Gold Co. Announces Resource Expansion Results in Historic Mining District
Dakota Gold Corp. (DC:NYSE American) announces results from 17 holes in its bid to expand the maiden resource at its Richmond Hill Gold Project in the historic Homestake District of South Dakota. One analyst believes the results support expansion for future resource estimates.
Dakota Gold Corp. (DC:NYSE American) announced drill results from the first 17 holes of its ongoing infill drilling program to expand the maiden resource at its Richmond Hill Gold Project in the historic Homestake District of South Dakota.
An updated S-K 1300 resource estimate is planned for Q1 2025 and a S-K 1300 Initial Assessment with cashflow analysis is planned for Q2 2025, the company said in a release. The expanded resource is expected to include an additional 88 new drill holes totaling 17,000 meters.
"The highlight of this morning's release was (hole) RH24C-099, which was drilled in the Twin Tunnels Zone and returned 1.15 g/t Au (grams per tonne gold) over 51.7 meters from 132.9 meters," wrote Canaccord Genuity Capital Markets Analyst Peter Bell in an updated research note on Monday. "The results this morning were consistent with the current resource at Richmond Hill, with many cases reporting higher-than-average grades."
Bell said the firm was encouraged by the results, "which we believe provide support for expansion in future resource estimates. With infill and step out drilling at Richmond Hill being just one of three ongoing drill programs currently underway at Dakota, underscoring the company's emphasis on exploration and expansion."
Drilling Is 'Adding Ounces'
The maiden S-K 1300 resource, announced in April, outlined an Indicated Resource of 51.83 million tonnes (Mt) at 0.80 g/t Au for 1.33 million ounces (Moz) and Inferred Resource of 58.06 Mt at 0.61 g/t Au for 1.13 Moz., the company said.
The initial infill drill results release released Monday encountered further gold mineralization from the central portion of the Richmond Hill resource area consistent with results reported in the maiden resource, Dakota said. The drilling was conducted in areas where the original resource block model contained gaps to support the company's belief that the initial resource could be significantly expanded with additional infill drilling.
Highlights of the results include:
Hole RH24C-077: 0.76 g/t Au over 24.4 metersHole RH24C-083: 0.70 g/t Au over 13.8 metersHole RH24C-085: 1.10 g/t Au over 17.9 metersHole RH24C-088A: 0.96 g/t Au over 41.5 metersHole RH24C-099: 1.15 g/t Au over 51.7 metersDakota said the resource remained open in all directions and could be improved with more drilling, metallurgical work, and incorporation of silver into the resource.
"We are very pleased to see that initial results from our infill drill program are adding ounces to our current S-K 1300 resource," said Dakota Vice President of Exploration James Berry. "The results to date show grades and widths consistent with drill holes in the original block model and support an expansion of gold mineralization, including shallow oxide mineralization. We look forward to continuing our infill program on the other zones identified in our Initial assessment for follow-up drilling."
'Vastly Unexplored' District
The historic Homestake Mine produced 41 Moz Au and 9 Moz silver (Ag) over 126 years. The company has 48,000 acres of holdings surrounding the original mine, which was first discovered in 1876 and consolidated by George Hearst.
Areas surrounding "super-giant deposits" like Homestake are believed to contain significant additional gold resources, wrote John Newell wrote.Areas surrounding "super-giant deposits" like Homestake are believed to contain significant additional gold resources, wrote John Newell of John Newell & Associates this week for a Streetwise Reports piece on the legacy of the famous mine.
"Super-giant deposits are characterized by clusters of geologically similar deposits within several hundred square kilometers, defining profoundly mineralized regions," Newell wrote. "It is believed that at least twice that amount of gold exists in the neighborhood of these super giants. If that is true, then there are at least 100 Moz of gold left to be found in this vastly underexplored precious metal district of South Dakota."
This proximity to a super-giant "suggests a high potential for similar deposits," Newell wrote. "Being in the shadow of many old mines increases the probability of finding significant mineral resources."
The Catalyst: Gold Continues Bull Market
After hitting a record high of US$2,790.15 per ounce on Thursday, spot gold was up 0.1% to US$2,737.35 on Monday afternoon, according to Reuters.
Investors were keeping a close on Tuesday's presidential election in the U.S. and the Federal Reserve's meeting later this week, Anjana Anil reported.
"A Reuters/Ipsos poll conducted last month found worries that the U.S. could see a repeat of the unrest that followed Trump's 2020 election defeat, when his false claim that his loss was the result of fraud prompted hundreds to storm the U.S. Capitol," Anil wrote.
Gold's rise has "resulted in big returns for the investors who bought in earlier this year," Angelica Leicht reported for CBS News last month. "For example, the investors who purchased gold in March when it hit US$2,160 per ounce have seen their gold values increase by nearly 27% in the time since. That's a huge uptick in value in a matter of months, especially on an asset that's known more for long-term growth."
Recently polled London Bullion Market Association members indicated they believe the gold price could reach US$2,940/oz during 2025, reported Stockhead on Oct. 28.
"Combined with expectations of lower global interest rates, this further enhances gold's attractiveness as an investment," the article noted.
Streetwise Ownership Overview*
Dakota Gold Corp. (DC:NYSEAmerican)
*Share Structureas of 11/5/2024Source: Dakota Gold Corp.As for gold equities, the S&P/TSX Venture Composite Index (SPCDNX) confirmed a multidecade bull run for junior, intermediate, and senior mining stocks when it closed above 1,000 recently, Stewart Thomson with 321Gold wrote. The index is a key indicator of the health of the general gold, silver, and mining stocks market.
Ownership and Share Structure
According to the company, approximately 25% of its shares are with management and insiders.
Out of management, Co-chairman, Director, President and Chief Executive Officer Robert Quartermain holds the most shares at 8.4%, while COO Jerry Aberle holds 4.8%, the company said.
About 26% of the shares are with institutional investors, according to Yahoo Finance and Edgar filings. Top institutional holders include Fourth Sail Capital with 5.3%, Van Eck Associates with 4.1%, Blackrock Institutional Trust Co. with 3.7%, The Vanguard Group Inc. with about 3.2%, Fidelity Management and Research Co. LLC with 2.7%, and CI Global Asset Management with 2.6%.
About 16.5% is with strategic investors, including Orion Mine Finance, which owns about 9.9%, and Barrick Gold Corp., which owns about 2.5%. The rest is retail.
Dakota Gold has a market cap of US$212.61 million, with 93.66 million shares outstanding. It trades in a 52-week range of US$3.25 and US$1.84.
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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.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.For additional disclosures, please click here.