Dakota Gold Corp. Announces Drilling at the Maitland Gold Project Has Intersected 25.03 Grams/Tonne Gold over 4.4 Meters of Homestake Mine-Style Gold Mineralization in Drill Hole MA24C-038
- Discovery of high-grade gold mineralization at Maitland Gold Project in South Dakota.
- Resemblance to Homestake Mine's West Ledge with promising drill results in three distinct ledges.
- Transition to tighter spacing in exploration to delineate open ledges along strike and to depth.
- Expectation of higher-grade mineralization and discovery of additional ledges as drilling progresses.
- None.
The discovery of high-grade gold mineralization at Dakota Gold Corp's Maitland Project is a significant geological finding. The identification of three distinct ledges with grades analogous to the prolific Homestake Mine suggests a potential for a substantial resource base. The reported intercepts, particularly the 25.03 grams/tonne over 4.4 meters, indicate concentrations of gold that are economically attractive, especially given the current market prices for gold. The shallow depth of these intercepts, around 500 meters, is advantageous for mining operations, as it can potentially allow for more cost-effective extraction methods compared to deeper deposits.
Furthermore, the transition to tighter drilling spacing indicates a move from exploration towards resource definition, which could lead to increased confidence in the size and quality of the deposit. This step is essential before considering the feasibility of mining operations. Additionally, the mention of operational synergies due to the proximity of Richmond Hill and Maitland, both located on private land, could imply lower infrastructure costs and streamlined logistics if both sites are developed.
The announcement by Dakota Gold Corp of high-grade gold mineralization at the Maitland Project is likely to be received positively by investors and could have a favorable impact on the company's stock performance. The comparison to the historic Homestake Mine, which was a significant producer, may raise expectations regarding the economic potential of the Maitland Project. Investors will be particularly interested in the follow-up drilling results, as they could further solidify the project's viability and lead to upward revisions in resource estimates.
It is also important to consider that the mining sector is capital intensive and the costs associated with advancing a project from exploration to production can be substantial. Investors should pay attention to the company's future capital raising activities, which could dilute existing shares but are necessary for project development. The project's progress will need to be carefully monitored for any signs of cost overruns or operational challenges that could affect the company's financial health and the project's profitability.
The reported progress at Dakota Gold Corp's Maitland Project has implications for operational planning and execution. The presence of high-grade gold at relatively shallow depths could lead to the use of open-pit mining techniques, which are generally less expensive and safer than underground mining. However, the actual mining method selection will depend on various factors, including the geometry of the ore body, environmental considerations and the gold price.
Moreover, the proximity to existing infrastructure at Coeur Mining, Inc.'s Wharf Mine could be beneficial. Sharing infrastructure and possibly services could lower the threshold for economic viability. The company's approach to delineate the ledges with tighter drill spacing is a standard industry practice to increase the confidence in the geological model and the resource estimate. This detailed planning stage is critical to attract potential partners or secure financing for mine development.
Lead, South Dakota--(Newsfile Corp. - April 4, 2024) - Dakota Gold Corp. (NYSE American: DC) ("Dakota Gold" or the "Company") is pleased to announce that it has delineated three distinct ledges of high-grade Homestake Mine-style gold mineralization within the JB Gold Zone at the Maitland Gold Project ("Maitland") in South Dakota. The width, grade and stratigraphy of intercepts identified at Maitland to date are analogous to the gold mineralization found in the "West Ledge" system at the historic Homestake Mine that produced approximately 6 million ounces of gold. The Homestake Mine located approximately 3 miles (~4,800 meters) to the south of Maitland, produced over 40 million ounces of gold from a series of ledges, including what was produced from the West Ledge system.
Significant Highlights (See Table 1):
- The growing array of drill holes targeting Homestake Mine-style gold mineralization has now produced multiple high-grade gold intercepts in at least three distinct ledges within the JB Gold Zone at Maitland: 34 Ledge, 35 Ledge and 36 Ledge.
- Drill hole MA24C-036 returned 9.36 grams/tonne gold over 2.6 meters, and drill hole MA24C-038 returned 25.03 grams/tonne over 4.4 meters. Both holes are located in 36 Ledge on the west side of the Maitland mineralized gold trend and the gold mineralization intersections are shallow at approximately 500 meters below surface.
- Drilling at Maitland is transitioning from wider spacing of approximately 250 meters, to tighter spacing to delineate the ledges now outlined which remain open along strike and to depth.
James Berry, Vice President Exploration of Dakota Gold, said, "Based on my experience working in the Homestake Mine, at Maitland we have intersected higher grade mineralization that is shallower than exploration results from the upper portion of the West Ledge system at Homestake, which ultimately produced more than 6 million ounces of gold. In the West Ledge, the best grades were encountered at depths that Dakota Gold's exploration programs have yet to drill test. We, therefore, fully expect to find even better grade and additional ledges as drilling continues."
