The Deadwood formation, overlies Precambrian schists with conglomerates, sandstone, mudstone and other goodies deposited in a marine environment. There is a fault zone here, you can see the tilt of the layers as they were pushed up.
This particular cliff face borders part of the Deadwood gulch area that the miners were trying to reach. If they approached from the north, the only way in was down the side of the cliff. There are accounts of having to lower supplies, including wagons and horses over the cliffside using heavy block and tackle! How is that for determination during a gold rush?
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