Precious metals are coming alive again. You have seen the price of gold attack the $2000 an ounce level in the past few weeks, but it has been outperforming the S&P 500 now for a full sixteen months. It’s pausing at that key $2000 price area as we have a ikely final rate hike Federal Reserve meeting on tap this week, but now that the last rate hike is in view, look for gold to do well the rest of this year.
This is big news for gold mining stocks. Typically in a big mining stock run you see the big cap mining stocks go up first and then money starts to flow into small cap junior exploration stocks. That looks like it is starting to happen. For instance, take a look at the on balance volume indicator on the bottom of this chart for Goldshore Resources, which trades as GSHR on the TSXV and GSHRF on the US OTCBB.
You can see how the on balance volume indicator has simply soared in the month of April. This indicator is created by comparing the volume on the days when a stock is up with the volume on days when it is down. By adding and subtracting that data the indicator creates a running total. A rising on balance volume indicates accumulation and buying power and typically means you can expect more of the same in the price action. A full 23% of the shares are actually owned by Wesdome Gold Mines Lmtd and the stock currently has a market cap of around $43 million CAD.
Goldshore Resources is engaged in mineral exploration activity at its 100%-owned Moss Lake Gold Project in Northwest Ontario, Canada. It currently has 4.17 Moz inferred and as you can see from the map below is near the past producing North Coldstream Mine.
The company is well-financed and supported by an industry-leading management group, board of directors and advisory board, Goldshore is positioned to advance the Moss Lake Gold Project through the next stages of exploration. On April 25, 2023, the company announced assay results from its 100,000-meter drill program. From the press release:
- Results from nine holes drilled to infill poorly tested parts of the Southwest Zone have delineated multiple high-grade structures within the broader mineralized envelope with best intercepts of:
- 1.47 g/t Au over 16.9m from 375.3m depth in MMD-22-111, including
- 3.88 g/t over 5.6m from 386.0m
- 1.34 g/t Au over 37.0m from 400.85m depth in MMD-23-116, including
- 3.25 g/t Au over 13.05m from 405.55m
- 1.63 g/t Au over 14.0m from 409.0m depth in MMD-23-118A
- 1.97 g/t Au over 10.95m from 157.0m depth in MMD-23-119
- 1.47 g/t Au over 16.9m from 375.3m depth in MMD-22-111, including
- Drill results prove that the Southwest Zone is a continuation of the Main Zone and not a fault offset as previously interpreted. Mapping and geophysical data, together with historical scout drilling, show that mineralization continues intermittently for another 3 kilometers to the southwest and that many of the better targets are yet to be drilled.
- With drilling recently completed, the Company is preparing an updated mineral resource expected in May (“May 2023 MRE”). The May 2023 MRE will use data from an additional 72 holes compared to the November 2022 mineral resource estimate (“November 2022 MRE”). Mineralization in the resource area remains open in multiple directions.
President and CEO Brett Richards stated: “These results continue to support our thesis that the size and scale of the Moss Gold Project will be large enough to support a material and meaningful update to the mineral resource estimate, which is expected in early May 2023.
These additional results highlighting the mineralization in the south-west zone augment the press release of April 20, 2023, and continue to expand the zone well outside the historical resource, still open in several directions and at depth. In addition to the May 2023 MRE, we still have 30 quality drill targets to be tested. These include gold, copper±cobalt, and polymetallic prospects. We have drilled less than 10% of the identified targets on our land package and are currently building a plan to drill test the better targets. It will be an exciting period when we are ready to evaluate the additional resource potential of the larger inventory of targets within our land package.
We have focused on the currently defined portion of the Moss Gold Deposit as a meaningful Phase One Project that Goldshore itself can build. The Moss Gold Deposit remains open at depth and through several yet-to-be drilled parallel structures; and it is part of an overall 8-kilometer strike length of gold mineralization in drill holes. This strongly suggests that the Phase One Project is part of a much larger total project.”
CEO Brett Richards recently did an interview with Global One Media to give an overview and update on the company you can watch here.
On May CEO Richards will participated in a live Zoom Conference hosted by Gravitas Securities, which should give it a lot of exposure – reserve a spot here.
Go GSHR!
Go GHSRF!
Disclosure: Wallstreetwindow.com, is owned by Timingwallstreet, Inc. Michael Swanson is the President of Timingwallstreet, Inc and head editor of WallStreetWindow.com. Because Goldshore Resources is a small cap stock with a market cap of less than $100 million he has put himself in a trading blackout on the stock and will not buy or sell a share of it for at least 30-days from the date of this post (05/01/2023). Timingwallstreet, Inc. is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for GoldShore Resouces. This third party paid Timingwallstreet Inc., $7,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns for 30-days from the date of 05/01/2023. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.
