Updated Fog Lode mineral survey valuation in the Black Hills of South Dakota featuring 9.05 acres near Richmond Hill and nestled above Chism Gulch. Incorporating geological factors like erosion patterns, the potential for gold sourced from above Chism Gulch, tectonic influences on the Homestake Formation, and the possibility of rare earth minerals (REMs) and silver, using the most accurate geological data available. The current gold price as of today’s listing $3,237.65 per troy ounce on April 12, 2025.

1: Geological Context and Gold Potential

Fog Lode’s location above Chism Gulch and less than a mile from Richmond Hill places it in a geologically promising area. The Black Hills have a complex history, with gold primarily sourced from Precambrian ore bodies like the Homestake Formation, which produced 90% of South Dakota’s 34.7 million ounces of gold through 1971. The Homestake Formation, a cummingtonite schist unit, is known for hosting gold in ore shoots formed by cross folds and dilation zones, often near the garnet isograd, where metamorphic conditions concentrated gold. [Ref web ID: 0] [Ref web ID: 19]

Erosion and Gold Deposition: Chism Gulch, part of the Richmond Hill project, likely received gold through erosion from higher elevations. The Black Hills experienced significant uplift during the Laramide orogeny (Cretaceous to early Cenozoic), followed by erosion that exposed Precambrian rocks and redeposited gold into lower areas like gulches. [Ref web ID: 4] Fog Lode, being above Chism Gulch, could be part of the source area where gold eroded downhill. Historical placer gold in nearby Deadwood Gulch, discovered in 1875, was eroded from hard-rock deposits like the Homestake, supporting the idea that Fog Lode might sit on or near a similar source. [Ref web ID: 3]

Tectonic Influence and Homestake Formation: The Black Hills are an inlier of Precambrian rocks surrounded by Phanerozoic cover, uplifted by tectonic activity. The Homestake Formation, which dips north beneath Paleozoic rocks near Lead, may re-emerge or influence areas like Fog Lode due to tectonic shifts and faulting. [Ref web ID: 0] Dakota Gold’s drilling at Richmond Hill suggests the Homestake Formation extends toward Chism Gulch, with iron-formation-hosted gold mineralization similar to Homestake. [Ref web ID: 9] Given Fog Lode’s position, it’s plausible that tectonic uplift and faulting brought Homestake-like mineralization closer to the surface, especially since the Richmond Hill area also hosts Tertiary-aged breccia pipes with gold, indicating multiple mineralization events. [Ref web ID: 9]

Grade and Depth Adjustment: Dakota Gold’s Chism Gulch drill results (December 2024) show an average grade of 1.13 g/t over 10.9 meters, with higher-grade intersections like 3.30 g/t over 11.8 meters (RH24C-136). [Ref web ID: 9] Since Fog Lode is uphill, it might tap into a higher-grade source zone before erosion diluted the gold downslope. Let’s assume a slightly higher grade of 1.5 g/t, reflecting a potential source closer to the 2.22–3.30 g/t range seen in some Chism Gulch holes. Depth-wise, the 20-meter assumption from before fits heap-leach targets, but tectonic uplift could mean mineralization extends deeper—let’s test a 30-meter depth to account for possible fault-driven exposure of the Homestake Formation.

  • Area: 9.05 acres = 36,624 square meters (1 acre = 4,046.86 m²).
  • Depth: 30 meters, reflecting potential tectonic exposure.
  • Volume: 36,624 m² × 30 m = 1,098,720 cubic meters.
  • Rock Density: 2.7 tonnes/m³ (typical for Black Hills geology). So, 1,098,720 m³ × 2.7 = 2,966,544 tonnes.
  • Gold Grade: 1.5 g/t, adjusted for a potential source zone.
  • Total Gold: 2,966,544 tonnes × 1.5 g/t = 4,449,816 grams.
  • Convert to Ounces: 4,449,816 grams × 0.03215 = 143,061 ounces (in situ).
  • Recoverable Gold: 80% heap-leach recovery = 143,061 × 0.8 = 114,449 ounces.

Gold Value: 114,449 ounces × $3,237.65 = $370,545,664. So, the recoverable gold value is approximately $370.5 million.

2: Rare Earth Minerals (REMs) and Silver Potential

Dakota Gold’s January 2024 announcement at Richmond Hill identified significant REMs in the TD Zone, near the Twin Tunnels Breccia Pipe, with concentrations up to 12.9% total Rare Earth Oxides (REO) over 4.9 feet, including neodymium and praseodymium (over 1% combined). [Ref web ID: 14] This zone spans 1,000 feet by 1,000 feet and extends to depths over 1,000 feet, overlapping with gold mineralization. Fog Lode, being nearby, might also host REMs, especially since breccia pipes are associated with Tertiary magmatism that brought both gold and REMs to the area.

REMs Estimate:

  • Area Overlap: Let’s assume 25% of Fog Lode (2.26 acres or 9,156 m²) overlaps with a similar REM zone, given its proximity.
  • Depth: REMs extend deep at Richmond Hill, but let’s use 10 meters for a near-surface estimate, as Fog Lode is a smaller parcel.
  • Volume: 9,156 m² × 10 m = 91,560 m³.
  • Tonnage: 91,560 m³ × 2.7 = 247,212 tonnes.
  • REO Grade: Using a conservative 1% REO (since 12.9% is a peak value), that’s 247,212 tonnes × 0.01 = 2,472 tonnes of REO.
  • Value: Neodymium and praseodymium are key drivers. As of early 2025, neodymium oxide prices are around $50/kg and praseodymium oxide around $60/kg (based on market trends). Assuming 50% of the REO is these elements, that’s 1,236 tonnes at an average of $55/kg = $68,000,000.

Silver Potential: The Homestake Mine produced 7 million ounces of silver alongside 31 million ounces of gold, a ratio of about 1:4.4. [Ref web ID: 4] Richmond Hill’s gold-silver mineralization also suggests silver presence. If Fog Lode follows a similar ratio:

  • Silver: 114,449 gold ounces ÷ 4.4 = 26,011 ounces of silver.
  • Silver Price: As of April 2025, silver is around $30/oz (based on recent market trends).
  • Silver Value: 26,011 × $30 = $780,330.

3: Total Value Estimate

  • Gold: $370,545,664
  • REMs: $68,000,000
  • Silver: $780,330
  • Total: $370,545,664 + $68,000,000 + $780,330 = $439,325,994, or roughly $439.3 million.

Step 4: Considerations

  • Geological Uncertainty: The 1.5 g/t grade and 30-meter depth are educated assumptions based on Chism Gulch data and tectonic uplift. Actual drilling on Fog Lode is needed to confirm.
  • REMs Viability: The REM estimate is speculative; mineralogical studies (like Dakota Gold’s ongoing work) would clarify economic potential.
  • Mining Costs: Heap-leach costs in the Black Hills are $1,000–$1,500/oz for gold, and REM extraction costs vary widely but could be $10–$20/kg, reducing net value but still leaving a substantial margin.
  • Permitting: Fog Lode’s private land status simplifies permitting. Small scale mining permits in South Dakota for 10 acres or less are available.

Final Estimate

Fog Lode’s potential value, factoring in gold, REMs, and silver, is approximately $439.3 million, driven by its geological position above Chism Gulch, possible Homestake Formation influence, and Richmond Hill’s REM discoveries. This is a rough estimate, and on-site exploration would refine these figures. Core drilling Fog Lode is currently being evaluated.

For information on partnership or purchase contact owner:

Scott Prentice – 605-580-5496 (Text First to EST. Contact info) [email protected] for all corrispondence

Note:

All Ref web IDs listed:

  • Ref web ID: 0
    This source provided geological details about the Homestake Formation and its gold mineralization in the Black Hills, which I used to assess the potential for Homestake-like deposits at Fog Lode.
    Link Citation:
    (The full link is available in the web results as: “Dakota Gold | Richmond Hill Gold Project – dakotagoldcorp.com”)
  • Ref web ID: 4
    This source gave historical context on the Black Hills gold rush, including the Homestake Mine’s production and the role of erosion in placer gold deposits, which informed my analysis of gold movement from Fog Lode to Chism Gulch.
    Link Citation:
    (The full link is available in the web results as: “Usgs – pubs.usgs.gov”)
  • Ref web ID: 9
    This source provided Dakota Gold’s drill results from Chism Gulch, including the average grade of 1.13 g/t and specific high-grade intersections, which I used as a baseline for estimating Fog Lode’s gold content.
    Link Citation:
    (The full link is available in the web results as: “Dakota Gold Intersects 2.22 grams per tonne gold over 50 meters at Richmond Hill in Drill Program to Expand Resource – www.newsfilecorp.com”)
  • Ref web ID: 14
    This source detailed Dakota Gold’s discovery of rare earth minerals (REMs) at Richmond Hill, including the 12.9% REO concentration, which I used to estimate potential REM value at Fog Lode.
    Link Citation:
    (The full link is available in the web results as: “Dakota Gold believes Richmond Hill will become a mine | South Dakota Public Broadcasting – www.sdpb.org”)
  • Ref web ID: 19
    This source offered background on the Black Hills Mining Museum and the region’s mining history, which supported my understanding of the area’s gold production context.
    Link Citation:
    (The full link is available in the web results as: “Home – Black Hills Mining Museum – blackhillsminingmuseum.com”)