Mining Co. With High-Grade Gold Opportunity Continues Drilling

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Dakota Gold Corp. (DC:NYSE American) announced assay results from an additional 16 metallurgical drill holes as part of its 2025 drilling campaign for the Richmond Hill Oxide Heap Leach Gold Project in the historic Homestake District of South Dakota.

Currently, Dakota Gold has three drills in operation at Richmond Hill, with plans to complete 27,500 meters of drilling in 2025 using a mix of reverse circulation and core drilling methods.

"As the metallurgical drilling for the 2025 campaign is now complete, we are pleased to have formally engaged Forte Dynamics for the test work program," President and Chief Operating Officer Jack Henris said. "This program represents a critical step in advancing Richmond Hill toward feasibility and future development. It will provide the technical basis for process design, cost modeling, and permitting, thereby de-risking the project and supporting informed decision-making by Dakota Gold’s management and Board of Directors."

Metallurgical drill holes continued to intercept gold grades higher than the average resource grade, the company said. Notable results included drill hole RH25C-200, which returned 2.25 grams per tonne gold (g/t Au) over 33.4 meters; and RH25C-212, which showed 1.44 g/t Au over 20.6 meters.

These holes are among several from the north-central project area that have intercepted significantly higher grades than the average measured and indicated resource grade of 0.463 g/t Au, Dakota said.

Forte Dynamics has been chosen to conduct the metallurgical test work for the Feasibility Study, which is expected to be completed in early 2027. The consulting firm specializes in mine planning, metallurgical testing, and engineering design. They provide advanced research, testing, and analysis specifically tailored to optimize process design for heap leach projects.

Core drilling is currently active in the northeast project area, where assay results from expansion and infill of higher-grade zones are anticipated before the end of the year. The proposed infill and expansion drilling around the intercept has the potential to enhance the Measured, Indicated, and Inferred resources based on previous drilling and current resources in the area.

BMO Capital Markets Analyst Andrew Mikitchook rated the stock Outperform with a US$9 per share target price, a total return of 91% from the price at time of writing.

Mineralization in the northeast is only limited by drilling and remains open.

This area is expected to be mined at the start of the mine plan as outlined in the July 7 Initial Assessment with Cash Flow.

Dakota Gold is conducting core drilling in the northern portion of the project area to complete a Feasibility Study.

The drilling is designed to collect metallurgical samples for column testing, conduct condemnation drilling beneath proposed site infrastructure for mine planning, perform infill drilling to upgrade the existing resource, and carry out expansion drilling where the resource remains open.

Details of Metallurgical Testing

Dakota said it has engaged Forte Dynamics, Inc. to carry out the extensive metallurgical testing program for Richmond Hill, which aims to characterize the metallurgical behavior of oxide ores and establish process design criteria for heap leaching as the primary extraction method. The results will directly inform feasibility-level engineering, project economics, and permitting.

The proposed scope of work includes:

• Ore Characterization and Preliminary Testing: Conducting mineralogical, geochemical, and comminution analyses on master composite samples.
• Column Leach Testing: Evaluating crush size, leach kinetics, reagent consumption, and permeability under compaction to determine optimal heap leach parameters.
• Comminution and Crushing Studies: Developing a process model, conducting trade-off studies, and projecting recovery to establish circuit design and cost estimates.
• Process Optimization and Recovery: Performing bench-scale Merrill-Crowe recovery trials to determine gold and silver recovery efficiencies.
• Deleterious Elements and Environmental Testing: Assessing copper, preg-robbing potential, acid generation potential, and leachate chemistry to support permitting and environmental compliance.

The metallurgical testing program is scheduled to run from Q4 2025 to Q3 2026, with staged testing and reporting milestones throughout, Dakota noted in its release.

Multipurpose drilling at the Richmond Hill open-pit, heap-leachable project continues to yield grades higher than the average resource grade, indicating the potential for resource expansion. The company said drilling is ongoing, with additional results anticipated before year-end. Forte Dynamics has been chosen to carry out a comprehensive metallurgical testing program, with a final report expected by mid-2026, ahead of the Feasibility Study slated for early 2027.

