Deadwood Codexery

Homestake Mining Company

From a $70,000 claim to the deepest gold mine in the Western Hemisphere.

The Homestake Mining Company was a mining enterprise that operated the Homestake Mine, a deep underground gold mine (8,000 feet or 2,438 m) located in Lead, South Dakota. Until it closed in 2002, it was the largest and deepest gold mine in the Western Hemisphere. The mine produced more than 40 million troy ounces of gold during its lifetime. The company was formed in 1877, and was listed on the New York Stock Exchange in 1879, becoming one of the longest-listed stocks in NYSE history. George Hearst, Lloyd Tevis, and James Ben Ali Haggin bought the original claim for $70,000 in 1877.

Quick Facts

Primary backer
George Hearst
Status
Closed in 2002; converted to scientific research facility

Lore & Background

The Homestake deposit was discovered in 1876 by settlers Fred and Moses Manuel, Alex Engh, and Hank Harney during the Black Hills Gold Rush. The Black Hills had been guaranteed to the Lakota Nation by the Fort Laramie Treaty, but the land was stolen for its gold. George Hearst reached Deadwood in October 1877 and took control of the mine property. Hearst consolidated and enlarged the property by fair and foul means.

He bought out some adjacent claims, and secured others in the courts. Hearst purchased newspapers in Deadwood to influence public opinion, and an opposing newspaper editor was physically attacked on a Deadwood street. By the time Hearst left the Black Hills in March 1879, he had added claims including Giant, Golden Star, Netty, May Booth, Golden Star No. 2, Crown Point, Sunrise, and General Ellison to the original two claims, totaling 30 acres. The ten-stamp mill had become 200, and 500 employees worked in the mine, mills, offices and shops.

Reader's Guide

The Homestake Mining Company was the corporate entity that operated the Homestake Mine in Lead, South Dakota. Key figures include George Hearst, who took control in 1877, and partners Lloyd Tevis and James Ben Ali Haggin. Arthur De Wint Foote worked as an engineer. Hearst owned the Boulder Ditch and water rights to Whitewood Creek, monopolizing the region, and his railroad, the Black Hills & Fort Pierre Railroad, gave him access to eastern Dakota Territory.

The mine used compressed air locomotives by 1901, fully replacing mules and horses by the 1920s. Charles Washington Merrill introduced cyanidization to augment mercury-amalgamation, achieving 94 percent gold recovery. The gold was shipped to the Denver Mint. The mine ceased production at the end of 2001 due to low gold prices, poor ore quality, and high costs.

The mine later became the Sanford Underground Research Facility (SURF), hosting experiments like LUX, the Majorana Demonstrator, and DUNE.

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