Goldshore Announces Open-Pit Constrained Inferred Mineral Resource Estimate of 121.7 Mt at 1.1 g/t Au and 4.17 Moz Contained Gold at Moss Lake Deposit Contains Higher-Grade Shear Domain of 34.7 Mt at 2.0 g/t Au and 2.2 Moz Contained Gold
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Goldshore Announces Open-Pit Constrained Inferred Mineral Resource Estimate of
121.7 Mt at 1.1 g/t Au and 4.17 Moz Contained Gold at Moss Lake Deposit
Contains Higher-Grade Shear Domain of 34.7 Mt at 2.0 g/t Au and 2.2 Moz Contained Gold
VANCOUVER, B.C., November 15, 2022: Goldshore Resources Inc. (TSXV: GSHR / OTCQB:
GSHRF / FWB: 8X00) (“Goldshore” or the “Company”) is pleased to announce a m ineral
resource estimate (the “MRE”) for the Moss Lake deposit (the “ Moss Lake Deposit”) located at
its 100%-owned Moss Lake Gold Project in Northwest Ontario, Canada (the “ Project” or the
“Moss Lake Gold Project”).
Open-Pit Constrained Inferred Mineral Resource Estimate with an Effective Date of
November 14, 2022:
Inferred Resources
(Domains)
Tonnes
(Mt)
Grade
(g/t Au)
Contained Metal
(Moz Au)
Shear 34.7 2.0 2.20
Intrusion 87.0 0.7 1.97
Total 121.7 1.1 4.17
Note: Based on a US $1,500 per ounce gold price and economic cut -off grade of 0.40 g/t Au. Refer to
complete notes on Mineral Resource Assumptions below.
• This is a major milestone for the Company as the s hear domain represents an
opportunity for a high-grade open-pit gold resource.
• There is significant and clear expansion potential through strike and dip extensions
to known shears, as well as parallel shears. The Company has included 48 holes from
its 2021 and 2022 drilling campaign in the new MRE and has drilled an additional 52 holes
that are not included in the MRE because assays have not been received to date.
• The current MRE represents a significant expansion over the 2013 historical
estimate for the Project with 35% more tonnes and 33% more contained gold ounces.
• The Moss Lake Gold Project is host to 29 additional targets over a 35 km trend,
which the Company continues to evaluate.
President and CEO Brett Richards stated: “This mineral resource estimate confirms our belief that
the Moss Lake Deposit is larger than previously thought. More importantly, there is a mass of
higher-grade mineralization that can be prioritized in a potential phase one operation that
Goldshore can build with a smaller capital requirement. Our findings on this MRE are exciting for
the future of the Moss Lake Gold Project, as we now have short- and medium-term options to
continue to deliver value to the Goldshore shareholders, as we explore expansions and quality
increases (infill drilling to Indicated resource category) to the higher-grade resource; but also while
testing other areas of known strong mineralization like East Coldstream, North Coldstream, Iris
and Vanguard, across a trend of 35 km on the project.”
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Figure 1: Shear domain (red) and intrusion domain (yellow) within optimized pit constraints
Figure 2: Cross section showing extension of shear domain beneath the constraining pit shell
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Notes on MRE Assumptions (refer to table above)
(1) Numbers have been rounded to reflect the precision of an Inferred m ineral resource
estimate. Totals may vary due to rounding.
(2) Estimation has been completed within the two separate reported geological domains: a
higher-grade shear domain which occurs within a larger lower -grade intrusive domain;
modelling of domain boundaries has considered both geology and grade.
(3) Gold cut-off has been calculated based on a gold price of US$1,500/oz, mining costs of
US$2.50 per tonne, processing costs of US$12.50 per tonne, and mine-site administration
costs of US$2.50 per tonne processed. Metallurgical recoveries of 85% are based on prior
metallurgical test work.
(4) An economic cut-off grade of 0.40 g/t Au was applied to mineralized rock in the optimized
open pit for processing determination.
(5) Mineral Resources conform to NI 43-101, and the 2019 CIM Estimation of Mineral
Resources & Mineral Reserves Best Practice Guidelines and 2014 CIM Definition
Standards for Mineral Resources & Mineral Reserves.
