With a population of 200, as early as 1876, Castleton miners were digging a rock flume for working the placer gold deposits of Castle Creek. They farmed and ranched to support themselves. By 1880, most of the 40 or 50 cabins were abandonded, due to the fact that the flume did not have enough fall to carry away the tailings. It became a railroad construction center in the late 1880's. It was supported by the men digging the two tunnels or laying the track for the Burlington line north to Deadwood. Abandoned again in 1890, it was homesteaded by Denny O'Brien. The Evans family of Denver, worked a large dredge up and down the creek from 1911 to 1914. It was eventually abandoned because the irregular bedrock made it impossible to get to the best pockets of gold. The dredge was then shipped to John Day in Oregon. All that remains of this operation are the remains of the barge. Some buildings had signs as late as the 1920's proclaiming them to be the saloon, grocery, and jewelry shop. None of these remain. It is located about 10 miles northwest of Hill City. The old dredge pools are good swimming and fishing spots.