2013 Dakota Territory Resource Corp

Prévia do material em texto

By: Brian Cole P.Geo. and Amer Smailbegovic, Ph.D., CPG. 
 
Effective Date: June 21, 2013 
TECHNICAL REPORT 
on the 
BLIND GOLD PROJECT 
Maitland Mining District 
Lawrence County, South Dakota 
for 
Dakota Territory Resource Corp. 
Reno, Nevada, USA 
 
Blind Gold Project, South Dakota, USA 
Page i 
TECHNICAL REPORT 
on the 
BLIND GOLD PROJECT 
Maitland Mining District 
Lawrence County, South Dakota 
for 
Dakota Territory Resource Corp. 
Reno, Nevada, USA 
 
 
Effective Date: June 21, 2013 
By: 
Brian Cole P.Geo. 
Consulting Geologist 
Ontario, Canada 
and 
Amer Smailbegovic, Ph.D., CPG. 
Consulting Geologist 
Reno, Nevada 
 
 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page ii 
Table of Contents 
TABLE OF CONTENTS .................................................................................................................. II 
LIST OF FIGURES ....................................................................................................................... IV 
LIST OF TABLES ......................................................................................................................... IV 
1 EXECUTIVE SUMMARY ...........................................................................................................1 
2 INTRODUCTION .....................................................................................................................3 
2.1 PURPOSE AND SCOPE OF STUDY .................................................................................................3 
2.2 SOURCES OF INFORMATION.......................................................................................................4 
2.3 DETAILS OF PROPERTY INSPECTION .............................................................................................4 
2.4 TERMS OF REFERENCE CURRENCY AND UNITS OF MEASUREMENT .......................................................4 
3 RELIANCE ON OTHER EXPERTS ...............................................................................................7 
4 PROPERTY DESCRIPTION AND LOCATION ...............................................................................7 
4.1 PROPERTY DESCRIPTION ...........................................................................................................7 
4.2 TERMS OF ACQUISITION ...........................................................................................................9 
5 PROPERTY ACCESSIBILITY, CLIMATE, PHYSIOGRAPHY, LOCAL RESOURCES AND 
INFRASTRUCTURE .......................................................................................................................9 
6 PROPERTY AND AREA HISTORY ............................................................................................ 11 
6.1 MAITLAND DISTRICT ............................................................................................................. 12 
6.1.1 MAITLAND MINE ......................................................................................................................... 12 
6.2 LEAD DISTRICT (HOMESTAKE MINE) .......................................................................................... 14 
6.3 CARBONATE / RAGGED TOP DISTRICT ........................................................................................ 20 
6.4 PORTLAND AND RUBY BASIN DISTRICTS ..................................................................................... 21 
6.5 OTHER DISTRICTS ................................................................................................................. 23 
6.6 BLIND GOLD PROPERTY .......................................................................................................... 23 
7 GEOLOGICAL SETTING AND MINERALIZATION ...................................................................... 25 
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Blind Gold Project, South Dakota, USA Page iii 
7.1 REGIONAL GEOLOGIC SETTING ................................................................................................. 25 
7.2 HOMESTAKE MINE GEOLOGIC SETTING ...................................................................................... 28 
7.3 DISTRICT AND PROPERTY GEOLOGIC SETTING .............................................................................. 30 
7.4 MINERALIZATION ................................................................................................................. 33 
7.4.1 MINERALIZATION IN THE BLACK HILLS OVERVIEW ............................................................................. 33 
7.4.2 OBSERVED MINERALIZATION ON THE PROPERTY ............................................................................... 35 
8 DEPOSIT TYPES .................................................................................................................... 38 
8.1 PROTEROZOIC AGE IRON FORMATION DEPOSIT MODEL (HOMESTAKE MINE STYLE) .............................. 38 
8.2 TERTIARY AGE REPLACEMENT GOLD DEPOSIT MODEL ................................................................... 39 
8.3 PALEOPLACERS ..................................................................................................................... 40 
9 PROPERTY EXPLORATION ACTIVITIES ................................................................................... 42 
10 DRILLING ........................................................................................................................... 42 
11 GEOCHEMICAL SAMPLING APPROACH, METHODS, PREPARATION, ANALYSIS, QUALITY 
ASSURANCE AND SECURITY ....................................................................................................... 42 
12 DATA VERIFICATION .......................................................................................................... 43 
13 MINERAL PROCESSING AND METALLURGICAL TESTING ....................................................... 43 
14 PROPERTY MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES .................................. 43 
15 ADJACENT PROPERTIES ...................................................................................................... 43 
16 OTHER RELEVANT DATA AND INFORMATION ..................................................................... 44 
17 INTERPRETATION AND CONCLUSIONS ................................................................................ 44 
18 RECOMMENDATIONS ........................................................................................................ 45 
19 REFERENCES ...................................................................................................................... 49 
20 CERTIFICATE OF QUALIFICATIONS AND DECLARATION ........................................................ 52 
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Blind Gold Project, South Dakota, USA Page iv 
20.1 AMER SMAILBEGOVIC, PH.D., CPG-11303 .............................................................................. 52 
20.2 BRIAN COLE P.GEO ............................................................................................................. 53 
 
List of Figures 
Figure 4.1 Regional Location of Blind Gold Project ..................................................................................................... 7 
Figure 4.2 Properrty Configuration ............................................................................................................................... 8 
Figure 5.1 View of the Homestake Gold District from Terry Peak showing Wharf Gold Mine and 
looking northeast towards the location of the Blind Gold Property (photo courtesy of SD-
DENR) .......................................................................................................................................................... 10 
Figure 6.1 Mining Districts of Black Hills ..................................................................................................................... 12Figure 6.2 Isometric View of the Homestake Gold Mine and Homestake Deposit looking from 
southwest to northeast: .............................................................................................................................. 19 
Figure 7.1 Regional Geology of the Black Hills Uplift with Major Structural Elements .............................................. 26 
Figure 7.2 Stratigraphic Column for the Northern Black Hills .................................................................................... 27 
Figure 7.3 Homestake Mine: Representative Cross-Section ....................................................................................... 28 
Figure 7.4 Homestake Mine: Longintudinal Section ................................................................................................... 29 
Figure 7.5 Property Geology ...................................................................................................................................... 31 
Figure 7.6 Homestake Structural Corridor .................................................................................................................. 32 
Figure 7.7 Homestake Structural Corridor - Longitudinal View .................................................................................. 33 
Figure 7.8 Quartz Veins in altered Pahasapa Limestone on the Blind Gold Property ................................................. 36 
Figure 7.9 Altered Cambrian Deadwood fm on the Blind Gold Property .................................................................... 37 
Figure 7.10 Mineralized and siliceous Deadwood fm east side of False Bottom Creek .............................................. 38 
Figure 8.1 Tertiary-age Gold Mines, Northern Black Hills .......................................................................................... 40 
Figure 18.1 Proposed Drill Plan ................................................................................................................................... 46 
Figure 18.2 Drilling Rationale .................................................................................................................................... 47 
 
 
List of Tables 
Table 18.1 Budget ...................................................................................................................................................... 48 
 
