LEAD, S.D. – A mining company released an initial assessment this week that outlines the potential for an open-pit gold mine northwest of Lead in South Dakota’s northern Black Hills.
According to Dakota Gold’s new report, its Richmond Hill project could produce between 2.6 million and 3.9 million ounces of gold over 17 to 28 years, based on an analysis of historic data from the previously mined area and 146 exploratory holes drilled in the past three years.
The nearby Wharf Mine, operated by a different company, has produced about 3 million ounces of gold since 1982. The Homestake Mine, also nearby, produced more than 40 million ounces before it closed more than two decades ago.
Not accounting for taxes and production costs, Dakota Gold estimates the Richmond Hill mine could generate $6.1 billion to $8.7 billion worth of gold at current prices. Developing the mine would would require an estimated initial investment of $384 million.
The company expects to advance into production as soon as 2029, “firmly placing Dakota Gold as having one of the largest development gold assets in the U.S.,” said CEO Robert Quartermain in a news release.
The company will need a large-scale mine permit from the state of South Dakota, and has already taken steps toward producing a socioeconomic study, an initial part of the permitting process. The Richmond Hill deposit sits mostly on previously mined, privately owned land, which Dakota Gold believes could streamline permitting.
The company estimates the mine could generate $400 million to $600 million in state severance taxes over its 17- to 28-year lifespan, and hundreds of jobs.
The project would be half a mile north of the Wharf Mine, which is the only operational, large-scale gold mine in the state, operated by Chicago-based Coeur Mining. The Wharf Mine is visible from the Terry Peak Ski Area.
Dakota Gold has offices in Lead and Canada. Richmond Hill is one of the company’s multiple exploratory projects in the Homestake mine region.
