Dakota Gold Corp. (DC:NYSE American) announced that results of another 11 holes drilled at its Maitland project in South Dakota extended the tertiary epithermal gold mineralization in the Unionville zone there, according to a news release.
One of the stepout holes showing the mineralization continuity was MA23C-023, placed about 600 meters (600m) to the north of the previously drilled MA22C-009, the hole through which Dakota Gold previously discovered this tertiary epithermal gold mineralization. The newer hole MA23C-023 returned 6.24 grams per ton gold (6.24 g/t Au) over 2.6m.
Other just released highlight results included 4.44 g/t Au over 15.3m, including 6.47 g/t Au over 9.6m, in infill hole MA23C-028, along with 7.24 g/t Au over 7.3m in infill hole MA24C-035.
The Unionville zone remains open to the north and south and underexplored. Whereas the strike length could extend 3,200m or more, only about 1,200m have been drill tested thus far and only partially.
The tertiary epithermal mineralization at Maitland is close to surface and contains both gold oxide and sulfide, James Berry, Vice President Exploration, explained in the release. This mineralization occurs along parallel structures found in the historic Maitland gold mine to the east and in undrilled parallel structures to the west of the Unionville zone discovery.
Berry also pointed out this type of mineralization represents an underexplored opportunity for Dakota Gold not only at Maitland but also at its other properties in the Homestake district. This type of mineralization was not ever pursued in the past-producing Homestake mine area.
Below the tertiary epithermal gold mineralization at depth at Maitland is different, Precambrian-age, Homestake mine-style mineralization.
"The opportunity we see at Maitland is unique in that we have the possibility to access two distinct types of mineralization," Berry said.
Wholly Focused on Exploration
Based in South Dakota, Dakota Gold is a gold mining company entirely focused on revitalizing the Homestake district by exploring prospective properties in it to make new mineral discoveries. The district, home to the world's largest iron formation gold deposit, also is underexplored. As for South Dakota, it is a Tier 1 jurisdiction and mining friendly.
Dakota Gold has numerous gold properties covering more than 48,000 acres surrounding the historic Homestake mine that was closed in the 1990s, when gold prices were below US$300 an ounce (US$300/oz), the company said. Along with Maitland, Dakota's gold projects are Richmond Hill, City Creek, Blind, Tinton, Paleoplacer, West Corridor, Ragged Top, Whistler Gulch and Poorman Anticline.
Dakota Gold started drilling at Maitland and Richmond Hill in spring 2022 and since, has encountered significant gold mineralization at both. At Maitland, new discoveries include the Unionville Zone and the JB gold zone. At Richmond Hill, through drilling the company delineated an extensive gold system, extending more than a mile from north to south, and open in all directions. Richmond Hill is 3,700m west of Maitland and about 2,400m north of Coeur Mining's Wharf mine. The close proximity between Maitland and Richmond Hills allows for operational synergies.
"We are now following up on those early discoveries and are in the process of vectoring towards a large discovery for higher grades of gold and the centroid of the mineralization," the company said and noted four rigs are actively drilling at its properties.
Dakota Gold is led by a group of individuals with the right expertise for the location, the company said. Co-chairman Robert Quartermain boasts a 40-plus-year career in the mining industry and was inducted into the Canadian Mining Hall of Fame. President and Chief Executive Officer Jonathan Awde, cofounder and former CEO and president of Gold Standard Ventures, is well-skilled in corporate development, asset acquisition, joint ventures, and procuring and raising capital. The technical team, collectively, has extensive geological and exploration experience.
Gold "Just Getting Started"
Gold has many roles, according to the U.S. Geological Survey. It is traded as a commodity, considered a store of wealth, employed in jewelry making and used for many industrial purposes because of its superior electrical conductivity, corrosion resistance and other favorable physical and chemical properties. Computer electronics, satellite communications, green technologies and health care are some areas in which gold is applied.
The price of gold is currently strong, a March 20 Kitco article pointed out, with the spot gold price last trading at US$2,1673 an ounce (US$2,1673/oz).
Streetwise Contributor Chen Lin expects the gold price will keep climbing, he wrote in his March 20 What Is Chen Buying? What Is Chen Selling? newsletter. He predicted the price will break through US$2,200/oz again after which another upleg, to possibly US$2,500, will follow.
Kitco reported on March 15 that analysts purport gold is "just getting started after breaking a years-long consolidation pattern." Analysts are so bullish on the recent breakout because the broader markets are largely ignoring it.
The Catalyst: Resource Estimate
A major event that could move up Dakota Gold's stock is the release of a mineral resource estimate on Richmond Hill, to encompass results of 800 historical drill holes and the company's own drilling. The report is expected shortly after Easter this year.
Company is Buy Rated
Chris Temple, editor/publisher of The National Investor added Dakota Gold to his "roster of growth-oriented stocks as a Buy," he reported on March 12.
The parts of the investment story he highlighted were the company's upcoming Richmond Hills resource estimate, the fact this deposit remains open and the exploration upside potential across Dakota Gold's properties.
"I sense more tantalizing news is ahead on the old Homestake workings as well, including a BRAND NEW aspect to that whole story!" Temple added.
Technical Analyst Clive Maund also recommended Dakota Gold as a Buy, in September 2023, when the stock was US$2.73 per share. Now it is trading even lower.
According to the experts, Dakota Gold warrants a look by investors.
Ownership and Share Structure
According to Reuters, 10 strategic investors own 22.77%, or 54 million (54M) shares, of Dakota Gold. The Top 3, all insiders, are Co-chairman Robert Quartermain with 8.59% or 7.45M shares, President, Chief Executive Officer and Director Jonathan Awde with 6.93% or 6.01M shares and Director, Chief Operating Officer Gerald Aberle (the last mine manager at the Homestake mine) with 3.93% or 4.28M shares.
"We have shareholder alignment with management owning [shares]," Dakota Gold said.
Numerous institutions together own 39.49% or 34.25M shares. The three with the largest stake are Orion Resource Partners LP with 7.69% or 6.67M shares, Fourth Sail Capital LP with 5.33% or 4.62M shares and Van Eck Associates Corp. with 4.02% or 3.48M shares.
Retail investors own the remaining 37.74%.
Dakota Gold has 86.74M outstanding shares and 60.32M free float traded shares.
The company's market cap is US$179.55 million, and its 52-week trading range is US$1.95−3.90 per share.
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