Blind Gold Project, South Dakota, USA 
Page 1 
TECHNICAL REPORT 
on the 
BLIND GOLD PROJECT 
Maitland Mining District 
Lawrence County, South Dakota 
for 
Dakota Territory Resource Corp.  
Reno, Nevada, USA 
1 EXECUTIVE SUMMARY 
Dakota  Territory  Resource  Corp. 
("DRTC") or (the “Company”) is listed on 
the  OTC  QB market  exchange  (symbol 
DTRC:QB) and  is domiciled  in  the State 
of Nevada, USA.  
An  excellent  brownfields  opportunity 
exists  in  the historic  gold mining  camp 
at Lead, South Dakota  from which over 
44  million  ounces  of  gold  production 
has been won. 
This  report  focuses  on  the  Blind  Gold 
Project  (the  “Property”)  located  approximately  4  miles  northwest  of  the  famous  and  historic 
Homestake Mine  in the Black Hills at Lead, South Dakota, USA.   The project  is controlled 100% by 
Dakota  Territory  Resource  Corp.,  a  public  Nevada  registered  company.    The  Company 
commissioned the authors of this report to perform due diligence upon the available data pertinent 
to  the Blind Gold  Project, prepare  a  summary descriptive  report,  and  express opinion  as  to  the 
veracity of the available data as well as the project’s mineral potential. 
The Company controls  two other claim groups  in  the area:  the City Creek Claims and Homestake 
Paleoplacer Claims Groups.  This report will focus on the Blind Gold Project solely however. 
Two major  plate  scale  structures  intersect  in  the  area  of  the  northern  Black  Hills:  the  broad, 
northerly  trending  Trans‐Hudson Deformational  Zone  and  the  northwest  trending  Lewis &  Clark 
Lineament.    Over  44.6 million  troy  ounces  (“oz”)  of  gold  production  has  been  realized  at  this 
intersection, with  less than 150,000oz of cumulative production being produced elsewhere within 
the Black Hills.   This overwhelming concentration of gold demonstrates the  fundamental role this 
tectonic  intersection has played  in  regional mineralization control.   The Blind Gold Project  lies at 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 2 
this intersection, near the Lewis & Clark Lineament and within the bounds of the broad Trans-
Hudson Deformational Zone, as well as on the northern edge of the Lead Dome. 
Gold mineralization at the Homestake Mine is exclusively hosted in Early Proterozoic Homestake 
Formation, an iron formation (“IF”). Experience and research empirically demonstrate there must 
be a confluence and coexistence of three critical geological criteria for Homestake Mine style of 
mineralization to occur: 
• Stratigraphy – Homestake formation (iron formation) 
• Structure – folds and ductile shear zones 
• Geothermal gradient transition from biotite to garnet facies 
Gold mineralization in the Black Hills has been limited to two unique and temporally exclusive 
events during the Proterozoic and Tertiary, with over 90% of the gold being deposited in the earlier 
event. Considering the Homestake formation host rock criterion, the bulk of the gold 
mineralization is limited to a relatively narrow stratigraphic range that can be repetitious due to 
folding. 
The Homestake Mine closed in 2001 after 125 years of continuous production and produced nearly 
40 million ounces of gold. Prior to closure, staff of the Homestake Exploration Group managed the 
expenditure of $US70 million over a period of eleven years seeking extensions to the Homestake 
Deposit as well as for new, but nearby, Homestake-style targets. The Blind Gold Project and its 
proposed exploration program was acquired and formulated respectively on the basis of hands-on 
experience gained through direct involvement in Homestake’s exploration programs. 
Homestake’s exploration programs of the 1980’s and 1990’s are the foundation upon which the 
Homestake IF gold target at the Blind Gold Property is based. Homestake’s programs defined the 
continuous extension and repeating fold structures of the Homestake IF north from the mine and 
up to and under the Blind Gold Property. Homestake’s programs further demonstrated proof of 
concept with the North Drift Discovery that the Homestake style mineralization was repeatable 
within the structural corridor north of the mine. 
While Homestake’s $70 million exploration investment in the Black Hills was both substantial and 
important, the district and even the structural corridor remains relatively underexplored to this 
day. Two holes collared approximately 1.5 miles north of the North Drift Discovery intersected gold 
mineralization in the next sequence of Homestake IF fold structures in the area under the Maitland 
Mine. The shallower up-plunge projection of that mineralization was confirmed by the drilling of 
Hole MA-2, which was drilled nearly a mile further to the north and cut approximately 500 ft of 
mineralized Homestake formation in repeating folds, of which approximately 20% was mineralized, 
at the southwest corner of the Property. From the location of MA-2 at the southwest, the Blind 
Gold Property affords nearly 2 miles of untested strike length to employ the systematic exploration 
techniques used with great success at the Homestake Mine. 
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Blind Gold Project, South Dakota, USA Page 3 
The authors find the science and reasoning to explore in the Blind Gold Project area for blind 
Homestake-type and Tertiary age deposit(s) are sound. Despite the impediment of cover rock of 
moderate thickness, the potential rewards of amulti-million ounce target justify the risk and higher 
exploration costs. 
The recommended exploration program for the Blind Gold property over a 12 month period is to 
initiate geophysical and geochemical surveys that would help constrain the target areas within the 
Property, for both Proterozoic and Tertiary-style of mineralization. Geophysical techniques 
recommended are an airborne gravity, magnetic, and ZTEM survey, capable of detecting deep-
seated structural features such as the Yates Member of the Poorman formation, as well as the 
potential extent of Homestake formation and/or Tertiary mineralization targets. 
A 15,000 foot ("ft") diamond drill program is recommended to further define and extend the known 
mineralized Homestake IF that was discovered at the southwest corner of the Blind Gold Property 
by Homestake’s drill programs of the 1990’s. Three (ea.) 5,000 ft long core holes located within the 
preferential structural corridor are proposed to be drilled sub-vertical through approximately 600 
feet of cover and allowed to run across the Ellison, Homestake, and Poorman formations from west 
to east to test stratigraphy and locate gold mineralization. The estimated cost to undertake the 
recommended work program is US$2.5 million. 
2 INTRODUCTION 
2.1 PURPOSE AND SCOPE OF STUDY 
This report has been prepared at the behest of Dakota Territory Resource Corp. The Company 
commissioned the authors, Brian Cole P.Geo. and Dr. Amer Smailbegovic CPG., to undertake a 
review of the Blind Gold Project located in Lawrence County in western South Dakota, USA. The 
authors were instructed to perform due diligence upon the available data, prepare a summary 
descriptive report, and to express opinion as to the veracity of the data as well as the Property’s 
mineral potential. 
This study is a combined historical document and data review as well as a report on direct 
observations made during six days spent on the Property in October 2011. The Company has 
performed no exploration on the project other than very limited sampling and 
acquisition/compilation of historical data. 
The report has been prepared to the standard and form of National Instrument 43-101 - 
Standards of Disclosure for Mineral Projects and Form 43-101f1 Technical Report and Related 
Consequential Amendments. 
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Blind Gold Project, South Dakota, USA Page 4 
2.2 SOURCES OF INFORMATION 
The authors have relied heavily upon historical reports, maps, drill sections, assay records, 
compiled digital data furnished by the Company, government issued literature, and third party 
documents in the public domain in the preparation of this report. Those sources utilized are cited 
within the reference section of this report. The authors have also used available public-domain 
data from various Federal, State and academic institutions. The area incorporating the Property is 
well documented in the professional literature and the more pertinent papers have been 
reviewed and referenced. 
2.3 DETAILS OF PROPERTY INSPECTION 
Smailbegovic visited the property from October 02 - 08 2011, visiting all of the sites pertinent to 
this report and validating the observations made by the previous authors used in the preparation 
of this report. The Property has experienced no material change in the interim to the knowledge 
of the authors. 
2.4 TERMS OF REFERENCE CURRENCY AND UNITS OF MEASUREMENT 
All reference to currency in this report is in US dollars unless otherwise noted. 
The US system of measurement for distance, weight, temperature, and concentration have been 
adopted for this report. 
The geographic data is presented in NAD27 datum, Universal Transverse Mercator (“UTM”) 
projection, but US standard measurements are also included for the ease of reference in the text 
and figures. 
Useful conversion factors used in this report include: 
Linear Measure 
1 inch = 2.54 centimeters 
1 foot = 0.3048 meter 
1 yard = 0.9144 meter 
1 mile = 1.6 kilometers 
 
Area Measure 
1 acre = 0.4047 hectare 
1 square mile = 640 acres = 259 hectares 
 
Capacity Measure (liquid) 
1 US gallon = 4 quarts = 3.785 liter 
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Blind Gold Project, South Dakota, USA Page 5 
 
Weight 
1 short ton = 2,000 pounds = 0.907 tonne 
1 pound = 16 oz = 0.454 kg = 14.5833 troy ounces 
One troy oz/short ton (opt) is equivalent to 34.286 g/metric tonne or 34.286ppm 
 
Analytical Values 
 Percent Grams per Metric Tonne Troy Ounces per Short Ton 
1% 1% 10,000 291.7 
1 gm/tonne 0.0001% 1 0.02917 
1 oz troy/short ton 0.0034286% 34.286 1.00 
10 ppb 0.0002917 
1,000 ppb 0.02917 
 
