when i had a dog, she loves digging a holes. the answer is probably " yes ". i think the dog will smell something in the ground, on the surface will dig a hole. the dog can react to the smell, by the odor of animal that was just there. maybe, it is possible that the dog can smell or heard the aminal underground on the spot. if your dog dig hole to reach china, he went to far. if he strike oil, you are rich!