Transcript
Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:08 Hello everyone and welcome to Goldshore Resources Live Summit today hosted by 6. We're joined today by Brett Richards, Goldshore's CEO and Director. Brett's going to take us through a company update and then we will be accepting questions live. So as a reminder, feel free to submit questions at any time using the Q&A panel on the right-hand side of the screen. We'll try to get to them after the presentation portion. And as always, this is being recorded and available to watch afterwards on SIX.com. So, without any further ado, I'll hand it over to you, Brett, to kick it off.
0:38 Yeah, thanks, Dasha, and thanks everyone for joining today. Today's update is going to be relatively simple, relatively short. I want to talk about the drill results we recently put out and just give you a bit of an update on how things are going on site and and where to from here. So I will just I'll just refer to the the the pressure release we put out last week. We drilled 128 meters, grading just over 1.1 grams in the latest hole that we put out, 14. And I think this is an example of kind of what more is to come.
1:24 You know, there was a bit of high grade, higher grade within the hole, 40.6 meters at 2 grams and 3.6 meters at 1.8 grams. And I think this is consistent from what we've been saying all along. It's consistent from where we, you know, where we started our drill program and what our thesis was on what this deposit looked like. I think it's also exciting to see that we have hit a kind of a high grade, higher grade kind of parallel structure that is, you know, below the existing known deposit. We have hit this before in our first few holes, down closer to the far southwest corner. But we did hit 16 meters at 5 grams, and within that 5 meters, 5.25 meters at 15 grams. And this is down at 477 meters, which is quite deep, but all still reasonable to be contained within a large pit shell. And I'll just walk through where that hole was and what it looks like within the existing structure.
2:31 And you can see we are drilling against the historic, some of the historic holes, and we picked up this high-grade parallel structure down here. So our thinking is this structure is probably going to run along this angle, and it's going to make the pit wider, it's going to make the deposit wider, and I think it's going to pull in quite a bit of tonnage as we get some more results out in this area. So pretty exciting, I think this is pretty, I'll say, pretty consistent with what we've been saying all along, that this deposit is much larger, it's much wider, it's much longer than we have in our existing 3.5 million ounce historical resource at Moss Lake. And we're also seeing visible gold in our holes, and this is also extremely encouraging with respect to the mineralization and future results.
3:28 So There isn't really a lot more to go over on this whole. We're going to be putting another press release out probably next week. Press releases are going to come, I would say, every 3 weeks now. We have ramped up. We are now doing, we have 7 rigs turning today, and we're gonna be ramping up to 10 rigs. And I said we were going to, I said we were gonna get to 7 rigs by June, we're a little early, that's great. And we'll be getting to 10 rigs kind of by the summertime. And again, it all kind of aligns with what our thinking has been on, you know, on the deposit all along and driven by what we had originally said about the results from the geophysical survey that Moss Lake, although it's 2.5 kilometers long, in the southwest region of where the deposit starts, we have a southwest zone down here.
4:30 This area is 2.5 kilometers long and as I've shown before when we model this, we are expecting to have some successful results where we have the same geophysical signature, a long strike in our land package. So making this wider and making this longer is actually going to bring in much more tonnage into a pit shell when we go to do a PEA. And I think that is, you know, that is the exciting news. We're going to be stepping out along here to the northeast into this pod and hopefully get some drilling done in this folded nose. And then up towards the next pod, we hope to get the rigs in towards the end of the summer so that we can pull as much of this into an updated resource and ultimately an updated PEA when we do that first quarter of next year. But this extension, this strike is fairly large and long. This is about 7 kilometers in each of these 3 pods and continues on for another 5 kilometers all the way up to East Cold Stream. So we will be working on this throughout the next 3 months and we'll be getting drill rigs up at Cold Stream fairly soon as well, because we want to test these targets. We want to test these targets up near East Cold Stream, and also up near where the historical mine was at North Cold Stream. So we have a lot of work in front
6:00 of us. We've got rigs all mobilized and moving and you know I think we have, I think this is going to be very exciting as we get through all these 29 new targets that we have. We will, we have prior prioritized them as best as we can given the topography and given some of the permitting we need to do the drilling. Very simple permitting, you know, it's really trail permits and road permits and water use permits, but we're prioritizing all of that work so that we can do this in a, I'll say in a strategic way at Moss Lake to get the, I'll say the biggest bang for our buck and to get as much information, as much data as we possibly can as we go through. So not a real long update today. I'm really looking forward to if anybody has any questions I'd be happy to discuss them.
6:55 You know we are in crazy crazy market times right now As we've seen since January and into February, we had a gold environment that was fairly conducive to a strong gold price. And we saw gold hold up north of $1,900, even in the geopolitical turmoil of Russia and Ukraine, and even in the recent announcements from the Fed of interest rate increases, and we're probably going to see another one in the U.S. So that is trying to curb this inflation that we, the hyperinflation that we're seeing. 8.3% inflation just came out today. CPI in the US for last month. I think we're not, this is not going to go away and even these small rate hikes, although they are playing havoc with the markets, I think what we see today is a lot of volatility.
