Mining Co. Finds Excellent Resource Expansion Potential in Homestake District

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Dakota Gold Corp. (DC:NYSE American) has announced further assay results from drill holes at the Richmond Hill Oxide Heap Leach Gold Project in South Dakota's historic Homestake District, according to a release on December 1.

The ongoing drilling efforts continue to confirm extensive gold mineralization and the potential for resource expansion, the company said. Dakota is currently operating two drills and aims to complete approximately 27,500 meters of drilling during its 2025 campaign.

"These latest drill results at Richmond Hill continue to confirm the significant potential of this Project," said President and Chief Operating Officer Jack Henris. "The combination of high-grade intercepts, mineralization, and state and county focused permitting, positions Richmond Hill as a compelling development opportunity. We remain focused on advancing drilling, feasibility work, and permitting to unlock long-term value for our shareholders and stakeholders."

Highlights from the update include:

• Metallurgical Drill Hole RH25C-236: This hole intersected 8.17 grams per tonne gold (g/t Au) over 11.3 meters at surface in the central area of the project. These results surpass the current block model gold mineralization grades in the region.
• Expansion Drill Hole RH25C-296: This hole intersected 1.45 g/t Au over 18.3 meters in a step-out 150 meters north of the existing Measured and Indicated resource boundary. The mineralization in the northeast is only limited by drilling and remains open. The company said it is testing the area up to 450 meters north and 1,520 meters wide.

Drilling, Pump Installations for Wells Finished

Dakota said it has successfully completed drilling and pump installation at all 28 water wells required for permitting, in consultation with the South Dakota Department of Agriculture and Natural Resources. Sampling began in November, with 12 months of monitoring planned to support both the Feasibility Study and permit application, targeted for early 2027.

The project footprint is on private land, requiring state and county permits. While drilled for water sampling, the holes have been assayed for gold.

Dakota's core drilling remains active in the northeast project area, with additional assay results expected through the fourth quarter of 2025 and into 2026. The core drilling on the project 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.

The drill results will refine the modeled boundaries and enhance the precision of the geo-metallurgical domains, as well as inform both the oxide and sulfide resource updates for the Feasibility Study, the company said.

More Than Two-Dozen Holes Released Last Month

Last month, the company revealed assay results from 26 drill holes at Richmond Hill. According to the update, expansion and infill drill holes in the northeastern section of the project area are encountering significantly higher-grade gold than the average resource grade. This includes RH25C-278, which intersected 1.75 g/t Au over 19.9 meters, and RH25C-295, which intersected 2.15 g/t Au over 30 meters, as stated by Dakota in the release. The expansion drilling in this region has the potential to enhance the resource based on previous drilling and existing resources. The mineralization in the northeast is only limited by drilling and remains open.

The company noted that metallurgical drill holes throughout the northern project area continue to intercept high-grade gold, reducing risk for the project and boosting confidence in the resource. This includes RH25C-270, which intersected 2.26 g/t Au over 29.2 meters, and RH25C-288, which intersected 4.15 g/t Au over 14.5 meters. The metallurgical drilling results underscore the low-risk nature of the deposit, characterized by widespread mineralization.

Analyst: Step Out Drilling Impresses

In an updated research note on December 2, Analyst Andrew Mikitchook said the new standout intercept of 8.17 g/t Au over 11.3 meters significantly surpasses the average resource grade and exceeds the current block model grades in the area.

Expansion drilling in the Northeast continues to reveal potential for resource growth, while metallurgical, condemnation, and infill drilling progress at Richmond Hill, he said.

"We will continue to monitor progress towards a Feasibility Study in early 2027 and first gold in late 2029," the analyst wrote.

Dakota Gold provided an update on its 2025 drilling program, highlighting results such as 11.3 meters at 8.17 g/t Au from an infill hole and 18.3 meters at 1.45 g/t Au from a 150-meter step-out hole. For context, Mikitchook said, 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. These results continue to demonstrate the resource expansion potential in the Northeast, where mineralization remains open.

The company currently has two rigs drilling at Richmond Hill and is on track to complete its 27,500-meter drill program by the end of 2025, he noted. Dakota announced an Initial Assessment with Cash Flow (IACF) for the Richmond Hill project in July 2025, outlining production of 153,000 ounces per year over 17 years at US$1,047/ounce AISC (all-in sustaining costs), with initial capital expenditure of US$380 million. The company has since commissioned trade-off studies as part of a feasibility study expected in 2027.

