Dakota Gold Corp. (DC:NYSE American) announced that it continues to discover gold mineralization at its Maitland Gold Project in the historic Black Hills of South Dakota. Find out why one expert considers this company “the real deal.”
Dakota Gold Corp. announced that it continues to find gold mineralization associated with the Unionville Zone on its Maitland Gold Project in the Historic Homestake District of South Dakota.
Assay results from drillhole MA24C-040 located more than 1,400 meters north of the Unionville Zone discovery support the hypothesis that potential for tertiary mineralization exists throughout the project, said the company in a press release.
“Dakota Gold has now identified gold mineralization from surface across the entire stratigraphic sequence to Precambrian basement,” said Vice President of Exploration James Berry. “The gold mineralization occurs in numerous north-south parallel structures and is relatively shallow with locally high grades and has strong potential to be developed into an economic deposit with further work.”
Drill hole MA24C-040 intersected 3.94 grams/tonne gold (g/t Au) over 9.3 meters of tertiary mineralization 148 meters below surface, the company said. Mineralization is open to the north, south and at depth.
Holes MA24C-041 and MA24C-042, located in the central part of the Unionville zone, intersected higher grade intersections, including 4.08 g/t Au over 2.7 meters and 7.37 g/t respectively. Au over 1 meter of tertiary epithermal mineralization.
Canaccord Genuity analyst Peter Bell noted in an updated research note Thursday that tertiary epithermal mineralization “is yet another exploration target that has the potential to add ounces to the Unionville zone.”
“The results are consistent with what we expected, showing long intersections of mineralization, suggesting continuity between widely spaced previous holes,” Bell wrote.
He noted that the results only tested a little more than a third of the possible 3,000 meters of Tertiary epithermal mineralization.
Historic mine produced millions of ounces of gold and silver
The Maitland mine produced over 20,000 ounces of Tertiary gold before 1945 when it was closed due to the Second World War. According to the company, many structures, including the historic Maitland Mine structure, have not yet been laterally tested and illustrate the project's broader potential.
Last month, the company's shares jumped when it announced it had discovered three distinct ledges of high-grade Homestake Mine-type gold mineralization at Maitland.
The historic Homestake Mine, approximately 3 miles south of Maitland, produced 41 million ounces of gold (Moz Au) and 9 Moz of silver (Ag) over 126 years.
Canaccord Genuity analyst Peter Bell noted in an updated research note Thursday that tertiary epithermal mineralization “is yet another exploration target that has the potential to add ounces to the Unionville zone.”
The company owns 48,000 acres of property surrounding the original Homestake Mine, which was first discovered in 1876 and consolidated by George Hearst. It currently has four drills on its properties in the district, including Maitland and Richmond Hill, 2.3 miles to the west.
Chris Temple, editor-in-chief of The national investor, recently added Dakota Gold to its list of recommended stocks. He visited the region in 2021.
“Over the course of this journey – and as a multi-faceted exploration plan has developed since – I have become more and more convinced that this is the real deal,” Temple said of Dakota. “Indeed – as I will tell you more about in the near future – the exploration potential has proven to be greater than initially thought.”
The combination of Maitland and Richmond Hill “gives investors exposure to an ongoing development project, with high quality exploration, in our view,” Bell wrote of the company.
The catalyst: a first resource for Richmond Hill
Most recently, Dakota released his initial assessment first resource estimate for its Richmond Hill gold project which noted 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.
Chris Temple, editor-in-chief of The national investorrecently added Dakota Gold to its list of recommended stocks.
“It has been two years since Dakota began drilling Richmond Hill and, from the looks of it, the effort has paid off in this first resource estimate, in our opinion.” » wrote Bell of Canaccord. “Richmond Hill has a global resource of 109.9 Mt grading 0.70 g/t Au containing 2.46 Moz gold.”
The report states that the mineralization is very shallow, with parts of the resource exposed at surface. “Pending further review of the technical report, we are positive about the results,” he wrote.
The first resource comes from a historical database containing 69,401 gold assays from more than 900 drill holes, including 57 drill holes from Dakota Gold's current drilling program, the company said.
“Dakota Gold has performed quite well since it was recommended on the site on April 4,” the technical analyst said. Clive Maund wrote after the release of the MRE. “At first glance, this news could really 'light a fire' under the title.”
Shareholding and sharing structure
According to the company, about 25% of its shares are owned by management and insiders.
Excluding management, Quartermain owns the most shares at 8.43%, followed by Awde with 6.82%, while COO Jerry Aberle owns 4.85%, according to Reuters.
About 26% of the shares are owned by institutional investors, according to filings by Yahoo Finance and Edgar. Major institutional holders include Fourth Sail Capital with 5.27%, Van Eck Associates with 3.97%, Blackrock Institutional Trust Co. with 3.65%, The Vanguard Group Inc. with approximately 3.15%, Fidelity Management and Research Co. LLC with 2.71% and CI. Global Asset Management with 2.63%, Reuters reported.
About 16.5% is owned by strategic investors, including Orion Mine Finance, which owns about 7.6%, and Barrick Gold Corp., which owns about 3%. The rest is retail.
Dakota Gold has a market capitalization of US$268.33 million, with 87.7 million shares outstanding. It trades in a 52-week range of US$3.49 to US$1.95.
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Important Disclosures:
- Dakota Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee of 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 households) own securities of Dakota Gold Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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