higher-grade zones within large, low-grade envelopes.
The best intercept was 117.12m at 1.16 g/t Au from 1.1m in hole MMD-21-004. Deeper down, the hole cut 17m at 2.40 g/t Au from 57m and 26.2m at 1.63 g/t from 92m. The hole also returned 23.45m at 1.54 g/t from 302.85m.
The other hole, MMD-21-005, featured an 8.5m intercept at 2.53 g/t Au from 42.5m and 16.5m at 1.26 g/t from 139.5m.
The two main takeaways from the Dec. 8 news release were the significant volume additions and the expanding drill capacity.
According to Goldshore, mineralization continues to be intersected laterally and at depth, significantly expanding the width and depth of mineralization compared to the 2013 grade model. MMD-21-004, for instance, has extended the width and depth of mineralization, relative to the 2013 model, by 38% and 56%, respectively.
“The fact that we are continuing to intersect gold mineralization outside of the volume modeled in 2013 also affirms our belief that the deposit is wider and larger than previously interpreted,” CEO Brett Richards said.
Results of drilling at Moss Lake so far have not disappointed, giving us a glimpse of what may be a significant mineralized system within northwestern Ontario, a historically productive gold-mining province.
More is to be expected in the coming year, considering that the five holes only represent a small part of the 100,000m program (first 3 holes made up just 2.3% of the total planned drilling).
Drilling is set to continue and ramp up through the winter months, with the entire program slated for completion by the end of Q2 2022.
Results of this program will serve as a basis for an update of the historical resource in the 2013 PEA, possibly as early as next year.
Goldshore is also preparing to begin all necessary pre-feasibility study (PFS) work to support further development of the project.
In 2022, the company’s objective is to advance its understanding of Moss Lake, ultimately towards a “Tier One” status in terms of both resource size and project potential.
Drilling so far has demonstrated that the property indeed contains a significant volume of +1 g/t Au mineralization that underpins a meaningful, economic gold deposit.
The results also validate what Goldshore’s CEO Brett Richards had been saying about the Moss Lake project.
Richards, a mining industry veteran with 34 years experience, has previously held executive roles with established miners like Roxgold, Katanga Mining and Kinross. Given his track record in project development, there’s every reason to believe that Goldshore can unlock what could be a million-ounce opportunity at Moss Lake.
When asked about why he got involved in this project, Richards pointed to the Detour Lake deposit acquired by Kirkland Lake Gold in early 2020.
“Detour had, back 8 or 9 years ago, a very similar profile to where Moss Lake is today. Now they’re a 750,000 ounce a year producer,” Richards said.
Starting out with 4Moz of historical resource, on the largest land package assembled in northwestern Ontario for a mining company, Goldshore is in an enviable position to succeed.
In fact, the Moss Lake project could easily help the company attain a higher value than most projects that have been targeted by the majors in the area, given the project’s economics was last updated in 2013.
“We’re talking about a massive resource, we’re talking about a Detour-sized project in both capex, production profile and size of resource, that is what we’re aiming for.”
Goldshore Resources Inc.
TSXV: GSHR, OTC: GSHRF, FRA:8X00
Shares Outstanding 115.4m
Market cap Cdn$75.0m
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