Results Will Directly Inform Feasibility Study

In an updated research note on September 24, BMO Capital Markets Analyst Andrew Mikitchook rated the stock Outperform with a US$9 per share target price, a total return of 91% from the price at time of writing.

Highlights from the metallurgical drilling included intercepts of 33 meters at 2.25 g/t Au and 20 meters at 1.44 g/t Au, the analyst noted. For context, the February 2025 mineral resource outlined a heap-leachable measured and indicated resource of 3.65 million ounces (Moz) at 0.46 g/t Au and an inferred resource of 2.61 Moz at 0.35 g/t Au, he noted.

"The company has three rigs drilling at Richmond Hill as part of its 27,500-meter, 2025 campaign, including two core rigs with drilling designed to collect metallurgical samples, condemnation drilling and, infill/expansion drilling where the resource remains open," Mikitchook said.

The results will directly inform the Feasibility Study, project economics, and permitting, the analyst wrote. The Richmond Hill Initial Assessment with Cash Flow (IACF) released last month highlighted production of 153,000 ounces per year over 17 years at US$1,047 per ounce AISC (all-in sustaining costs), with initial capital expenditure of US$380 million and gold recoveries of approximately 85% based on 31 historical column tests, he noted.

On September 9, after an earlier release of results from 23 drill holes, Canaccord Genuity Capital Markets Analyst Peter Bell wrote in an updated research note.

The results that were reported that day were primarily from metallurgical and condemnation drilling in the north-central project area, the company said at the time.

"In our view, the metallurgical drilling reported this morning underscores the potential for higher-grade zones to meaningfully enhance project economics," Bell noted at the time. "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 has 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 Goes Up, Up, and Away

Gold prices inched higher on Thursday, trading near record levels again, supported by heightened geopolitical tensions and expectations of further interest rate cuts by the Federal Reserve, Peter Nurse wrote September 25 for Investing.com.

At 08:15 ET, spot gold increased by 0.4% to US$3,750.52 an ounce, after pulling back from Tuesday’s all-time high of US$3,790.82/oz.

Investors are closely watching a series of U.S. economic reports this week, which are expected to provide clearer indications on whether the central bank will proceed with additional rate cuts this year, following the Fed's first rate cut of the year earlier this month, Nurse noted.

Lower interest rates decrease the opportunity cost of holding non-yielding assets like bullion, making gold more appealing to investors, he wrote. Weekly jobless claims, due later on Thursday, are expected to be around 230,000. Additionally, the government’s second estimate of second-quarter GDP will be released on Thursday. The August core Personal Consumption Expenditures (PCE) price index, due on Friday, is anticipated to rise about 2.7% from a year earlier, remaining above the Fed’s 2% target.

"The precious metal has also benefited from its traditional status as a haven asset during times of uncertainty, and investors face no shortage of reasons for caution," Nurse said. "Ongoing conflicts in Ukraine and the Middle East, persistent inflationary concerns, and political risks in the U.S. have all contributed to the rally."

According to Metals Focus, global central banks have been net buyers of over 1,000 metric tons of gold annually since 2022, Mining.com reported on September 22. The consultancy anticipates this robust purchasing trend to continue, with an additional 900 tons expected this year — double the annual average of 457 tons from 2016 to 2021.

Meanwhile, after a typical seasonal decline in UK gold purchases, central bank demand has bounced back to 63 tonnes, aligning with the post-2022 average and contributing to a positive outlook, Societe Generale noted in a Monday report. Gold exchange-traded funds (ETFs) are also experiencing ongoing inflows, with total holdings reaching 3,615.9 tons at the end of June, the highest since August 2022, according to the World Gold Council. Their record was 3,915 tons five years ago.

"There's a continued flow of safe haven demand amid geopolitical matters that are still kind of wobbly, including the Russia-Ukraine war," said Jim Wyckoff, senior analyst at Kitco Metals, in a Reuters note. "Last week's Fed interest rate cut and probably more Fed rate cuts coming by the end of the year are also supporting prices."

Investors are closely monitoring a series of Federal Reserve speeches this week, including the U.S. core personal consumption expenditure price data due Friday.

Ownership and Share Structure

According to Refinitiv, 12 insiders own 12.8% of Dakota Gold and numerous institutions hold 47.11% 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.