Drill Results to Expand Resource for Project in Historic Mining District

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Dakota Gold Corp. (DC:NYSE American) announced the results of 24 drill holes from its infill and step-out drilling program to expand the maiden resource at its Richmond Hill project in the historic Homestake District in South Dakota.

The results are the final assays from the drilling program which began in November 2023. These and previously reported results from the program will be incorporated into an updated S-K 1300 Initial Assessment in the first quarter of next year.

The maiden S-K 1300 resource announced on April 30, 2024, outlined an Indicated Resource of 51.83 million tonnes (Mt) at 0.80 grams per tonne gold (g/t Au) for 1.33 million ounces (Moz), and Inferred Resource of 58.06 Mt at 0.61 g/t Au for 1.13 Moz.

"The results received to date from our drill program have exceeded my expectations for grade and widths," Vice President Exploration James Berry said. "Of the 52 drill hole results reported to date from the Chism Gulch area, the average grade is 1.13 g/t Au, with an average width of 10.9 meters, which is much better than the averages for drilling at Chism Gulch used to generate the maiden resource and bodes well to increase resource ounces."

The Chism Gulch area remains open to the north and east, Berry said. The coming resource update will include results from Chism Gulch and Twin Tunnels.

Chism Gulch, where there has been limited drill testing by the company, is in the northeast area of the Richmond Hill resource.

"Results to date demonstrate areas of additional oxide mineralization, and the grade and width are higher in average than the drill results used to inform the maiden resource," the company said in a release.

Highlighted results include:

• Hole RH24C-122: 1.00 g/t Au over 38.2 meters
• Hole RH24C-136: 3.30 g/t Au over 11.8 meters
• Hole RH24C-142: 2.22 g/t Au over 50.0 meters
• Hole RH24C-143: 2.54 g/t Au over 11.4 meters

Homestake: A 'Super Giant Deposit'

The historic Homestake Mine produced 41 Moz Au and 9 Moz silver (Ag) over 126 years. The company has 48,000 acres of holdings surrounding the original mine, which was first discovered in 1876 and consolidated by George Hearst.

In a July article, John Newell of John Newell & Associates wrote, "The area surrounding super giant deposits like Homestake is believed to contain significant additional gold resources, making it prime real estate for exploration."

"The Dakota Gold project is located near the Homestake Mine, which historically produced more than 40 Moz of gold," he wrote. This proximity suggests a high potential for similar deposits. Being in the shadow of many old mines increases the probability of finding significant mineral resources."

In its investor presentation, Dakota estimates a feasibility study for Richmond Hill in 2026, with baseline data collection and permitting through 2028 and construction and production as soon as 2029.

In a November 14 research note, Peter Bell of Canaccord Genuity noted that "Richmond Hill currently showcases a global resource of 109.9 Mt grading 0.70 g/t Au containing 2.46 Moz of gold."

In an updated research note flash on Wednesday, BMO Capital markets Analyst Andrew Mikitchook noted that a total of 45,517 meters of drilling will be added to the model for the upcoming resource update.

"Commentary in this and previous releases clearly indicates both an expansion and upgrading of the initial resource," Mikitchook wrote. "In our opinion, the market should expect Richmond Hill to expand to look ever more similar to the neighboring operating Wharf Mine. With further studies Richmond Hill could show both better grades and strip ratios than its neighbor."

Dakota Co-Chair, President, and Chief Executive Officer Robert Quartermain noted that the new drill results "will contribute to a robust resource update in Q1 2025 and provide areas for future resource expansion."

"With our successful step-out drilling campaign at Maitland reported in our December 3, 2024, news release, both of our projects align with our expectations this year, and we are well-positioned to grow shareholder value through successful exploration," Quartermain said.

The Catalyst: Experts Say Gold Will Climb Higher

Gold prices prolonged their uptrend on Wednesday following the release of inflation figures in the United States, Christian Borjon Valencia wrote Wednesday for FX Street.

"Expectations that the Federal Reserve (Fed) would cut interest rates next week were reaffirmed as the disinflation process evolves, yet at a slower pace," Valencia wrote. "The XAU/USD trades at US$2,711, posting gains of 0.40%."

The U.S. Consumer Price Index (CPI) remained firm in November, aligned with economists' monthly and annual estimates, the U.S. Bureau of Labor Statistics, according to the FX Street report.

Following the data, the swaps market had priced 92% odds for a 25 basis points rate cut by the Fed at the December 17-18 meeting.

Writing for Money on December 4, Marc Guberti noted that the yellow metal is up by more than 31% in 2024 and has delivered more than an 82% gain over the past five years. "Many big banks believe that gold is set to continue its rally in 2025 and beyond," he wrote.

Research from Goldman Sachs suggests that gold will climb higher as central banks in emerging markets continue to buy more gold, Guberti wrote, noting that Goldman Sachs research analyst Lina Thomas has mentioned lower interest rates as a catalyst for a 2025 gold rally.

Ownership and Share Structure

About 25% of the company's shares are with management and insiders, including Co-chairman, Director, President and Chief Executive Officer Robert Quartermain, who holds the most shares at 8%, while COO Jerry Aberle holds 4.6%, the company said.

About 26% of its shares are with institutional investors. Top institutional holders include Fourth Sail Capital with 3.9%, Van Eck Associates with 3.7%, Blackrock Institutional Trust Co. with 3.9%, The Vanguard Group Inc. with about 3.6%, Fidelity Management and Research Co. LLC with 2.8%, and CI Global Asset Management with 2.4%.

About 16.5% is with strategic investors, including Orion Mine Finance, which owns about 9.6%, and Barrick Gold Corp., which owns about 2.3%. The rest is retail.

Dakota Gold has a market cap of US$215.3 million, with 93.7 million shares outstanding. It trades in a 52-week range of US$3.25 and US$1.84.