Technical Analysis: Goldshore’s VTEM Survey Reveals 29 Undrilled High Priority Targets and Expands Prospectivity

VANCOUVER, B.C., March 10, 2021: Goldshore Resources Inc. (TSXV: GSHR / OTCQB: GSHRF / FWB: 8X00) (“Goldshore” or the “Company”), is pleased to announce that it has received the final processed models and targets from TechnoImaging LLC (“TechnoImaging”) from the heliborne Versatile Time-Domain Electromagnetic (VTEM™ Plus) and Horizontal Magnetic Gradiometer geophysical survey conducted by Geotech Ltd. (“Geotech”) on the Moss Lake Gold Project located in Northwest Ontario (Figure 1).

Highlights:

• Eleven new chargeability targets with a Moss Lake gold deposit signature: this increases the potential combined strike length of gold targets from the current 2.5km to a total of 11km. There are several smaller targets of similar character that will also be evaluated.
• Moss Lake is already richly endowed: The current 2.5 km strike length hosts historic Indicated Mineral Resources of 39.8Mt containing 1.4 million ounces gold at an average grade of 1.1 g/t Au and Inferred Mineral Resources of 50.4Mt containing 1.8 million ounces gold.
• Six folded magnetic targets with an East Coldstream gold deposit signature: these new targets lie within folded magnetic signatures on the eastern magnetic domain boundary that hosts the East Coldstream gold deposit.
• Twelve magnetic conductors suggesting additional copper prospects: these are blocky VTEM conductors with an elevated magnetic signature similar to the anomaly defining the historic North Coldstream copper-gold mine. Goldshore notes the preponderance of graphitic strata that is generating several planar anomalies and may be contributing to these potential copper targets.
• Click here to for an inter­­­­­­­­­­active 3D walkthrough of the interpretation

Brett Richards, President and Chief Executive Officer of Goldshore commented: “TechnoImaging and our team have done an excellent job in developing and fine tuning the 3D models of various geophysical parameters, relating them to known mineralization styles in the district, and generating an inventory of high-quality exploration targets. These will form the basis of further field work and scout drilling over the next two years. We look forward to reporting on the discovery of new mineralized systems and expanding the resource footprint as our development team continues to advance the main Moss Lake Project to PEA/PFS.”

Interactive 3D Tour

Technical Overview

Figure 1 shows the location of the project in Northwest Ontario.

In July 2021, Geotech completed a 2,149 line-km VTEM survey on a 100-meter line spacing over the entire tenement, and a 50-metre line spacing over the areas of known mineralization at Moss Lake, Coldstream, and Hamlin. Flight lines were in a NW-SE direction with 1-kilometer-spaced tie lines in a NE-SW direction. The helicopter was maintained at a mean altitude of 107 meters above the ground with an average survey speed of 94 km/hour. This allowed for an actual average transmitter receiver loop terrain clearance of 55 meters and a magnetic sensor clearance of 65 meters.

The Moss Lake survey underwent strict quality control as the survey progressed. This included approximately 65% re-flights flagged by Geotech or requested by TechnoImaging to correct for atmospheric effects due to storm activity or windy conditions.

Figure 2 shows the heliborne system in the air.

Since July 2021, TechnoImaging has conducted a comprehensive review of Geotech’s electromagnetic (EM) and total magnetic intensity (TMI) datasets; and completed a series of 1D and 3D inversions to model the depth extent and lateral continuity of magnetic signatures, conductors, and chargeable bodies. All inversions were carried out using TechnoImaging’s proprietary Glass Earth technology and EMVision^® software. TechnoImaging provided a suite of 2D images and 3D models describing these processed datasets.

Goldshore has further worked on these datasets to model areas of low magnetic signature and to qualify the sources of each of the EM and TMI anomalies. This has been condensed into a series of geophysical targets that have been categorized by the probable geological context.

Magnetic Domains

The magnetic data can be divided into three different domains that each have different signatures and structure based on bedrock sources. Figure 3 shows the publicly available regional TMI magnetics dataset overlain by TechnoImaging’s magnetic high and low wireframes. The three domains include:

West – asymmetrically boudinaged diorite and granite stocks and a well-defined boundary with the central domain that is probably a major shear. The necks between the boudins appear to be attenuated basalt and sea floor sedimentary strata that includes exhalative magnetite ± sulphide bearing cherts. These may be host to “VMS” Cu-Zn mineralisation or host to Au-bearing quartz veins as they are at the nearby Huronian deposit.