(6) The Qualified Person and Company are not aware of any environmental, permitting, legal,
title, taxation, socio-e conomic, marketing, or political factors that might materially affect
the Mineral Resource estimate.
(7) Mineral resources are not mineral reserves as they do not have demonstrated economic
viability. The quantity and grade of reported Inferred Resources in the MRE are uncertain
in nature and there has been insufficient exploration to define these I nferred Resources
as Indicated and/or M easured Resources. The Company will continue exploration
intended to upgrade the Inferred Mineral Resources to Indicated Mineral Resources.
Technical Overview
Details of the MRE will be provided in a t echnical report with an effective date of November 14,
2022 prepared in accordance with National Instrument 43-101 (“ NI 43-101”), which will be filed
under the Company’s SEDAR profile within 45 days of this news release. The MRE was prepared
by independent mining consulting firm CSA Global Canada (“CSA Global”), a division of ERM
Consultants Canada Ltd., in accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”) Definition Standards on Mineral Resources and Reserves (2014).
Moss Lake Geology and Model
The Moss Lake Gold Deposit is a structurally controlled gold deposit within the greenstone terrain
of the Archean Superior Province. Mineralization is localized where the major NE -trending
Wawiag Fault Zone cuts a dioritic to granodioritic intrusive complex. The deposit is defined by a
series of anastomosing centimeter - to meter -scale NE-trending shear zones carrying higher -
grade gold mineralization, and lower-grade gold mineralization associated with more brittle- style
deformation and veining in the intrusive rock mass between the shear zones. Mineralization is
associated with pyritic sericitic and chloritic alteration and millimeter- to centimeter-scale irregular
quartz-carbonate veinlets.
Detailed geological logging and multi -element geochemical analysis of drill core from the 2021-
22 drilling has supported modelling of discrete shear domains within the larger altered and
variably mineralized intrusive domain. The shear domains have a different higher -grade gold
population to the low-grade intrusive domain and these domains have been estimated separately
using different search parameters. Importantly, this allows a more accurate representation of the
true variability within the deposit than has been achieved in previous estimates.
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Drill Hole Data and QAQC Procedures
The Moss Lake Deposit has been evaluated by several diamond drill programs since the 1970s
and earlier. The greatest number of drill holes were completed between 1986 and early 1992 by
Tandem/Storimin and Noranda Inc. (311 drill holes for 86,196 meters). A smaller drilling program
in 2008 served to validate the older data and lead to the completion of the historical resource
estimate (“historical estimate”) by Moss Lake Gold Mines Ltd. in 2013. Followi ng acquisition of
the Moss Lake Gold Project, Goldshore commenced a drill program in 2021 that is still ongoing.
The program aims to systematically redrill the deposit defined by previous campaigns and, in the
process, to validate as much of the historical data as possible.
Prior to the 2008 program, there are no documented QAQC procedures or data available.
Additionally, down-hole surveys were not undertaken or used an acid-bottle technique that
measured dip and not azimuth. This is the case for most of the historical drilling which was
completed in the late 1980s to early 1990s. The ongoing Goldshore drill ing program utilizes full
industry-standard survey control and QA QC programs and is designed to systematically redrill
the Moss Lake Deposit and validate as much of the historical drilling as possible through collar
surveys, re-logging, and re-sampling.
Mineral Resource Estimation Methodology
The current MRE is based on an improved understanding of the geological controls on gold
mineralization that follows the detailed logging of 48 new drill holes ( 27,851.75 metres) drilled
since August 2021 and with a drill hole database cut-off date of October 14, 2022. The MRE does
not include the high-grade intercepts around the margins of the deposit reported on November 1,
2022.
CSA Global was provided with the wireframes for resource estimation by Goldshore. Goldshore
modelled the shear zones domain using a combination of geological features and raw assay
values above 1 g/t Au using explicit digitizing methods in Seequent Leapfrog 3D geological
modelling software (“Leapfrog”). Goldshore modelled the intrusive domain using implicit modelling
techniques in Leapfrog using a cut-off grade of 0.25 g/t Au.
CSA Global reviewed the provided wireframes to confirm validity for resource estimation.
Statistical and geostatistical assessment of 1 m composites confirmed that the shear domains
should be estimated within hard boundaries separating them from the intrusive domain. Statistical
analysis was used to determine high-grade capping for each shear zone wireframe and ranged
from 20 g/t Au to 60 g/t Au.
The MRE was estimated with a block size of 15 m x 15 m x 5 m utilizing subblocks and constrained
within wireframes with a minimum width of 1.50 m. Gold content was estimated using ordinary
kriging methods using dynamic anisotropy variogram models. The maximum range of the
variogram models generally are between 60 m x 30 m x 10 m in the shear domain and 60 m x 60
m x 40 m in the intrusive domain. The search ellipse was constrained to selecting composites
flagged within each domain and varied from half (1 st), the full (2 nd) and double the variogram
ranges (3rd). Additional check estimates were completed using inverse distance squared (ID2) and
nearest neighbour methods, the latter on bench scale composites.
Density values for 1,737 samples collected from all Goldshore drill holes were used to determine
an average bulk density for each wireframed zone. Values range between 2.70 and 2.72 t/m 3 for
the mineralized domains, 2.7 t/m3 for waste rock, and 2.0 t/m3 for glacial overburden.
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Mineral resources are presented as undiluted and in situ. The historical underground voids from
Noranda’s 1980’s exploration program have been removed from the geological model.
Mineral Resource Classification
The MRE has been classified as an Inferred Mineral Resource. This resource classification
reflects the fact that the majority of the drill hole data used for the resource estimate is historical,
and no QAQC data or reports exist for the majority of these drill holes. Statistical assessment of
historical data and recent data provided some support for the historical data, but also included
some inconsistencies. The majority of the historical drill holes did not have acceptable downhole
surveys meaning that spatial location of the core samples remains uncertain especially beneath
200 m.
While the downhole surveys and QAQC methods utilized for the modern drill holes is of industry
standard, these holes remain too sparsely distributed to permit confident m ineral resource
estimation on their own. Goldshore is now embarking on an extensive program of relogging and
resampling of historical drill core, together with downhole surveying where possible. Goldshore’s
program of infill and confirmatory drilling is also ongoing. It is expected that this work will support
classification of I ndicated mineral resource in any subsequent mineral resource updates by
Goldshore.
Reasonable Prospects for Eventual Economic Extraction
To support reasonable prospects for eventual economic extraction for the MRE, CSA Global used
the estimated block model to generate an optimized open pit using Datamine NPV Scheduler
software and the following assumptions: a gold price of US $1,500/oz, plant recovery of 85%,
processing costs of US $12.50/tonne, mine-site general and administration costs of
US$2.50/tonne processed, mining costs of US$2.50/tonne moved and an overall pit slope angle
of 50 degrees. NPV Scheduler Software is widely used by mining engineers to apply the Lerchs-
Grossman algorithm to block models in order to generate optimized pit shells upon which
economic open pit mine designs may be based.
The MRE is constrained within the selected optimized pit shell which reaches a maximum depth
of approximately 580 m.
Figures 1 and 2 above show the relationship of the shear and intrusion domains within the
optimized pit shell.
Additional Exploration Potential
The modelled shear-hosted domains extend at depth below the optimized open-pit constraining
the reported MR E, but the drill hole data are too sparsely distributed to support underground
mining optimization studies and reporting of an underground-constrained MRE at this time.
The shears are also open along strike, beyond the modelled strike length of 3.5 km. Historical
drilling intercepted gold mineralization over a total strike length of 8 km, which has been a focus
of Goldshore’s summer soil geochemistry and structural mapping programs. Furthermore, there
remains potential for additional parallel shears with gold mineralization in historical drill holes 500
m to the southeast of the Moss Lake Deposit.
Figure 3 shows the location of mineralized drill holes along and parallel to the strike of the MRE.
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Figure 3: Mineralized zones showing the exploration upside along strike and in parallel structures
Next Steps
Goldshore has commenced an extensive program of relogging and resampling of all historical drill
holes whose collars have been located and accurately surveyed. Where possible, these drill holes
will also be surveyed using modern downhole surveying equipment.
Notwithstanding the above, a large proportion of the historical drill collars have not been located.
The mineralized volumes defined by these historical drill holes will be redrilled in an optimized
pattern to accurately define the shear-hosted and intrusive domain mineralization. This will include
a full suite of oriented core measurements and multi-element geochemistry analyses.
