Improved gold prices generate new interest in mining
RAPID CITY, SD. (AP) — An improved price for gold is generating new interest in drilling in the Black Hills.
At least five companies are currently drilling, or hope to be searching for gold. After being below $1,400 per ounce for several years, the price for gold has climbed above that level in recent months.
F3 Gold, of Minneapolis, is funding an environmental assessment it hopes will lead to approval of its plan to drill on Black Hills Forest Service land near Silver City.
“When a down market hits, the exploration sector is the first one to suffer,” said Rob Bergmann, a F3 Gold partner. “When the market comes back up, then the money finally starts funneling down into the exploration sector.”
Another factor driving exploration interest in the Black Hills is its well-known history as a gold-producing region, according to the Rapid City Journal.
The former Homestake Mine near Lead became the largest and deepest gold mine in North America and produced 40 million ounces of gold during its 126-year life, before it closed in 2002 and became an underground research facility.
Homestake’s roots were in the Black Hills gold rush of the 1870s.