Central – isoclinally folded belt of intermediate and felsic volcanic rocks with thinly bedded cherts and sandstones. These include magnetite ± sulphide bearing cherts that create the strongly folded magnetic fabric. This domain is host to the Moss Lake gold deposit, which is related to elliptical bodies of altered diorite (low magnetic signature) adjacent folded magnetite bodies (source of iron?) and covered by changeability anomalies (bedrock pyrite). These targets are far more subtle in the geophysical dataset but, given the scale of the resource at Moss Lake, are clearly more economically important.

East – this is a complex domain with features of both the west and central domains. It has boudinaged stocks and a more magnetic character suggesting largely mafic volcanic rocks. It also has magnetic signatures suggesting isoclinal folding. The domain boundary, while characterised by mylonitic breccias in the field also has folded strata in the magnetics dataset. This complicated “transitional” domain boundary of shears, folds and mixed lithologies may be a factor in localising copper mineralisation at Hamlin and North Coldstream, and gold mineralisation at East Coldstream.

Moss Lake Type Chargeability Targets (Gold)

The Moss Lake gold deposit is divided into the Main Zone and QES Zone. The Main Zone is hosted within an elliptical magnetic low body that appears to reflect the intensely silica-sericite-albite-carbonate altered diorite that is host to gold mineralisation. It  is bounded to the southeast by an isoclinally folded magnetic unit, which is intersected in drill holes as a 1-2 meter thick magnetite ± sulphide rich chert. The northwestern limit of mineralization remains to be fully defined.

The rapid change from a magnetic high to magnetic low body suggests a rheology contrast that has accommodated shear strain and focussed a number of asymmetric shears that localise high grade gold mineralisation. This is further reflected in the “overlay” of a chargeability anomaly that reflects the elevated concentration of disseminated pyrite in the system.

Similar chargeability anomalies are generated by wet sediments in muskeg (swamp) and lakes. These have been removed from the model, but may nonetheless mask bedrock mineralization.

The QES Zone occurs in a similar environment but appears to be localised along a structure that is axial planar to the isoclinally folded magnetite-rich chert.

Figure 4 is a perspective view of the Moss Lake gold deposit. Figure 5 shows numerous similar geophysical settings. The largest eleven targets have a combined strike length of 11 kilometers.

East Coldstream Type Magnetic Targets (Gold)

The East Coldstream gold deposit sits within isoclinally folded magnetic units on the complex, “transitional” eastern domain boundary. As at Moss Lake, drill logs report magnetite-bearing cherts, which are the likely source of the magnetic anomalies.

Six other targets with a similarly folded magnetic units lie on the fertile eastern domain boundary (Figure 5).

North Coldstream Type Magnetic Conductors (Copper-Gold)

Goldshore has been working with scanned maps and sections from the historic North Coldstream copper mine. This was operational between 1957 and 1967 and produced 102Mlbs copper, 44Koz gold and 440Koz silver from 2.7 million tonnes of mined material.

North Coldstream has been described as a volcanic-hosted massive sulphide deposit, though mine geology reports describe pyrite and chalcopyrite mineralisation hosted in quartz-veined and brecciated cherts with magnetite and graphite. Other workers decribe the deposit as an IOCG though this is largely on the basis of multi-element geochemistry.

The deposit is coincident with a discrete, blocky, pipe-like VTEM conductor. While the geometry of the anomaly is not a precise fit (a function of the survey resolution), there is a very good correlation between copper assays and high conductivity.

Historic scout drilling of other conductors in the area, particularly those with no coincident magnetic anomalism, suggest that the source is graphite- and pyrite-rich sedimentary rocks.

It appears therefore that the conductors are mostly mapping exhalative sediments on the Archaean seafloor that range from proximal sulphide-rich magnetite-bearing strata hosting syngenetic copper ± zinc ± gold mineralization to distal unmineralized graphitic and pyritic shales. Given this spectrum of endmembers, the association of conductive anomalies with elevated magnetic signatures is an important discriminator.

This coincidence of conductive and magnetic anomalies also describes IOCG mineralisation.

Of the many conductors identified from the VTEM survey (Figure 6), twelve are associated with moderate to high magnetic signatures. These have a component of planar geometry, suggesting a bedding control, and are surrounded by a conductive halo, suggesting sulphide mineralization. The remaining conductors are mainly coincident with areas of low magnetism and have been downgraded.

