More Gold Mineralization Found Near Historic South Dakota Mine

Dakota Gold Corp. (DC:NYSE American) announced it continues to find gold mineralization associated with the Unionville Zone at its Maitland Gold Project in the historic Homestake District of South Dakota.

Assay results from step-out drill hole MA24C-040 more than 1,400 meters north of the Unionville Zone discovery area support the premise that Tertiary mineralization potential exists throughout the project, the company said in a release.

"Dakota Gold has now identified gold mineralization from surface through the entire stratigraphic sequence into the Pre-Cambrian basement," said Vice President Exploration James Berry. "Gold mineralization occurs in numerous parallel north-south structures and is relatively shallow with locally high grades and has high 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 the surface, the company said. Mineralization is open north, south and to depth.

Holes MA24C-041 and MA24C-042, located in the central part of the Unionville Zone, returned higher-grade intercepts, including 4.08 g/t Au over 2.7 meters and 7.37 g/t Au over 1 meter of Tertiary epithermal mineralization, respectively.

Analyst Peter Bell with Canaccord Genuity noted in an updated research note on Thursday that the Tertiary epithermal mineralization "is yet another exploration target that has potential for adding ounces to the Unionville Zone."

"The results are consistent with what we have come to expect, showing long intercepts of mineralization, suggesting continuity between previous wide-spaced holes," Bell wrote.

He noted that the results have only tested just over one-third of a possible 3,000 meters of Tertiary epithermal mineralization there.

Historic Mine Produced Millions of Ounces of Gold, Silver

The Maitland Mine produced more than 20,000 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.

Last month, the company's stock jumped when it announced it had found three distinct ledges of high-grade Homestake Mine-style gold mineralization at Maitland.

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.

Analyst Peter Bell with Canaccord Genuity noted in an updated research note on Thursday that the Tertiary epithermal mineralization "is yet another exploration target that has potential for adding ounces to the Unionville Zone."

The company has 48,000 acres of holdings surrounding the original Homestake Mine, which was first discovered in 1876 and consolidated by George Hearst. It currently has four drills at its properties in the district, including Maitland and Richmond Hill 2.3 miles to the west.

Chris Temple, editor of The National Investor, recently added Dakota Gold to his list of recommended stocks. He toured the area in 2021.

"During that trip — and as a multi-faceted exploration game plan has come together since — I have grown to be increasingly of the view that this is the real deal," Temple said about Dakota. "Indeed — as you'll be hearing more of from me in the near future — the exploration potential has been revealed as more substantial than first thought."

The combination of Maitland and Richmond Hill "gives investors exposure to an advancing development project, with high-grade exploration sizzle, in our view," Bell wrote of the company.

The Catalyst: Maiden Resource for Richmond Hill

Most recently, Dakota released its initial assessment maiden resource estimate for its Richmond Hill Gold Project that 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 of The National Investor, recently added Dakota Gold to his list of recommended stocks.

"It's been two years since Dakota first began drilling Richmond Hill, and at first glance, the effort has paid off in this initial resource estimate, in our view," Canaccord's Bell wrote. "Richmond Hill showcases a global resource of 109.9 Mt grading 0.70g/t Au containing 2.46 Moz of gold."

The report noted mineralization is very shallow, with portions of the resource exposed at the surface. "Pending further review of the technical report, we are positive on the results," he wrote.

The maiden resource was derived from a historical database containing 69,401 gold assays from more than 900 drill holes, including 57 drill holes from Dakota Gold's current drill program, the company said. 

"Dakota Gold has done quite well since it was recommended on the site back on the April 4," Technical Analyst Clive Maund wrote after the release of the MRE. "By the look of it, this news could really 'light a fire' under the stock."

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 8.43%, Awde is next at 6.82%, while COO Jerry Aberle holds 4.85%, according to Reuters.

About 26% of the shares are with institutional investors, according to Yahoo Finance and Edgar filings. Top institutional holders include Fourth Sail Capital with 5.27%, Van Eck Associates with 3.97%, Blackrock Institutional Trust Co. with 3.65%, The Vanguard Group Inc. with about 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 with 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 cap of US$268.33 million, with 87.7 million shares outstanding. It trades in a 52-week range of US$3.49 and US$1.95.

Important Disclosures:

1. 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.
2. 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.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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