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CHAPTER 1

WOLVERINES AND SUNKEN TREASURE

Despite the bitter cold, George Jackson continued wading through waist-deep snow, going ever farther west into what would become the Colorado Rockies. Originally from Missouri, the hunter, trapper, and experienced prospector had no clear destination; Jackson just wanted to see what was beyond the next bend in the river. In retrospect this was maybe not the best idea as he had nearly drowned some weeks before and was saved by one of his traveling companions. But now Jackson was alone, save for his two dogs, and often risked injury or death. Even so, he continued west. It was the winter of 1859.

On January 2, Jackson woke to hear his two dogs growling in the frigid blue hue of early morning. Eyes open, he scanned his campsite. The nearby herd of bighorn sheep he had spotted the day before were now gone. Kit and Drum continued their low, intense warning, which created plumes in the biting air. Then he spotted it. The mountain lion was only twenty feet away. The difference between life and death on the frontier was sometimes as simple as attacking first.

“[I] pulled my gun from under the blankets. Shot too quick; broke his shoulder,” Jackson wrote in his diary. He fired again, the second gunshot report deafening in the mountain canyon. The lion dropped dead to the snow.

“Clear high wind and very cold,” Jackson later remarked of the day, adding he spent this time in camp building with tree branches a small shelter from the freezing temperatures. The next day he spotted another mountain lion creeping up on him, which he also shot dead.

On January 4, Jackson and his dogs followed the river, which would later be named Clear Creek, for five miles, then followed the north fork of the river for five more miles through the rugged, ankle-splintering country. This was a land that had been seen briefly by the Spanish some two hundred years before, but was known to Native American tribes such as the Utes and Cheyenne. Exhausted, Jackson returned to his camp after dark and discovered yet another surprise.

“Mountain lion stole all of my meat in camp; no supper tonight—damn him.”

Jackson didn’t know it, but he would soon make a discovery at the confluence of two creeks that would send many thousands of settlers into this far-flung western portion of what was then the Kansas Territory. The call to fame and fortune would dwarf the size of the California gold rush, bringing in miners, merchants, entrepreneurs, criminals—and lead to the formation of a state, which today has some 5.5 million residents. In just one more day George Jackson would make a discovery so large, it would light the fuse that set off the Colorado gold rush.

Bottom of the Ocean

In a near-abandoned high school parking lot, just south of the historic city of Idaho Springs, sits a monument dedicated to George Jackson. A giant and unimaginative potato-shaped boulder rests on a pedestal, hidden to one side by a grove of small trees. A plaque fixed to its front reads:

“On this spot was made the first discovery of gold in the Rocky Mountains by George A. Jackson January 7th, 1859 placed 1909.”

Jackson’s discovery wasn’t the first in Colorado or even the largest—but it was the first time a substantial amount of gold was found in the Rockies. Before the high school in Idaho Springs was built, and later abandoned for a larger one; before neighboring Interstate 70 snaked its way up the canyon along Clear Creek, connecting the plains to the mountains; before even the town, the mills, and the mines that preceded them all, Jackson, with his two dogs, fought their way deeper into a largely unexplored canyon.

George Jackson. (Courtesy of the Historical Society of Idaho Springs)

There is some disagreement about Jackson’s original intentions in the Rockies. While he was certainly a seasoned veteran of the California gold rush ten years before, his trip into the Rockies lacked any prospecting supplies and seemed to indicate he had come to Colorado mainly for hunting and trapping. A small amount of gold was discovered in Colorado only the year before, and rumors and legends of the precious metal had persisted since at least 1765 when Spanish explorer Don Juan María Antonio de Rivera returned from Colorado.

The Spaniard had brought samples of gold with him to Santa Fe, which were later dismissed by his government. Subsequent travelers, explorers, mountain men, and even madmen related tales of gold that were likewise disregarded. The California gold rush of 1849 saw those who were seeking to strike it rich cross through the Rockies and pan the streams along the way.

In 1850 Lewis Ralston, on his way to California, stopped for a time in Colorado to pan a small amount of gold from a drifting finger of Clear Creek. The gold was quickly removed from the area and he decided to move on, continuing his journey west. Again gold was discovered but in such small quantities that it didn’t warrant additional time or energy.

“For some ten years past, vague stories affirming or implying the existence of gold in our country’s principal chain of mountains, have from time to time reached the public ear; but they seemed to rest on very slight or insecure foundations, and attracted but limited and transient attention,” wrote the New York Tribune’s Horace Greeley in his account from 1859. “An Indian’s, or trapper’s, or trader’s bare assertion that, in traversing the narrow ravines and precipitous heights of our American Switzerland he had picked up a piece of quartz lustrous with gold, or even a small nugget of the pure metal, was calculated to attract little attention, while California was unfolding her marvelous treasures.…”

William Green Russell had participated in the gold rush in his home state of Georgia in the 1830s, and in California’s a decade later. With his eye on the Rockies, Russell organized a party to prospect Colorado with the guidance of Cherokee Indians related to him through marriage. The Cherokee told him they had discovered gold in the streams that tumbled down from those breathtaking mountains. In July of 1858, Russell, his two brothers, and their small party finally succeeded in finding gold in Dry Creek. While they were able to pan out only a limited quantity of gold, it had been found, and word of its discovery began working its way back east.

