A round of infill drilling results released Monday for Dakota Gold’s (NYSE-A: DC) Richmond Hill project in western South Dakota supports a planned resource update in the first quarter of next year.
The first 17 drill holes gave encouraging results. Hole RH24C-099 cut 51.7 metres grading 1.15 grams gold from 132.9 metres depth. Hole RH24C-088A returned 41.5 metres at 0.96 gram gold from 287.3 metres deep, and hole RH24C-085 intersected 17.9 metres grading 1.1 grams gold from 72.1 metres depth. The company said these results align with the original block model. They indicate untapped potential with zones open in all directions.
“Initial results from our infill drill program are adding ounces to our current S-K 1300 resource,” Dakota vice-president of exploration James Berry said in a statement. “The grades and widths we’re seeing match the original block model and support expanding gold mineralization, including shallow oxide mineralization.”
Canaccord Genuity’s Peter Bell gives Dakota Gold a ‘speculative buy’ rating and a $7.25 target price. He believes the company’s drill results bode well for the resource update.
“Drilling continues to confirm the presence of near-surface mineralization at Richmond Hill, with many of the holes returning thicker than-average intervals with higher-than-average grades,” Bell wrote in a note to clients.
Despite the positive analyst sentiment, shares in New York fell 0.7% to $2.25. They hit a 12-month range of $1.84 to $3.25. The company’s market capitalization is $211.2 million.
The 17,000-metre drill campaign in South Dakota’s Homestake District aims to expand on an initial resource reported in April. It outlined 51.8 million indicated tonnes grading 0.8 gram gold per tonne for 1.33 million oz. and 58.1 million inferred tonnes at 0.61 gram gold for 1.1 million ounces.
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Dakota expects a preliminary economic assessment in the second quarter, after the resource update. The update will add 88 drill holes, for 17,000 metres.
The Richmond Hill project is one of three exploration programs Dakota is advancing in the Homestake District. Dakota Gold is exploring the JB Gold Zone and the Unionville Zone at the Maitland project, which lies east of Richmond Hill. It shows potential for more mineralization styles, the company said.
Source: MINING.COM – Read More
