<P> The Black Hills Gold Rush took place in Dakota Territory in the United States . It began in 1874 following the Custer Expedition and reached a peak in 1876 - 77 . </P> <P> Rumors and poorly documented reports of gold in the Black Hills go back to the early 19th century . 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 . </P> <P> Prior to the Gold Rush, the Black Hills were used by Native Americans (primarily bands of Sioux but others also ranged through the area). The United States government recognized the Black Hills as belonging to the Sioux by the Treaty of Laramie in 1868 . Despite being within Indian territory, and therefore off - limits, white Americans were increasingly interested in the gold - mining possibilities of the Black Hills . </P>

Gold in the black hills of south dakota