7:55 But our job is just to stay the course here. We're well funded. We've got a great group of people on the ground led by Pete Flindell, our VP of X. And I think this is a tremendous time to get work done in a market that really doesn't know where it wants to go yet. Now, gold was traveling south to around 1820, 1830. It's back up to 1853 today. I think we've seen the floor. And, you know, again, my outlook and my thesis on the gold price of trading between $1,800 and $2,200 has been holding up now for a year.
8:39 So I suspect that we're going to see more volatility. We're going to see a lot of choppiness in the market. And we've seen it with our share price. You know, we're trading at 44 cents today, pretty much an all time low. But gold equities are off around 25 to 28% in the mid tier market. It's off a little bit less than that in the major market and gold juniors have just been hammered again this year. But we will have our time and this will correct itself. I think we'll see some normalcy in the world and in the capital markets in the months to come. I think a lot of this volatility will play out and we'll get back on track where we start getting valuations relative to projects and relative to the economics of those projects and to the outlook of those projects. I've said all along, you know, one of the things that attracted me to Moss Lake was not just the deposit and the size of the scale of deposit and the potential, but also the doability.
9:42 And I know it's an odd word to use, but the, I'll say the veracity of the infrastructure around Moss Lake
9:54 is the durability factor from a standpoint that this is where a big district scale mine can be built. We have 10 cent kilowatt hour power running right by us. We have the TransCanada Highway right beside us. We have CN and CP Rail right beside us. And we have all the other related infrastructure to build a big mining operation and a big mining camp in this district. And, you know, guys have, people have asked me in the past, well, why has this not been done before?
10:26 And I said, you say quite simply, the gold market and the gold price never supported these low-grade bulk tonnage projects at $1,300 gold or $1,400 gold. But at $1,800 gold, these are project winners. And if you believe the gold is going to trade in this range for some time to come and the new base has been set, then this project will get into production 1 day. And our job is to help speed that up on the development side as much as possible so that we can realize that. Yeah, thanks, Brett. You know, I'm happy to take some questions now.
11:15 I know it's just a short review today. We'll probably have another one in a couple of weeks as we get some more results out. And if there's a... Yep, go ahead, Dasha. Sorry, I think there's a bit of a delay. Mark's asking, how is rig availability? And are you expecting any improvement in SA turnaround times in Canada? Yeah, great question. We had our hands full last year and early this year with rig availability. And for some reason, about a month ago, Some of the small juniors in the Timmins area and in other areas in Northern Ontario demobilized and they saw the tumultuous market ahead of them and they decided to maybe lay down tools and sit on their cash and ride this out. And not everybody has the luxury that we have of having a good treasury and having a great supporting shareholder base as we do.
12:12 So we were able to mobilize 3 more rigs. We got them to site and they're turning now and we have 3 more kind of on their way. So rig availability has actually been much better in the short term. And we now just need to lock them up for the remainder of our program, which we're doing. So that's good news.
12:33 On assay turnaround, we really haven't seen much change in that. We're still seeing kind of that six-week turnaround, seven-week turnaround. There is still a lot of assays in the pipeline from work that's been done in the winter time. And we're just starting to see them come in now. But when we start to get regular assays back, we're gonna have a steady stream of news flow, probably every 3 weeks. And I don't wanna say 2 weeks, but it may be 2 weeks in some cases. We've had a couple of releases out recently, and we're probably going to have another one out next week. So the turnaround will get fairly consistent for Goldshore because we have so much in the pipeline. That's great. Bob's asking, how many ounces are you looking for?
13:23 It's a loaded question. It always is. But I'm pretty confident with what we say and how we message this. Our goal is to become a tier 1 asset and a tier 1 asset is gonna start with 10 million ounces. And I think we have the land package to support that. We have the area of mineralization which is known to support that. We have the area of mineralization, which is known to support that. We have the geophysical signature, which looks attractive, which supports that. And for us, this is about executing a drilling program and getting those results together and getting those results out in the market. If there's a number at the end of the day, the number is 10 million ounces, probably 250 million tons, 270 million tons, something of that magnitude.
14:13 But our goal is to do a PEA with a new resource of 10 million ounces. Now, we probably won't pull 10 million ounces into a pit shell. We're going to be very, I'll say, project-oriented when we go to do it. We're not going to do this on a realistic basis. And if we pull 7 or 8 million in, because that is all that is economically mineable based on the drilling we've done, not based on the mineralization, that'll be the next stage. And I think that segues into a feasibility study very, very nicely. All right, well, thank you so much, Brett. I know it was a shorter update. There's no more questions right now. But if anyone does have any questions following this summit, feel free to reach out directly. I'll pull up the contact information here to the Gold Shore Resources team. I'm sure they'll be happy to follow up with you.
15:00 I'm going to close out with a nice comment in the chat from Donovan saying congratulations on the great drill results. Nice to see the continuity of grades continuing at depth. Before closing out, Brett, do you have any final remarks? Yeah, so we're entering into a bit of a busy period for marketing. Even though the markets are tumultuous, I'm going to be in Vancouver next week for the Resource Investment Conference, Cambridge House. And then following that, I'm going to be in New York for the One-to-One Investment Conference early June, and hope to see whoever can make it to PDAC. We will have a booth at PDAC. Pete and I will be attending meetings at PDAC and look to meet any investors. And as always, I'm available for Zoom updates, I'm available for calls and I'm available on email at any time. My contact details are on the screen and on our website. So thanks everyone for joining and look forward to the next update.
16:00 You