Significant targets include a large sigmoidal conductor at Junction, to the north of the Hamlin copper-gold project, and the 3-kilometer long target at Kawawiagamak. The latter is also significant because it lies on the major boundary between the central and east magnetic domains that hosts the Hamlin, North Coldstream and East Coldstream deposits.

Near surface conductors that clearly reflect lake sediments have been ignored.

Next Steps

Goldshore will continue the process of data scraping historic assessment reports to extract soil geochemical data and geological mapping information. This will help prioritise the target inventory and focus scout drilling.

Peter Flindell, VP Exploration commented: “A considerable amount of work has gone into refining the geophysical datasets to remove non-bedrock targets and characterize the potential sources of each anomaly. This includes identifying geophysical settings that are similar to Moss Lake, East Coldstream and North Coldstream deposits. This work underscores the prospectivity of the Moss Lake land package and forms the focus of our generative exploration program that will run in parallel to the resource development program aimed at advancing the Moss Lake gold project toward Pre-Feasibility.”

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 strategic shareholder of Goldshore with an approximate 26% 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.

About the Moss Lake Gold Project

The Moss Lake Gold Project is located approximately 100 km west of the city of Thunder Bay, Ontario. It is accessed via Highway 11 which passes within 1 km of the property boundary to the north. The Moss Lake Gold Project covers 14,292 hectares and consists of 282 unpatented and patented mining claims. 

Moss Lake hosts a number of gold and base metal rich deposits including the Moss Lake Deposit, the East Coldstream Deposit (Table 3), the historically producing North Coldstream Mine (Table 4), and the Hamlin Zone, all of which occur over a mineralized trend exceeding 20 km in length. A historical preliminary economic assessment was completed on Moss Lake in 2013 and published by Moss Lake Gold^¹. A historical mineral resource estimate was completed on the East Coldstream Deposit in 2011 by Foundation Resources Inc^²,³. In addition to these zones, the Moss Lake Gold Project also hosts a number of under-explored mineral occurrences which are reported to exist both at surface and in historically drilled holes. The Moss Lake Deposit is a shear-hosted disseminated-style gold deposit which outcrops at surface. It has been drilled over a 2.5 km length and to depths of 300 m with 376 holes completed between 1983 and 2017. The last drilling program conducted in 2016 and 2017 by Wesdome Gold Mines Ltd. (“Wesdome”), which consisted of widely spaced holes along the strike extension of the deposit was successful in expanding the mineralized footprint and hydrothermal system 1.6 km to the northeast. Additionally, the deposit remains largely open to depth. In 2017, Wesdome completed an induced polarization survey which traced the potential extensions of pyrite mineralization associated with the Moss Lake Deposit over a total strike length of 8 km and spanning the entire extent of the survey grids. 

The East Coldstream Deposit is a shear-hosted disseminated-style gold deposit which locally outcrops at surface. It has been drilled over a 1.3 km length and to depths of 200 m with 138 holes completed between 1988 and 2017. The deposit remains largely open at depth and may have the potential for expansion along strike. Historic drill hole highlights from the East Coldstream Deposit include 4.86 g/t Au over 27.3 m in C-10-15.

The historically producing North Coldstream Mine is reported to have produced significant amounts of copper, gold and silver^⁴ from mineralization with potential iron-oxide-copper-gold deposit style affinity. The exploration potential immediately surrounding the historic mining area is not currently well understood and historic data compilation is required.

The Hamlin Zone is a significant occurrence of copper and gold mineralization, and also of potential iron-oxide-copper-gold deposit style affinity. Between 2008 and 2011, Glencore tested Hamlin with 24 drill holes which successfully outlined a broad and intermittently mineralized zone over a strike length of 900 m. Historic drill hole highlights from the Hamlin Zone include 0.9 g/t Au and 0.35% Cu over 150.7 m in HAM-11-75.

The Moss Lake, East Coldstream and North Coldstream deposits sit on a mineral trend marked by a regionally significant deformation zone locally referred to as the Wawiag Fault Zone in the area of the Moss Lake Deposit. This deformation zone occurs over a length of approximately 20 km on the Moss Lake Gold Project and there is an area spanning approximately 7 km between the Moss Lake and East Coldstream deposits that is significantly underexplored. 

Table 1: Historical Mineral Resources ¹ ² ³

Table 2: Reported Historical Production from the North Coldstream Deposit ⁴

Peter Flindell, MAusIMM, MAIG , Vice President, Exploration of the Company, a qualified person under NI 43-101, has approved the scientific and technical information contained in this news release.

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