In time, its battle cry would become the plucky and courageous, however geographically erroneous, “Pikes Peak or Bust.”

Indeed, the Russells had looked for gold near Pikes Peak, far to the south of where they had discovered gold, and in a dozen other places trying to find the source and were as yet unsuccessful. However, the cry had gone out, and settlements and later towns began growing in the places they had searched. Soon the towns of Auraria and Denver came into being. But the gold the Russells had found was depleted and no one had yet struck it rich. Regardless, the stories of great wealth continued. A haphazard sprint for the newly discovered goldfields ensued.

“Though they carried home or sent home large stories of the auriferous character of the country they ‘prospected,’ [and] took with them precious little gold,” Greeley reported. “But their reports aroused a spirit of gold-seeking adventure in others, so that the ensuing (last) fall witnessed a rush of three or four hundred, mainly men of broken fortunes from the dead mushroom ‘cities’ of Nebraska and Kansas, to the region watered by the South Platte and the more northerly sources of the Arkansas [River].”

As it turns out, the country was also in a severe depression, starting with the Panic of 1857. Homes, businesses, jobs were all lost in the economic crises, a nasty situation primarily aggravated by the loss of the gold-laden SS Central America in a hurricane. The disappearance of the valuable cargo dealt a near-crippling blow to the American economy.

The ship sank near the Carolinas, taking with it more than four hundred passengers and twenty-one tons of gold to the bottom of the sea. Fortunately, many women and children were evacuated before the ship went down, and another fifty were later rescued from the ocean. A handful of men survived a desperate week in a lifeboat before being discovered.

Incidentally, the gold was later recovered in 1988 by treasure hunter Tommy G. Thompson, who was arrested in 2015 after a two-year manhunt for failing to appear before a judge in a case where investors were excluded from the gold profits removed from the wreck.

In the wake of the tragic incident with the ship, and compounding economic troubles, merchants across the Midwest who were desperate for any source of additional income were all too eager to help perpetuate the talk of gold and what could have easily become a myth.

“I doubt that three thousand dollars’ worth of gold in every shape had been taken out by the five or six hundred seekers who came to this region in hot pursuit of it,” Greeley wrote.

However, the gold was there: they only needed to look a little higher.

A Golden Ring

In the late days of 1858, Jackson was hunting with his friends Tom Golden and Black Hawk. His diary has brief descriptions of the terrible weather and his varied successes aiming down the length of his rifle.

Dec. 27

“Still snowing. Tom hunting Oxen. Black Hawk and I for elk. I killed a fine fat doe. Still snowing.”

Dec. 28

“Snowing fast, accompanied by high wind. In camp all day.”

Dec. 29

“I got into camp late at night; saw about 600 elks; killed five cows and one bull.”

Dec. 31

“Jerked Elk meat until noon with intention of going down mountain … packed meat and blankets and started down over fallen timber and through snow four feet deep. Had a hell of a time before I reached the creek. Went into camp at dark. Dogs and I almost tired out. Made big fire after supper and dried my clothes and blankets. Turned in about 12 o’clock, and slept good until daylight.”

Then on the first day of the new year, Jackson decided to head out on his own to follow the stream into the mountains. He told Tom Golden that he’d be back at their camp above Table Mountain in a week. With two pounds of bread, one pound of coffee, and dried elk for both himself and his dogs, Jackson set off.

Traveling about eight miles farther upstream, he killed a mountain lion he came across, and as some accounts of Jackson’s adventures report, he saw what he initially interpreted as a cloud of smoke from a camp of Native Americans. Being cautious, he worked his way through the deep snow and saw that it was actually steam from a hot spring. The snow around it was melted away, and the sheep he came across were eating the thawed vegetation.

“Killed fat sheep and camped under three cottonwood trees. About 1,000 mountain sheep in sight tonight; no scarcity of meat in future for myself and dogs. Good,” Jackson reported. He was up before daylight, shot at and wounded another mountain lion, and drank the last of his coffee. He then started inspecting the gravel of the streams. “Good gravel here; looks like it would carry gold,” Jackson wrote. “Wind has blown snow off the rim, but gravel is hard frozen. Panned out two cups; nothing but fine colors.”

