Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Co. Continues Finding Double Gold Mineralization Near Historic Mine

View Important Disclosures for this Article
Share on Stocktwits


Dakota Gold Corp. intersects more higher-grade Tertiary epithermal gold mineralization in the historic Homestake District of South Dakota. Find out why one analyst says the results "hit the mark."

Dakota Gold Corp. (DC:NYSE American) announced it has intersected additional higher-grade Tertiary epithermal gold mineralization in the Unionville Zone of its Maitland Gold Project in the historic Homestake District of South Dakota.

Drill hole MA24C-049 intersected 3.33 grams per tonne gold (g/t Au) over 9.9 meters and 1.51 g/t Au over 19.1 meters, and hole MA24C-050 intersected 3.50 g/t Au over 6.1 meters of shallow Tertiary epithermal mineralization, the company said.

“While Homestake Mine-style gold mineralization remains the primary focus of the Maitland exploration program, we continue to encounter shallow Tertiary epithermal gold mineralization in the Unionville Zone in the same areas where we are targeting deeper Homestake Mine-style mineralization," said Vice President Exploration James Berry. "This means that we are often able to target two types of mineralization in the same hole, providing Dakota Gold with exceptional optionality."

Berry said as the company continues to explore Maitland, it expects to encounter additional parallel structures adding to the potential extension strike length that is already in excess of 3,000 meters and is open to the north and south.

Analyst Peter Bell of Canaccord Genuity Capital Markets sent an updated research note on the company Tuesday titled "Unionville hits the mark."

"This morning's results show that the Maitland target has multiple styles of mineralization, including shallow zones of gold above the deeper high-grade," the analyst wrote. "Dakota believes that there is potential to encounter additional parallel structures in the area which could provide an opportunity to extend the strike length already more than 3,000 (meters)."

The Catalyst: 'High-Grade Exploration Sizzle'

Dakota announced the results from a total of eight drill holes in the Unionville Zone.

"Drilling in the Unionville Zone at Maitland for shallow gold mineralization is one of three ongoing programs being advanced by the company, the other two being deeper high-grade gold mineralization in the JB Gold Zone and the infill and step-out drilling at the Richmond Hill Gold Project to update to the S-K 1300 resource estimate," Bell noted.

Analyst Peter Bell of Canaccord Genuity Capital Markets sent an updated research note on the company Tuesday titled "Unionville hits the mark."

Previously released results from hole MA22C-009 have shown higher-grade intersections, including 3.57 g/t Au over 36.48 meters of Tertiary epithermal mineralization along the Unionville Zone structure.

Tertiary epithermal mineralization in the Unionville Zone and in parallel structures remains open along strike in both directions and indicates widespread mineralization throughout the Maitland Gold Project, Dakota said in a release.

Super Giant Deposits

The historic Homestake Mine, about 3 miles south of Maitland, produced 41 million ounces gold (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. It currently has four drills at its properties in the district, including Maitland and Richmond Hill 2.3 miles to the west.

Areas surrounding "super giant deposits" like Homestake are believed to contain significant additional gold resources, wrote John Newell of RSD Discovery Group this week for a Streetwise Reports piece on the legacy of the famous mine.

"Super Giant deposits are characterized by clusters of geologically similar deposits within several hundred square kilometers, defining profoundly mineralized regions," Newell wrote. "It is believed that at least twice that amount of gold exists in the neighborhood of these super giants. If that is true, then there are at least 100 million ounces of gold left to be found in this vastly underexplored precious metal district of South Dakota."

This proximity to a super giant "suggests a high potential for similar deposits," Newell wrote. "Being in the shadow of many old mines increases the probability of finding significant mineral resources."

The Maitland mine produced more than 200,000 ounces of Tertiary gold before 1945, when it was closed because of World War II. According to the company, numerous structures, including the historical Maitland Mine structure, remain untested along strike and illustrate the larger potential of the project.

Dakota's stock jumped this spring when it announced it had found three distinct ledges of high-grade Homestake Mine-style gold mineralization at Maitland.

The combination of Maitland and Richmond Hill "gives investors exposure to an advancing development project, with high-grade exploration sizzle, in our view," Bell has written of the company.

More Results, Richmond Hill MRE

Assay results released in May from step-out drill hole MA24C-040 more than 1,400 meters north of the Unionville Zone discovery area supported the premise that Tertiary mineralization potential exists throughout the project, the company has said.

The hole intersected 3.94 g/t Au over 9.3 meters of Tertiary mineralization 148 meters below the surface, the company said. Mineralization is open north, south and to depth.

Holes MA24C-041 and MA24C-042, located in the central part of the Unionville Zone, returned higher-grade intercepts, including 4.08 g/t Au over 2.7 meters and 7.37 g/t Au over 1 meter of Tertiary epithermal mineralization, respectively.

Dakota also recently released its initial assessment maiden resource estimate for its Richmond Hill Gold Project that noted an Indicated Resource of 51.83 million tonnes (Mt) at 0.8 g/t Au for 1.33 million ounces (Moz) and an Inferred Resource of 58.06 Mt at 0.61 g/t Au for 1.13 Moz.

streetwise book logoStreetwise Ownership Overview*

Dakota Gold Corp. (DC:NYSE American)

*Share Structure as of 1/16/2024

The maiden resource was derived from a historical database containing 69,401 gold assays from more than 900 drill holes, including 57 drill holes from Dakota Gold's current drill program, the company said. 

Ownership and Share Structure

According to the company, approximately 25% of its shares are with management and insiders.

Out of management, Quartermain holds the most shares at 8.4%, Awde is next at 6.8%, while COO Jerry Aberle holds 4.8%, the company said.

About 26% of the shares are with institutional investors, according to Yahoo Finance and Edgar filings. Top institutional holders include Fourth Sail Capital with 5.3%, Van Eck Associates with 4.1%, Blackrock Institutional Trust Co. with 3.7%, The Vanguard Group Inc. with about 3.2%, Fidelity Management and Research Co. LLC with 2.7%, and CI Global Asset Management with 2.6%.

About 16.5% is with strategic investors, including Orion Mine Finance, which owns about 9.9%, and Barrick Gold Corp., which owns about 2.5%. The rest is retail.

Dakota Gold has a market cap of US$208.7 million, with 87.7 million shares outstanding. It trades in a 52-week range of US$3.25 and US$1.95.

Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. Subscribe

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. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe