Forest Service gives green light to exploratory gold drilling west of Custer

A map showing the locations just west of Custer where F3 Gold plans to conduct exploratory drilling. (Courtesy of U.S. Forest Service)

The U.S. Forest Service has given the go-ahead for a Minnesota company to drill holes in search of gold near Custer.

Minneapolis-based F3 Gold received approval for its Newark Exploration Drilling Project in the Black Hills National Forest. The 36 drilling sites are scattered across national forest land about 4 miles west of Custer. The exploration would take up to one year.

The project will use a diamond-tipped drill to obtain core samples from depths reaching 3,000 feet. All drill holes are required to be plugged afterward.

The project has sparked significant public opposition. Many residents voiced their concerns at a 2023 public meeting in Custer , and the Forest Service received 485 written comments . Residents and environmental groups wanted the Forest Service to complete an environmental impact study (EIS), according to the agency’s summary of public comments and its responses.

“Commenters are concerned that the proposed project will have significant effects on water quality, water use, recreation and tourism, wildlife, and cultural sites,” the summary says. “Commenters also assert that an EIS will allow for greater tribal consultation and public involvement in the decision-making process.”

But the Forest Service determined that “no extraordinary circumstances exist” that “would warrant further analysis” in an environmental assessment or environmental impact statement. The project would not interfere with any known historical sites, and no adverse effects to local hydrologic features or water supplies are expected, the Forest Service said in its decision memo .

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The agency also emphasized its obligation under the General Mining Law of 1872 to permit mineral exploration on federal lands that haven’t been closed to exploration or mining.

The decision requires F3 Gold to restore the drilling sites to a natural-looking condition after drilling is complete. The company plans to start drilling later this year.

The project is one of several mineral exploration initiatives in the Black Hills, an area with a history of mining dating to the 19th century. There is currently one active, large-scale gold mine in the Black Hills — the Wharf Mine near Lead.

Meanwhile, F3 Gold’s additional plan to drill in the Pactola Reservoir area remains in limbo. The Forest Service is considering a ban on new mining activities, including exploratory drilling, in a 32-square-mile area around the Pactola Reservoir and its upstream public lands, to protect the watershed and its status as a water source for Rapid City.

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