The company looking to develop a new gold mine in the northern Black Hills says a new assessment suggests the projects has a promising future.
Dakota Gold is considering creating an open pit gold mine at Richmond Hill near Lead.
A new report shows Richmond Hill could produce between a range of 2.6 million and 3.9 million ounces of gold over 17 to 28 years. This would generate between $6 billion to nearly $9 billion at current gold prices.
For comparison, Wharf Mine — which is located just south of Richmond Hill — has produced over three million ounces of gold since it opened in 1982. Wharf Mine, which is operated by a different company, is the only active large-scale gold operation in South Dakota.
Dakota Gold officials called Richmond Hill an "exciting project." They also described it as "technically straightforward" noting it would be developed an existing mining community.
"This is a very positive outcome for Dakota Gold and its shareholders, and it forms the platform from which we can grow and expand our mining and exploration activities in the Homestake District," said Robert Quartermain, Co-Chair, Director and CEO of Dakota Gold. "We now expect to advance through feasibility and into production as soon as 2029, based on our current work and project understanding – firmly placing Dakota Gold as having one of the largest development gold assets in the U.S.”
The report suggested the project would generate $400 million in state severance taxes over the life of mine for South Dakota.
Dakota Gold still needs a mining permit from the state before it could move forward with the project.