Local History...
Virginia City holds a special place in the history of the West and America. The first truly industrial city in the West began in the late 1850's. Gold was found at the head of Six-Mile Canyon in 1859 by two miners named Pat McLaughlin and Peter O'Reilly. A fellow miner, Henry Comstock, stumbled upon their find and claimed it was on his property. The gullible McLaughlin and O'Reilly believed him and assured Comstock a place in history when the giant lode was named. Following the gold up the canyon an outcropping of gold in quartz was found. Another miner, James Finney, nicknamed "Old Virginny" from his birthplace, is reported to have named the town during a drunken celebration. He dropped a bottle of whiskey on the ground and christened the newly-founded tent-and-dugout town on the slopes of Mt. Davidson "Old Virginny Town," in honor of himself.
The biggest problem in this grubstake paradise was the sticky blue-gray mud that clung to picks and shovels. When the mud was assayed, it proved to be silver ore worth over $2,000 a ton - in 1859 dollars! Gold mixed with high quality silver ore was recovered in quantities large enough to catch the eye of President Abe Lincoln. He needed the gold and silver to keep the Union solvent during the Civil War. On October 31, 1864 Lincoln made Nevada a state although it did not contain enough people to constitutionally authorize statehood.