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Goldshore Resources (TSX-V: GSHR) CEO Brett Richards on 100,000 Meter Drill Program at Moss Lake Gold Project
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Goldshore Resources, Mr. Brett Richards. Brett, how have you been?
Brett Richards: Gerardo, I've been great. It's been a bit of a slow summer, but things are picking up. It's conference season now. We're getting some wind in the sales. I'm starting to get pretty optimistic.
Gerardo Del Real: You and I chatted a bit off-air and we both, I think, shared the same optimism for Q4 as it relates to the gold price. You mentioned that it's been a little bit slow over the summer. It hasn't been for lack of effort or activity on you and your team's behalf. You commenced a hundred thousand meter drilling campaign on the Moss Lake gold project. How are things coming along on that front?
Brett Richards: Things are going really well. We're hitting all of the targets that we had discussed back in June. We had our first rig turning in July, as we said we would. Ran through. We're getting our second rig up and going next week and we'll move to four rigs sometime in November. But the exciting thing is we've got some results trickling in and we're going to have all of the assays back for the first couple of holes in about a week's time.
Gerardo Del Real: A hundred thousand meters in the age of COVID, in the age of forest fires, that you've had to deal with up north, congratulations to you and the team. I think it's got to be noted and highlighted. It's a lot of work that went into getting this program off, so congrats.
Brett Richards: Yeah. Thanks. It really was. I have to really pay kudos to my team on the ground. Pete Flindell, who is the VP of exploration, has basically gone nonstop since we signed this deal with Moss Lake and raised the money in February. He has gone nonstop on the ground building teams, getting drilling contractors in, built a camp, accommodations, core shack, and everything is to our capacity to ramp up in the wintertime to 400 meters a day on four rigs. So, kudos to him. He has done an amazing job getting us in this position today. And to have first results three and a half months after we first trade, that's pretty exceptional.
Gerardo Del Real: Absolutely. Absolutely. You just received initial magnetics images from Geotech V10 system survey on Moss Lake. You announced that back on the ninth earlier this month. What has that dataset shown you? Or are you still in the midst of processing that?
Brett Richards: Well, there are still quite a few 3D models to come from Geotech and Technoimaging, but the first set of magnetics we got are stunning and they validate what Pete has been saying all along. There is a big fault system that runs right up through our property from toe to toe. A couple of faults, but the main fault where Moss Lake is ... Now, what it's looking like is there's substantial exploration upside laterally to the north Northwest, so not only can we extend Moss Lake along strike. We plan to extend and add depth because it's under drilled only down to 280 meters. And now we have a step out laterally with an IP expression from these magnetics that coincide with where the resource is. Really, really exciting. That's the first takeaway. The second takeaway is what really pops out at us at Cold Stream and Hamlin. Big, big, high magnetics. Big copper prospects. Need to test them. Watch this space really, really soon.
Gerardo Del Real: For those that are not familiar with the flagship, can you provide just a brief overview? I want to make sure that everybody is aware of the historic resource space there, and I want to make sure that we set the table properly for the assays that sound imminent.
Brett Richards: Yeah. So, Moss Lake has about three and a half million ounces split between indicated and inferred. Cold Stream has about half a million ounces. Collectively, we have about four million ounces on our property and our job is to increase the quality, quantity, and really put a real project around Moss Lake. The copper up to the extremes up into Cold Stream and Hamlin, that is really going to be future optionality for Goldshore shareholders. So, I see this as we're focused on Moss Lake. Moss Lake is our prime target, but you can't help but be excited about what you see up in the north and southwest.
Gerardo Del Real: So, with all that gold there and the multiple rigs that you're going to have on-site and the news flow that's going to generate, where's your market cap at today?
Brett Richards: We're sitting around $62-63 million as of today.
Gerardo Del Real: And how much of that is backed up by cash? And of course, it's a hypothetical. I know the answer, but these valuations are not going to last very much longer and I encourage everybody to take a peak. How much of that is backed up by cash?
Brett Richards: So, we've got $11 million in cash right now on a difficult market cap, but I get it. This is the market we're in. This was the summer. This is where we sit. But I think the real takeaway is we're still at the bottom quartile of our peer group and a peer group put together by banks. We are a multiple, a fraction of where the mean is in our peer group. Our peer group sits at $50 an ounce. We're $14-15 today. So, lots of potential for share growth for entry today, tomorrow, and the next day.
Gerardo Del Real: Let's have another chat as soon as those assays start coming in. Thank you so much for the update today.
Brett Richards: Thanks, Gerardo. We'll chat in a couple of weeks.
Gerardo Del Real: All right. Talk then.
Brett Richards: Take care.Click here to see more from Goldshore Resources Inc.