Table 1. Released Drill Results (Metric / Imperial)1,2
| Hole # | From | To | Depth | Interval3 | Gold | From | To | Depth | Interval3 | Gold | Mineral Type | g x m |
| m | m | m | m | g/t | ft | ft | ft | ft | oz/ton | |||
| MA24C-036 | 621.8 | 624.4 | 478.2 | 2.6 | 9.36 | 2040.0 | 2048.6 | 1569.0 | 8.6 | 0.273 | pꞒ | 24 |
| MA24C-038 | 608.4 | 612.8 | 496.8 | 4.4 | 25.03 | 1996.0 | 2010.5 | 1630.0 | 14.5 | 0.730 | pꞒ | 110 |
- The table may contain rounding errors.
- Abbreviations in the table include ounces per ton ("oz/ton"); grams per tonne ("g/t"); feet ("ft"); meter ("m"); Tertiary mineralization ("Tert") and Precambrian mineralization ("pꞒ").
- True Thickness Unknown
Figure 1. Plan view section of Dakota Gold Corp. Maitland Drill Holes with Highlighted Drill Holes MA24C-036 and MA24C-038.
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Figure 2. Maitland District Scale Map
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The Company currently has four drills on site at its properties in the Homestake District of South Dakota. Richmond Hill is located 2.3 miles (~3,700 meters) west of Maitland and 1.5 miles (~2,400 meters) north of Coeur Mining, Inc.'s Wharf Mine. Based on Coeur Mining, Inc.'s Form 10-K Full-Year 2023 Reported Results, the Wharf Mine produced 93,502 ounces at 0.026 oz/ton gold (0.89 grams/tonne) in 2023. Richmond Hill and Maitland are located on private land and provide operational synergies due to their proximity.
About Dakota Gold Corp.
Dakota Gold (NYSE American: DC) is a South Dakota-based responsible gold exploration and development company with a specific focus on revitalizing the Homestake District in Lead, South Dakota. Dakota Gold has high-caliber gold mineral properties covering over 48 thousand acres surrounding the historic Homestake Mine.
The Dakota Gold team is focused on new gold discoveries and opportunities that build on the legacy of the Homestake District and its 145 years of gold mining history.
Subscribe to Dakota Gold's e-mail list at www.dakotagoldcorp.com to receive the latest news and other Company updates.
Shareholder and Investor Inquiries
For more information, please contact:
Jonathan Awde, President and Chief Executive Officer
Tel: +1 604-761-5251
Email: JAwde@dakotagoldcorp.com
Qualified Person and S-K 1300 Disclosure
James M. Berry, a Registered Member of SME and Vice President of Exploration of Dakota Gold Corp., is the Company's designated qualified person for this news release as defined in Subpart 1300 - Disclosure by Registrants Engaged in Mining Operations of Regulation S-K and has reviewed and approved its scientific and technical content.
The ranges of potential tonnage and grade (or quality) disclosed above in respect of the Maitland Gold Project are conceptual in nature and could change as the proposed exploration activities are completed. There has been insufficient exploration of the Maitland Gold Project to allow for an estimate of a mineral resource and it is uncertain if further exploration will result in the estimation of a mineral resource. The disclosure above in respect of the Maitland Gold Project therefore does not represent, and should not be construed to be, an estimate of a mineral resource or mineral reserve.
Quality Assurance/Quality Control consists of regular insertion of certified reference materials, duplicate samples, and blanks into the sample stream. Samples are submitted to the ALS Geochemistry sample preparation facility in Winnipeg, Manitoba. Gold and multi-element analyses are performed at the ALS Geochemistry laboratory in Vancouver, British Columbia. ALS Minerals is an ISO/IEC 17025:2017 accredited lab. Check samples are submitted to Bureau Veritas, Vancouver B.C. as an umpire laboratory. Assay results are reviewed, and discrepancies are investigated prior to incorporation into the Company database.
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on assumptions and expectations that may not be realized and are inherently subject to numerous risks and uncertainties, which could cause actual results to differ materially from these statements. These risks and uncertainties include, among others, the execution and timing of our planned exploration activities, our use and evaluation of historic data, our ability to achieve our strategic goals, the state of the economy and financial markets generally and the effect on our industry, and the market for our common stock. The foregoing list is not exhaustive. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the risk factors included in Item 1A of the Company's Annual Report on Form 10-K for year ended December 31, 2023, as amended, as updated by annual, quarterly and other reports and documents that we file with the SEC. We caution investors not to place undue reliance on the forward-looking statements contained in this communication. These statements speak only as of the date of this communication, and we undertake no obligation to update or revise these statements, whether as a result of new information, future events or otherwise, except as may be required by law. We do not give any assurance that we will achieve our expectations.
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FAQ
What is the location of the Maitland Gold Project?
What are the names of the distinct ledges with high-grade gold mineralization at Maitland?
What are some notable drill results from the exploration at Maitland?
How does the gold mineralization at Maitland compare to the historic Homestake Mine's West Ledge?
What is the current status of drilling at Maitland?
