Dakota Gold Corp.'s (DC:NYSE American) 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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Important Disclosures:
- 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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Required Company-Specific Disclosures (as of date of this publication) Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from Dakota Gold Corp. in the next three months. An analyst has visited the material operations of Dakota Gold Corp.. Partial payment was received for the related travel costs.
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