 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 6 
Frequently used acronyms and abbreviations: 
AA Atomic Absorption Spectrometry 
Ag Silver 
Au Gold 
BLM U.S. Department of the Interior, Bureau of Land Management 
cc cubic centimeter 
oC degrees Centigrade 
°F degrees Fahrenheit 
ft foot or feet 
fm formation 
g gram 
g/cc grams per cubic centimeter 
g/t grams per metric tonne 
ha hectare 
in inch 
Ma Millions of years before present 
mi miles 
NSR net smelter return 
oz troy ounce 
oz Ag/ton troy ounces silver per short ton (oz/ton) 
oz Au/ton troy ounces gold per short ton (oz/ton) 
RC reverse circulation drilling method 
ton short ton 
The reader is directed to the internet for definitions and explanations for unfamiliar technical 
terms. 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 7 
3 RELIANCE ON OTHER EXPERTS 
The ownership and legal status of the Property as described in this report are correct to the 
authors’ knowledge as of the effective date of this report. However, the authors are not expert in 
the field of vetting mineral property ownership opinion and disclaim any responsibility made with 
regards to the particulars of property ownership and standing stated herein. 
4 PROPERTY DESCRIPTION AND LOCATION 
4.1 PROPERTY DESCRIPTION 
The original Blind Gold Claim Group was staked and then recorded in the name of North 
Homestake Mining Corp., a private Nevada corporation, on October 10, 2011. The Company 
acquired a 100% interest in the 84 claim Blind Gold Property through the acquisition of North 
Homestake Mining Corp. on September 27, 2012. The terms of the acquisition are outlined in 
Section 4.2. 
The Company later expanded the property position by the acquisition of an additional 23 claims 
from Black Hills Gold Exploration Corp. LLC in December 2012. These claims are contiguous with 
the western and southern property boundaries of the original group. A rectangular block of 18 
claims, the False Bottom Creek Group, is contiguous with the western boundary and a small group 
of five contiguous claims adjoins the southern boundary of the original Blind Gold Group. Terms 
of this acquisition are also described in Section 4.2. 
 
