Hammond Reef Mine in 1894 on the shore of Sawbill Lake, about 30 miles from Atikokan and showed it to John Hammond. A 10 stamp mill was built there in 1897 and 30 more stamps were added along with a hydro electric power house. It closed in 1899 because the results were disappointing. It then reopened in 1938. Forestry Timber was first noticed in the area as early as the 1870s. There were 31 surveys, with 21 being in Quetico Provincial Park and 10 being in the Clearwater and White Otter Castle area. The first attempt at harvesting timber in the area was in 1886. A sawmill was located on the height of land east of the French Portage. The strip between Lac La Croix and French Lake held great potential for logging of red and white pine, however, the barren shores around Saganaga show that there were many fires there, with approximately one sixth of the total area having been destroyed by fires. These forest fires were usually caused by the carelessness of troops that passed through the area years before on the Dawson Trail. H.C. Smith described the aftermath as "gigantic, half burned dead pines, which, towering in the air, add so much to the wildness and desolation of the scene" and "too often caused by the carelessness of explorers, prospectors, and hunters; The Indians are very careful to extinguish their fires during the dry season ... it is regretted that the fatal carelessness of the others cannot be checked." He noted that the pine in the unburnt area was excellent. The best trees were said to be found on Trout, Darkey, and Brent Lakes, and the farthest Southeast end of Sturgeon Lake. Recent history Before the 2nd World War, mineral exploration in the area determined the presence of a large, high grade, iron ore deposit at the bottom of Steep Rock Lake. After the war a large water diversion project on the Seine River system was undertaken to enable the draining and dredging of Steep Rock lake in order to develop open-pit mining operations. Two large mines (Steep Rock Iron Mines and Caland Ore Co.) commenced operations in the late 1950s and continued for more than 30 years. When the mines closed in the early 1980s the town of Atikokan suffered economically but continued to survive on natural resource-based industries and tourism. In 1994, a 10 megawatt