Homestake once called the Richest 100 Sq Miles on Earth
Homestake once called the Richest 100 Sq Miles on Earth
In 1874, General Custer explored the sacred Black Hills, revered by Sioux Native Americans. Unbeknownst to them, gold
In 1874, General Custer explored the sacred Black Hills, revered by Sioux Native Americans. Unbeknownst to them, gold was discovered in 1875, attracting prospectors like Moses Manuel. In his account, Manuel describes his journey through the Hills, culminating in the discovery of a substantial quartz deposit in a snow-filled gully.
In its inaugural year, the Manuel brothers extracted approximately $5,000 worth of gold before selling their venture to a consortium of out-of-state investors, spearheaded by the entrepreneurial miner George Hearst, for a sum of $70,000 in 1877. George Hearst amalgamated several smaller mining claims into a unified entity, which he aptly named the Homestake Mining Company, solidifying Lead as the quintessential company town.
Homestake Mine evolved through development, consolidation, and modernization, overcoming legal and remote challenges. Between 1890 and 1910, it grew into a regional powerhouse. Mining at Homestake was demanding and perilous, particularly before electrification in 1900 and the carbide lamp invention in 1913. Early miners relied on three candles for illumination at the beginning of each shift.
The third period, from 1910, ushered in an era of mechanization and concentration. The mine embraced technological advancements, electrification, and improved mining methods. Frequent mining accidents were a norm, and the region was severely impacted by the Spanish flu pandemic in 1918.
Despite the challenges, mining jobs were sought after, reaching a peak workforce of 2,151 employees in 1940. The continuity of operations was interrupted only during a 33-month hiatus in World War II when the government suspended mining activities.
To reduce costs, the company introduced automated hoisting, TV monitoring, and short-wave communication, aiming to double miner productivity. By 1951, Homestake Mining's gold production cost per ounce reached $22.18, nearing the federal government's fixed price of $35 per ounce.
To address financial challenges, Homestake initiated a 1953 diversification program, acquiring uranium properties in Utah, Wyoming, and New Mexico to explore new resources.
At the Homestake mine, nine primary ore zones were actively extracted, representing elongated rod-like "ledges" aligned along plunging fold structures. Mining operations were concentrated on both the Caledonia ore zone and the Main Ledge. The Caledonia ore zone ceased exploitation around 1940, whereas mining activities on the Main Ledge persisted until 1991.
The mine, operating until 2001, contributed a total of 40 Moz gold and 9 Moz silver. Homestake secured the position of the second-largest gold producer in the United States, surpassed only by the Carlin district in Nevada.
Despite its historical significance, production at the Homestake mine ceased at the conclusion of 2001. This cessation was prompted by a confluence of factors, including dwindling gold prices, subpar ore quality, and the escalating operational costs.