Dakota Gold Corp. (DC:NYSE American) announced it has completed its metallurgical testing and validation drilling program at its Richmond Hill Project in the historic Homestake District of South Dakota.
The drill results confirmed the grades and intercept thickness from historical drilling, and several holes exceeded the thickness and grades of the model, indicating untested parts of the system that are open along strike and at a greater depth than understood.
"This new information will be essential for use in future mineral resource estimations," said Dakota Gold Vice President Exploration James Berry. "We continue to be impressed by the size and strength of the Richmond Hill breccia pipe mineralization. Several excellent targets remain outside of our current drilling area, which we think will further expand this unique gold mineral system."
The new information from the core drilling is being used to update the geologic deposit model, which was based on reverse circulation rotary drilling and limited largely to near-surface mineralization in the Cambrian sedimentary section, Berry said.
The Catalyst: 29 Holes
Twenty-nine holes were drilled for the program, ahead of schedule and under budget, the company said. Results from 16 holes have been returned; the data for the last 13 holes are pending.
Among the results released this week included Hole RH23C-036, which intersected 2.06 grams per tonne gold (g/t Au) over 19.8 meters; Hole RH23C-039, which intersected 2.37 g/t Au over 11 meters; Hole RH23C-045, which intersected 0.82 g/t Au over 34.2 meters; and Hole RH23C-046, which intersected 1.44 g/t Au over 29.5 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."
Spring and early summer drilling have been concentrated on validation and metallurgical test work, the company said, although it has extended the mineralization of the gold system, described as more than a mile in strike length.
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.
Drilling at Richmond Hill will now shift to testing beneath the project's historical breccia pipe, other breccias, and structural intersections and targets in the Carbonate Camp area.
"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."
Dakota Gold has four drills operating on its Homestake District properties, two at Richmond Hill and two at the Maitland Gold Project, about 2 miles east.
Looking for a Discovery
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.
The JB Gold Zone could be Dakota Gold's "most significant discovery to date," wrote Fairbairn.
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.
Richmond Hill itself is 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.
Maitland Zone Could Be 'Most Significant' Find to Date
The company said it is also exploring two overlapping high-grade gold discoveries at Maitland. One of them, the JB Gold Zone, was found in drill hole MA23C-017, which intersected 12.51 g/t Au over 4.7 meters in the same mineralization style as the Homestake Mine.
Fairbairn wrote that Dakota Gold could advance the JB discovery to a "substantial, high-grade deposit" if additional drilling demonstrates it as a new "ledge."
"The majority of the production from the historic Homestake Mine came from long tube-like structures running along iron-formation hinges that the miners named 'Ledges,'" Fairbairn wrote. "Once high-grade mineralization was found in a hinge (or Ledge), the miners were able to follow it down plunge, often extracting material amounts of gold."
The JB Gold Zone could be Dakota Gold's "most significant discovery to date," wrote Fairbairn.
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 9.75% or 7.34 million shares, Reuters said. President and CEO Jonathan Awde is next at 8.21%, with 6.18 million, while COO Jerry Aberle holds 5.57%, with 4.2 million. The remainder of the 30% is held by other members of management and the board of directors.
About 26.6% of the shares are with institutional investors. According to Reuters, those include Van Eck Associates with 4.1%, The Vanguard Group Inc. with 3.51%, Blackrock Institutional Trust Co. with 3.49%, and Sprott Asset Management LLP with 1.74%.
About 27.4% is with strategic investors, including Barrick Gold Corp., which owns 3%. The rest is retail.
Dakota Gold has a market cap of US$213.89 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.
Sign up for our FREE newsletter
Important Disclosures:
- Dakota Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 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.
For additional disclosures, please click here.
