Dakota Gold Discovers Rare Earth Mineralization up to 12.9% over 4.9 Feet in New TD Zone at the Richmond Hill Gold Project

Rhea-AI Summary

Dakota Gold Corp. announces the discovery of Rare Earth Elements (REE) in the new TD Zone in its Richmond Hill Gold Project in South Dakota. The preliminary evaluation has identified high-grade REE near surface and at depth, with significant concentrations of neodymium and praseodymium, and potential presence of xenotime. The company is evaluating the potential economic contribution of these elements to the project and their strategic value. The United States heavily relies on sourcing and processing these materials from other countries, primarily China.

Insights

Market Research Analyst

The discovery of Rare Earth Elements (REE) by Dakota Gold Corp. at their Richmond Hill Gold Project has the potential to significantly impact the company's valuation and strategic positioning within the mining sector. REE are vital components in a variety of high-tech industries, including electronics, renewable energy and defense. The identification of high-grade REE, such as cerium, lanthanum, neodymium and praseodymium, could imply a diversification of Dakota Gold's asset base beyond gold, which may enhance the company's resilience to gold price fluctuations.

Furthermore, the concentration of REE within the existing gold mineralization area suggests the possibility of co-production, which could potentially lower overall extraction costs and streamline operations. The mention of the Department of Energy's classification of certain REEs as critical minerals due to supply chain risks underscores the strategic importance of domestic REE sources and may attract significant investor interest, given the current geopolitical climate favoring supply chain security.

Mining Engineer

The technical aspects of REE mining and beneficiation present both opportunities and challenges for Dakota Gold. The presence of REE in the Twin Tunnels Breccia Pipe and their distribution at various depths could indicate a complex geological environment. REE mining often requires specialized processing techniques to separate and refine the elements, which may necessitate substantial capital investment and expertise.

The company's next steps, including comprehensive mineralogical studies and refining the geometry and quantity of REO, are critical for assessing the feasibility of extraction. The economic viability will depend on the concentration of REE, the cost of extraction and the market prices for these elements. If the REE are found to be economically recoverable, this could lead to a substantial increase in the project's value. However, investors should be aware that the development of REE resources can be capital-intensive and time-consuming, with potential environmental and regulatory hurdles.

Environmental and Sustainability Expert

The exploration of REE by Dakota Gold carries implications for environmental sustainability and regulatory compliance. REEs are often associated with radioactive byproducts such as thorium and uranium, which can pose significant environmental risks if not managed properly. The company's approach to characterizing the mineralogy of the system is crucial in understanding these potential byproducts and planning for responsible waste management.

Patrick Malone's statement as Chief Sustainability Officer highlights the importance of REE for technology and defense, implying that sustainable and domestic production could be a strategic advantage. However, the environmental impact assessment and permitting process for REE mining can be stringent, given the potential ecological footprint. Investors should consider the company's capacity to navigate these processes, which could affect project timelines and costs. The potential for reduced permitting timelines due to the strategic value of magnet REE is an aspect to watch, as it could provide a competitive edge to Dakota Gold.

Lead, South Dakota--(Newsfile Corp. - January 31, 2024) - Dakota Gold Corp. (NYSE American: DC) ("Dakota Gold" or the "Company") is pleased to announce it has discovered Rare Earth Elements ("REE") in the new TD Zone in its exploration and development drilling program on its Richmond Hill Gold Project ("Richmond Hill") in South Dakota. Our preliminary evaluation has identified high-grade REE in and around the Twin Tunnels Breccia Pipe near surface and at depth, and within the gold resource areas being defined in its upcoming S-K 1300 compliant maiden resource, scheduled for completion in Q1 2024. Although REE will not be evaluated in the upcoming maiden resource, work has begun to characterize the distribution of REE as well as the mineralogy of the system, which may be useful in assessing the potential economic contribution to the Richmond Hill Gold Project.

Highlights:

• Cerium and lanthanum anomalies Dakota Gold first identified in early 2023 have been confirmed to contain high levels of REE (up to 12.9% of total Rare Earth Oxides (REO) over 4.9 feet). In the limited drilling completed, REO concentration over 1% occurs intermittently in an area 1,000 feet by 1,000 feet and to depths over 1,000 feet. These anomalies occur within the same area as previously reported gold mineralization at Richmond Hill.

