Although John Wesley Hillman and the party of prospectors searching for the fabled Lost Cabin Mine in 1853 did not find valuable gold ores in the vicinity of Crater Lake, it is now known that very unique metal deposits are well hidden under the pumice slopes of old Mt. Mazama. Last fall an excavation along the new highway to the North Boundary unearthed the entrance to a cavern on the northwest shoulder of Llao Rock.

When the cavern was explored many tortuous passageways were found in the slaggy, acicular lava rock. Spicules of dacite made the exploration of the intricate passageways extremely difficult. On every side spikes of glassy lava rock protruded and in many recesses in the rough surface there was found delicate crystal flakes of specular hematite. One side of the crystal flakes possessed a splendent metallic lustre, while the other was dull, iron black to dark steel gray in color. Only crystal fragments were discovered which showed the symmetry of the hexagonal system.

Specular hematite in a minute flake form is found in volcanic regions. It occurs as a result of iron in a highly incandescent state being volatized and as a fumerolic emanation passing through the air passages with condensation resulting and flake crystals developing. This discovery conclusively shows that while gases were still issuing from the old mountain such material found its way out through the various porous formations in the radiating slopes. The mineral deposits found are of no economic value but are of vast interest to the scientist interested in unraveling the events which occurred in the past.