Dakota Gold Corp. (DC:NYSE American) continues to expand the gold mineralization of the Unionville Zone at its Maitland Gold Project in the Homestake District of South Dakota.
Drill hole MA22C-007 intersected 7.19 grams per tonne gold (g/t Au) over 7 meters and was designed to test the formation south of previous drilling. It likely extended the Unionville Zone farther to the south. Mineralization is open in both directions, the company said.
The drill hole also intersected 5.37 g/t Au over 1.4 meters of Homestake-style gold mineralization.
"The Maitland drill program continues to yield encouraging results for Homestake-style gold mineralization beyond the prolific and historic Homestake Mine," Vice President of Exploration James M. Berry said. "The company continues to vector towards discovering wider and higher-grade zones."
"The best place to find a new gold mine is in the shadow of the head frame of an existing gold mine," geologist and investment analyst Matt Badiali has told Streetwise Reports.
The company, headed by Robert Quartermain and Jonathan Awde, is exploring 46,000 acres surrounding the historic Homestake Mine, which it acquired and consolidated over the past decade. Homestake Mine produced more than 40 million ounces (Moz) Au over its lifetime.
"The best place to find a new gold mine is in the shadow of the head frame of an existing gold mine," geologist and investment analyst Matt Badiali has told Streetwise Reports.
Dakota Gold is also backed by industry giant Barrick Gold Corp. (ABX:TSX; GOLD:NYSE)
Canaccord Genuity analyst Michael Fairbairn agreed with Badiali. In a January research note, he wrote that the "upside potential could be significant" for Dakota Gold. He rated the stock a Speculative Buy with a US$5 per share target.
"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 Catalyst: Four Drills Turning at Two Sites
Dakota Gold is operating four drills in the district, two at Maitland and another two at its Richmond Hill project, which is about 2.3 miles west of Maitland.
The results from another drill hole at Maitland, MA22C-009, showed gold mineralization similar to the Homestake Mine in the lower portion, the company said. The drill hole returned 5.78 g/t Aug over 4.4 meters.
Drill hole MA22C-008 was designed to test north of drill holes MA22C-002 and MA22C-003. It intersected 3.85 g/t Au over 8.1 meters and 1.23 g/t Au over 5.9 meters, the company said.
Canaccord Genuity analyst Michael Fairbairn wrote that the "upside potential could be significant" for Dakota Gold.
Drill hole MA23C-010, which was meant to test the Unionville Zone north of MA22C-009, intersected 2.4 g/t Au over 16.5 meters and 3.68 g/t Au over 4.3 meters.
President and Chief Executive Officer Jonathan Awde has said he was "extremely encouraged by this prospect" of Maitland.
"We believe we are on the cusp of vectoring toward higher grades and on making a discovery with Maitland," he said.
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.
New Record Prices Possible
Gold has risen to about US$2,000 an ounce, and some analysts say it's only a matter of time before it surpasses US$2,100.
The move to the metal is driven by "economic uncertainty, a weaker dollar, and inflation," experts say.
"The 'safe haven' commodity's price is driven by a number of factors which are all working in gold's favor at the moment," according to Forbes. "It's leading some experts to draw the conclusion that we could see gold prices continue to break their own records in 2023 and beyond."
The precious metal has many uses beyond jewelry. About 11% of gold produced is used in industry. It does not react with other substances and is often used in medical devices to prevent infection. It's also an excellent conductor of heat and electricity and is used in the electronics, automotive, defense, and aerospace industries.
Streetwise Ownership Overview*
Dakota Gold Corp. (DC:NYSE American)
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$263.5 million, with 75.3 million shares outstanding, and 55.8 million free-floating. It trades in a 52-week range of US$8.47 and US$2.61.
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Disclosures:
1) Steve Sobek wrote this article for Streetwise Reports LLC. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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4) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. 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. and Barrick Gold Corp., companies mentioned in this article.
