Velocity Trade Capital has started covering Ontario-focused Goldshore Resources Inc (TSX-V:GSHR, OTCQB:GSHRF), which is advancing the Moss Lake project, with an 'Outperform' rating and an C$0.85 a share target price.
In a note, the global broker-dealer said its target price reflected a company that includes an advanced exploration asset with "ample amounts" of key infrastructure in the region, along with "significant scale and resource expansion potential" beyond its 4 million ounce gold historical resource that would be of interest to major mining firms.
Goldshore also has a First Nations community working relationship, and sits in an attractive jurisdiction mitigating geopolitical risks, said analysts.
READ: Goldshore Resources posts more encouraging drill results from Moss Lake gold deposit, Ontario
"The Project’s original Preliminary Economic Assessment (PEA) demonstrated an after‐tax Net Present Value (NPV) of C$196m, IRR of 12% (at 5.0% discount rate, US$1,546/oz Au, 1.0:1 C$/US$) based on initial capital of C$543m, C$922/oz Au average operating cash costs, 128m t mined at 0.73 g/t Au and a strip ratio of 2.9:1," they added in a note.
Looking ahead, Velocity Trade Capital analysts also noted that the company had guided towards:
- An aggressive and ongoing drilling program into 2024
- An updated resource base to NI 43‐101 compliant status in 4Q, 2022 with potential to increase resources and improve the strip ratio
- An updated PEA in 1Q, 2023
- A pre‐feasibility study (PFS) by mid‐2024
The Moss Lake Gold asset is around 100km west of the city of Thunder Bay, Ontario. It is accessed via Highway 11, which passes within 1km of the property boundary to the north. The project covers 14,292 hectares and consists of 282 unpatented and patented mining claims.
Goldshore Resources shares added 2.06% on Friday in Toronto to stand at C$0.50.
Contact the writer at giles@proactiveinvestors.com