Dakota Gold Corp. (DC:NYSE American) has more drill results in from its Richmond Hill project in South Dakota's Homestake District, and they "help underscore the prospective potential" there, Canaccord Genuity analyst Michael Fairbairn reported in a Feb. 23 research note.
Also, Dakota Gold's current share price is US$2.86 per share, yet Canaccord's target price on it is much higher, at US$5 per share, noted Fairbairn. This price gap implies a significant potential return for investors. Dakota is a Speculative Buy.
Positive for Mineralization
Results of one of the four newly reported holes at Richmond Hill confirmed "the existence of near-surface, high-grade gold in/beside the breccia pipes," Fairbairn highlighted. Specifically, hole RH22C-012, drilled on the east side of the Twin Tunnels breccia pipe, demonstrated 39.8 meters (39.8m) of 2.55 grams per ton gold (2.55 g/t Au).
Further, the results suggest the other five known breccia pipes may also contain mineralization. Little exploration of these six pipes was conducted historically, and what was done was only down to a depth of about 122m. A single pipe, Richmond Hill, was mined in the past.
"Dakota Gold believes the potential to discover significant gold mineralization could be found at depth," wrote Fairbairn.
More Encouraging Drill Data
Two additional, just-reported holes drilled at the Twin Tunnels pipe encountered mineralization. They are:
- RH22C-006: 19.8m of 0.92 g/t Au and 13.7m of 1.09 g/t Au
- RH22C-009: 16.8m of 0.68 g/t Au and 23.4m of 0.77 g/t Au
The last of the quartet of holes is RH22C-007, which Dakota drilled in the Cole Creek pipe. It demonstrated 9.4m of 3.2 g/t Au and 14.9m of 1.39 g/t Au.
Overall, "these initial results show promise for what may eventually become a larger system defined on the property package, though it remains early days with more drill testing required," Fairbairn commented.
To that end, Dakota continues to "aggressively drill" not only at its Richmond Hill project but also at Maitland.
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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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