Virginia City sits adjacent to
Alder Creek in which, in 1863 a party of six prospectors discovered gold. Two of the party, Bill Fairweather and Henry Edgar, noticed bedrock in the stream near their campsite and, upon investigation, discovered fabulously rich placer diggings. Within a week there were hundreds of miners on the creek, followed soon after by all the usual gold camp followers and hangers-on. Shortly a town began, followed by several others up and down the creek. In a fourteen mile stretch of the creek, nine mining camps were soon open for business: Summit City, Pine Grove, Highland City, Bear Town, Central City,
Nevada City, Adobetown, Junction City and, of course, Virginia City.
Within a year the
Territory of Montana was created as a result of the activity here and Virginia City became the first Territorial Capital.
By 1875 the workings were playing out and the population, which had reached a high of 10,000 or so quickly plummeted, with most of the other camps on the creek being abandoned and Virginia City's population diving to 800.
A resurgence of sorts occurred in 1898 with the arrival of large dredging machines which reworked every square inch of the creek over the next 39 years. For many decades small scale hardrock mining operations had taken place, urging still more, albeit small, quantities of gold from the area. Between 1863 and 1899 the area produced $90,000,000 in gold, equivalent to $40,000,000,000 in gold today.
Many of the original buildings in the town remain, as do many built between 1863 and 1900. Though not totally deserted, the old part of town, the "Ghost Town" has not been used nor habited for many decades. Virginia City and Nevada City, just up Highway 287 to the west, are the only two remaining signs of civilization left in Aspen Gulch, the rest having been obliterated by the large gold dredges which passed through the gulch.
From a history of
Virginia City:
The credit for the "second discovery" of Alder Gulch belongs to Charles Bovey, who fell in love with the unique history and charm of this area. Charlie began purchasing buildings and property in the late 1940's, and thus saved many structures from demolition and decay. In 1961, Virginia City was designated a National Historic Landmark. Following Charlie's death, the Virginia City Preservation Alliance was formed and led the initiative for the State of Montana to purchase his properties. Now managed by the Montana Heritage Commission, the State has done a wonderful job in restoring and maintaining the buildings and thousands of artifacts. Private individuals have also joined in the restoration of historic buildings and protecting the historic integrity of the community.