The next day he built a giant fire on the rocks to thaw the gravel. He kept the fire going all day and didn’t notice at first that a “carcajou,” also known as a wolverine, had come into his camp. What followed was a savage fight between the dogs, Jackson, and the wolverine.

“Dogs killed him after I had broken his back with belt ax. Hell of a fight.”

On January 7 Jackson removed the embers from the fire he had set the day before to thaw the frozen gravel by the stream. Using his cup, he panned out the gold from the rock and was quite pleased with what he found. On his ninth cupful, he found a large nugget of gold. He would later have it turned into a ring for his wife.

“Feel good tonight,” he wrote in his journal, then added as an afterthought, “Carcajou no good for dog.” He worked at the stream all the next day with the inadequate tools that he’d brought along. He made the best of what he had, even wearing out his belt knife.

“Well, Tom old boy, I’ve got the diggins at last,” Jackson wrote. “But can’t be back in a week. Dogs can’t travel. Damn carcajou.”

After recovering about an ounce of gold, he decided to head back to camp and join up with his hunting partners—that is once his dogs were ready to travel again. In preparation for a return trip, he carefully hid evidence of his work and marked a tree with a knife and his belt ax.

“Snowing like hell. High wind and cold. In camp all day. Drum can hardly walk around today.” It did finally stop snowing, but Jackson spent the day in his camp doctoring his dog’s leg, which he said had swollen to the size of his upper arm.

“Damn a carcajou.”

On January 12 the three of them began the slow trip back down the mountains. That evening Jackson put a balsam on Drum’s wound. They started late the next day but made better progress; he noted that “Drum is doing much better.”

On January 14 with his moccasins so worn that he was nearly barefoot, Jackson made his way back to camp and found his friend Tom more than a little uneasy about his delay in returning.

“After supper, I told him what I had found and showed him the gold, and we talked, smoked and ate, the balance of the night. I could hardly realize I had been gone nineteen days.” Once out of the mountains he and Tom came across a man they knew who was using two sluice boxes to get gold from the stream. Compared with what Jackson had pulled from the river in his coffee cup just days prior, he was not remotely impressed.

“No good; too fine to save without quicksilver, and not enough to pay with it.”

Many miners used quicksilver, or mercury, to remove the gold from rock or to help remove it from sand. The mercury turns the gold into an amalgam, which can later be burned off and returned to its pure form. Not environmentally friendly or safe, but it is effective and is still used by some today. Jackson decided he wanted to return to his discovery not only with better supplies but with a small party of men to help him work the confluence of the two creeks. However, he would have to bide his time until spring.

“Tom is the only man who knows I found gold up the creek, and as his mouth is as tight as a No. 4 beaver trap, I am not uneasy.”

The same month a party of prospectors discovered gold in nearby Boulder. Called Gold Hill, the men also knew it was essential to keep the news of their discovery quiet and hidden from prying eyes as long as possible. On April 17 of that same year, Jackson returned to the area he had marked with twenty-two men, wagons, supplies, and tools. The group often had to build their own road, hacking through the dense wilderness, which made for a grueling journey into the mountains. In some places, the wagons were unable to get through and so had to be meticulously disassembled and reassembled on the other side of each obstruction. This was slow and painful work. In May they reached Jackson’s location and made $1,900 in the first seven days. It’s said about $2.5 million in gold was removed from the area near his discovery in three years’ time. Originally called Jackson’s Diggings, the area provided the first real evidence that gold could be found and fortunes dug from the muddy gravel of the Rockies. This was not rumor or legend but undeniable truth.

In time Jackson felt himself called away from the mountains and their promise of wealth by the drums of war. Jackson fought in the Civil War in 1861 for the Confederates. He did return to Colorado when the fighting was done to look for gold in Ouray, but his further attempts to strike it rich were ended suddenly one day when his firearm fell from a wagon and accidentally discharged, killing him.

Jackson’s dreams of finding untold riches lived on. People from across the nation and even the oceans rushed into the area. Rough cabins and tents popped up like mushrooms over every free space in sight in the area that would soon become Idaho Springs. Some have estimated that 100,000 people joined the hunt for gold in 1859. Some 13,158 claims were recorded in Clear Creek County from the start of the gold rush to 1861. Supplies, food, and plenty of coffee and whiskey were paid for in gold dust. The streams were soon depleted of gold, and miners began to sink shafts alongside the creek banks to the bedrock below to find where gravity had carried the gold over time.

The hunt for gold naturally evolved to see where it came from and how it got in the streams. Soon miners were chasing the gold lodes or veins into the surrounding mountainsides, and with the bang of black powder, the era of hard rock mining began. Men drilled by hand blasting rock apart and used candlelight to work by.

Necessity is the mother of invention and pneumatic drills were created and black powder gave way to dynamite. By 1902 the Idaho Springs area had more than three hundred mines, which were estimated to have a combined one hundred miles of tunnels.