Dakota Gold’s flagship asset is the Richmond Hill project, an oxide and transition gold deposit in the Homestake mining district of Lawrence County, South Dakota, with a nearby earlier stage asset a few miles east. This conversation covers management’s ownership and background, the project’s resource and economics, the history of past operators walking away from the ground, permitting timeline, drilling plans, and how the company intends to finance construction.
TL;DR
Dakota Gold is targeting first gold pour in 2029 at Richmond Hill, a shallow, oxide, heap leach project with no tailings dam and no offsite infrastructure needed. They told me they had C$107 million in the treasury as of March 31, and that this is enough to get the project through a prefeasibility study due in Q4 this year, permitting, and to shovel-ready status without any further drilling or additional financing, according to management’s current plan. A prior resource estimate showed 3.5 million ounces measured and indicated at 0.46 g/t gold plus 2.5 million ounces inferred at 0.35 g/t, with an after-tax NPV5 of US$1.6 billion (measured and indicated case) using a US$2,350 gold price assumption. Management said the 2028 deadline to exercise their option with Barrick (which currently costs US$170,000 a year) is separate from the 2029 production target, and that management and the board own about 8% of the company combined, with Executive Chairman Robert Quartermain holding roughly 6%.
What have they done for shareholders lately?
The company completed a 2026 drill program of over 17,000 metres focused on infill and geotechnical work at Richmond Hill, plus stepout drilling that they said found pockets of gold grade two to four times the deposit average. That data is being rolled into the upcoming PFS. They also secured a build slot for a power substation, which they described as a way to de-risk the longest lead time item for construction. In February this year they closed a financing that raised roughly US$75 million, which they used partly to hire experienced operating staff and partly to secure long lead time items like the substation. They also said the state extended baseline environmental monitoring work (groundwater and surface water sampling) is underway ahead of filing a notice of intent, the first step in the permitting process.
How much money do they have and what are they spending it on?
As of March 31, Dakota Gold had US$107 million in the treasury, with an updated figure expected alongside June 30 financial statements. Management said that because no further drilling is required to advance the current 10-year mine plan, their spending is projected to decline over 2026 through 2028. Cash is being directed toward the PFS, environmental baseline and permitting work, hiring senior operating staff, and securing long lead time construction items such as the power substation. Management stated their preferred scenario is to need zero further equity financings before reaching shovel-ready status, though they left open the possibility of spending some treasury on further drilling of the roughly 100 million tonnes of inferred material if it makes economic sense. For financing the actual construction capex, estimated at US$384 million in the earlier economic study, management said they are considering a mix of debt and equity, and pointed to options like gold prepayments or a silver stream given the project’s silver credits, without committing to a specific structure or split.
Upcoming catalysts
Technical: a prefeasibility study is expected in Q4 2026, incorporating the 2025 and 2026 drilling. A maiden resource at the Matland/Unionville target is expected around mid-2027. Trade off studies on throughput (a possible shift from a jaw crusher to a gyratory crusher, potentially raising throughput from 150,000 tonnes per day to a range of 30,000 to 60,000 tonnes per day) are ongoing as part of the PFS. Operational and permitting: a notice of intent, which starts the formal permitting clock, is planned by the end of 2026, with the state permitting process expected to take 18 to 24 months based on comparable timelines at the neighboring Wharf mine. Corporate: the Barrick option on Richmond Hill can be extended to the end of 2028 before Dakota Gold would need to exercise it and take on bonding obligations, and management is targeting first gold pour in 2029.
Risks
Management acknowledged the 2029 production target is dependent on the PFS, permitting, and construction all proceeding on the timelines they described, and that permitting in particular involves a public comment period and the possibility of contested hearings, though they said this is already factored into their 18 to 24 month estimate. There is also open negotiation regarding a required 500 foot buffer from adjacent landowners near Richmond Hill, which is not yet resolved. The company remains reliant on the current cash position to avoid dilutive financing, and management’s plan not to raise further equity depends on drilling, permitting, and construction costs coming in close to current estimates. The project also sits near a historic acid rock drainage issue from the 1990s under a prior operator, though management said this has not required further liability and water quality has remained stable.
Dakota Gold CEO Interview
VERY IMPORTANT WARNING
Please note that this company has not paid Resource Talks for the creation of this content. This website is a business that charges for the creation and publication of content. This means there will always be a potential conflict of interest which means you can never rely on anything said herein.
By consuming this content, you acknowledge that Resource Talks and/or its affiliates and/or their personnel may own, have owned, or will own interests in and/or may have a business relationship with some or all companies/entities mentioned/featured in this publication. You further acknowledge that entities which may be referenced or featured in this publication or their related parties may hold an interest in Resource Talks or its affiliates, which may create further conflict of interest.
The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The reader acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. The author is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume he doesn’t know much more than a potato does. The mining & exploration space is among the riskiest sectors to invest in. The risk of anything mentioned in this publication is 100% loss of capital. If you don’t read the official documents provided by the company on http://www.SedarPlus.ca, you will lose all of your money.
