Dakota Gold Corp. (DC:NYSE American) announced assay results from 12 additional drill holes from its Richmond Hill gold project in South Dakota that returned "thick intervals, above average grades" that define "a significant large block of mineralization not previously identified."
One drill hole, RH23C-070, intersected 1.71 grams per tonne gold (g/t Au) over 42.8 meters. Another, RH23C-063, intersected 1.99 g/t Au over 22.9 meters.
"With each drill hole, the potential Richmond Hill resource continues to grow," said Dakota Gold Vice President Exploration James Berry. "The shallow mineralization is open and we are finding better grades in zones internal and external to the global resource area, which will improve the ultimate economics of the project. Once we finish the initial Richmond Hill maiden S-K 1300 resource estimate in Q1 2024, work will begin to expand it using the great results reported here today."
Dakota Gold is exploring the 46,000 acres it has acquired and consolidated over the past decade surrounding the Homestake Mine, including its Richmond Hill and Maitland projects.
Once called the "Richest 100 Square Miles" on Earth, Homestake was discovered in 1876 and consolidated by George Hearst. Over 126 years, miners extracted 41 million ounces (Moz) Au and 9 Moz silver (Ag) from the site. Industry giant Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) also backs Dakota Gold.
The Catalyst: Maiden Resource Expected
The drill results released Wednesday are from two separate zones: north of the Richmond Hill Breccia Pipe and the MW3 Zone.
"The north Richmond Hill Breccia Pipe drilling expands mineralization into previously less explored areas adjacent to the historical Richmond Hill Mine. The drill holes in the MW3 Zone confirm and expand historical resources, extend mineralization along strike and to depth, and have identified a high-grade, near-surface structural zone," the company said in a release.
The Richmond Hill Breccia Pipe Zone drill holes RH23C-060, RH23C-061, and RH23C-062 were step out drill holes north of RH23C-059. The company reported results in a news release on Nov. 21, 2023, highlighting drill hole RH23C-059 intersecting 8.55 grams/tonne over 5.9 meters. RH23C-061 returned three significant intervals in the upper parts of the drill hole: 0.82 g/t Au over 17.5 meters, 2.06 g/t Au over 3.9 meters, and 3.94 g/t Au over 4.4 meters. This zone appears to be an extension of the higher-grade interval identified in RH23C-059, located approximately 300 feet to the south, and if verified, could potentially expand the area of new higher-grade mineralization, the company said.
RH23C-070 and RH23C-063 were both from the MW3 Zone, where several holes returned thick intervals with higher grades that surround and expand a mineral zone defined in hole RH23C-016 with an average grade of 0.95 g/t Au over 306.9 meters.
The results from both areas were returned after the cutoff date for inclusion in the Richmond Hill maiden resource, expected to be completed in the first quarter of 2024.
New Discovery: Rare Earth Elements
Just last month, Dakota Gold announced another big find at Richmond Hill: important rare earth elements (REEs) vital to the new clean energy economy that could open new economic opportunities for the company.
Like the drill hole results released Wednesday, the REEs will not be included in the maiden resource, but "work has begun to characterize the distribution of (REEs) as well as the mineralogy of the system, which may be useful in assessing the potential economic contribution to the Richmond Hill Gold Project."
China is responsible for two-thirds of current REE mine production and more than 85% of the refined output of REEs. For that reason, the U.S. Department of Energy has announced more than US$200 million in grants for REE projects — US$32 million last July, US$30 million in August, and US$150 million in September. Dakota Gold also noted that "the United States has begun prioritizing the permitting of critical mineral exploration and mining projects."
Dakota Gold President and Chief Executive Officer Jonathan Awde said the discovery may reduce permitting timelines and help the company reach new investors.
"Can this expand our investor universe of people who would eventually care about Dakota Gold?" Awde said. "This could potentially open investor interest in Dakota Gold to those who follow REE companies."
REEs are used for everything from purifying water to MRIs, fertilizers, weapons, scientific research, wind turbines, computers, and permanent magnet motors for electric vehicles (EVs). Developing a new mine can take years, and China has been escalating a standoff with the West.
"The U.S. Department of Defense and Department of Energy are prioritizing REEs," analyst Michael Gray of Agentis Capital wrote in a January 31 research note.
Gray also noted that Richmond Hill is about 45 kilometers east of Rare Element Resources Ltd.'s (REEMF:OTCQX ) Bear Lodge project in Wyoming.
Streetwise Ownership Overview*
Dakota Gold Corp. (DC:NYSE American)
Ownership and Share Structure
According to the company, approximately 25% of its shares are with management and insiders.
Out of management, Co-Chairman Robert Quartermain holds the most shares at 8.51% or 7.38 million shares, President and CEO Jonathan Awde is next at 6.8%, with 5.93 million shares, while COO Jerry Aberle holds 4.9%, with 4.21 million. The remainder of the 25% is held by other members of management and the board of directors.
About 26% of the shares are with institutional investors, according to Yahoo Finance and Edgar filings. Top institutional holders include Fourth Sail Capital with 5.33%, Van Eck Associates with 4.02%, Blackrock Institutional Trust Co. with 3.69%, The Vanguard Group Inc. with about 3.19%, Fidelity Management and Research Co. LLC with 2.74%, and CI Investments, Inc. with 2.66%.
About 16.5% is with strategic investors, including Orion Mine Finance, which owns about 7.7%, and Barrick Gold Corp. (ABX:TSX; GOLD:NYSE), which owns about 3%. The rest is retail.
Dakota Gold has a market cap of US$178 million, with 99.9 million shares outstanding. It trades in a 52-week range of US$3.945 and US$1.9499.
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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.
- This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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