Dakota Gold touts silver hits ahead of new study

Results from step out and infill drilling at Dakota Gold’s (NYSE-A: DC) Richmond Hill heap leach project in South Dakota has revealed open mineralization in all directions, as well as strong silver results. Shares rose.

Highlight step-out hole RH25C-310 cut about 25 metres grading 5 grams gold per tonne and 28.6 grams silver from 78 metres depth; and hole RH25C-348 intersected 32.7 metres at 2.46 grams gold and 19.16 grams silver from about 58 metres depth, Dakota reported Friday. Richmond Hill is about 270 km west of the state capital Pierre.

“We are pleased to be advancing a project that in addition to gold, hosts a considerable amount of silver,” Dakota Gold Chief Financial Officer Shawn Campbell said in a release. “Silver was recently designated as a Critical Mineral in the United States, and the Richmond Hill project has the potential to support domestic supply and contribute to the nation’s long-term mineral security.”

Home sweet Homestake

The results from the 2025 program, to be included in a pre-feasibility targeted for the second half of 2026, further set Dakota Gold apart as one of the few publicly-traded companies in the state exploring in the historic Homestake District. The Homestake mine produced over 40 million oz. of gold between 1876 until it closed in 2002, making it one of the most productive and longest-running gold mines in the U.S.

Dakota Gold shares gained 3% to $6.06 a piece on Friday morning in New York, valuing the company at $682.9 million. The stock has traded in a 12-month range of $2.40 to $7.25.

The silver lining

Other noteworthy drill holes include RH25C-164 which cut 60 metres grading 1.94 grams gold and 34.88 grams silver from 7 metres depth and RH25C-169 that intersected 39 metres at 2.78 grams gold and 42.07 grams silver from 20 metres depth. Both holes were in the MW3 Main zone.

Hole RH25C-209 cut 73.5 metres grading 1.4 grams gold and 34.82 grams silver from 14.3 metres depth in the Cole Creek zone.

Richmond Hill could produce 2.6 to 3.9 million oz. of gold over a potential mine life of 28 years, according to an S-K 1300 Initial Assessment report from last July. With a post-tax net present value of $1.6 billion to $2.1 billion, the project has a post-tax internal rate of return of 55% to 59%, with initial costs of $384 million. Dakota targets production for 2029.

The project hosts 244.7 million measured and indicated tonnes grading 0.46 gram gold and 4.83 grams silver for 3.6 million oz. of contained gold and 38 million oz. silver, according to an initial resource released in February last year.

Inferred resources total 230.6 million tonnes at 0.35 gram gold and 3.09 grams silver for 2.6 million oz. gold and 22.7 million oz. silver. Last year’s drill campaign comprised about 29,000 metres across 242 holes, Dakota said. The company has drilled 15,481 metres across 109 holes so far this year.