DC - Drill Bit Hits 25 G/T Gold at South Dakota Project | Benzinga
Source: Streetwise Reports 04/09/2024
New positive drill results plus a hot sector bode well for this U.S. gold company's stock. Learn more about why analysts like and recommend buying it.
Dakota Gold Corp. (AMEX:DC) is about to see its share price break out to the upside, according to one technical analyst, who rates it an Immediate Strong Buy. This U.S.-based gold mining company is exploring its sizable and prospective land package in South Dakota's Homestake District for new mineral discoveries.
"Investors in Dakota over the past two years have only known a bear market, but this looks like it is changing fast" wrote Technical Analyst Clive Maund in an April 4 report. "Dakota is done falling and is now in a position to take off higher."
Maund explained that DC's movement has formed the pattern of a cup base during the past six months and appears to be in the process of reversing out of its downtrend. He indicated that before breaking out, the stock "may pause for a while to mark out a handle to complement the cup."
The analyst cited two key reasons Dakota Gold's share price is poised to move higher. One is that gold has started a major bull market. The other is the company's recent positive news that drill results showed high-grade gold in another zone at one of its flagship assets, Maitland.
The standout results, from the JB zone specifically, Analyst Peter Bell with Canaccord Genuity (OTC: CCORF) reported in an April 4 research report, included:
- 25.03 grams per ton (25.03 g/t) gold over 4.4 meters (4.4m) from 608.4m in hole MA24C-038
- 9.36 g/t gold over 2.6m from 621.8m in hole MA24C-036
"These strong intercepts [at Maitland] . . . highlight the prospectivity for a substantial Homestake-style deposit" Bell wrote. "The continued advancement of Homestake-style targets adds excitement and optionality to the Richmond Hill deposit." Richmond Hill is a second project, 2.3 miles to the west of Maitland; Dakota Gold has been actively drilling since early 2022.
"The combination gives investors exposure to an advancing development project, with high-grade exploration sizzle" added Bell.
Technical Analyst Clive Maund wrote, "Dakota is done falling and is now in a position to take off higher."
Bell reiterated his Speculative Buy rating and target price on Dakota Gold, the latter of which implies a 102% return for investors given the company's current share price.
As for Maitland, the company recently announced it had found three distinct ledges of high-grade Homestake Mine-style gold mineralization at its Maitland Gold Project in the Black Hills of South Dakota.
Chris Temple, editor/publisher of The National Investor, also likes Dakota Gold, categorizing it as a growth-oriented stock to buy. In his ...