Charting New Territories in Gold Mining With Brett Richards, CEO Of Goldshore Resources
Goldshore is an emerging junior gold development company and owns 100% of the Moss Gold Project located in Ontario. The Company is well-financed and supported by an industry-leading management group, board of directors, and advisory board. Goldshore is well positioned and well financed to advance the Moss Gold Project through the next stages of exploration and development.
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00:00 Brett Richards, who is the CEO and director at Goldshore Resources, ticker on the OTCQB, is GSHRF.
00:10 Brett, how's it going? Great, Zined, thanks for having me on. Absolutely. I know you heard a
00:15 little bit of the conversation that we just had with Dennis regarding gold, so I'm excited to have
00:19 a different angle with you here. But before we get into all that, just give me a quick overview
00:24 of what Goldshore Resources does. Yeah, we have the Moss Gold Project in northwestern Ontario,
00:30 about 100km west of Thunder Bay. We have a 1.5Moz indicated resource at 1.23g at surface,
00:41 and 5.2Moz of inferred resource at 1.1g also at surface. This is going to be an open-pit operation
00:50 one day, but significant-sized resource. You know, when we were talking during our prep call,
00:57 part of the conversation was just the market and where it is. I'd love to kind of bring to light
01:01 those conversations. So from your insights, from your opinion, why is the market where it currently
01:07 is? It's a great question that nobody can answer, but the reality is gold equities in the junior
01:16 space are completely uncoupled from historical norms of trading. Inferred ounces in the ground
01:23 typically trade at USD$20-30/oz historically, and indicated somewhere USD$40-50/oz, USD$60/oz,
01:30 and as you get up to the proven problem, much, much higher. But we see gold companies today
01:35 trading down, we're trading at USD$4/oz collectively between our two categories,
01:40 and there's many other juniors trading at USD$10-14/oz, USD$16/oz, and the reality is
01:47 there's just no pools of capital moving into resources. And I'll caveat that and say yet,
01:53 because I think we are going to have our day for gold. There will be the, I'll say, the overarching
02:00 geopolitical chaos that's going on globally. You have a US election coming up in November,
02:06 and the macroeconomic outlook, you've got interest rates falling to a certain degree,
02:12 and inflation being a little bit stagnant. The return on bonds is going to be a lot less than
02:19 the return on gold, and I think you're going to see pools of capital eventually look to
02:24 natural resources. We've been talking about inflation. I think the CPI number that just
02:28 came out recently, that sent the market to the downside, I believe, is the initial reaction that
02:32 we had. But you talked about, in terms of where the market is, fine, we understood your angle on
02:37 it, and you're right, no one can truly answer. There's so many different variables and factors
02:42 that go into it. But then let's go ahead and talk about innovation and sustainability and what that
02:46 looks like in the gold mining industry itself. Yeah, for sure. I think when you talk about
02:52 innovation and sustainability, I think it's something we have yet to see in a widespread way
02:58 by juniors, maybe even developers. Now, the seniors and the senior producers are a little
03:03 bit more advanced on it, but innovation is about technology advancement, and sustainability is
03:09 about the fabric and psychology as to how we think as mining companies. So, for example,
03:14 innovation, mining techniques are hundreds of years old, and how we execute them has not changed,
03:21 you know, hasn't changed much over that period. You find it, you extract it, you crush it,
03:27 you separate it, you liberate it, you smelt it, and how we deal with each of those areas
03:32 has only ever changed like small movements in efficiency, and yes, to renovation,
03:37 but there have been no fractal leaps in technology. So, you know, I just don't see where
03:43 we have a scenario where you find it, dig it, and smelt it. You know, you cut out some of these
03:50 processes. We haven't found it yet, but we are seeing the use of AI and AI algorithm applications,
03:57 and we're starting to see it for exploration companies. It increases the probability of
04:01 discovery prior to putting a drill in the ground, and a good example of this is Cobalt Metals. You
04:06 know, I think people look them up. It's an extremely well-funded AI exploration company
04:12 looking for kind of battery minerals, but mining is still the dig, blast, dig, haul, crush, grind,
04:18 separate, maybe a regrind, separate again, electro-win. That's what innovation looks like.
04:23 So that's what innovation looks like from a grand scale of things. Let's kind of zoom in a little
04:27 bit in terms of how GoldShur Resources is going to embrace the innovation and sustainability side,
04:32 especially, let's be honest here, to create value for the shareholders. So one way I'd love to kind
04:37 of get some insight on is I'm talking technologies, I'm talking practices, I'm talking strategies.
