156 which had been passed over by the old tunnel was mined. The tunnel (shown on Figure 25) cuts through bedrock for a short distance near the mouth and then crosses on gravel the deep channel and strikes the bed- rock again about 400 feet from the mouth of the tunnel. There thus remains in this part of the creek a short length of the deep channel below water-level that has not been mined. The work paid at the rate of about $5 a day to the hand. In October, 1923, a new company composed of local miners was formed to mine the buried channel which lies on the east side of the rock canyon and continues a short distance upstream beneath the tunnel run in 1922-23. A tunnel! was run from the creek bank about 50 feet above the blind shaft on the old tunnel below the canyon and about 47 feet above the level of the old tunnel. The tunnel runs towards the old channel for 520 feet, at which point bluff rock was struck. A crosscut at an angle of 45 degrees was then run towards the creek for 115 feet, at which point a raise of 50 feet to the surface was made for an air shaft. Pay- gravels were struck near the end of the crosscut and drifting up the channel was then begun. There is a raise of 6 feet in the crosscut and 6 feet in the first 50 feet of the channel. The dirt is taken out in cars and washed at the creek. The channel was drifted three sets wide and up to October, 1924, thirty-five sets with 8-foot caps had been taken out. The ground averaged 13 ounces to the set or about wages. The length of the channel from where it was struck at the lower end to where it crosses beneath the creek above the canyon is about 500 feet. The gold on Dragon creek is noted for its coarse, nuggety character and for its fineness or purity. Assay values average about $19. The gold is evidently local in origin and occurs mostly on bedrock, but some is found in the gravels for a few feet up from the bedrock. ‘These gravels, as seen in the tunnel above the canyon, are glacial and clayey with an occasional large boulder. No evidence was seen of glacial erosion of the bottom of the valley. The valley bottom may have been protected from ice erosion because of its narrowness and by deposition of glacial drift in it, so that the gold may be pre-Glacial in origin, although the discontinuous character of the pay-streak and the fact that some of the gold is mixed with the glacial gravels seem to show that the ancient pay-streak was disturbed and eroded to some extent as the result of glaciation. The buried rock channel alongside the Recent canyon may be pre-Glacial or possibly interglacial in age. It is evidently an old channel of Dragon creek and was formed before the present channel was cut and before the deposition of the glacial drift that fills it. It is, therefore, reasonable to suppose that pay-gravels occur in the bottom of the channel. The work so far done does not indicate that the values are very great, but better values may be found higher up. The bedrock valley of Dragon creek, like that of Nelson creek, is hanging with respect to the bedrock valley of Willow river, that is, the bedrock gradient suddenly and markedly increases at the junction of the two valleys. This shows that Willow River valley was probably over- deepened by ice erosion. The valley is deeply drift-filled, and there is no reason to suppose that it contains any rich deposits. 1Not shown in Figure 25 as the mapping was done before the tunnel was started.