Work has also commenced on a comprehensive metallurgical testing program led by Ausenco.
This work will include a mineral deportment study, grinding tests, gravity separation, flotation,
heap leach, and cyanide leach optimization studies. Once complete, Goldshore expects to
commence a preliminary economic assessment to evaluate several mining and processing
strategies with a view to selecting the most economic and achievable development option. This
study is expected to be completed in 2023.
Infill drilling, re-sampling of historical drill holes, and geological modelling will continue throughout
the coming months to support a mineral resource estimate update to attempt to upgrade the
resource classification from Inferred Resources to Indicated Resources. This work is targeted for
completion by the end of 2023 when the Company expects to commence a p refeasibility mining
study.
Pete Flindell, VP Exploration for Goldshore, said “ This mineral resource estimate confirms our
understanding that high grade shears form the core of the Moss Lake Deposit and will drive the
development of the Moss Lake Gold Project. The I nferred Mineral Resource reflects uncertainty
in the collar and downhole surveys of the historical drill holes, as well as the selective sampling
technique and lack of oriented core measurements that are critical in directing the high-grade
structures that drive the overall estimate. While additional drilling is required to replace many of
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the historical drill holes and infill gaps in the model, we will be aiming to recover as many of these
historical holes as possible by relogging and resampling core and conducting downhole surveys
using more accurate survey equipment.”
Qualified Person Statements
Dr. Matthew Field (Pr. Sci. Nat), Manager – Resources at CSA Global is an independent Qualified
Person under NI 43-101 and responsible for the MRE. Dr. Field has prepared and approved the
scientific and technical information related to the MRE contained in this news release.
Peter Flindell, P.Geo., MAusIMM, MAIG, Vice President – Exploration of the Company, and a
Qualified Person under NI 43-101 has also reviewed and approved the scientific and technical
information contained in this news release.
About Goldshore
Goldshore is an emerging junior gold development company, and owns the Moss Lake Gold
Project located in Ontario. Wesdome Gold Mines Ltd. is currently a large shareholder of
Goldshore with an approximate 27% equity position in the Company. 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 and development.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of
the TSXV) accepts responsibility for the adequacy or accuracy of this release.
For More Information – Please Contact:
Brett A. Richards
President, Chief Executive Officer and Director
Goldshore Resources Inc.
P. +1 604 288 4416 M. +1 905 449 1500
W. www.goldshoreresources.com
Facebook: GoldShoreRes | Twitter: GoldShoreRes | LinkedIn: goldshoreres
Cautionary Note Regarding Forward-Looking Statements
This news release contains statements that constitute “forward-looking statements.” Such forward
looking statements involve known and unknown risks, uncertainties and other factors that may
cause the Company’s actual results, performance or achievements, or developments to differ
materially from the anticipated results, performance or achievements expressed or implied by
such forward-looking statements. Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the words “expects,” “plans,”
“anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or
that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this news release include, among others, statements relating to
expectations regarding the exploration and development of the Project, the filing of a technical
report supporting the MRE, commencement of a preliminary economic assessment and
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prefeasibility study, and other statements that are not historical facts. By their nature, forward-
looking statements involve known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements, or other future events, to be materially
different from any future results, performance or achievements expressed or implied by such
forward-looking statements. Such factors and risks include, among others: the Company may
require additional financing from time to time in order to continue its operations which may not be
available when needed or on acceptable terms and conditions acceptable; compliance with
extensive government regulation; domestic and foreign laws and regulations could adversely
affect the Company’s business and results of operations; the stock markets have experienced
volatility that often has been unrelated to the performance of companies and these fluctuations
may adversely affect the price of the Company’s securities, regardless of its operating
performance; the impact of COVID -19; the ongoing military conflict in Ukraine; and other risk
factors outlined in the Company’s public disclosure documents.
The forward-looking information contained in this news release represents the expectations of the
Company as of the date of this news release and, accordingly, is subject to change after such
date. Readers should not place undue importance on forward-looking information and should not
rely upon this information as of any other date. The Company undertakes no obligation to update
these forward-looking statements in the event that management's beliefs, estimates or opinions,
or other factors, should change.