Dakota Gold will conduct pre-permit study for potential mine in Homestake area

A South Dakota company earned the state’s blessing Thursday to take a formal step toward a large-scale gold mining permit in the northern Black Hills.

The South Dakota Board of Minerals and Environment unanimously approved Dakota Gold’s request to begin a socioeconomic study on the potential impact of the company’s proposed Richmond Hill mining operation. State law requires such a study from any operation with plans to apply for a large-scale mine.

The Richmond Hill project area in Lawrence County sits on private land half a mile north of the Wharf Mine, the state’s only operational, large-scale gold mine, which is operated by Chicago-based Coeur Mining. Richmond Hill is one of the multiple exploratory projects in Dakota Gold’s portfolio in that area, home historically to the Homestake mine, shuttered in 2002 after 125 years of production.

Last month, the company released a report saying the Richmond Hill site has the potential to produce 3.65 million ounces of gold. 

The Wharf Mine, for context, has produced about 3 million ounces of gold since 1982. Homestake produced more than 40 million ounces.

Short audience with board, no opposition

Dakota Gold Environmental Director Timm Comer attended Thursday’s meeting virtually, as did Dakota Institute CEO Jared McEntaffer, the contract academic whose firm will conduct the socioeconomic impact study. Dakota Institute is a research firm not affiliated with Dakota Gold.

A lone board member asked to confirm that the companies are separate entities. Aside from that, no board members asked questions before unanimously approving Dakota Gold’s request to set McEntaffer to work.

No one spoke on the Richmond Hill project during the board’s public comment period.

After the meeting, Comer confirmed that the mine would be an above-ground operation.

The Black Hills Clean Water Alliance posted information to its website in advance of Thursday’s meeting that notes concerns about Dakota Gold and the potential environmental impact of a mine. 

The group’s Lilias Jarding told South Dakota Searchlight that a member monitored the meeting remotely, but that the socioeconomic study is too preliminary in the multi-step process of permitting to have warranted opposition testimony.

Scope of study

The $35,000-$50,000 Dakota Institute study will address Lawrence County’s infrastructure, economic base and social conditions, according to a proposal filed with the board prior to Thursday’s meeting.

McEntaffer aims to return to Dakota Gold a “realistic approximation” of the economic activity of an operational Richmond Hill mine, which the mining company in turn would submit as part of an official application for a large-scale mine.

“This activity will include direct company labor and material requirements as well as input requirements by subcontractors,” the proposal says.

The study would also touch upon housing needs and availability, social impacts of population growth and “adjacent land issues.” The latter part of the study would engage with Lawrence County planning and zoning officials and RESPEC, a Rapid City consulting firm.

The analysis will be completed by 2026.