Dakota Gold Co. Reports Even More Resource Expansion Results in Historic Mining District
Dakota Gold Corp. (DC:NYSE American) has announced further resource expansion at Richmond Hill with step-out drilling results. Read on to see what the company has planned for Richmond Hill and why two analyst are optimistic about the gold company.
Dakota Gold Corp. (DC:NYSE American) announced the results of 13 more holes from its infill and step-out drilling program to expand the maiden resource for its Richmond Hill Gold Project in South Dakota's historic Homestake District. The company has been moving swiftly, announcing 15 holes earlier this month.
The new results will be incorporated into an updated S-K 1300 Initial Assessment in the first quarter of next year.
The maiden S-K 1300 resource announced last April outlined an indicated resource of 51.83 million tonnes (Mt) at 0.8 grams per tonne gold (g/t Au) for 1.33 million ounces (Moz) and an inferred resource of 58.06 Mt at 0.61 g/t Au for 1.13 Moz.
"The Richmond Hill Oxide Heap Leach Gold Project continues to exceed our expectations," Co-Chair, President and Chief Executive Officer Dr. Robert Quartermain said. "We will complete our drill campaign at Richmond Hill this month, and we expect to see an appropriate increase in our planned resource update, which Dakota Gold will announce in approximately 10 weeks."
The new drill results are from the northeast corner of the Richmond Hill resource area known as Chism Gulch, where there has been limited drill testing by the Dakota. Results to date show areas of mineralization where the grade and width are higher in average than the results reported in the maiden resource.
Highlighted intersections include:
Hole RH24C-110 intersected 4.14 g/t Au over 10.2 metersHole RH24C-115 intersected 1.84 g/t Au over 10.5 metersHole RH24C-118 intersected 1.99 g/t Au over 13.4 metersQuartermain said the company saw Richmond Hill as a "low cost surface oxide heap leach operation" like the nearby Wharf Mine operated by Coeur Mining, which is located in an existing mining camp with available infrastructure.
"The operation will be a 15 to 20 minute drive from our head office in Lead, South Dakota, where we have an expert team who can advance the project along the production track, all the while unlocking value at our adjacent Maitland project," Quartermain said.
The Probability of Finding Significant Minerals Resources
The historic Homestake Mine produced 41 Moz (million ounces) 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.
In a July article, John Newell of John Newell & Associates detailed his view of the Homestake District. He wrote, "The area surrounding super giant deposits like Homestake is believed to contain significant additional gold resources, making it prime real estate for exploration." He continued, "The Dakota Gold project is located near the Homestake Mine, which historically produced more than 40 million ounces of gold. This proximity suggests a high potential for similar deposits. Being in the shadow of many old mines increases the probability of finding significant mineral resources."
Will Gold Rise By Multiples?
According to Jordan Roy-Byrne of The Daily Gold, at the start of the year, "Gold broke out from a 13-year cup and handle pattern earlier this year to a new all-time high and advanced to US$2800/oz." However, this light was stamped out by the influx of crypto popularity and the "secular bull market." Still, while "gold and silver have yet to make progress against the conventional investment portfolio (the 60/40 portfolio) in the last 6 years . . . they have yet to make a higher high since the secular bear market began at the end of 2011."
In a November 26 update, BMO Capital Market's analyst Andrew Mikitchook maintained both his outperform rating and US$6.00 target price.Roy-Bryne commented that gold and silver are still cheap, while they have advanced in the past few years. He continued, "The secular bull market in precious metals has barely started. When Gold begins to outperform the 60/40 portfolio and stock market in earnest, Gold and precious metals will have moved beyond the ground floor. Until then, one can position in quality junior companies that will lead the next leg higher."
In a video by Jeffrey Christian of CPM Group, Christian discussed his outlook for precious metals in light of Donald Trump's tariff plans. In the video, Christian predicts a recession and says that he believes gold and silver will be a great investment in 2025.
In a November 26 newsletter, Egon von Greyerz of Von Greyerz: Gold Switzerland wrote that he believes that "gold will rise by multiples. " He wrote that gold would rise due to a myriad of factors, including ongoing wars, inflation rises due to increasing debt and deficits, increased gold buying by Central Banks, and the BRICS countries' decision to continue to buy more gold.
Catalysts
As said in the above release, Dakota Gold expects to finish its drill campaign at Richmond Hill in November. The release noted that the company plans to increase its planned resource update, which will be announced in around 10 weeks.
According to the company, an updated S-K 1300 Initial Assessment and Initial Assessment with Cash Flow Analysis for the Richmond Hill Gold Project will be coming in Q1 and Q2 of 2025, respectively.
On page 9 of Dakota's investor presentation, the company lays out its plans for Richmond Hill. Dakota estimates a feasibility study for Richmond Hill in 2026, with baseline data collection and permitting through 2028 and construction and production by 2029.
In a November 14 research note, Peter Bell of Canaccord Genuity maintained his Speculative Buy rating on the company and gave it a target price of US$7.25. Regarding Richmond Hill's potential, Bell noted that "Richmond Hill currently showcases a global resource of 109.9Mt grading 0.70g/t Au containing 2.46Moz of gold."
The same day, BMO Capital Market's analyst Andrew Mikitchook gave Dakota Gold an Outperform rating with a target price of US$6.00. In his report, Mikitchook stated, "With drilling ongoing, we expect a steady stream of results in the near term." He also pointed out that "Dakota also continues to drill Homestake-style mineralization at JB Gold Zone and Tertiary epithermal gold mineralization in the Unionville Zone at Maitland."
In a November 26 update, Mikitchook maintained both his outperform rating and US$6.00 target price.
Streetwise Ownership Overview*
Dakota Gold Corp. (DC:NYSEAmerican)
*Share Structureas of 11/18/2024Source: Dakota Gold Corp.Ownership and Share Structure
About 25% of the company's shares are with management and insiders, including Co-chairman, Director, President and Chief Executive Officer Robert Quartermain, who holds the most shares at 7.9%, while COO Jerry Aberle holds 4.5%, the company said.
About 26% of its shares are with institutional investors. Top institutional holders include Fourth Sail Capital with 3.9%, Van Eck Associates with 3.7%, Blackrock Institutional Trust Co. with 3.9%, The Vanguard Group Inc. with about 3.6%, Fidelity Management and Research Co. LLC with 2.8%, and CI Global Asset Management with 2.4%.
About 16.5% is with strategic investors, including Orion Mine Finance, which owns about 9.6%, and Barrick Gold Corp., which owns about 2.3%. The rest is retail.
Dakota Gold has a market cap of US$206.8 million, with 93.7 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.