Dakota Gold Corp. (DC:NYSE American) discovered a new mineralized zone it is calling Unionville at its Maitland project in South Dakota's Homestake District, in the newly released second batch of positive drill results, reported Canaccord Genuity analyst Michael Fairbairn in a Feb. 8 research note.
"Although early days, we believe the Unionville zone could turn into Dakota's first major new discovery at its Maitland project," Fairbairn wrote.
Canaccord has a Speculative Buy rating and a US$5 per share target price on Dakota Gold, noted Fairbairn. In comparison, the U.S. gold explorer's current share price is about US$3.52. The price difference suggests an attractive potential return on investment.
New zone identified
Dakota identified Unionville, a Precambrian-hosted breccia in the Tertiary formation, through the results of three out of the four newly reported holes, wrote Fairbairn. They included:
- MA22C-001: 5 meters (5m) of 6.69 g/t gold (6.69 g/t Au)
- MA22C-002: 2.8m of 11.66 g/t Au
A third hole, MA22C-009, tested the continuity of the mineralization shown in MA22C-001 and MA22C-002, and it returned 36.48m of 3.58 g/t Au.
"Due to the early success at the Unionville zone, Dakota is reviewing its historic data set for additional similar potential zones in the district that may have been overlooked in the past," noted Fairbairn.
Indication of Potential Link
Fairbairn pointed out that the gold mineralization previously encountered in holes MA22C-001 and MA22C-002, drilled 1,220 feet apart, "may be connected." If it is, this suggests a possible strike length of 372m for the Unionville zone, in-hole intersections ranging from 2.8–36.5m, and gold grades between 3.58 g/t and 11.66 g/t.
"Additional drilling is required to determine the potential scope of this discovery," the analyst commented.
Possible Ledge Encountered
One of the four holes of which Dakota just reported results, MA22C-003, was drilled in the Homestake formation, noted Fairbairn. It returned 3.17m of 10.03 g/t gold.
This result and some previous ones from Homestake are "intriguing," Fairbairn wrote. This is because together they may indicate a newly discovered ledge or long tube-like structure.
"Further drilling should continue testing this theory as the company searches for a substantial Homestake-hosted gold deposit," wrote Fairbairn.
Dakota's drilling at Maitland continues, with two rigs targeting the Tertiary and Homestake formations.
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Disclosures For Canaccord Genuity Corp., Dakota Gold Corp., February 8, 2023
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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