This coverage was originally just going to be a quick tweet. However, the more I dug into the story, the more I realized it deserved a proper write-up, considering this is my first time discussing this company.

By no means are we getting paid for this. I just genuinely thought it's an interesting story worth sharing.

One thing to keep in mind before any of that: this is a penny stock, a junior mining penny stock. It is inherently risky. No matter how good things can look on paper, that can change in a second.

Okay, with that out of the way, I'm genuinely interested in this one. It has its faults, but there's definitely a lot to like. Favourable geology within a legit district, insider buying over the past few months, and volume that's been noticeably improving as of recently.

I'm not a shareholder. It's worth flagging though, the stock has essentially doubled over the past two weeks, hence why it caught my attention, so keep that in mind too. But if you're not a shareholder either, we're in the same boat, still just watching, waiting to see if a good entry shows up.

The company

The company I'm referring to is Rocky Shore Gold. It trades on the CSE under $RSG and is currently sitting around a $39 million market cap, with just shy of 240 million shares outstanding.

They hold the Gold Anchor Project in central Newfoundland, over 1,200 square kilometres, sitting right next to Equinox Gold's Valentine mine, which is already producing, and on trend with New Found Gold's Queensway project. This is solid ground in a proper, active district.

What they've got

Two deposits, Mosquito Hill and Reid, both carrying an NI 43-101 compliant resource. Combined, that's 284,925 ounces indicated and 623,085 ounces inferred gold.

Both deposits are open along strike and at depth, both have a higher-grade core, and both are genuinely thick. Mosquito Hill averages 102 metres, Reid averages nearly 90 metres, and both carry strip ratios under 1.5 to 1.

Less than 15% of the whole property has been explored.

The story building up to today

In June, drilling at a new target called Lane Pond hit a bulk-style gold zone, tied to the Appleton Fault, one of the district's key gold-bearing structures. It's part of an 11 kilometre trend that had never been drill tested. The program got expanded on the back of it, from 3,500 metres to 12,500.

In early August, they named the Lane Pond zone Lucky 13. The best hole ran 15.02 metres at 2.04 g/t gold, including 5 metres at 3.85 g/t. Grades are getting stronger with depth, and only 15% of that 11 kilometre trend has been drill tested so far.

Yesterday, August 12, they released news that pushed the stock up 18% on good volume. It was a modern reinterpretation of the historical geophysics at Mosquito Hill, the existing deposit, which found that 63% of the interpreted intrusive footprint sits outside the currently drilled outline. Essentially, the known deposit may only be a third of the real system, and drilling to test that has just started.

As I mentioned, over the past few months there have been insiders, including directors Chris Hodgson and Michael Leskovec, gobbling up shares in the open market as well. There's also a name you see constantly on the bid, Robert Douglas Cudney, the CEO of Juno International, who is a 10% holder and now sits at roughly 42 million shares.

Who's running it

CEO Ken Lapierre previously founded and ran Rockcliff Metals, which Hudbay Minerals bought.

Director Michael Leskovec was an officer at Gold Eagle Mines when Goldcorp bought it for $1.5 billion.

Director John Harvey was formerly President of Hemlo Gold Mines.

Director Chris Hodgson was formerly Ontario's Minister of Mines, and before that, President of the Ontario Mining Association.

The board also includes a former Premier of Ontario.

The cap table, and where the cheap paper sits

Fully diluted, including warrants, options, and deferred share units, the share count runs to roughly 328 million.

45 million warrants and options are exercisable between $0.05 and $0.10, all in the money at today's price.

279,000 of those have already been exercised.

Another roughly 34.75 million sit at $0.30, further out, but something to be aware of.

There's a smaller batch, just under 1.4 million, sitting around $0.175.

That's a genuinely large chunk of in-the-money paper that can hit the market at any time, and some of it already has. That's the overhang worth watching, more than the fully diluted headline number on its own.

What's next

Nine specific holes from the Lane Pond program still have assays pending, out of 25 drilled so far. One hole was abandoned due to caving. The program was expanded to 12,500 metres total, and only 8,086 have been drilled to date, so there's more drilling still coming on top of those pending assays.

Separately, drilling has now moved to test the new target at Mosquito Hill itself, and a summer program was already planned at Mosquito Hill and Reid, the two existing deposits, aimed at growing what's already there. Both are open along strike and at depth, so there's real room to add ounces beyond just the new target.

There's also a broader 20 kilometre fault corridor running through the property that the company says could host more bulk-tonnage discoveries beyond those two known deposits, most of it still untested.