As early as 1882, mining exploration was begun with crews of Dr. D.M. Bond and Adoplh Guensburg, operating the Calidonia Mining Company, which eventually failed. In 1889 W.S. Calhoune was attracted by an outcrop in the Michigamme River bed. He obtained an option on the land and opened up the Mansfield Mine. In 1893 the Mansfield Mine was one of the few mines operating in the county-the only mine in the county to have a Bessemer ore type deposit. Quite a settlement grew up around the mine and a railroad spur was built to it in 1890. The property was operated by the Mansfield Mining Company until the fall of 1893 when the river broke into the workings, resulting in the loss of 27 lives. The property was then abandoned and everything of value removed.

In 1894 a great forest fire hit the village and completely destroyed all the buildings except the mine timber headframe. Later the river was diverted by digging a canal and a dam was constructed across the old river channel to prevent water from backing up. The ore body revealed as much more extensive than originally believed and ore was reclaimed by the open pit method. To continue operations, the old shaft house was moved and a new shaft was sunk.