History of the Homestake Gold Mine

The date when gold was discovered in the Black Hills of Dakota Territory is very hard to establish.  We have documents that take us back to as early as 1834.  A tablet was found that states:  "Came to these hills in 1833 seven of us DeLacompt, Ezra Kind, G.W.Wood, T.Brown, R.Kent, Wm. King, Indian Crow, all died but me Ezra Kind Killed by Ind behind high hill Got our gold dust June 1834."  On the reverse side was scratched:  "Got all the gold we could carry Our ponies all got by the Indians I have lost my gun and nothing to eat The Indians hunting me." 

The year 1834, in which the gold was mined according to the tablet, was fifteen years before the discovery of gold in California.  The stone, when found, had the appearance of having been there for many years.  It was hidden by grass and brush which had grown up around it.  Further evidence of its authenticity lies in the fact that it was found near the tail of Spring Creek which led from a fur trading post at the mouth of the Redwater (the present site of Belle Fourche) to the main Indian trail up Deadwood Gulch

There is other evidence such as rusted hatchets, mining picks, and abandoned shafts, found in the 1870's that points to adventurers and prospectors having entered the Black Hills many, many years before the 1875-76 rush, seeking GOLD.

In the early days of the "Gold Rush" placer claims were located on practically every creek in the Northern Black Hills.  Several of the claims were very rich, notably the Wheeler Claim from which approximately $100,000 was panned during the season of 1876.

Moses and Fred Manuel

The placers were worked out and the stage set for the mining of gold ore in the hard rocks from which the gravels had been derived.  As early as 1875, a few of the more venturesome souls were investigating the possibility of quartz lode claims.  Among them, Moses and Fred Manuel were the most fortunate.  They reached Custer in December of 1875 and found nothing of interest, whereupon they proceeded to the Northern Hills.  After a few months, they discovered on April 9, 1876 the Homestake Ledge or Lead (pronounced "Leed").  A ledge or outcrop of ore was termed a "lead".  Hence the town's name.  They sank their discovery shaft in the side of a draw, built a crude mill and during the spring of 1876 took out $5,000 worth of gold.

George Hearst

In June 1877, George Hearst sent L.D. Kellogg, an experienced practical miner, to investigate promising reports of new gold discoveries.  Following a brief investigation, he optioned the Homestake and Golden Star claims for $70,000 less a strip of land 10-feet wide originally deeded by the owners to H.B.Young.  This parcel of land was subsequently acquired.   Kellogg then reported to George Hearst in California and they immediately took up these claims, purchased others in addition, and promptly undertook their development.  The first two claims, comprising of about 10 acres, are a very small part of the eight thousand acres of patented mineral claims now owned by the Company.  George Hearst and his partners incorporated their holdings as The Homestake Mining Company in California on November 5, 1877.  This was almost 12 years to the day before the south half of Dakota Territory was admitted to the Union as the State of South Dakota.  Such was the beginning of one of the greatest gold mining enterprises of the world. 

In January 1879, the New York Stock Exchange accepted Homestake stock on the open market, where it has remained ever since as an "open" corporation.

* This information courtesy of the Homestake Visitors Center