Gold Co. Eyeing Big Gains in South Dakota Releases Update

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Dakota Gold Corp. (DC:NYSE American) provided an update on its 2025 drilling campaign, including progress on metallurgical testing for the Richmond Hill Oxide Heap Leach Gold Project, in a September 9 release.

Currently, Dakota Gold has three drills in operation at Richmond Hill, with plans to drill 27,500 meters for the 2025 campaign using both Reverse Circulation and core drilling methods.

"The 23 drill holes contained in this release are primarily from metallurgical and condemnation drilling in the north central project area," wrote Canaccord Genuity Capital Markets Analyst Peter Bell in an updated research note on the company on the same day. "The company currently has three drills operating at Richmond Hill and expects to drill 27,500 meters for the 2025 campaign."

Bell said the news was "positive" and continued his Speculative Buy rating for the stock with a US$12.75 per share target price, a 178% increase over the US$4.59 per share the stock sold at the time of the note's writing.

According to Dakota's release, metallurgical drill holes have intercepted gold grades higher than the average resource grade, including drill hole RH25C-171, which showed 1.5 grams per tonne gold (g/t Au) over 62.1 meters (93 gram meters).

RH25C-171 "is one of many metallurgical drill holes reported from the north central project area that intercepted significantly higher-grade than the average measured and indicated resource grade of 0.463 g/t Au (0.0135 ounces per ton Au)," the company said.

"We are pleased with the progress of the 2025 drill campaign and look forward to releasing additional results from the drilling in the northeast project area as they are received," President and Chief Operating Officer Jack Henris said. "Dakota Gold remains focused on advancing the project through disciplined exploration and technical rigor, with the results from the current drill campaign contributing to the feasibility study, which is expected to be completed in early 2027."

Co. Drilling to Complete Feasibility Study

Dakota Gold is conducting core drilling in the northern portion of the project area to complete a feasibility study. This core drilling aims to collect metallurgical samples for column testing, conduct condemnation drilling beneath proposed site infrastructure for mine planning, and perform infill drilling to upgrade resources.

The company said the current resource is being enhanced through expansion drilling in areas where it remains open. All drill cores are systematically assayed for gold due to the extensive halo of low-grade gold mineralization present throughout much of the project area. Additionally, the Company is actively using a reverse circulation drill to install monitor wells, supporting the collection of environmental baseline data for permitting purposes.

Canaccord Genuity Capital Markets Analyst Peter Bell continued his Speculative Buy rating for the stock with a US$12.75 per share target price, a 178% increase over the US$4.59 per share the stock sold at the time of the note's writing.

The results that were reported September 9 are primarily from metallurgical and condemnation drilling in the north-central project area, the company said.

"In our view, the metallurgical drilling reported this morning underscores the potential for higher-grade zones to meaningfully enhance project economics," Canaccord's Bell noted.

"Further, we believe ongoing infill and expansion drilling in the northeast, particularly around Chism Gulch, could drive resource growth and strengthen the mine plan. As shown below, we expect the final results from the metallurgical program to be released in Q2/26."

The company also noted some upcoming catalysts, including, sample preparation and shipment (Q3/Q4 2025), metallurgical sample preparation for testing (Q4 2025), material testing and column tests (Q4 2025/Q2 2026), and final test report (Q2 2026).

The Catalyst: Gold Continues Breaking Records

Gold continued its record-breaking surge on Tuesday, supported by the anticipation of a forthcoming U.S. interest rate cut in September, while investors awaited inflation data expected later this week, Anushree Ashish Mukherjee and Sarah Qureshi wrote for Reuters on September 9.

Spot gold increased by 0.3% to US$3,646.59 per ounce as of 1206 p.m. ET (16:06 GMT), after reaching a record high of US$3,673.95 earlier in the day.  U.S. gold futures for December delivery climbed 0.2% to US$3,685.60.

"This rally is largely driven by expectations that the Federal Reserve will begin cutting rates, potentially as early as September," said Bart Melek, head of commodity strategies at TD Securities.

Gold has climbed over 33% this year, surpassing $3,500 per troy ounce, Peter Gratton wrote for Investopedia on September 8. However, Goldman Sachs cautions that the price of gold could rise significantly if the Trump administration's efforts to undermine the independence of the U.S. Federal Reserve succeed.

The warning comes amid President Donald Trump's significant attempts to influence the Federal Reserve, including efforts to remove Fed Governor Lisa Cook, which are currently facing legal challenges. These actions have Wall Street preparing for what JPMorgan analysts have termed a "Fed independence trade" — strategies to adapt to a world where the dollar and U.S. Treasurys may no longer be perceived as the safest investments.

Investors are concerned that a politicized Fed might cut rates to boost the economy for short-term benefits, raising fears of increased inflation in the future, Gratton wrote.

Goldman's analysts were clear about the potential consequences: "A scenario where Fed independence is damaged would likely lead to higher inflation, lower stock and long-dated bond prices, and an erosion of the dollar's reserve currency status. In contrast, gold is a store of value that doesn't rely on institutional trust."

For these reasons, Goldman concluded that "gold remains our highest-conviction long recommendation" — indicating it is the best long-term investment option at present, Gratton reported.

Ownership and Share Structure

According to Refinitiv, 12 insiders own 12.8% of Dakota Gold and numerous institutions hold 47.09% of Dakota in aggregate. The top institutions include Orion Resource Partners (USA) LP with 8.64%, The Vanguard Group with 4.25%, BlackRock Institutional Trust Co. N.A. with 4.24%, and Van Eck Associates Corp. with 3.09%. The rest is in retail.

Dakota Gold has 112.34 million outstanding shares, and its market cap is US$515.66 million. Its 52-week range is US$2.05–4.66 per share.