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Drilling Confirms S.D. Land Contains Sulphide Gold System
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The company is drilling, too, to test its hypothesis that the property also contains the type of gold mineralization associated with the historical Homestake mine, noted a Canaccord Genuity report.

Dakota Gold Corp.'s (DC:NYSE American) first five holes drilled at its Richmond Hill project in South Dakota's prolific Homestake District all returned mineralization and thus highlight the prospectivity there, reported Canaccord Genuity analyst Michael Fairbairn in a Dec. 8 research note.

"These five initial holes out of Richmond Hill offer evidence of the strong overall exploration potential from multiple styles of mineralization and targets across the property," Fairbairn wrote.

Signs of Sulfide Gold System

New results corroborate historical data that indicate a large sulfide gold system is present at Twin Tunnels. Specifically, three holes Dakota recently drilled there encountered greater than 1 gram per ton gold (1 g/t Au) over 30 meters (30m). They are:

  • RH22C-003: 30.7m of 1.45 g/t Au
  • RH22C-004: 44.1m of 1.05 g/t Au; the hole showed the sulfide system may extend below where mineralization was intercepted at about 400m downhole, and it remains open at depth
  • RH22C-005: 39.1 m of 1.14 g/t Au; the hole remains open at depth

Potential for Iron-Formation Gold

A fourth hole generated a new Homestake-style target. RH22C-001, drilled to the north of the MW3 East target area, returned 8m of 1.07 g/t Au.

This is noteworthy because Dakota believes the property likely hosts iron-formation gold mineralization like that historically produced at the Homestake mine, and not much exploration for this type of mineralization has been done on Dakota's property in the past, Fairbairn wrote. The Homestake mine produced 40,000,000 ounces of about 7.5 g/t gold for roughly 125 years.

"The potential for Homestake-style mineralization at Richmond Hill [was] a key part of Dakota Gold's thesis in optioning Richmond Hill," the analyst added.

Aims of Continued Drilling

The U.S.-based explorer-developer keeps drilling with two rigs at Richmond Hill; the $3.1 million phase one program aims to cover about 7,000m. The objectives are to test for Homestake-style mineralization at depth and to upgrade and expand historical resources to meet S-K 1300 requirements.

Dakota has two active rigs at its Maitland property, too, and is drilling there for the same reasons.

Canaccord Genuity has a Speculative Buy rating and a $4.75 per share target price on Dakota, the current share price of which is about $3.20.


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Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Dakota Gold Corp. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

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Disclosures For Canaccord Genuity Corp., Dakota Gold Corp., December 8 2022

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research, and (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer.

Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity LLC and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. 

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.

General Disclaimers: See “Required Company-Specific Disclosures” above for any of the following disclosures required as to companies referred to in this report: manager or co-manager roles; 1% or other ownership; compensation for certain services; types of client relationships; research analyst conflicts; managed/co-managed public offerings in prior periods; directorships; market making in equity securities and related derivatives. For reports identified above as compendium reports, the foregoing required company-specific disclosures can be found in a hyperlink located in the section labeled, “Compendium Reports.” “Canaccord Genuity” is the business name used by certain wholly owned subsidiaries of Canaccord Genuity Group Inc., including Canaccord Genuity LLC, Canaccord Genuity Limited, Canaccord Genuity Corp., and Canaccord Genuity (Australia) Limited, an affiliated company that is 80%-owned by Canaccord Genuity Group Inc.

The authoring analysts who are responsible for the preparation of this research are employed by Canaccord Genuity Corp. a Canadian broker-dealer with principal offices located in Vancouver, Calgary, Toronto, Montreal, or Canaccord Genuity LLC, a US broker-dealer with principal offices located in New York, Boston, San Francisco and Houston, or Canaccord Genuity Limited., a UK broker-dealer with principal offices located in London (UK) and Dublin (Ireland), or Canaccord Genuity (Australia) Limited, an Australian broker-dealer with principal offices located in Sydney and Melbourne.

The authoring analysts who are responsible for the preparation of this research have received (or will receive) compensation based upon (among other factors) the Investment Banking revenues and general profits of Canaccord Genuity. However, such authoring analysts have not received, and will not receive, compensation that is directly based upon or linked to one or more specific Investment Banking activities, or to recommendations contained in the research. Some regulators require that a firm must establish, implement and make available a policy for managing conflicts of interest arising as a result of publication or distribution of research. This research has been prepared in accordance with Canaccord Genuity’s policy on managing conflicts of interest, and information barriers or firewalls have been used where appropriate. Canaccord Genuity’s policy is available upon request.

The information contained in this research has been compiled by Canaccord Genuity from sources believed to be reliable, but (with the exception of the information about Canaccord Genuity) no representation or warranty, express or implied, is made by Canaccord Genuity, its affiliated companies or any other person as to its fairness, accuracy, completeness or correctness. Canaccord Genuity has not independently verified the facts, assumptions, and estimates contained herein.

All estimates, opinions and other information contained in this research constitute Canaccord Genuity’s judgement as of the date of this research, are subject to change without notice and are provided in good faith but without legal responsibility or liability.

From time to time, Canaccord Genuity salespeople, traders, and other professionals provide oral or written market commentary or trading strategies to our clients and our principal trading desk that reflect opinions that are contrary to the opinions expressed in this research. Canaccord Genuity’s affiliates, principal trading desk, and investing businesses also from time to time make investment decisions that are inconsistent with the recommendations or views expressed in this research. This research is provided for information purposes only and does not constitute an offer or solicitation to buy or sell any designated investments discussed herein in any jurisdiction where such offer or solicitation would be prohibited.

As a result, the designated investments discussed in this research may not be eligible for sale in some jurisdictions. This research is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This material is prepared for general circulation to clients and does not have regard to the investment objectives, financial situation or particular needs of any particular person. Investors should obtain advice based on their own individual circumstances before making an investment decision. To the fullest extent permitted by law, none of Canaccord Genuity, its affiliated companies or any other person accepts any liability whatsoever for any direct or consequential loss arising from or relating to any use of the information contained in this research.




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