GOLD - Gold Co. Releases Maiden Resource Estimate for Historic SD Project | Benzinga
Source: Streetwise Reports 04/30/2024
Dakota Gold Corp. (AMEX:DC) has released its initial assessment maiden resource estimate for its Richmond Hill Gold Project in the historic Homestake District of South Dakota, news that sent its stock price up at least 5 cents per share.
The S-K 13000 Initial Assessment for the project noted an Indicated Resource of 51.83 million tonnes (Mt) at 0.8 grams per tonne gold (g/t Au) for 1.33 million ounces (Moz) and an Inferred Resource of 58.06 Mt at 0.61 g/t Au for 1.13 Moz.
"It's been two years since Dakota first began drilling Richmond Hill, and at first glance, the effort has paid off in this initial resource estimate, in our view" Canaccord Genuity analyst Peter Bell noted in an updated research note. "Richmond Hill showcases a global resource of 109.9 Mt grading 0.70g/t Au containing 2.46 Moz of gold."
Bell pointed out that the report noted mineralization is very shallow, with portions of the resource exposed at the surface.
"We await more detail on the plan for processing the mineralization including the lower recovery hypogene material" Bell wrote. "Pending further review of the technical report, we are positive on the results."
The maiden resource was derived from a historical database containing 69,401 gold assays from more than 900 drill holes, including 57 drill holes from Dakota Gold's current drill program, the company said.
But there is high-grade expansion potential, as drilling done post cutoff for the report on Oct. 5, 2023, has included 22.9 meters of 1.99 g/t Au, 42.8 meters of 1.71 g/t Au, and 60.9 meters of 1.68 g/t Au.
"The mineralization is consistent, near surface with portions of the resource exposed at surface and contains significant oxide mineralization" said Dakota President, Chief Executive Officer, and Director Jonathan Awde. "Richmond Hill benefits from being on private land and close to well established infrastructure. There is significant opportunity for improvement and expansion of the resource with additional work to position Richmond Hill as a high-quality, advanced-stage exploration asset in the U.S."
Dakota noted that with 17 holes drilled since the cutoff, there was growth potential open in all directions, with the possibility of more recoveries from additional drilling and metallurgical work on the project.
"In less than 20 months, we've outlined a multimillion-ounce maiden resource" Awde said Tuesday ...