Modern day prospectors will be right at home in Montana. ![]() By the spring of the next year, huge gold deposits were found in Alder Gulch at Virginia City. The town of Bannack (west of present day Dillon, Montana) was built and soon thousands of miners were scouring the creeks and hillsides for the yellow metal. The first gold discoveries in Montana occurred in 1852, but it was the major strike on Grasshopper Creek in 1862 that brought gold seekers into the southwest corner of the state. The geological conditions are more favorable in the rugged mountains along the Continental Divide than the flatter two-thirds of the state. The vast majority of gold districts in Montana are in the western part of the state, near the border of Idaho. ![]() Montana has a rich mining history, and the state is ranked as the 7th largest producer of gold in the United States by the US Geological Survey.
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