 
Figure 4.1 Regional Location of Blind Gold Project 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 8 
Claim number descriptions: 
• original Blind Gold Claim Group: BG1 - BG85 (84 claims - BG80 skipped) 
• West False Bottom Creek Group: FB1 - FB18 (18 claims) 
• Paradise Gulch Claim Group: FB19 - FB23 (5 claims) 
The original Blind Gold Claim Group plus the two additions will be collectively and henceforth 
referred to as the Blind Gold Property, or the "Property", for the purposes of this report, unless 
otherwise indicated. 
The Property consists of a grouping of 107 unpatented lode-mining claims covering approximately 
2,015 acres in the western portion of Lawrence County, South Dakota, USA. More specifically the 
claims lie within the Black Hills Meridian, Township 5N, Ranges 2E and 3E and cover portions of 
Sections 1, 12, and 13 in Range 2E and Sections 5,6,7,8 in Range 3E. All claim corners havebeen 
located with a Garmin GPSMap 78s with an accuracy of ±6 ft, but have not been professionally 
surveyed. 
595200mE
49
19
00
0m
N
Figure 4.2 Properrty Configuration 
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Blind Gold Project, South Dakota, USA Page 9 
Claim location and distribution are illustrated in Figures 4.1 and 4.2 respectively. A note of 
clarification must be given about the apparent discrepancy between the mining claims boundaries 
and the Property boundary outline. US Federal Lode mining claims are a maximum size of 600 ft x 
1,500 ft rectangular units (20 acres) and recorded as such. In actual practice however, privately 
held lands that overlap or are otherwise encroached upon by a mining claim's area of influence, 
are not part of the mining claim and must be avoided when performing any exploration on the 
claim. 
There are no known private surface rights owners within the bounds of the Property, as shown by 
the Property boundary outline, with all surface rights under the control of the US Forest Service. 
Annual claim rental fees are US$140 per claim, hence total US$14,980 for the Property. Claim 
rental fees are due by September 01 per annum. 
A Notice must be filed with the US Forest Service (“USFS”), and the South Dakota Division of 
Environment and Natural Resources (“SDDENR”) prior to undertaking any exploration activities. 
The Notice describes the proposed exploration activities and any remedial reclamation deemed 
necessary. Various government agencies review the application to ensure there will be no 
deleterious impacts as a result of activity on the claims. Reclamation bonds are posted prior to 
performing any work which will generate environmental disturbance. 
4.2 TERMS OF ACQUISITION 
The Company acquired a 100% interest in the assets of North Homestake Mining Corp. on 
September 27, 2012. A total of 30 million common shares was issued to the share holders of 
North Homestake Mining Corp. as per the terms of the agreement. 
The Company acquired a 100% interest in the False Bottom Claim Group, the Paradise Gulch 
Claims, the City Creek Claims, and the Homestake Paleoplacer Claims from Black Hills Gold 
Exploration Corp. LLC in exchange for 1 million restricted shares of the Company on December 31, 
2012. 
5 PROPERTY ACCESSIBILITY, CLIMATE, PHYSIOGRAPHY, LOCAL 
RESOURCES AND INFRASTRUCTURE 
Access to the Property is gained by traveling 4.3 miles south-southeast (“SSE”) from the City of 
Spearfish along the paved and graveled Maitland Road (SD 195) to the northwestern corner of the 
property The northern segment of the property can be accessed via Forest Service Road 195-2A 
and the southern portion can be accessed via Paradise Gulch Road. Alternately, the area can be 
accessed from the south via the same Maitland Road from Central City. Various forest service 
logging trails also exist within the property. 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 10 
The closest major population center is Spearfish (population 12,000), with the entire population of 
Lawrence County being only 22,300. Spearfish is located along Interstate Highway 90. The city 
supports light industry and tourism as well as hosts a small university. Lead (population 3,000) 
survives on light industry and tourism since the closure of the Homestake Mine. The county seat is 
located nearby at the city of Deadwood (population 1,800). Deadwood is also a tourism and 
gaming center for the area. The closest regional airport servicing the area is at Rapid City, situated 
approximately 50 miles southeast along Interstate Highway 90. 
The Property is located in highlands with moderate relief. Elevation ranges from 4,400 ft to over 
5,500 ft above sea level. At the western side of the property is False Bottom Creek, a stream with a 
year-round flow, while Tetro Creek cuts the claim group north-south near the center of the 
Property and is largely dry in the summer months. 
Vegetation on the Property consists of mixed forest composed of hardwoods and pines with 
sporadic semi-open meadows and locally dense underbrush. Stands of timber of commercial value 
cover the Property and are managed by the US Forest Service. 
Climate in the Spearfish area is temperate with an average annual temperature of 55°F with 
seasonal variation averages of 32°F and 80°F in winter and summer respectively. The average 
amount of annual rainfall is approximately 26in and 41in of snowfall (Spearfish recording station). 
A small number of potential historic archaeological sites were observed and avoided during the 
property visit. None of the identified sites appear to be sufficiently significant in size to circumvent 
any routine exploration or restrict any future development. Otherwise, there are no known 
environmental liabilities associated with the Property. 
Figure 5.1 View of the Homestake Gold District from Terry Peak showing Wharf Gold Mine and 
looking northeast towards the location of the Blind Gold Property (photo courtesy of 
SD-DENR) 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 11 
The Property is of sufficient size to support mining and processing operations. 
6 PROPERTY AND AREA HISTORY 
The gold deposits of South Dakota are located in the Black Hills, at the western border the State 
shares with Wyoming. South Dakota ranks third among the States in total gold production, with 
approximately 44.6 million ounces produced through to 2012. The first documented gold discovery 
was made in 1874, during General George A. Custer's expedition to reconnoiter the Black Hills. Two 
miners named Ross and McKay, who were attached to the expedition, found gold in gravel bars 
along French Creek. The Black Hills were sacred to the Sioux Indians and the United States 
Government was bound by treaty to protect the Hills Territory from the incursion of white settlers. 
News of the gold discovery almost immediately began to attract illegal prospectors to the area 
however. As a consequence, a second expedition, under the direction of W. P. Jenney, was sent to 
the Black Hills in 1875 to officially report on the potential mineral wealth of the region. The French 
Creek discoveries were confirmed and numerous additional occurrences of placer gold were 
reported. By 1876, the United States Government could no longer stem the tide of gold seekers 
and the Black Hills were unofficially opened to the last gold rush of the American West. 
The first wave of the Black Hills Gold Rush was focused on the placer gold found in the creeks, 
beginning at the first discovery site on French Creek to the south and quickly advancing to the rich 
deposits at Deadwood Gulch in the Northern Hills. As the productive placer deposits were 
expeditiously claimed, empty handed prospectors turned their attention to locating the hard rock 
source of the placer gold. At Deadwood Gulch, the first lode claims were located upon snow 
melting in the spring of 1876. These would later become known as the Homestake Lode and 
Paleoplacer deposits. Hundreds of mines and mining companies sprang to life in a matter of a few 
years in local mining centers named the Deadwood, Two Bit, Maitland (Garden City), Carbonate, 
Portland, Ruby Basin, Galena, and Lead Districts. All eight of the local mining districts of the 
Northern Black Hills were located within an area measuring approximately 10 miles long by 10 
miles wide. At one time, the area was proclaimed to be the richest 100 square miles on the planet. 
Collectively, the various local historic Northern Hills districts constitute the Homestake District of 
today. 
Hard rock gold mines have operated continuously in the Homestake District for over 136 years, 
beginning in 1876 to present day, interrupted only by World War II from 1942 to 1945. A current 
compilation sourced from numerous governmental publications estimatestotal historical 
production from the Black Hills through to 2012 at approximately 44.56 million ounces gold, with 
over 39.83 ounces having been won from the Homestake Mine alone (Caddey et al. (1991), USGS 
Minerals Yearbook - South Dakota, South Dakota Geological Survey/US Geological Survey, USGS-
Minerals Information). 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 12 
The following is a comprehensive overview of the historic northern mining districts proximal to the 
Blind Gold Property. The relative locations of the various historic Northern Hills mining districts and 
the Property are depicted in Figure 6.1. 
6.1 MAITLAND DISTRICT 
The Maitland District is in the northeast part of the Precambrian core of the Black Hills Dome. 
Fractures, which are parallel to the foliation of the underlying Precambrian rocks, extend upward 
into the Deadwood formation and provided avenues for the mineralizing solutions. Primary ore 
type consisted of finely divided gold and silver in pyrite, but most of the ore mined was oxidized 
and was probably mostly gold and silver bearing limonite (Allsman, 1940, p. 42). 
6.1.1 Maitland Mine 
The Garden City area became active as a mining district as early as 1889 with the construction of 
a custom milling facility at Garden City. All of the gold production from the area came from ores 
of the lower contact of the Deadwood Formation, which proved very difficult to treat. Between 
Blind Gold
Property
Figure 6.1 Mining Districts of Black Hills 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 13 
1890 and 1897, ores produced from the district were the subject of numerous attempts to 
improve recoveries through experimentation with expensive chlorination processes, all of which 
proved to be unsuccessful. In 1898, the chlorination plant at Garden City was converted to a 
cyanide plant that did result in the commercial success of several small mines producing oxide 
ores in the district. 
The era of the prospector was coming to an end by 1902 and the small mines were being 
consolidated by organized mining companies into larger enterprises. The Garden City District 
was completely controlled by 10 operating companies by 1904 two years later, of which the 
Penobscot and Minnesota Mining Companies were the most significant producers, with both 
mines operating in the eastern and western extents of the same deposit at the lower contact of 
the Deadwood Formation. The two mines were at times operated independently under various 
operating names and business configurations through the early 1940’s; however, the workings 
of the two mines were connected and are collectively known as the Maitland Mine. 
The Penobscot Company was organized in 1902 and was the first significant producer of gold 
and silver from the deposit. The Penobscot company built a 200 ton per day wet crushing 
cyanide plant and began treating ores on January 1, 1903. Lower grade ores were treated in the 
company's cyanide plant on site, while higher grade refractory "blue ores" were transported two 
miles by wagon to the railroad head at the town of Blacktail for shipment to smelters in Denver, 
Colorado and Omaha, Nebraska. Reports of ore grades produced from the mines of the 
Company vary greatly and were presumably supplied by the Company itself. High grade ores 
shipped to smelters were reported in local publications, such as the Black Hills Mining Review, 
as high as 5 oz Au/ton and later in the range of 2 to 4 oz Au/ton. By summer of 1903, the 
Company was shipping approximately 35 tons per day of its higher grade refractory ores to 
distant smelters. 
The Penobscot Company was reorganized in 1904 as the Alexander Maitland Company after Mr. 
Alexander Maitland, who was Lieutenant Governor of Michigan at the time, and had acquired a 
majority stock position in the Company. Maitland also acquired the holdings of the Minnesota 
Mining Company and the name of community and district of Garden City was changed to 
Maitland. The Company developed and operated their mines at Maitland through 1911 with 
production focussed on the oxidized lower grade ores which were amenable to cyanide 
treatment on site. By 1911, the known oxide ores had been largely depleted, and with the gold 
price fixed at $20.67 per ounce, the high transportation costs associated with shipping higher 
grade refractory ores long distances for smelting could no longer be supported. 
As early as 1907, the Maitland Company explored the Precambrian rocks underlying the 
Maitland Mine for northern extension of the Homestake ledges. This work continued after the 
suspension of gold mining operations in 1911 through 1915 when the exploration work was 
abandoned and the mine and exploration headings in the Precambrian formations allowed to 
flood. The exploration of the Homestake formation at the Maitland Mine did conclusively 
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Blind Gold Project, South Dakota, USA Page 14 
establish the existence of Homestake IF three miles north of the Homestake mine and gold 
mineralization was discovered within the Homestake Formation, albeit not in sufficient quantity 
or quality for the company to have pursued further development within the economic 
constraints of the times. 
The Maitland Mine remained closed until the early 1930's when the price of gold was fixed at 
$35 per ounce and the great depression had produced an abundance of inexpensive labour in 
the Black Hills. In 1934, the Canyon Corporation was formed to reopen the mine. The Company 
immediately set about reconfiguration of the mill with the addition of a roaster and upgrading 
of the cyanide circuit with the current technologies and equipment. With these process 
improvements, the Canyon Corporation was the first to successfully extract gold from the un-
oxidized "blue ores" of the Deadwood formation by breaking down the sulphides and tellurides 
prior to cyanidation. The Maitland Mine produced approximately 100 tons per day, 365 days 
per year between 1935 and 1942. The Maitland Mine and all other gold mines were then forced 
to close by War Production Order L-208. 
Prior to closure in 1942, the Company was actively engaged in further development of the mine. 
Between 1940 and 1941, the Annual Reports of the Inspector of Mines for the State of South 
Dakota reported that the Canyon Corporation had invested in 6,187 ft of development drift, 
