Mining Company Discovers High-Grade 209 g/t Gold in North Carolina

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Metalsource Mining Inc. (MSM:CSE; SFRIF:OTC; E9Z:FSE) announced new assay results from its ongoing exploration efforts at the Silver Hill Project near Lexington, North Carolina, according to an April 13 release.

The recent drilling has uncovered impressive gold equivalent grades, with one notable intercept from drill hole SH26-07 revealing 12.62 meters of 48.04 g/t AuEq (gold equivalent). This includes segments of 6.95 meters at 85.4 g/t AuEq and 2.74 meters at 210.72 g/t AuEq. These findings underscore the high-grade potential of the mineral system and indicate a substantial increase in the gold value, extending the dip length by 195 meters below the surface, the release noted.

The exploration has consistently demonstrated the presence of massive to semi-massive sulfide mineralization, both down dip and along strike, confirming the robust nature of the mineralized system, according to the company.

Detailed results from drill hole SH26-07 are "transformational" for the company, according to Chief Executive Officer Joe Cullen, and include gold grades of up to 209.14 g/t and silver up to 93.63 g/t over 2.74 meters, and significant percentages of lead, zinc, and copper. The silver equivalent grades for this drill hole reached as high as 16,604 g/t, also over 2.74 meters, highlighting the rich mineral content of the intercepted zones.

"SH26-07 is a transformational result for Metalsource Mining," Cullen said. "Intersecting 209 grams of gold per tonne over nearly 3 meters — within an envelope of 46 grams of gold per tonne over 12.62 meters — at 195 meters below our initial discovery confirms that Silver Hill is not a near-surface anomaly. It is a high-grade system that strengthens dramatically with depth. With visual confirmation of wide massive sulfide zones in our most recent holes, an active drill program, and a property-wide geophysical survey now being integrated into our geological model, we believe the most significant discoveries at Silver Hill are still ahead of us."

The mineralization at Metalsource Mining's Silver Hill project is characterized by a rich composition of sphalerite, galena, pyrite, chalcopyrite, and occasionally electrum, a gold-silver alloy, Metalsource said. As exploration continues, various mineralization styles and deposit models are under evaluation, with reconnaissance along the strike revealing that the host rocks at Silver Hill extend at least 1.5 kilometers to the north. This extension suggests significant potential for further discoveries across the property.

Currently, a comprehensive ground Induced Polarization (IP) and Magnetotellurics (MT) geophysical survey is nearing completion, the release said. The results of this survey are expected to greatly enhance the targeting of future exploration activities.

CA$6M Private Placement

On March 6, Metalsource announced it had closed a non-brokered private placement, raising a total of CA$5,999,998.50 through the issuance of 7,999,998 units priced at CA$0.75 each. Each unit is comprised of one common share of Metalsource and one-half of one transferable share purchase warrant. Each full warrant grants the holder the right to purchase an additional common share at a price of CA$1, valid for three years from the closing date.

The units from this offering will be held for a period of four months and one day, in compliance with Canadian securities regulations. Notably, no finder's fees were paid during this transaction.

Prominent investor Eric Sprott, through his company 2176423 Ontario Ltd., participated significantly in this placement by acquiring 1,333,333 units for a total investment of CA$1 million, the release said.

Metalsource plans to allocate the proceeds from this offering towards further exploration activities at its Silver Hill and Byrd-Pilot projects located in North Carolina, in addition to bolstering its general working capital.

Expert: 'Scorching' Results

Bob Moriarty of 321gold.com called the April results "scorching" in a piece for Streetwise Reports on April 15.

SH26-07 "equates to over 600 grams/meters and would rank among the most impressive drill holes for any enterprise with any project," he noted.

Moriarty said more holes may be required before establishing a National Instrument 43-101 resource, "but hole 07 has established a remarkably high standard."

"This is a company-making hole over a known resource," Moriarty continued on 321gold.com. "With a market cap of only CA$115 million, it is still cheap but we need more holes released."

The Catalyst: Gold Keeping Steady Above US$4,800/oz

Despite a resilient U.S. manufacturing sector, as evidenced by recent data from the New York Federal Reserve, gold prices have remained stable above US$4,800 per ounce. Neils Christensen of Kitco News reported on April 15 that the Empire State Manufacturing Survey for April showed a significant jump to a reading of 11 from -0.2 in March, surpassing economists' modest expectations of a rise to 0.3. This level marks the highest manufacturing activity in the New York region since last March.

Richard Deitz, Economic Research Advisor at the New York Fed, noted, "Manufacturing activity grew moderately in New York State in April. New orders and shipments increased significantly, and employment expanded. However, input price increases accelerated, supply availability is expected to worsen, and firms became less optimistic about the outlook."

Despite these positive economic indicators, the gold market has remained relatively unresponsive. Spot gold was last recorded trading at US$4,812.30 an ounce, marking a slight decrease of 0.57% for the day. Analysts are closely watching the US$4,800 level, recognizing it as a critical technical threshold that could enable gold to potentially rally back to US$5,000. They also suggest that while strong economic data could reduce gold's attractiveness as a safe-haven asset, it might also give the Federal Reserve more flexibility to lower interest rates later in the year, which would decrease the opportunity cost of holding non-yielding gold, potentially supporting its price.

Scott Kanowsky from Investing.com highlighted on April 15 that gold prices were adversely affected in March by a significant rise in oil prices due to war, which fueled global inflation fears and led to expectations of interest rate hikes by central banks globally. This typically reduces the appeal of gold. At the same time, investors have shown a preference for the U.S. dollar, traditionally a safe haven during geopolitical unrest, despite gold's usual role as a protective investment. The U.S., as a net energy exporter and less impacted by disruptions in oil supply, particularly through the critical Strait of Hormuz, supports this preference for the dollar. The dollar index showed a modest increase of 0.1%, remaining just above its pre-war levels, indicating cautious optimism as diplomatic efforts to resolve the conflict appear to progress. According to analysts at ING, including Francesco Pesole, "Markets have grown more confident that the Middle East crisis is moving toward a resolution."

Ownership and Share Structure¹

About 3% of the company is owned by insiders and management and about 26% by other strategic investors (like Sprott).

Top shareholders include Sprott's 2176423 Ontario Ltd. with 17.08%, One Bullion Ltd. with 8.69%, Thomas Kleeburg with 2.05%, the CEO Cullen with 0.99%, and Timothy Ko with 0.01%.

Its market cap is CA$132.5 million with 71.62 million shares outstanding. It trades in a 52-week range of CA$0.11 and CA$2.29.