Drilling was initiated to collect metallurgical samples, conduct condemnation drilling, and perform infill/expansion drilling where the resource remains open, Mikitchook said.

The analyst also reminded investors that "Richmond Hill is on privately held brownfield land, which should make for a simpler State and County permitting process."

In a flash update note on November 19, Canaccord Genuity Capital Markets Analyst Peter Bell described the November results as a positive development for Dakota. The update included the first assays from expansion drilling in the northeastern corner of the project.

Bell highlighted the grades of expansion holes RH25C-278, which yielded 1.75 g/t Au over 19.9 meters, and RH25C-295, which returned 2.15 g/t Au over 5.5 meters. Additionally, infill and metallurgical drilling in the northern project area continue to demonstrate continuity of mineralization, which should be beneficial for the upcoming resource update and feasibility study, Bell noted.

He calculated an average grade and width of 1.67 g/t Au and approximately 10 meters, respectively, which is significantly higher than the average measured and indicated resource grade of 0.463 g/t Au. Expansion holes drilled in the southeastern part of the project did not yield significant results, although results from four holes in this area are still pending.

"Overall, the results released this morning are encouraging, in our view, intersecting high gold grades over impressive widths," Bell wrote. "The results serve to validate the current resource at Richmond Hill and provide support for resource growth. With metallurgical drilling for the 2025 campaign now complete, the company is advancing heap leach column testing. Dakota has a strong balance sheet of US$33 million (Sept 30, 2025) in cash, which on our numbers has the company fully funded through the completion of its feasibility study."

He continued, "We have a SPECULATIVE BUY rating and US$14 target price. Our target is predicated on a 0.9x multiple applied to our forward curve-derived operating NAV less net debt and other adjustments."

The Catalyst: Gold Drops After Big Day

Gold prices dropped over 1% on Tuesday as investors took profits after reaching a six-week high in the previous session, Anmol Choubey reported for Reuters on December 2. Market participants are now looking ahead to key U.S. economic data before the Federal Reserve's policy meeting next week. By 11:09 a.m. ET, spot gold had decreased by 1.4% to US$4,173.91 per ounce. U.S. gold futures for February delivery fell by 1.6% to US$4,205.10 per ounce.

"It's probably just a little bit of profit taking... the market's biggest focus of late has been rate cut expectations and those remain pretty steady," commented Peter Grant, vice president and senior metals strategist at Zaner Metals, according to the report. "We are in a continuation pattern that will eventually lead to an upside breakout, and I still like US$5,000 gold early in the new year."

Recent data indicating a gradual cooling of the U.S. economy, along with dovish signals from Federal Reserve policymakers, has strengthened market expectations for a 25-basis-point rate cut at the Fed's meeting next week, Choubey wrote. Traders are pricing in an 87% probability of this move. Investors are also watching the November ADP employment report on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, due Friday, which is the Fed's preferred measure of inflation. Lower interest rates typically favor non-yielding gold.

This after prices for the yellow metal climbed to a six-week peak on Monday, buoyed by increasing expectations of U.S. interest rate cuts and a weakening dollar, MSNBC reported December 1. Spot gold rose 0.2% to US$4,239.35 per ounce, marking its highest level since October 21. The U.S. dollar fell to a two-week low, making gold more affordable for those holding other currencies.

"The underlying environment of expectations of further rate cuts, along with inflationary pressure still above the Fed target... is still the underlying support in gold and silver," stated David Meger, director of metals trading at High Ridge Futures, according to the report. Traders have raised their bets on a December rate cut to an 87% probability, following softer U.S. economic data and dovish comments from Fed officials, including Governor Christopher Waller and New York Fed President John Williams. Lower interest rates generally benefit non-yielding assets like gold.

Ownership and Share Structure¹

Twelve insiders own 12.57% of Dakota Gold and numerous institutions hold 48.93% of Dakota in aggregate. Top institutions include Orion Resource Partners (USA) LP with 6.34%, The Vanguard Group with 4.25%, BlackRock Institutional Trust Co. N.A. with 4.31%, and Van Eck Associates Corp. with 3%. The rest is in retail.

Dakota Gold has 113.26 million outstanding shares, and its market cap is US$528.93 million. Its 52-week range is US$2.05–5.51 per share.