6,033 ft of exploration drift and 6,896 ft of diamond drilling. At that time, the Maitland Mine 
was ranked third among gold producers of the Black Hills. The total gold output of the Maitland 
District through 1959 was at least 176,000oz, of which the Maitland mine is credited with 
137,000oz. Following World War II, the Maitland Property was acquired by Homestake Mining 
Company and on March 3, 1957 the mill burned to the ground. The mine was never reopened. 
6.2 LEAD DISTRICT (HOMESTAKE MINE) 
The Homestake deposit was discovered in April, 1876 by Fred and Moses Manuel, Alex Engh, and 
Hank Harney during the initial Black Hills Gold Rush. The group had staked just two claims 
covering about 14 acres, from which they had taken approximately $5,000 in gold during the first 
year. In 1877, a trio of mining entrepreneurs comprised of George Hearst, Lloyd Tevis, and James 
Ben Ali Haggin, incorporated Homestake Mining Company and bought the claims for $70,000. 
George Hearst arrived at the site in October 1877 and took active control of the property. Despite 
the remote location, an 80-stamp mill began crushing Homestake ore in July 1878. Several other 
companies, including the Father De Smet, Highland, and Deadwood-Terra had also been 
organized and were in operation on the Homestake lode by 1878. Those companies and all others 
with interests in adjoining property were eventually assimilated by Homestake Mining Co.,thus 
consolidating total ownership of the Homestake Deposit (Irving and others, 1904, p. 57). The 
Homestake Mining Co. controlled 654 mining claims in the Black Hills covering 5,639 acres by 
1931 (Allen, 1931, p. 290). 
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Homestake’s expanding operations are best reflected by the production data. From 1881 through 
1894, annual gold output ranged from 45,960oz to 66,280oz. In 1900, about 172,000oz were 
produced, and in 1910, about 225,000oz. Production exceeded 500,000oz in 1935 and, except for 
the period 1942-52, which was affected by World War II and the resulting manpower shortages 
thereafter, production remained above 500,000oz per year through 1969. 
Gold mineralization at the Homestake Mine was primarily found in a series of fold structures in 
the Homestake formation called Ledges. Between 1876 and World War II, virtually all of 
Homestake's production came from the Caledonia and a series of Ledges that were numbered 1 
through 5 and known collectively as Main Ledge. By 1923, it had appeared that Main Ledge was 
diminishing with depth and that the ore might come to an end at or near the 2150 foot level 
against a series of rhyolite dikes, which were widely believed at the time to have been a 
controlling influence on the mineralization. Over the next five years, Homestake engaged itself in 
numerous studies of the ore body and began a program of diamond drilling several hundred feet 
below the deepest active production levels. By 1928, it had been conclusively proven that the 
Main ledge gold mineralization would continue deeper and to the south of previous projections 
beyond the rhyolite dikes. 
The "scare" of the 1920's brought about significant change at the Homestake Mine. It was the 
first time in the history of the operation that management had been faced with the possibility 
that ore reserves were finite. Prior to this period, mine development was simply conducted as it 
had always been conducted; just ahead the mining as the ore plunged deeper into the earth. The 
realization that Main Ledge would eventually run-out resulted in a new and systematic approach 
to exploration within the mine that continued through to mine closure in 2001. 
The search for new ore reserves in the 1920's also demanded an understanding of the 
mineralization that had previously been less essential. Between 1923 and 1928, Homestake 
commissioned studies by Donald McLaughlin, J.P. Connolly, Russell Gibson, John K. Gustafson, and 
Arthur Yates. The influence of their extensive geological study coupled with the changing 
exploration requirements to sustain production brought about the creation of a Geology 
Department. For the first time in the 50 year history of the mine, staff geologists and geological 
considerations became integral to the mining plan. Grade control policies instituted by Donald 
McLaughlin beginning in 1923 resulted in an increase in mine head grade from $3.87 per ton 
(0.187 opt) to $9.00 per ton (0.435 opt) by 1933 (The Treasure of Homestake Gold, Fielder, 1970, 
page 305). 
The improvement in mine head grade and cost savings attributable to handling less mined waste 
came at about the same time that the fixed price of gold was raised to $35 per ounce and the 
Great Depression had created the availability of a large and inexpensive labour force in the Black 
Hills. As a result of the extraordinary profitability of its operations in the early 1930's, Homestake 
set about replacing all of its aging infrastructure with state of the art facilities that would last for 
the next 60 years of operation. As part of the re-development of the mine, two new shafts were 
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sunk from surface to the 4100 foot level. The shafts were equipped to hoist ore from depths far 
exceeding the known depth of the deposit and were purposely located well away from the 
projected plunge of Main Ledge ore body to ensure longevity of the installations. In 1933, 
development of the 3500 foot level to the location of one of the new shafts produced the 
unexpected discovery of 9 Ledge. The new ledge was of a slightly lower grade than Main Ledge, 
but was very large and constituted the first discovery of a new Ledge since the initial surface 
outcrop discovery of Main Ledge in 1876. Successive exploration over the next half century to the 
west of Main and 9 Ledges generated reserves and production from 7, 11, 13, 15, 17, 19 and 21 
Ledges to a depth of 8,000 feet. None of the successive Ledge discoveries at the Homestake Mine 
showed significant economic mineralization at surface and most had no surface exposure at all. 
Throughout the entire history of the mine, including the scare of the 1920's, Homestake was able 
to continuously maintain 10 years ore reserves proximal to its ongoing underground operations 
and within reach of existing mine infrastructure. The sheer size and extent of the deposit 
afforded the strategic opportunity for the Company to operate with a vision of profitability over 
the long term. During the boom cycles of the gold industry, Homestake spent heavily on the 
development of ore reserves at ever increasing depths and invested in plant improvements 
designed to reduce operating costs through the lean times that were sure to follow. Homestake 
applied that same philosophy to its property position by methodically acquiring numerous gold 
operations in the Northern Black Hills at bargain basement prices during the bust cycles of gold 
mining. By doing so, Homestake virtually eliminated competition for employees and local natural 
resources necessary to its mining operations, such as timber and water. 
By the 1930's, Homestake held most of the prospective gold properties in the area, with the only 
other significant remaining producers being the Maitland and Bald Mountain Mining Companies. 
By the early 1960's, Homestake had acquired both of those operations and had become the sole 
gold producer in South Dakota, which carried with it the benefit of significant political clout within 
the State. 
Rising gold prices in the 1970's again provided Homestake the opportunity to invest in the 
development of new reserves and mine infrastructure. Two new underground winzes were sunk 
to the 8000 level and exploration was conducted in deep 19 and 21 Ledges sufficient to ensure 
continued production into the foreseeable future. However, the progression of operations 
deeper into the mine was clearly accelerating and studies performed in the early 80's to evaluate 
the extension of hoisting facilities to 10,000 or even 12,000 feet revealed that the gold price 
required to maintain profitability at such depths was beyond what could reasonably be expected. 
In response, the Company launched an exploration program from the underground mine 
searching prospective areas from near surface to the 8000 level. This effort did produce 
replacement reserves, but the mine would eventually lack a virgin, higher grade Ledge to carry 
the weight of rising overhead costs. And so in 1983, for the first time in 110 years, Homestake 
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committed its financial resources to explore beyond the limits of the underground mine with the 
primary objective of finding a repeat of the Homestake Mine in the iron formation. 
Between 1983 and 1994, Homestake invested approximately $70 million in the exploration of the 
Black Hills, including extensive historical and scientific research, regional-scale geophysical 
programs, long-range drill programs from the underground mine and drill programs conducted at 
surface, outside the general mine area. The Company also began a surface exploration program 
in the Main Ledge discovery area to quantify the ore left behind bythe original mining 
endeavours in the form of unrecovered pillars and caved stopes. Those drill programs were 
successful and in 1983 a test pit commenced at the north end of the historic workings, followed 
by full scale open pit operations to the south. For the next 15 years, the Open Cut served to 
supplement underground production and defray overhead costs. The excavation was ultimately 
completed in the 1998 near the depth of the 1100 foot level. 
In 1989, surface exploration programs produced the discovery of mine-grade Homestake IF gold 
mineralization more than 2 miles north of the mine at a depth of approximately 6,600 feet in 
what was conclusively proven to be the continuous northern extension of the Homestake 
formation from the mine. The discovery hole was followed by three additional directionally 
drilled daughter holes drilled on 200 ft centers north and south on strike of the discovery 
intercept with repeated results. The Company quickly made the decision to drive a 3 mile long 
drift from the existing mine on 6800 level to expedite exploration and potential development of 
the mineralization. Over the next three years, the drift was advanced 24 hours per day, seven 
days per week as the mine's highest development priority. 
The virgin rock temperature at 6,800 ft below surface exceeded 110°F at the Homestake Mine. 
The Company was accustomed to high rock temperatures and for many years had managed the 
problem with a variety of innovative air conditioning systems. North Drift was equipped with 
massive refrigeration equipment, but the drift almost immediately began to encounter high 
pressure ground water, the likes of which had not been experienced within the mine due to the 
progressive dewatering process that had occurred over a period of 110 years. The fissures 
encountered by the North Drift development were beyond the cone of depression in the water 
table that had been created by the deep mine and produced great inflows of hot water that were 
difficult to control and regularly exceeded the capabilities of the mine's dewatering system. The 
heat loads attributable to the inflows also exceeded the capacities of the mine ventilation systems 
and the combination of problems not only slowed drift advance, but regularly interrupted mine 
ore production. As a further complication, waste rock generated from the drift had to be 
disposed of within the underground mine, which impeded ore production and severely curtailed 
the conduct of other mine development critical to near term production. 
At the commencement of North Drift development, gold prices dipped below $400 per ounce and 
continued to fall to approximately $300 per ounce over the next three years. Falling gold prices 
coupled with rising cost projections for the development of new reserves located 3 miles north of 
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the mine and 6,800 feet below surface consequently increased thresholds for the quantity and 
quality of the mineralization necessary to ensure favourable project economics. The adverse 
impacts of the North Drift project on mine operations were also contributing additional financial 
strain to the already marginal outlook for mine profitability. Therefore, the decision was made in 
the fall of 1993 to suspend further North Drift development and to curtail all non-essential 
spending, which included long-term exploration programs outside of the mine. 
The decision to suspend long range exploration programs necessarily left the mine without the 
prospect of a new Ledge for the first time in 60 years and in the position of implementing cost 
cutting measures to weather the cycle of low gold prices. This proved to be a difficult proposition 
as the major mine infrastructure was 60 years old and had been constructed at a time when 
manpower was cheap and plentiful. In addition, the mine was actively producing from over 300 
miles of track drift on 45 levels and the great expanse required ventilation, pumping and 
maintenance. Much of the ore delivered to the mill was handled 4 or 5 times through a series of 
shafts, winzes and transfer levels that afforded little opportunity to improve efficiencies without a 
substantial investment in new hoisting and haulage infrastructure, which the company studied 
between 1994 and 1997, but did not undertake in the continuing environment of depressed gold 
prices. 
By 2000, the gold price had been hovering between $250 and $300 per ounce for most of the 
prior five years with no improvement anticipated in the near future. Cost cutting measures had 
achieved all that could be expected and the mine was no longer profitable. The decision was 
made to close the 125-year old mine by the end of 2001. 
Over the 125-year life of the mine, the geological grade of the Homestake deposit averaged 
approximately 0.35 oz Au/ton, which was considered low grade through much of the mine's 
operating history. Within the Homestake formation, ore zones tended to have a low-grade halo, 
with the grade of mineralization gradually diminishing away from the higher-grade core. 
Depending on prevailing gold prices, mine cut-off grades were adjusted between 0.20 to 0.25 oz 
Au/ton to exploit the lower-grade halo when economically possible, which required no additional 
development. The effect of over-mining within the halo surrounding the core mineralization 
historically produced 30% more ounces than geologic reserve estimates based on diamond 
drilling. 
Through to 2001, the Homestake Mine produced 39.83 million ounces of gold and 9 million 
ounces of silver, with more than 20 million additional ounces of gold reserves and resources 
written off at the time of mine closure. In terms of gold production, the Homestake District, is the 
second-largest gold district in the United States, after the Carlin gold district in Nevada. 
 
