Results Show Gold System Extends for Kilometers Near Historic Mine
Dakota Gold Corp. (DC:NYSE American) says new drilling results have expanded the areas of continuous Tertiary epithermal gold mineralization in the historic Homestake District of South Dakota. The company said the system could reach as far as several kilometers.
Dakota Gold Corp. (DC:NYSE American) announced that new drilling results have expanded the areas of continuous Tertiary epithermal gold mineralization in the historic Homestake District of South Dakota.
The exploration drilling at the Unionville Zone of the company's Maitland Gold Project confirmed the zone's target extension strike extends for at least 2,000 meters and could reach as far as 3,000 meters with the inclusion of rock chip samples.
"These results continue to confirm our belief that the Tertiary epithermal system at Maitland is comprised of multiple structures across a broad area extending over several kilometers," said Vice President Exploration James Berry. "As we continue to explore this area for deeper Homestake Mine-Style gold mineralization targets, we expect to encounter additional higher-grade Tertiary epithermal mineralization at the same time."
The company has a high probability of encountering both types of gold mineralization with every test hole at Maitland, which "provides excellent optionality and value in our exploration programs," Berry noted.
Canaccord Genuity Capital Markets Analyst Peter Bell wrote in an August 22 updated research note that drilling for shallow gold mineralization at Maitland is "one of three ongoing programs being advanced by the company the other two being deeper high-grade gold mineralization at the JB Gold Zone and the infill and step-out drilling at the Richmond Hill Gold Project to update the S-K 1300 resource estimate."
The primary target, Bell noted, is "deeper Homestake-style mineralization at depth."
"Shallower Tertiary mineralization sits above it, and these results are within this target type," Bell continued. "This is a benefit of having two target types over the whole property. Dakota benefits from shallow Tertiary-aged gold, similar to Coeur Mining Inc.'s (CDE:NYSE) Wharf Mine and deeper mineralization of the style of the historical Homestake Mine."
Assays From Four Holes Released
Among the new results released from the four additional drill holes at Unionville drill hole MA24C-053 intersected 2.85 grams per tonne gold (g/t Au) over 13.7 meters and 1.44 g/t Au over 23.0 meters, and MA24C-048 intersected multiple sections of gold mineralization including 4.34 g/t Au over 7 meters of Tertiary epithermal mineralization.
Both of those holes were located within the central portion of the Unionville Zone at shallow depths, the company noted.
Canaccord Genuity Capital Markets Analyst Peter Bell wrote that drilling for shallow gold mineralization at Maitland is "one of three ongoing programs being advanced by the company the other two being deeper high-grade gold mineralization at the JB Gold Zone and the infill and step-out drilling at the Richmond Hill Gold Project to update the S-K 1300 resource estimate."Drill hole MA24C-047, the northernmost drill hole completed to date, intersected 4.73 g/t Au over 3.6 meters of "deeper, higher-grade Tertiary epithermal mineralization more than 2 kilometers north of the main Unionville Zone discovery," Dakota said in the release.
"MA24C-047 extends the mineralization approximately 200 meters past the previously announced step-out drill hole, MA24C-040," the company said. "Tertiary epithermal gold mineralization remains open in all directions at Maitland."
Earlier assay results from step-out drill hole MA24C-040, which is more than 1,400 meters north of the Unionville Zone discovery area, supported the premise that Tertiary mineralization potential exists throughout the project, the company has said.
That hole intersected 3.94 g/t Au over 9.3 meters of Tertiary mineralization 148 meters below the surface, the company said.
Dakota also recently released its initial assessment maiden resource estimate for Richmond Hill that noted an Indicated Resource of 51.83 million tonnes (Mt) at 0.8 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.
Super-Giant Deposits
The historic Homestake Mine, about 3 miles south of Maitland, produced 41 million ounces gold (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. It currently has four drills at its properties in the district.
Areas surrounding "super-giant deposits" like Homestake are believed to contain significant additional gold resources, wrote John Newell of RSD Discovery Group 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 Maitland mine produced more than 200,000 ounces of Tertiary gold before 1945 when it was closed because of World War II. According to the company, numerous structures, including the historical Maitland Mine structure, remain untested along strike and illustrate the larger potential of the project.
The Catalyst: Gold Bars Hit US$1M
Gold prices hit a fresh high this week on increasing hopes of U.S. interest rate cuts, hitting US$2,531.60 an ounce on Tuesday and pushing the price of a gold bar (which generally weighs 400 troy ounces) to more than US$1 million, The Guardian reported.
Some experts expect it to go even higher. In a Soar Financially YouTube video, Bloomberg Senior Commodity Strategist Mike McGlone predicted that it would only be "a matter of time" before gold hits US$3,000.
Antonio Ernesto Di Giacomo, a senior market analyst at XS, a trading platform, said that the surge in gold prices reflected a "rise in uncertainty and investors' flight to safe havens," as well as the prospect of interest rate cuts from the Fed, Jasper Jolly wrote for The Guardian on August 20.
"The historic rise in the price of gold above (US)$2,500 per ounce reflects growing global economic uncertainty and investors' continued search for safety," he said. "With economic, geopolitical, and monetary factors driving this surge, gold is solidifying its position as a safe haven in times of volatility."
Streetwise Ownership Overview*
Dakota Gold Corp. (DC:NYSE American)
*Share Structureas of 1/16/2024Source: Dakota Gold Corp.Also having a major effect is the increasing role of central banks buying the metal. The World Gold Council's 2024 Central Banks Gold Reserves Survey showed four in five respondents expected reserve managers to increase their gold holdings in the next year, the website reported, according to a report by Stockhead on June 18.
Ownership and Share Structure
According to the company, approximately 25% of its shares are with management and insiders.
Out of management, Quartermain holds the most shares at 8.4%, Awde is next at 6.8%, 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$203.24 million, with 87.7 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.