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Yes you can. I pasted the rule and link below.

1. Do I need a mine permit to operate a dredge in South Dakota?

To operate any type of dredge in South Dakota to extract minerals such as gold, even for recreational purposes, an operator is required to obtain a mining permit. Mine permits are also required for other mechanized equipment such as highbankers and heavy equipment. To find out more about mine permits, click here.

If you use hand held equipment such as a pick, shovel, pan, metal detector, or sluice box for placer mining, no mine permit is required. However, you are required to comply with South Dakota Water Quality Standards.

You should be aware that a water right permit is required for placer mining activities. However, some of the streams in the Black Hills have been fully appropriated. Therefore, obtaining a water rights permit may not be possible. For more information, contact the Water Rights Program.

http://denr.sd.gov/des/mm/faq.aspx

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Q: Can you suction dredge in South Dakota?
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