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Blind Gold Project, South Dakota, USA Page 19 
1.) Green shaded area at the top of the figure is the site of the Main Ledge Discovery and “Open Cut” 
surface mine operated 1983-1998; 2.) Yellow shaded areas indicate the ore removed from the 
producing Ledges starting from Main (1-5) and Caledonia Ledges to the east on surface through 7, 9, 
11, 13, 15, 17, 19 and 21 Ledge to the far west (note: though mined, the area immediately below the 
Open Cut through the mine 3050 ft level is not shaded to reveal the extent of mine workings); 3.) 
Black lines illustrate the actual mine levels starting with the 100 ft level at the top through the 8000 ft 
level at the bottom. At the time of closure in 2001, there were over 300 miles of track drift on 45 levels 
with a ramp system extending from the 1400 ft level to 8000 ft level; 4.) The Yates and Ross shafts 
were sunk in the 1930’s and were in operation to the depth of the 4850 ft level until mine closure. 
Levels below 4850 ft level were serviced by #4 and #6 winzes to the depth of the 6800 ft and 8000 ft 
levels respectively; 5.) The Main Ledge ore body stretches over 2.5 miles of strike length from the 
discovery site on surface at the north to deepest production at 7400 ft level to the south. (Source: 
Dakota Territory Resource Corp. 3D Mine Model – Sourced and compiled from Sanford Science and 
Engineering Laboratory archive data 2012 – 2013) 
Figure 6.2 Isometric View of the Homestake Gold Mine and Homestake Deposit looking from 
southwest to northeast: 
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Blind Gold Project, South Dakota, USA Page 20 
6.3 CARBONATE / RAGGED TOP DISTRICT 
The Carbonate District is located approximately 2 miles southwest of the Blind Gold Property and 
was initially known for its high grade silver ores. The historic mining in the Carbonate district 
occurred primarily in the Pahasapa limestone and the deposits were for the most part small, but 
created great activity inthe period from 1881 to 1891. There were several types of ore deposits, 
some of which were irregular veins formed by the partial filling of a fissure with galena, lead 
carbonate, and cerargyrite - a silver chloride mineral, that were connected with the replacement 
of siliceous jasperoid. The jasperoid was a yellowish to brownish red flint rock that contained 
gold, silver, lead, manganese, and considerable silica. 
A second type of deposit was closely related to the porphyry dikes. These deposits consisted of 
irregular ore shoots developed in older solution cavities that varied from three to twelve feet 
wide by sixty to several hundred feet high. These deposits contained gold and manganese with 
jasperoid, but were best known for high grade silver ores. 
The third type of deposit was a crevice with the walls lined by 2 to 3 ft of jasperoid that had 
replaced the limestone. A thin film of cerargyrite covered a lining of small quartz crystals. The 
crevice itself was loosely filled with a soft ferruginous gouge, pinkish red in color that contained 
high values of gold (Mines Around and Beyond – Waterland, 1991 p.221-224). 
In Deadwood formation exposed in the lower canyons, gold-silver replacement ores were also 
mined that were typical to all areas of the Northern Hills. Vertical fissures in porphyry at the base 
of the Deadwood formation were also mined in conjunction with the basal Deadwood formation. 
Silicification had occurred and sylvanite, a silver gold telluride mineral, had been deposited in the 
fractures of the igneous rocks and into the strata of the Deadwood formation. 
Following the initial boom of the 1880’s, sporadic mining activity continued in the Carbonate 
District until major operations ceased 1914. Mining returned to the Carbonate District in the 
1980’s at the 400-acre Richmond Hill Mine. Exploration and development at the Richmond Hill 
Property was conducted by several companies including St. Joe American, Inc., St. Joe Gold 
Corporation, St. Joe Richmond Hill Inc., Bond Gold Richmond Hill, Inc., and Bond Gold 
Corporation. The mine was a surface gold operation utilizing conventional heap leach technology. 
Between 1989 and 1993, approximately 122,000 ounces of gold were produced by LAC Minerals 
USA Inc. and Richmond Hill, Inc., a subsidiary of LAC Minerals (USA), Inc. The ore body mined was 
associated with a Tertiary breccia pipe that intruded into Precambrian amphibolites, forming a 
near vertical contact. Both sulfide and oxide components of the breccia existed. The oxidation of 
the Richmond Hill ore deposit resulted in a well-developed hematitic-jarositic cap up to 260 ft 
thick that closely followed the extent of the breccia pipe. 
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Blind Gold Project, South Dakota, USA Page 21 
6.4 PORTLAND AND RUBY BASIN DISTRICTS 
The Portland District is located approximately 2.75 miles west of Lead and 3.70 miles southwest 
of the Blind Gold Property. The Ruby Basin District is located approximately 1.65 miles southwest 
of Lead and 4.75 miles south of the Property. The Portland and Ruby Basin Districts are 
immediately adjacent to each other and encompass a combined area of approximately 12,000 
acres in and around Terry Peak. The two districts share similar geological settings and histories. 
Gold and silver were discovered in both districts in 1877 as the early prospectors began to fan out 
from Lead and Deadwood Gulch in search of prospective ground that had not already been 
staked. The area is situated on the western flank of a small dome which was created by the 
intrusion of an igneous stock of Tertiary age. This pluton, dubbed the Cutting Stock, is surrounded 
by a concentric ring of Precambrian metamorphic rocks, Cambrian, Ordovician and Mississippian 
sediments (Nobel and Harder, 1948). It was within the sediments that the majority of the historic 
mining prior to the 1980’s had been conducted at the Ruby Basin and Portland Districts. 
Tertiary igneous intrusives occur in abundance throughout the districts and are of much 
importance with regard to structure and fracture systems. Sizeable breccia dikes are also present 
which consist of fragments of rhyolite and schist embedded in a matrix of porphyritic rhyolite or 
quartz monzonite. It is probable that the source from which the magma were derived was also 
the parent to the mineralizing solutions. 
Generally the sediments dip gently to the south, however much variation in the attitude of the 
beds is seen over short distances as intrusion of the Tertiary igneous rocks caused considerable 
discordance in the area. Ore deposits were mined along fractures and fracture systems as 
replacement systems in favourable lithologic units (Miller, 1962, p 8). Prior to the 1980’s, the 
most important deposits were found in the dolomitic units of the Deadwood formation. Lesser 
mineralization also occurred in the limestone and mining in the modern era has primarily 
exploited the oxidized gold-silver ores within the intrusives. 
Dolomitic units of the Deadwood formation were mineralized on three horizons known as the 
Upper, Middle and Lower Contacts. In the Ruby Basin District, the upper and middle units were 
largely eroded away with the most significant mining at the lower contact. At the Portland 
District, the majority of production came from ore bodies at the Middle Contact. The term 
“verticals” used as a noun, refers to the channel ways through which mineralized solutions 
migrated and from which replacement was started in the adjacent preferential beds. Verticals 
varied widely in height, but rarely extended through the Deadwood sequence from one contact to 
another as dense, plastic shale beds served to cut-off the vertical fractures. Productive zones 
were therefore generally not coincident from Lower to Middle and Upper Contacts. Verticals vary 
from a few feet to thousands of feet in length with little consistency. Commonly, the verticals 
tend to repeat in en echelon patterns, with the largest ore bodies found at the intersection of 
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Blind Gold Project, South Dakota, USA Page 22 
cross fractures and series of en echelon verticals. The presence of fracture systems was also 
historically important to economic mineralization of the intrusives. 
There is great variation in the chemical and physical and composition of the ores found within 
these two districts. Typically the siliceous Cambrian ores were classified as either Primary (blue 
ores) or Oxidized (brown ores). The Primary ores occurred in various forms, most of which proved 
to be very difficult to treat metallurgically. Over the years, much research was conducted and 
several processes were attempted to improve recoveries with varying results. While the Blue 
Ores were typically very high grade, many of the historic mines found that the cost of 
transportation and expensive metallurgical processes simply could not be supported 
economically. At those operations, the Blue Ores were often bypassed entirely in preference to 
the more treatable Brown Ores. At other deposits, local and distant smelters, as well as later 
constructed on-site roasting facilities produced very satisfactory economic results. 
The Portland District sprung into existence from dozens of mines and mining companies 
producing primarily from the ores of the Deadwood formation. The initial flurry of small mines 
eventually gave way to two major operations: the Golden Reward and Horseshoe Mines. The 
Horseshoe produced through 1917 when it closed and was subsequently acquired by the Bald 
Mountain Mining Company. The Golden Reward mine operated through 1918 at which time it 
was credited as being the second largest gold producer in the Black Hills. The Golden Reward 
holdings were subsequently acquired by the Anaconda Company prior to World War II. Anaconda 
conducted substantialexploration on the property, but recorded no production. In the 1980’s, 
the Bald Mountain and Anaconda ground in the Ruby Basin District was acquired and 
consolidated by the new Golden Reward Mining Company. Between 1990 and 1996, Golden 
Reward produced approximately 278,000 ounces of gold. The property has since been acquired 
by the Wharf Mine (Goldcorp Inc.) and is scheduled to go back into production within the next 
few years as part of the Wharf operations. 
Like the Ruby Basin District, the Portland District was initially comprised of dozens of mines that 
