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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- 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.
- 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.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for Canaccord Genuity, Dakota Gold Corp., August 3, 2023
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