Gold prices at record highs drove significant production in 2024, and the question for many investors now is what will happen next as producers take more ounces out of the ground than they can replace.
Global mining data from S&P Global shows that there have only been five major gold discoveries since 2020, adding about 17 million ounces to the firm’s database of gold discoveries.
In an interview with Kitco News, Michael Henrichsen, CEO of Goldshore Resources (TSX.V: GSHR), said that in this environment, he expects it’s only a matter of time before market participants start paying attention to Goldshore as it continues to develop its world-class discovery since major deposits are becoming scarce and hard to find.
Goldshore is currently developing its Moss project, which has a resource of 1.54 million indicated ounces and an inferred resource of 5.20 million ounces. However, Henrichsen noted that the property’s more than six million ounces are just a part of a much bigger story.
The project is located 110 kilometers west of Thunder Bay in Ontario, Canada, with direct access from the Trans-Canada Highway, hydroelectric power near site, supportive local communities and skilled workforce.
“ I come from Newmont Mining and have had the privilege of working around the world. I can tell you it’s very difficult to get five million ounces or more in a single place,” he said. “But for Goldshore, this is still very early days”
Goldshore acquired the Moss project in 2021, and over the last three years, the property’s resource has more than doubled; Henrichsen said there is still plenty of untapped potential.
Henrichsen said that even with its current six million ounces, Moss is still an emerging deposit.
He explained that when he became Goldshore’s CEO in May last year, he was surprised at how little exploration had been done on the project. The deposit was first discovered in 1985 and has only seen near-surface exploration.
“The deposit hasn’t been drilled completely. Right now, we are doing basic work, and with every drill hole, we are adding ounces,” he said. “ Can this six-million-ounce pit grow? One hundred percent, it’s going to grow if we keep investing dollars into the ground. The basic work hasn't been done, and that is an extremely advantageous position to come into. It’s exciting to see how much potential there is.”
As for the Moss project's prospects, Henrichsen pointed out that the deposit is just a small part of 23-kilometers of gold bearing corridors that surround the deposit. He added that he sees potential for Moss’s resources to climb to 10 million ounces, making it one of Canada’s top prospective projects.
“ We're going to add to the pit, and we're going to extend the deposit. But my expectation is that we will find something else that will be transformative,” he said.
While Goldshore continues to define its Moss project, Henrichsen said that another important part of the company’s story is its location.
He noted that its access to important infrastructure just off of Canada’s major highway makes it a buildable mine.
“When I first looked at the project, I was picked up in Thunder Bay and got a coffee. I was still drinking it by the time we arrived at the property,” he said. “ If you were going to put a big bulk tonnage gold deposit somewhere, this would be the place I’d pick. From an infrastructure standpoint, from an execution standpoint, its location decreases the risk profile considerably.”
The company is executing a 15,000-meter drill program and is working with G Mining to produce a preliminary economic assessment. Henrichsen said he expects the PEA to provide a conservative base case for the Company as it continues to explore the deposit's full potential.
G Mining, founded by Mining Hall of Fame inductee Louis Gignac, is a powerhouse mining consultancy renowned for delivering high-quality, accurate assessments. Their expertise was prominently demonstrated in the 2021 feasibility study for Equinox’s Greenstone Gold Mine, also located in Ontario approximately 275 km northeast of Thunder Bay, which achieved its first gold pour in May 2024. G Mining’s involvement in the Moss Gold Project will provide a robust evaluation of the project’s economics, including cash flows, Net Present Value (NPV), Internal Rate of Return (IRR), and payback period resulting from the PEA.
“We are not looking at producing a marketing document with our PEA,” he said. “ We're here to give real guidance to our investors so they can make informed decisions. We want to be known as a group that executes well and gives good guidance. Having G Mining do this work on our behalf should help support that whole thesis.”
Looking ahead, Henrichsen said that in two years, he would like to have completed the property's infill drilling programs, secured agreements with First Nations groups, and conducted environmental assessments so the company can enter the formal permitting process.
“Two years from now, I see us starting a pre-feasibility study, starting the formal permitting process simultaneously, and moving this project towards a construction decision,” he said. Henrichsen said that, given the size of the deposit and its location, he doesn’t see any major obstacles to an eventual mine.
Goldshore Resources has the vision to turn Moss into a top 10 Canadian-producing gold mine and is one of the few remaining major Canadian gold deposits positioned for development in this cycle.
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