eventually gave way to six of the more significant producers, including the Bald Mountain Mining 
Company, Clinton Mining & Mineral Company, Portland Mining Company, American Eagle Mining 
Company, Dakota Mining Company, and the Two Johns Mining and Milling Company. Following 
World War II, all had been consolidated under Bald Mountain Mining Company, which resumed 
operations after the war and continuing through closure in 1959. In the 1980’s, the Bald 
Mountain Property was re-opened as the Wharf Mine (currently owned by Goldcorp Inc.) and has 
been operated continuously to the present date. Between 1986 and 2011, the Wharf Mine has 
produced approximately 2,051,000 ounces of gold with approximately 580,000 ounces gold 
reserves remaining in proven and probable categories. 
Over the past 136 years, the Ruby Basin and Portland Districts are estimated to have collectively 
produced approximately 3.8 million ounces of gold, with an estimated seven years mine life 
remaining at the Wharf Mine. 
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6.5 OTHER DISTRICTS 
Other local mining districts not incorporated into this discussion are the Deadwood, Two Bit, and 
Galena Districts, all of which are located to the southwest of the Blind Gold Property. These 
districts were historically and geologically similar to the Portland, Ruby Basin, and Carbonate 
Districts and lie further removed from the Blind Gold Property as depicted in Figure 6.1. 
6.6 BLIND GOLD PROPERTY 
The Blind Gold Property has been subjected to prospecting efforts for Tertiary-aged gold and 
silver mineralization since the Garden City (Maitland) District came into being in the 1880’s. 
Numerous workings are documented across the Property in Deadwood formation, Pahasapa 
limestone, and igneous intrusives. 
The Deadwood formation has been the preferred host for Tertiary-aged gold-silver replacement 
deposits within the Homestake District. The Deadwood formation underlying Property lies under 
the cover of Pahasapa limestone, for the most part. Surface prospect and underground workings 
have been excavated in the Deadwood formation where it is exposed on the east side of False 
Bottom Creek at the south end of the Property. In addition, an outcrop of Deadwood formation 
floating on intrusive near the center of the Property just east of Tetro Creek also hosts both 
surface and underground workings. 
The Pahasapa limestone has been mined for Tertiary-aged gold-silver replacements within the 
Homestake District, but to a lesser degree than deposits hosted in the Deadwood formation. At 
the Blind Gold Property, several surface and underground workings have been located at the 
center of the property near Tetro Rock. Based on the history of mining in the district combined 
with the age of the trees on the dumps of the workings, it is thought that the historic mining 
activity found in the Pahasapa limestone dates from the period 1890 – 1920. However, a series of 
more recent trenches were cut in the Pahasapa Limestone on the east side of Tetro Rock. Four 
trenches, each approximately 200 ft long by 12 ft deep were excavated in an east-west direction 
across an indicated north-south trend of mineralization. The trenches were excavated on 200 ft. 
centers covering approximately 600 ft of strike length. A substantial historic surface working 
located 200 ft further to the north of the northernmost trench indicates the overall length of the 
trend to be at least 800 ft. Eight holes were also drilled proximal to the trenches and historic 
workings, but no sample results have yet been found for any of the work. It is presumed that the 
drilling and trenching were undertaken at some time in the period 1960 – 1980 and most 
probably in the 1970’s. 
Numerous small surface historic workings are also found across the property in the igneous 
intrusives. The workings are thought to have been excavated in the early years of the Maitland 
District, the most substantial which are found in the Phonolite Porphyry located at the northern 
end of the Property where several thousand tons were removed from three surface pits in close 
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Blind Gold Project, South Dakota, USA Page 24 
proximity to each other. A series of surface excavations are also clustered at the mid-property 
exposure of Trachyte Porphyry on the east and west banks of False Bottom Creek. 
Hundreds of technical papers have been written on the geology of the Homestake District. Two 
thesis works at the South Dakota School of Mines and Technology are particularly germane to 
defining the Tertiary-aged gold mineralization potential of the Blind Gold Property. The two 
works have provided much research, data, and information specific to the Property: 
 James Harmon Heidt’s thesis on the Geology of the Mount Theodore Roosevelt – Maitland 
area is centered on the Property and undertook to (1) analyze the structural geology and 
igneous petrology of the two Tertiary intrusive complexes of the Northern Black Hills, (2) 
determine the effects of intrusion on underlying metamorphic rocks and overlying 
sedimentary rocks, and (3) examine a mining district to attempt to determine relationships 
between Tertiary igneous activity and mineralization in the Paleozoic sedimentary rocks. 
Alex Hanko’s 2008 thesis on the Potential for Discovery of New Mineral Deposits in the 
Northern Black Hills, South Dakota: An assessment Using Geographical Information Systems 
involved the compilation of data. This included stream sediment samples collected by 
Homestake Mining Company (Barrick Gold), the Black Hills Geochemical Program (NURE) 
conducted in the 1960’s, distribution of formations, geophysics, known deposit locations, and 
major fault locations. Hanko assembled data and used GIS to constrain the controls on origins 
of mineral deposits and to identify areas of potential mineralization. The study covered a 
broad area of the Northern Black Hills and included data collected on and around the Blind 
Gold Property. The study identified prospective Tertiary-aged gold exploration areas on the 
Property based on distance relationships to preferential intrusives, fault structures, and known 
deposits. In addition, three prospective exploration areas were identified on the Property 
based on criteria of overlapping anomalous stream sediment data indicative of Tertiary-aged 
gold mineralization in the Northern Hills. 
Homestake Mining Company held the Property for at least 40 years, primarily as a target for 
Homestake IF hosted gold mineralization. In the 1980’s and 1990’s Homestake invested 
approximately $70 million in exploration in the Black Hills with the ultimate objective of discovering 
a repeat of the 40 million ounce Homestake Deposit that the company had been mining for over 
100 years. Much of the Homestake effort was focused on the productive structural corridor 
extending northwest of the Homestake Mine and through the Blind Gold Property. Homestake’s 
drill programs conclusively validated the Homestake IF potential of the Property by defining the 
continuous extension of the Homestake IF to the Blind Gold Property and provided proof of 
concept that the Homestake Deposit was repeatable within the structural corridor. 
The bulk of Homestake’s explorationprogram was conducted between the Property and the 
producing mine, including three deep core holes, DBM-1, 2, and 3, with DBM-1 drilled 
approximately one mile south of the Property. DBM-1, along with three directionally drilled 
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Blind Gold Project, South Dakota, USA Page 25 
daughter holes, discovered gold mineralization at a depth of approximately 5,600 ft under the 
Maitland Mine. This suggested of the possible presence of mineralization under the Blind Gold 
Property when projected up-plunge to the north. The last deep core hole (MA-2) drilled by 
Homestake in the structural corridor program was therefore collared just east of False Bottom 
Creek near the south end of Blind Gold Property in 1993. The hole was drilled to the east through 
the sedimentary cover rocks and allowed to naturally flatten out to run across the projection of 
Homestake IF. The Homestake sequence (Poorman-Homestake-Ellison formation) was confirmed 
by the drilling, including the intersection of repeated mineralized folds of Homestake IF (verbal 
communication: R. Bachman). 
7 GEOLOGICAL SETTING AND MINERALIZATION 
The following account is summarized primarily from Caddy et al. (1991) with verbal contributions 
by Rick Bachman: 
7.1 REGIONAL GEOLOGIC SETTING 
Regional Geology and the Stratigraphic Column for the Northern Black Hills area are depicted in 
Figures 7.1 and 7.2 respectively. 
The Precambrian core of the Black Hills Uplift (Darton and Paige, 1925) in western South Dakota is 
exposed in an elongate dome approximately 83 miles long and 22 miles wide. Rocks within the 
Black Hills Uplift range in age from Archean to Holocene. The Early Proterozoic rocks, which 
constitute the majority of the Black Hills core, consist of sedimentary and volcanic rocks regionally 
metamorphosed from greenschist to upper amphibolite facies. The Archean and Early 
Proterozoic rocks were regionally deformed and metamorphosed prior to emplacement of the 
Harney Peak Granite (c 1.72Ga (Redden et al. (1990)), the youngest Proterozoic rock in the Black 
Hills Uplift. Regional metamorphism was syn-deformational and characterized by a dominant 
north to northwest-trending regional foliation in the Lead area (Caddy et al., 1991). 
The Precambrian rocks of the Black Hills were subjected to erosion to about 530Ma. The resulting 
unconformity surface (probably a peneplane) may have been exposed for nearly 1 billion years. 
Paleozoic and Mesozoic Era sediments were deposited over this surface during a time of relative 
tectonic quiescence. The Black Hills area was uplifted during the Laramide Orogeny (65-60Ma) 
into its present domal configuration. After uplift, a west-northwest (“WNW”) trending belt of 
early Tertiary alkali-calic to alkalic stocks, laccoliths, dikes, and sills intruded all the older rocks of 
the northern Black Hills. These are primarily concentrated along the Lewis and Clark regional 
lineament. Renewed erosion exposed the Precambrian core of the uplift. During the Oligocene 
Epoch of the Tertiary Period, a veneer of terrestrial sediments was deposited over the Black Hills. 
Subsequent erosion produced the topography that characterizes the present-day terrain. 
 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 26 
 
