Placer mining in the Honey Lake Valley was short-lived and mainly confined to the 1850s. It should be noted that the gold discoveries of the 1850s were of placer nature—gold nuggets found in streams and ravines. When Peter Lassen and Company discovered gold in Hills Creek in 1855, they constructed a ditch to assist in their efforts. By the end of June they had to abandon their work when the creek went dry. By 1856 with a major influx of miners in the region, they would experience the same, and placer mining was a spring time occupation.
In August 1858, Quincy’s Plumas Argus reported on this condition. “We are informed that everything is quiet at Honey Lake. A silver mine is being opened there. Several companies are at work on the vein, which has been known to exist for several years, although nothing definite is yet known as to the extent or richness. Placer diggings have been discovered near the lake that are known to be good. If they had water on them they would pay from ten to twenty dollars per day to the hand, but there is no capital there to invest in ditch property.”
By 1859, placer mining in the area had ended as quickly as it began., since the easy pickings had been done. The focus would turn to lode operations, i.e., hard rock extraction.