![]() The large placer gold deposits of Deadwood Gulch were discovered in November 1875, and in 1876, thousands of gold-seekers flocked to the new town of Deadwood, although it was still within Indian land. Prospectors found gold in 1874 near present-day Custer, South Dakota, but the deposit turned out to be small. Despite being within Native American territory, and therefore off-limits, white Americans were increasingly interested in the gold-mining possibilities of the Black Hills. The United States government recognized the Black Hills as belonging to the Sioux by the Treaty of Laramie in 1868. ![]() Prior to the Gold Rush, the Black Hills were used by Native Americans (primarily bands of Sioux but others also ranged through the area). In the 1860s, Roman Catholic missionary Father De Smet is reported to have seen Sioux Indians carrying gold which they told him came from the Black Hills. Rumors and poorly documented reports of gold in the Black Hills go back to the early 19th century. It began in 1874 following the Custer Expedition and reached a peak in 1876–77. The Black Hills Gold Rush took place in Dakota Territory in the United States. Gold Rush that took place in Dakota Territory in the United States
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