 
 
 
Paleozoic
Domal
Cover Rocks
Proterozoic
Domal
Rocks
0 10 20
miles
Modified after Caddy et al. (1991)
44°N
104°W
Figure 7.1 Regional Geology of the Black Hills Uplift with Major Structural Elements 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 27 
 
 
Stratigraphic Column 
for the
Northern Black Hills
Paleozoic
Cover
Rocks
Proterozoic
Rocks
Modified after Caddy et al. (1991)
Figure 7.2 Stratigraphic Column for the Northern Black Hills 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 28 
7.2 HOMESTAKE MINE GEOLOGIC SETTING 
The Homestake Deposit model is integral to the exploration concept for the Blind Gold project. 
Representative cross and longitudinal sections are illustrated in Figures 7.3 and 7.4 respectively. 
As previously mentioned, the Homestake Mine lies within the Early Proterozoic core of the Black 
Hills uplift, which represents the southernmost exposure of Trans-Hudson orogen rocks. 
Tectonism and thermal activity associated with the Trans-Hudson event occurred as a result of 
Figure 7.3 Homestake Mine: Representative Cross-Section 
Looking Northwest
Increasing Metamorphism
Garnet-Biotite
Isograd
Modified after Caddy et al. (1991)
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 29 
the collision of the Wyoming and Superior Cratons contemporaneous with the Penokean orogen. 
Interpretations surmise Proterozoic gold metallization has been a result of an evolved and long 
lived tecto-thermal process that relied on plate scale shears zones as fluid conduits and zones of 
high geothermal gradient as fluid mobilizers. Supporting empirical evidence includes the 
numerous gold deposits and occurrences located proximal to the intersection of the broad, 
northerly trending Trans-Hudson Deformational Zone and the northwest trending Lewis & Clark 
Lineament (Caddey et al., 1991). The bulk of the gold production realized from the Black Hills 
originates from this intersection area. 
Gold ore bodies at the Homestake Mine are hosted almost exclusively by Early Proterozoic 
Homestake Formation, an IF (15% to 35% total Fe), consisting of siderite and/or grunerite schist. 
The rock is classified as a carbonate-silicate-sulphide facies IF that formed by exhalative hot 
springs in small, shallow, and probably fault bound basins (Redden et al., 1993). 
Strata that contain the Homestake deposit were complexly deformed by a series of isoclinal 
sheath fold events that were synchronous with extensive ductile and ductile-brittle shearing. 
Mine area rocks have been subjected to upper greenschist to lower amphibolite facies 
metamorphism, with metamorphic intensity increasing towards the northeast. Metamorphism 
was contemporaneous with late stage semi-brittle deformation (Bachman et al., 1990). 
Individual ore bodies at the Homestake Mine are contained within plunging synclinal fold 
structures of Homestake formation known as “Ledges”. Plunge is moderately to the southeast. 
Ten of these structures have produced gold from relatively undeformed, elongate tabular zones 
Looking Northeast
Modified after Caddy et al. (1991)
Figure 7.4 Homestake Mine: Longintudinal Section 
Dakota Territory Resource Corp. 
Blind Gold Project, South Dakota, USA Page 30 
of quartz containing siderite, chlorite, pyrrohotite, arsenopyrite, minor pyrite, and native gold. 
Ore grade mineralization developed within and adjacent to dilated segments of late-stage ductile-
brittle shears (Caddey et al., 1991). These shears and their attendant ore bodies’ crosscut earlier 
folds and overprint metamorphic fabric. 
At least two stages of mineral alteration are present: one is syn-metamorphic and predates gold 
mineralization, and a second phase is synchronous with gold mineralization. The pre-gold mineral 
stage is represented by extensive potassium and carbonate metasomatism. The second ore stage 
hydrothermal alteration event appears retrogressive and produced extensive chlorite and siderite 
replacement of Homestake formation in and adjacent the ore bodies. 
7.3 DISTRICT AND PROPERTY GEOLOGIC SETTING 
Rock units outcropping on the Blind Gold Property are depicted in Figure 7.5 and illustrate the 
complex relations between the flat lying Paleozoic sedimentary rocks and Tertiary-age intrusive 
igneous rocks, which together form the cover rock sequence that overlies the Proterozoic 
basement. 
The Paleozoic sequence of marine sedimentary rocks ranges from the Cambrian Deadwood 
formation (OCd) at the base to the Mississippian-age