Ellen Baumler, the author of the book, ‘The Town that Gold Built: The First 150 Years’ was right on the dot. Helena, the capital city of Montana, owes its existence to the yellow metal. And, here is a lesser-known secret… many believe there is still gold under the ground that no one has found.
The gold mining history of Helena is as gripping as anywhere in the country. The story of Helena is one of hope, grit, perseverance, bravery, and ingenuity.
Here is a brief history of mining in Helena and a look at what makes this city special.
Gold Mining History in Montana
News of gold findings in Montana emerged at a time when the West was still wild and untamed. Rumors spread far and wide about a new gold strikes up north in Montana. Miners found on Gold Creek and other tributaries of the Clark Fork River. This brought more men to the area, and many additional strikes were made.
Placer deposits in Grasshopper Creek and then at Alder Gulch were enough to cause a true gold rush. Miners from all around the world headed for the Montana territory to find their fortune. The two major gold camps prior to Helena were at Bannack and Virginia City.
Hearing the news of the discovery, a wave of fortune seekers swept the land. Four miners from different mining parties – John Cowan (Georgia), John Crabb (Iowa), D.J. Miller (Alabama), and Reginald Stanley (England) – came together to try their luck.
After many failed attempts at finding gold near Virginia City, the Four Georgians headed for the Kootenai River area, chasing rumors of other gold discoveries. On their way, they heard that the placers were nearly worked out already so they moved on to several more areas. Each new location proved to be show only poor gold values.
Helena: The Birth of a Town
The four Georgians, who faced nothing but misfortune and bad luck, arrived in the Helena area to try their luck one last time. As the saying goes, ‘fortune favors the brave’. Their last attempt at finding the yellow metal, at a place they named ‘Last Chance Gulch’ proved fruitful. The four miners found a sizable amount of placer gold at the location.
Last Chance Gulch – the area where the four miners struck gold – became famous for having the second-largest placer gold deposit in the whole state. Reports show, in just four short years, miners extracted gold worth $19 million from the gulch.
In no time, thousands flocked the tiny new gold camp to claim their share of Lady Luck. The watchful eyes of gold prospectors found more gold in surrounding areas. This further attracted new settlers. The sparsely populated town soon accommodated thousands of settlers. The then tiny town of Helena became home to scores of people with just one thought in mind – how to find gold?
Cashing the Gold Dust
The story of how the Georgians converted their gold dust into cash is quite interesting. In 1867, after selling their claim, the four miners took their gold dust worth almost $40,000 to the mint. In the 19th Century, transporting a wagon full of gold dust to faraway places was fraught with danger.
To safeguard the heavy wagon, during the transit, the Georgians enlisted their friends who shepherded the wagon, first to Fort Benton, and then to Philadelphia Mint. Quite an undertaking!
Other miners didn’t have to face such situations in the future because in 1875 an assay office came up in Helena. The miners brought their gold dust to the assay office to check the purity and convert the precious metal to gold bars.
How the Gold Rush Shaped the Future of Helena
The constant arrival of gold miners necessitated suitable planning and development of the town. The early inhabitants decided to build a proper city. In the new city, the new arrivals readily found boarding, food, and gold mining supplies.
In the latter half of the 19th century, when the gold fever gripped the world, numerous towns sprouted all around the country. Like mushrooms that pop up after rain and disappear overnight; in those days, many towns disappeared after the gold deposits dried up.
Luckily, Helena, not only survived, it thrived. It’s all thanks to the initiative and resilience of the local community. The city’s location too played a significant role in its development.
Helena was an important halt for traders traveling east, west, north, and south. Its location ensured a constant supply of food and other necessities. In addition, there were several areas with small deposits of gold and minerals around Helena. The city served as a base for gold prospectors and miners who came to explore the neighboring areas.
The locals drew up quite a long list of names for the city. They overlooked Squashtown and Pumpkinville and settled on Saint Helena. Over time the name changed to Helena. In 1875, just over a decade after the discovery of gold, Helena became the capital city of the Montana Territory. The city got its first Northern Pacific railroad in 1884.
Where to Find Gold in the Helena Area
Helena is built on top of some of the richest mining ground in the entire state. As was often done, miners would set up camp close to the goldfields. As time went by the town expanded and covered more ground. The old downtown section of Helena is literally right on top of some rich gold-bearing gravel.
Look around the hills and gulches just south of town and you will see all sorts of historic miner diggings.
There were other mining camps nearby that were also quite rich… to the northwest was Marysville. Directly east across the Missouri River was Confederate Gulch. Heading south, about halfway to Butte were the rich mining camps of Basin and Boulder.
This country still hides a lot of gold. Many consider it to be the best mining in Montana. There are lots of active mining claims, but there is also open ground on public lands were you can look for gold. It just takes a bit of research, hiking and exploring to find those places. I have a good friend who uses a Minelab Gold Monster 1000 metal detector and is quite successful finding gold nuggets in the foothills around Helena.