Dakota Gold Corp. (DC:NYSE American) announced results from four more holes at its Richmond Hill Project in the historic Homestake District of South Dakota, saying they confirm and extend mineralization in several zones.
Hole RH23C-031 at Turnaround Breccia Pipe returned 1.61 grams per tonne gold (g/t Au) over 68.5 meters, including 2.23 g/t Au over 16.8 meters.
RH23C-034 at Twin Tunnels Breccia Pipe returned 1.54 g/t Au over 34.7 meters, including 0.72 g/t Au over 106.5 meters.
And hole RH23C-037 at the Cleveland Zone returned 2.3 g/t Au over 24.8 meters.
"The latest drill results from the metallurgical test program generally exceed grade and intercept thickness expectations and demonstrate the potential of the six breccia pipes known to exist at Richmond Hill, all of which remain largely untested," the company said in a release.
The fourth hole, RH23C-038, returned 0.96 g/t Au over 9.4 meters.
"DC continues to drill aggressively across its Homestake District land package," Canaccord Genuity analyst Michael Fairbairn wrote. "Results to date bode well for the next resource update, with indications that Richmond Hill hosts a substantial high-grade gold orebody."
The drilling campaign at the gold system, described as more than a mile in strike length, has been more productive than expected, with unit costs coming in about 30% below budget without reportable safety or environmental incidents.
"The drilling at Richmond Hill continues to validate and extend the mineralization characterized by historical drill programs and subsequent resource estimates," said Chief Operating Officer Gerald Aberle.
Spring and early summer drilling has been concentrated on validation and metallurgical test work, the company said, although it has extended the mineralization. Starting in late July, the company said it will return to exploration drilling at the site with the goal of producing a maiden resource in Q1 2024 using 880 historical drill holes and the current results.
"DC continues to drill aggressively across its Homestake District land package," Canaccord Genuity analyst Michael Fairbairn wrote. "Results to date bode well for the next resource update, with indications that Richmond Hill hosts a substantial high-grade gold orebody."
The Catalyst: 'Where There's Smoke…'
Dakota Gold has said it is working to outline a gold system at Richmond Hill described as more than a mile in strike length.
Holes released earlier include RH23C-017, which continued to expand the mineral amounts of drilling at the Twin Tunnels Breccia by intersecting 0.99 g/t Au over 93.5 meters, including 1.65 g/t Au over 19.2 meters.
Fairbairn has noted that results at Richmond Hill "confirm the existence of higher-grade mineralization" in its breccia pipes. "Where there's smoke, there may be fire," he wrote.
That hole was 500 feet northwest of RH22C-013, which intersected 5.98 g/t Au over 30 meters at the intersection of a dominant north-south structure, confirming the existence of higher-grade gold mineralization.
Other assay results included hole RH23C-029, which intersected 0.89 g/t Au over 12.2 meters; hole RH22C-032, which intersected 3.22 g/t Au over 8.3 meters; and hole RH23C-033, which intersected 1.58 g/t Au over 23.6 meters.
RH23C-029, RH23C-032, and RH23C033 were drilled for grade validation and metallurgical test work to support a maiden resource compilation in early 2024.
Fairbairn has noted that results at Richmond Hill "confirm the existence of higher-grade mineralization" in its breccia pipes.
"Where there's smoke, there may be fire," he wrote.
Hope for a Large Discovery
Richmond Hill is 2.3 miles west of another of the company's projects in the Homestake District, Maitland.
It's also 1.5 miles north of Coeur Mining Inc.'s (CDE:NYSE) Wharf Mine, which produced more than 79,000 ounces Au in 2022 and is the only current operating gold mine in South Dakota.
Dakota Gold continues to have four drills operating on its Homestake District properties, two at Richmond Hill and two at Maitland.
Robert Quartermain and Jonathan Awde head the company, which is exploring the 46,000 acres it has acquired and consolidated over the past decade surrounding the Homestake Mine. The historic Homestake Mine produced more than 40 million ounces (Moz) Au over its lifetime. Industry giant Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) also backs Dakota Gold.
Much of the land owned by Dakota Gold has not been explored in nearly 30 years, leading some to hope for a large discovery there.
"Dakota Gold is now seeking to revitalize this legendary district in hopes of making a material discovery on its land package proximal to the mine," Fairbairn wrote.
Streetwise Ownership Overview*Ownership and Share Structure
According to the company, approximately 30% of the company's shares are with management and insiders. Out of management, Co-Chairman Robert Quartermain holds the most shares at 10% or 7.34 million shares. President and CEO Jonathan Awde is next at 9%, with 6.71 million, while COO Jerry Aberle holds 6%, with 4.21 million. The remainder of the 30% is held by other members of management and the board of directors.
According to Reuters, about 26.6% of the shares are with institutional investors, including Van Eck Associates with 3.8%, BlackRock Fund Advisors with 3.6%, CI Investments with 3.6%, Fidelity Management with 3.5%, The Vanguard Group with 3.2%, Barrick Gold Corporation with 3%, Medalist Capital with 2.4%, Delbrook Capital with 2%, and Sprott Asset Management with 2%.
About 27.4% is with strategic investors, Reuters said. The largest holding is with Marin Katusa + KCR LLC, which owns 4.9%.
Dakota Gold has a market cap of US$238.75 million, with 75.3 million shares outstanding and about 56 million free-floating. It trades in a 52-week range of US$4.69 and US$2.61.
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Important Disclosures:
- Dakota Gold Corp. is a billboard sponsor of Streetwise Reports and has paid SWR a sponsorship fee between US$3,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dakota Gold Corp. and Barrick Gold Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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