Dakota Gold Corp.'s (DC:NYSE American) first five holes drilled at its Richmond Hill project in South Dakota's prolific Homestake District all returned mineralization and thus highlight the prospectivity there, reported Canaccord Genuity analyst Michael Fairbairn in a Dec. 8 research note.
"These five initial holes out of Richmond Hill offer evidence of the strong overall exploration potential from multiple styles of mineralization and targets across the property," Fairbairn wrote.
Signs of Sulfide Gold System
New results corroborate historical data that indicate a large sulfide gold system is present at Twin Tunnels. Specifically, three holes Dakota recently drilled there encountered greater than 1 gram per ton gold (1 g/t Au) over 30 meters (30m). They are:
- RH22C-003: 30.7m of 1.45 g/t Au
- RH22C-004: 44.1m of 1.05 g/t Au; the hole showed the sulfide system may extend below where mineralization was intercepted at about 400m downhole, and it remains open at depth
- RH22C-005: 39.1 m of 1.14 g/t Au; the hole remains open at depth
Potential for Iron-Formation Gold
A fourth hole generated a new Homestake-style target. RH22C-001, drilled to the north of the MW3 East target area, returned 8m of 1.07 g/t Au.
This is noteworthy because Dakota believes the property likely hosts iron-formation gold mineralization like that historically produced at the Homestake mine, and not much exploration for this type of mineralization has been done on Dakota's property in the past, Fairbairn wrote. The Homestake mine produced 40,000,000 ounces of about 7.5 g/t gold for roughly 125 years.
"The potential for Homestake-style mineralization at Richmond Hill [was] a key part of Dakota Gold's thesis in optioning Richmond Hill," the analyst added.
Aims of Continued Drilling
The U.S.-based explorer-developer keeps drilling with two rigs at Richmond Hill; the $3.1 million phase one program aims to cover about 7,000m. The objectives are to test for Homestake-style mineralization at depth and to upgrade and expand historical resources to meet S-K 1300 requirements.
Dakota has two active rigs at its Maitland property, too, and is drilling there for the same reasons.
Canaccord Genuity has a Speculative Buy rating and a $4.75 per share target price on Dakota, the current share price of which is about $3.20.
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Disclosures For Canaccord Genuity Corp., Dakota Gold Corp., December 8 2022
Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research, and (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer.
Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity LLC and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.
Required Company-Specific Disclosures (as of date of this publication): Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from Dakota Gold Corp. in the next three months. An analyst has visited the material operations of Dakota Gold Corp.. Partial payment was received for the related travel costs.
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