Goldshore rallies on Ontario gold drilling news
Goldshore Resources Inc. [GSHR-TSXV, GSHRF-OTCQB, 8X00-FSE] shares rallied in active trading Wednesday after the company said it has completed a 2,500-metre summer drilling program at its Moss Lake project in northwestern Ontario.
The company said the program was completed on schedule and under budget, allowing for the completion of an additional high priority drill hole, bringing the total up to 12 holes, covering 2,780 metres.
The shares advanced on the news, rising almost 7.0% or $0.02 to 31 cents on volume of 627,220. The shares trade in a 52-week range of 31 cents and $0.085.
Goldshore recently has announced an updated mineral resource estimate for the Moss and East Goldstream deposits, which are both located on the Moss Lake project.
The updated estimate included a total indicated resource of 38.9 million tonnes of grade 1.23 g/t gold or 1.5 million ounces. On top of that is an inferred resource of 146.2 million tonnes of grade 1.11 g/y t gold or 5.2 million ounces.
Of that amount 1.2 million ounces of indicated and 4.9 million ounces of inferred material is contained in the Moss deposit. East Coldstream is estimated to contain 307,000 ounces of indicated gold, 280,000 ounces of interred metal. The new estimate was released ahead of a preliminary economic assessment, planned for this year.
The company has said the resource estimate only encompasses 3.6 kilometres of the 35+ kilometre mineralized trend, remains open at depth and along strike and is one of the few remaining Canadian gold deposits positioned for fast track through the development cycle.
Goldshore is an emerging junior gold development company and owns the Moss Lake project. One of its key shareholders is Wesdome Gold Mines Ltd. [WDO-TSX], which holds a 27% interest in Goldshore.
The Moss Lake project is located approximately 100 kilometres west of Thunder Bay, Ont. The project hosts a number of gold and base metal-rich deposits, including the Moss Lake deposit, the East Coldstream deposit, the historically producing North Coldstream Mine and Hamlin Zone, all of which occur over a mineralized trend exceeding 20 kilometres in length.
On Wednesday, the company said an additional 280 metres were drilled due to efficiencies within the summer program that allowed for an additional test of the SW Zone where the company stepped out 600 metres from the limits of the drilling at the Moss deposit. The company was also focused on replicating and building upon historical intercepts that were outside current mineral resource and conceptual pit shell. Goldshore said results to date are encouraging with visual confirmation of the Boundary Zone as well as the definition of a new parallel shear zone that has similar characteristics to the known Boundary Zone mineralization. “We look forward to analyzing the assay results to inform our next steps,” the company said.