en.Wedoany.com Reported - Dakota Gold (NYSE American: DC) has intersected multiple high-grade intervals in new drilling at its Richmond Hill oxide heap-leach gold project in South Dakota, with a prefeasibility study (PFS) expected to be completed later this year.
Highlight hole RH26C-417, located north of the existing resource area, returned approximately 14 meters grading 5.24 g/t gold and 4.43 g/t silver from 110 meters downhole. Hole RH26C-418 returned approximately 21 meters grading 3.33 g/t gold and 5.81 g/t silver from 130 meters depth. Scotia Capital mining analyst Eric Winmill noted in a report that the northeast extension zone continues to deliver intervals well above the cash-flow mine plan grade from the initial assessment, with significant resource growth potential.
The upcoming prefeasibility study for Richmond Hill will supplement the project's resources, economics, and its location within the historic Homestake gold district, which has over a century of mining history. Dakota Gold has completed approximately 94% of its planned 17,273-meter drilling program, scheduled to conclude by the end of this month. Gold and silver assay results from over 350 holes drilled this year and last year will be incorporated into the prefeasibility study.
Drilling focused on testing extensions north of the current resource model, which had previously delineated mineralization hundreds of meters beyond the proposed pit boundary. Other highlights include hole RH-26C-420, which returned approximately 11 meters grading 1.13 g/t gold and 2.05 g/t silver from 120 meters depth, and hole RH-26C-427, which returned approximately 7 meters grading 1.6 g/t gold and 3 g/t silver from surface. Dakota Gold stated that mineralization in the northeast area remains open in all directions and has not yet been fully delineated by drilling.
Richmond Hill is located about 320 kilometers west of Pierre, the capital of South Dakota, and is part of the company's 180-square-kilometer land package near the Homestake mine. The deposit features a large oxide gold system amenable to open-pit mining and heap-leach processing. The Homestake mine produced approximately 40 million ounces of gold over more than 145 years of operation before closing in 2002.
Dakota Gold CEO Robert Quartermain previously founded Pretium Resources and developed the Brucejack mine in British Columbia, which was sold to Newcrest (now Newmont, TSX: NGT; NYSE: NEM) in 2021 for approximately C$3.5 billion (US$2.5 billion). He established Dakota Gold the following year to explore in South Dakota.
According to the S-K 1300 initial assessment released in July, Richmond Hill could produce between 2.6 million and 3.9 million ounces of gold over a potential 28-year mine life. The project has an after-tax net present value (NPV) of US$1.6 billion (approximately C$2.4 billion) to US$2.1 billion, an after-tax internal rate of return (IRR) of 55% to 59%, and initial capital costs of US$384 million. Dakota Gold targets production startup in 2029. Based on the initial resource estimate released in February 2025, the project contains 244.7 million tonnes of measured and indicated resources grading 0.46 g/t gold and 4.83 g/t silver, containing 3.6 million ounces of gold and 38 million ounces of silver; and 230.6 million tonnes of inferred resources grading 0.35 g/t gold and 3.09 g/t silver, containing 2.6 million ounces of gold and 22.7 million ounces of silver. Dakota Gold shares fell 0.2% to US$4.61 in early trading Thursday, giving the company a market capitalization of approximately US$613 million. Shares have traded in a range of US$3.60 to US$7.25 over the past year.
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