04:42 What are you doing? Yeah, so I'll work towards, I think, what I think is also important at this
04:49 stage of development, and that's sustainability. And sustainability is a mindset. It's a cultural
04:54 framework and a philosophy that goes right to the core values of the people who actually run
04:59 the companies themselves. And right now, you know, it's the fabric of thinking, it's the fabric of
05:05 actions. And mining has a reputation problem, and for good reason. You know, we use slang,
05:12 or the market uses slang like pump and dump, mine the market. We are perceived as an industry fraught
05:17 with, you know, let's say, corruption. And hey, we have a lot of black eyes over the past cycle
05:23 to show for it that investors don't forget. So reputationally, we need to be different. So we
05:30 need to build up our reputation for delivering risk adjusted returns again. That's why people
05:36 come to the resources space. So when mining CEOs, you know, approach things, they need to be doing
05:41 the right thing at the right time with the right people and the right technology. You can't cut
05:46 corners in our process. You can't communicate something is good when it's not. And we have to
05:52 accept that not every project is the best in the world and may not ever see the light of day. And
05:57 we approach it on a sustainability, whether we're talking to our stakeholders, whether we're talking
06:03 to our partners, whether we're talking to our investors, you know, there is a really big
06:08 disconnect between our sector for a reason, because there's been a loss of trust. We are
06:14 taking an approach that we're trying to kind of rebuild that doing the things that, you know,
06:19 are going to be, I'll say, considered innovative. We do multi element chemistry and oriented core.
06:27 There are two programs that have borne significant results for us, but not everybody uses them. Are
06:32 they advanced? Yes, they are advanced. And there are advanced geophysics as well. So there is
06:38 innovation that makes us better. But I think it really starts to be the fabric of the people who
06:44 are running these companies to, I'll say, improve and increase our reputation.
06:50 Now, you know, you mentioned projects. So I'm going to go ahead and move on to this topic of
06:54 conversation about the Gold Shores Moss Gold Project. All right. And to give some insight
07:00 to the viewers at home, the mineral resource estimate last week was published showing about
07:04 one point five four million ounces at one point two three grams, which indicates about a five
07:10 point two million infrared at one point one one grams. Now, that's a lot that you understand.
07:16 The viewers and I myself may not. So tell us exactly how rich is this project with the
07:21 publication that came out? Yeah, Gold Shore has been awarded an extremely large endowment. We
07:29 actually have a path where we can show through historical drilling and historical mineralization,
07:35 we can show a path to twelve, fifteen million ounces, and that's going to get the attention
07:40 of a lot of people. So as far as quantity goes, I think we tick that box first quartile of our
07:47 sector in North America. As far as grade goes, we're north of one point one grams at inferred
07:53 one point two grams indicated. You know, that is probably top quartile as far as grade goes,
07:59 where we see projects like Detour Lake and Kote Lake and New Golds Project, Equinox, Greenstone.
08:06 These are all sub one gram deposits. Now, they're big, large capex, big volume movement projects.
08:15 And we see an opportunity where maybe we can selectively mine, isolate high grade, do a smaller
08:22 scale project that has a lower capex in order to get this into production in as short a period of
08:29 time as possible. So what we have at Moss Gold is extremely special and it's extremely large.
08:35 And then last question for me is in terms of your peers, with the resource numbers that came out
08:42 with everything that you've talked about here previously on this conversation, how does Gold
08:47 Shores valuation stack up against your peers, your competitors? Well, I wish I had better news,
08:54 but we're trading at about three dollars and 50 cents an ounce today, which is probably the bottom
09:01 of the group. And we have peers trading at ten, twelve. We have peers trading at twenty, twenty
09:06 five and thirty dollars an ounce. So you can just imagine the potential upside when this market
09:12 recouples to historical norms, when this market and pools of capital start to come into resources.
09:18 What are they going to look for? They're going to look for discoveries that are big,
09:22 that have potential, that are actually going to go into production and that are valued very low
09:27 today. And we tick every one of those boxes. You can see quite easily a re-rate where we would get
09:32 three, four times money to our shareholders on just a simple re-rate, not looking at the actual
09:38 potential at the end of the day. So I think there's significant upside for investors in Gold Shore.
09:44 Well, I appreciate the insights. But before I let you go, I got to give you the floor in case
09:48 there's anything else you want to talk about that I may have missed.
09:51 So, Nate, I think we're in a very, very interesting time here. In my 35 years of doing this,
09:58 I've never seen the perfect storm for a commodity like gold. And I think we're approaching that
10:05 on a number of factors, geopolitically, macroeconomically, the actual weakening of the US
10:11 dollar heading into a very chaotic US election. People are going to look for safety. They are
10:17 going to look for where am I going to get yield? Where am I going to get return? They're going to
10:21 look to gold. They're going to look to gold equities. And I think we are going to have our
10:25 day. It's not a matter of if, it's a matter of when. And I've said this before, patience is a
10:32 virtue I'm getting really tired of having. But we will get there. Hey, I hear you. And I look
10:38 forward to when that time comes for you to hit my line. And we'll hop on to have some more great
10:42 conversations. Thank you so much for your time. Absolutely, Zineed. Thanks for your time.