Velocity Trade Capital Begins Hedging Goldshore Resources Inc with Outperform Rating and CA$0.85 Target
Velocity Trade Capital has started covering Ontario-based Goldshore Resources Inc (TSX-V: GSHR, OTCQB: GSHRF), which is advancing the Moss Lake project, with an “Outperform” rating and a target price of C$0.85 per stock.
In a note, the global broker said its target price reflected a company that includes an advanced exploration asset with “large amounts” of key infrastructure in the region, as well as “potential for scale expansion.” and significant resources” beyond its 4 million ounces of gold. historical resource that would be of interest to large mining companies.
Goldshore also has a working relationship with the First Nations community and is in an attractive jurisdiction mitigating geopolitical risks, analysts said.
READ: Goldshore Resources releases more encouraging drill results from the Moss Lake gold deposit in Ontario
“The initial preliminary economic assessment (PEA) of the project demonstrated an after-tax net present value (NPV) of C$196m, an IRR of 12% (at a discount rate of 5.0%, $1,546 US$/oz Au, 1.0:1 C$/USD) based on initial capital of C$543 million, average cash operating costs of C$922/oz Au, C$128 million tonnes 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 has moved towards:
- An aggressive and continuous drilling program until 2024
- An updated resource base to be NI 43-101 compliant in Q4 2022 with potential for increased resources and improved stripping ratio
- A PEA updated to 1Q 2023
- A pre-feasibility study (PFS) by mid-2024
The Moss Lake Gold Asset is located approximately 100 km west of the city of Thunder Bay, Ontario. It is accessed by Highway 11, which passes less than 1 km from the property line to the north. The project covers 14,292 hectares and consists of 282 unpatented and patented mining claims.
Shares of Goldshore Resources gained 2.06% on Friday in Toronto to settle at C$0.50.
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