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Drilling at South Dakota Asset Returns High Gold Grades
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Results suggest the recently discovered zone there could be a "ledge," like those mined at a past-producing project in the same historic gold district, noted a Canaccord Genuity report.

Dakota Gold Corp.'s (DC:NYSE American) latest batch of drill results from the newly discovered JB zone at its Maitland project in South Dakota are positive, reported Canaccord Genuity analyst Peter Bell in an Aug. 3 research note.

"We believe the new JB gold zone could be Dakota's most significant discovery to date," Bell wrote.

86% Implied Return

Consequently, Canaccord reiterated its US$5.50 per share target price on the South Dakota-based gold explorer, currently trading at about US$2.96 per share, noted Bell. This price gap reflects a potential return for investors of 86%.

Dakota Gold remains a Speculative Buy.

High Grades Present

Of the new JB zone results, according to Bell, the highlights come from hole MA23C-022, a stepout placed downdip from previously drilled discovery hole MA23C-017. MA23C-022 returned 7.2 meters (7.2m) of 8.81 grams per ton (8.81 g/t) gold, including 5m of 19.55 g/t gold.

This was in the Homestake formation, host of the 40,000,000-plus ounce Homestake gold deposit about 5 kilometers to the south.

These new findings further indicate that the JB zone is wide and mineralization is high grade.

New hole MA23C-022 and previously drilled hole MAC23C-017 both "suggest a thickened zone of mineralized iron formation, similar to the 'ledges' mined in the old Homestake mine," Bell wrote. "If additional drilling demonstrates JB is a new ledge, we believe Dakota could quickly advance it from initial discovery to a substantial, high-grade deposit."

Next To Be Drilled

Dakota has finished drilling the JB zone using widely spaced holes, so it will follow up with drilling narrowly spaced holes, reported Bell.

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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. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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Disclosures for Canaccord Genuity, Dakota Gold Corp., August 3, 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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