"I guess we'll stick to the shaft, boys," said Mackay; "this looks uncanny," and he scrambled out; the idea of working underneath the flowing stream was too much for him, though he was a veteran miner. Campbell and I soon followed his example, leaving Mac and Stewart, who were not easily daunted, to survey the wonders of Nature at their leisure. They at once commenced picking the frozen channel, and the thud! thud! of the blows came to our ears, as we stood by the fire above, as the sonorous notes of a deep-toned bell. Already the murky gloom of an Alaskan night was fast closing over, though it was yet but two o'clock in the afternoon. Thud! thud! thud! went the pickaxes below, and I marvelled at the persistence of my companions, for I knew they could make little impression on the flinty sands.

Suddenly the echoes ceased, and the sounds of a wordy altercation rumbled up towards us; a few minutes later Mac popped his head out of the shaft and beckoned me mysteriously, then disappeared again. Wonderingly I let myself down through the narrow aperture and wriggled into the cavern. A strange sight met my gaze. A lighted stump of candle was stuck in the ground, and its pale light, reflected against the glistening roof, gave the scene a somewhat unearthly appearance. Stewart was kneeling on the gravel, examining carefully a flat, pebble-shaped stone; beside him was heaped quite a number of similar fragments, and these were evidently the results of my companions' labours, for many hollows in the channel showed where the pebbles had been extracted. When I entered, Mac was feverishly rubbing one of the pieces against his moccasined leg.

"What kind o' stane dae ye ca' that?" he asked eagerly, handing his prize to me.

"I've tell't him it's ironstane," broke in Stewart in a convinced tone of voice, "but Mac aye likes tae be contrairy."

The specimen given me was a rough and rusty-looking pebble, very much water-worn. At first glance it certainly looked like ironstone, and its weight proved it to be either of that nature or—I dared not hoped the alternative. I took my sheath knife and endeavoured to scrape the edges, but they were hard as flint.

"A kent it was ironstane," grumbled Stewart, yet I was not satisfied. I held the specimen close to the candle-flame for several minutes until it was heated throughout, then I again tried my knife on the edges. The effect was astounding; the rusty iron coat peeled off as mud, and lo! a nugget of shining gold was brought to view.

With a howl of delight Stewart started up, cracking his head against the crystal ceiling in his haste. " Gold!" he shouted, and grabbed at the handful of stones he had collected. "Mak' some mair," he said.

But there was no need to doubt further; every rusty-coloured pebble unearthed was in truth a fine alluvial specimen of the precious metal, and when scraped each tallied in every characteristic with King James's nugget. The iron coating was but a frozen mud cement which had formed over the irregularities of surface with vice-like tenacity. The bed of the creek was indeed gold bottomed; the King had not stated wrongly.

Campbell and Mackay soon joined us; they had become alarmed at my prolonged absence.