The Nooksack mines are located in the Mt Baker Mining District at an elevation of 1600 feet on Sumas Mountain. The Nooksack Mining Company and the men behind it pulled off one of the most elaborate mining scams of the day.
Eight claims were staked under the names Nooksack, Mystic, Old Tom, Bell Boy, Shoo Fly, Yum Yum, Last Chance, and Lucky Boy.
The mines were staked in 1900, prior to the development of the mines the men behind the claims constructed a stamp mill, and a large state of the art mining camp. The mining camp consisted of a hotel, dance hall, bunk houses, and mining office.
Much of what went on at the site was under a veil of mystery. The company was able to lure 370 stock holders, some of which were very prominent individuals of the day. The vault contained bags of gold for potential investors to view. As was the dance hall in no short supply of female companionship. It was said the mining camp ran more like a resort than a gold mine. This began to draw the suspicion and curiosity of local miners. One night a local miner was able to slip into the camp and obtain ore samples. Once these samples were assayed it was found that the ore from the mines was worthless.
Once the information was made public the operators of the mine shut the mine down and quietly fled. The property and buildings were auctioned in 1906 to pay off the mines debts. However not one of the 370 investors saw a dime of their investment money.
It was found that the site was completely barren of any gold and that the mines had been "salted".