• Significant concentrations of neodymium and praseodymium (maximum values over 1% combined) are present and could be primary economic drivers for beneficiation of the material. Neodymium and praseodymium are key components of REE magnets. We are also evaluating the potential presence of xenotime as a source for the heavy REE dysprosium and terbium. Neodymium, praseodymium, dysprosium, and terbium are all critical minerals in the Department of Energy's 2023 Critical Materials Assessment based on their high importance and high supply chain risk.

• Next steps will be to conduct additional REE sampling using more sensitive REE analyses, conduct comprehensive mineralogical studies and refine the geometry and quantity of the various REO at Richmond Hill, particularly in relationship to a future anticipated gold mineral resource estimate. 

James Berry, Vice President Exploration of Dakota Gold, said, "We are initiating the evaluation of REE at Richmond Hill. The recognition of enriched REE within the gold resource area may indicate the potential coproduction of commodities and, if these initial indicators are supported by future work, could add significant value to the project through either potential additional mineralization or potential reduction of permitting timelines. Further evaluation is undoubtedly warranted especially given the strategic value of magnet rare earth elements."

Patrick Malone, Chief Sustainability Officer of Dakota Gold said, "REE, particularly magnet REE like neodymium and praseodymium, are critical raw materials for many types of high technology - everything from smart phones to renewable energy and defense technologies. The United States is heavily reliant on sourcing and processing these materials from other countries, primarily China. Dakota Gold is very excited about the prospect of creating new, domestic supplies of these critical minerals from the same deposits at Richmond Hill that we know are rich in gold and silver. The potential to provide the critical materials to facilitate the clean energy transition, creating both environmental and shareholder benefits, is precisely in line with Dakota Gold's values and purpose." Mr. Malone continued, "The United States has begun prioritizing the permitting of critical mineral exploration and mining projects to help the country secure its domestic supplies."

Exploration Update:

Dakota Gold's exploration at the Richmond Hill Gold Project identified relatively high-grade concentrations of rare earths mixed with potentially economic gold and silver mineralization (Figures 1 and 2). Core drilling has intersected values as high as 12.9% total REO including neodymium oxide concentrations over 1% and praseodymium oxide over 0.4%. Neodymium and praseodymium both received screening scores of 27 in Department of Energy's 2023 Critical Materials Assessment because of their use in permanent magnets, representing two of the highest risk materials on this list. While drilling is limited and there has been no metallurgy and processing work completed to determine potential economics, REO concentration over 1% occurs roughly in an area 1,000 feet by 1,000 feet and to depths over 1,000 feet.

Preliminary thin sections for SEM analysis were taken from intervals returning high cerium and lanthanum values based on our standard multielement geochemical analyses (Figures 3 and 4). Later re-analyses using fusion digestion specifically designed for REE returned comparable results to the standard multielement procedures routinely used and suggest confidence that anomalous REE are not being missed by our standard sampling procedures (Figure 5).

Table 1 contains results from the preliminary, first pass follow-up sampling program initiated in late 2023. Cerium and Lanthanum are reported routinely in our standard trace element analyses along with gold and silver. However, detection limits of 10,000 ppm require re-assay of overrun values using a more sensitive analytical procedure with a fusion digestion. This fusion procedure also returns results for the heavier REE. Dakota Gold is conducting a detailed review of REE at Richmond Hill involving re-sampling and re-assay of earlier drill holes. Future results will be reported periodically when significant milestones are reached with the REE evaluation. Lanthanum and cerium show a very high degree of correlation using standard and sensitive analytical procedures. Cerium correlates very well with the magnet rare earths neodymium and praseodymium which can only be identified with the sensitive fusion analytical methods (Figures 6 and 7). The high correlation of lanthanum and cerium found with both methods, demonstrates a degree of confidence that exploration results can be used to identify concentrations of high value REE in the system.

