In 1855, gold was discovered in what would be known as Hills Creek at the base of Diamond Mountain. However, the prospecting was soon suspended by summer when the stream went dry. This temporary setback allowed the handful of miners to return over the mountain to Indian Valley to prepare for next year.
In 1856, as word of the new gold discovery spread brought an influx of miners to the Honey Lake Valley. Placer mining was abundant in three streams—Gold Run, Hills and Lassen Creeks. By the early 1860s the easy pickings of the placer deposits had been cleaned out. Thus, lode mining of gold bearing quartz was ushered in and continue until 1942 when President Roosevelt’s Executive Order suspended gold mining during World War II.