Source: Streetwise Reports
June 9, 2023 (Investorideas.com Newswire) Results from four additional drill holes at its Richmond Hill Project in the historic Homestake District of South Dakota help Dakota Gold Corp. further outline a gold system described as more than a mile in strike length.
Results from four additional drill holes at its Richmond Hill Project in the historic Homestake District of South Dakota have helped Dakota Gold Corp. (DC:NYSE American) further outline a gold system described as more than a mile in strike length.
RH23C-017 continued to expand the mineral amounts of drilling at the Twin Tunnels Breccia by intersecting 0.99 grams per tonne gold (g/t Au) over 93.5 meters, including 1.65 g/t Au over 19.2 meters.
The hole was 500 feet northwest of RH22C-013, which intersected 5.98 g/t Au over 30 meters at the intersection of a dominant north-south structure, confirming the existence of higher-grade gold mineralization.
"Our drilling continues to expand the Richmond Hill mineralization," Vice President of Exploration James M. Berry said. "We are excited to continue the step-out into untested sections of the property, especially where our new geologic understanding of ore controls has greatly improved."
Other assay results included hole RH23C-029, which intersected 0.89 g/t Au over 12.2 meters; hole RH22C-032, which intersected 3.22 g/t Au over 8.3 meters; and hole RH23C-033, which intersected 1.58 g/t Au over 23.6 meters.
RH23C-029, RH23C-032, and RH23C033 were drilled for grade validation and metallurgical test work to support a maiden resource compilation in early 2024.
"Results to date bode well for the next resource update, with indications that Richmond Hill hosts a substantial high-grade gold orebody," Canaccord Genuity analyst Michael Fairbairn wrote of results from the project.
The mineralization is open in all directions, the company said.
Richmond Hill is 2.3 miles west of another of the company's projects in the Homestake District, Maitland.
It's 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.
Dakota Gold continues to have four drills operating on its Homestake District properties, two at Richmond Hill and two at Maitland.
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 the company.
"Results to date bode well for the next resource update, with indications that Richmond Hill hosts a substantial high-grade gold orebody," Canaccord Genuity analyst Michael Fairbairn wrote of results from the project.
The Catalyst: Revitalizing a Legendary District
Much of the land owned by Dakota Gold has not been explored in nearly 30 years, leading experts toward the hope of a large discovery.
"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.
The company said the geologic model for Richmond Hill is evolving as drilling continues.
"Significant gold mineralization is not constrained only to the breccia bodies but also thicker, higher-grade intervals in the Precambrian wall rocks in the form of replacements and in stockworks," it noted in its Thursday release.
The exploration at Richmond Hill continues with step-out drilling to expand the gold system around known breccia pipe bodies and other targets and infill drilling in historical resource areas, the company noted.
The three new infill drilling results were the first assays from more than 32 holes planned, Dakota Gold said. The grade validation/metallurgical drilling at Richmond Hill is now 70% complete and expected to be done in mid-July. Construction of the geologic model for resource estimation is in progress.
Looking to 'Ledges' at Maitland
The company announced last month that it was exploring two overlapping high-grade gold discoveries at the Maitland Gold project.
One of them, the JB Gold Zone, was found drilling 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.
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 10% or 7.34 million shares. President and CEO Jonathan Awde is next at 9%, with 6.71 million, while COO Jerry Aberle holds 6%, with 4.21 million. The remainder of the 30% is held by other members of management and the board of directors.
According to Reuters, about 26.6% of the shares are with institutional investors, including Van Eck Associates with 3.8%, BlackRock Fund Advisors with 3.6%, CI Investments with 3.6%, Fidelity Management with 3.5%, The Vanguard Group with 3.2%, Barrick Gold Corporation with 3%, Medalist Capital with 2.4%, Delbrook Capital with 2%, and Sprott Asset Management with 2%.
About 27.4% is with strategic investors, Reuters said. The largest holding is with Marin Katusa + KCR LLC, which owns 4.9%.
Dakota Gold has a market cap of US$253.43 million, with 75.3 million shares outstanding and 56 million free-floating. It trades in a 52-week range of US$4.69 and US$2.61.
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