Table 1. A selective sampling of results for calculated Total REO % in Drill Holes RH22C-003, RH22C-004, RH22C-005, RH22C-006, RH22C-011, RH22C-012, RH23C-014 and RH23C-032 (imperial / metric)

To view an enhanced version of Table 1, please visit:
https://images.newsfilecorp.com/files/8218/196271_15e0ff53242db8e2_002full.jpg

• True thickness is unknown.
• The major rare earth elements reported above include lanthanum (La), cerium (Ce), yttrium (Y), neodymium (Nd), dysprosium (Dy) and praseodymium (Pr).
• Rare Earth oxide values (REO%) were calculated from REE ppm results using conversions from: Rare Earth Elements, Goode, JR, 2019, SME Minerals Processing and Extractive Metallurgy Handbook; Dunne, RC, Kawatra, SK, and Young, CA, Eds: pp 2049 - 2075.

Figure 1. Plan View of Dakota Gold Corp. Richmond Hill Drill Holes with Highlighted REE Intercepts

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/8218/196271_15e0ff53242db8e2_003full.jpg

Figure 2. Cross Section along RH22C-005 and RH23C-014 Looking Northwest

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https://images.newsfilecorp.com/files/8218/196271_15e0ff53242db8e2_004full.jpg

Figure 3. Core Photo - RH23C-014 REE Zone

To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/8218/196271_15e0ff53242db8e2_005full.jpg

Figure 4. SEM images of REE Minerals - RH23C-014

To view an enhanced version of Figure 4, please visit:
https://images.newsfilecorp.com/files/8218/196271_15e0ff53242db8e2_006full.jpg

Figure 5. Comparison of 4-acid versus fusion digestion of lanthanum

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https://images.newsfilecorp.com/files/8218/196271_15e0ff53242db8e2_007full.jpg

Figure 6. Neodymium - Cerium Plot

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https://images.newsfilecorp.com/files/8218/196271_15e0ff53242db8e2_008full.jpg

Figure 7. Praseodymium - Cerium Plot

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https://images.newsfilecorp.com/files/8218/196271_15e0ff53242db8e2_009full.jpg

The Company currently has four drills on site on its properties in the Homestake District of South Dakota at Maitland and Richmond Hill Gold Project (Richmond Hill). Richmond Hill is located 2.3 miles west of Maitland and 1.5 miles north of Coeur Mining, Inc.'s Wharf Mine. Based on Coeur Mining, Inc.'s Form 10-K Full-Year 2022 Reported Results, the Wharf Mine produced 79,768 ounces at 0.021 oz/ton gold in 2022.

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 46 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 Richmond Hill Gold Project are conceptual in nature and could change as the proposed exploration activities are completed. There has been insufficient exploration of the Richmond Hill 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 Richmond 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 duplicate samples and blanks into the sample stream. Assay results are reviewed, and discrepancies are investigated prior to incorporation into the Company database. 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.

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. Any express or implied statements contained in this announcement that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, the timing of release of a resource estimate on the Richmond Hill Gold Project, the potential use for and value-add of REE identified at Richmond Hill Gold Project, and future evaluation plans for REE identified at Richmond Hill Gold Project. 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-KT for the nine-month transition period ended December 31, 2022, 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/196271

FAQ

What did Dakota Gold announce regarding Rare Earth Elements (REE)?

Dakota Gold Corp. announced the discovery of Rare Earth Elements (REE) in the new TD Zone in its Richmond Hill Gold Project in South Dakota.

What are the significant concentrations of REE identified by Dakota Gold?

Significant concentrations of neodymium and praseodymium, with potential presence of xenotime as a source for the heavy REE dysprosium and terbium, have been identified by Dakota Gold.

Why are neodymium and praseodymium important?

Neodymium and praseodymium are critical raw materials for many types of high technology, including smart phones, renewable energy, and defense technologies.

What is the potential economic contribution of REE to the Richmond Hill Gold Project?

Dakota Gold is evaluating the potential economic contribution of REE to the project and their strategic value, as well as the potential coproduction of commodities and reduction of permitting timelines.

Why is the United States heavily reliant on sourcing and processing REE from other countries?

The United States is heavily reliant on sourcing and processing REE from other countries, primarily China, as stated by Patrick Malone, Chief Sustainability Officer of Dakota Gold.