The story begins with Pike Bearfield addressing a letter to his brother, Wash, expressing his frustration for being talked into leaving Antioch, Colorado, and abandoning his race for sheriff to go gold prospecting in Blue Lizard. Pike suspects Wash had ulterior motives, especially with elections coming up.

On his way to Blue Lizard, Pike encounters a man treed by a pack of dogs. The man introduces himself as Witherington T. Jones and spins a tale of his partner suffering from delirium tremens. Feeling sympathy, Pike lends him his mule to reach his claim more quickly. Shortly after, Pike learns from a posse that the man he helped is a stagecoach robber. The posse accuses Pike of aiding Jones' escape, but Pike dismisses their threats and continues to the mining camp.

At Blue Lizard, Pike rents a cabin from Polk Williams and becomes smitten with the town’s beauty, Hannah Sprague. In a botched attempt to impress her by faking an Indian attack, his accomplice Polk is accidentally shot by Hannah. Despite the mishap, Pike manages to charm her and arranges to visit her later.

Pike then meets Blaze Wellington, who is guarding Old Man Sprague's gold from Mustang Stirling's outlaw gang. Blaze, worn down by the stress of constant watch, allows Pike to take over the duty. However, shortly after, a posse pursuing Jones catches up with Pike again, accusing him of harboring the fugitive. A chaotic brawl ensues in the saloon, but Pike subdues the attackers and leaves with Blaze to guard the gold.

While in his cabin, Pike is visited by a man claiming to be a friend of Old Man Sprague, named Carius Z. Huddleston, who offers to help guard the gold. The man turns out to be Witherington T. Jones in disguise, trying to steal the gold. A fight breaks out, and more outlaws arrive to assist Jones. During the confusion, Jones escapes with the sack of gold, but Pike chases him down, discovering that the "gold" is actually scrap iron. Jones had tried to deceive everyone.

As Pike returns to town with Jones in tow, the townsfolk finally capture Mustang Stirling’s men, including Jones, who is revealed to be Stirling himself. Pike then learns that Blaze Wellington, taking advantage of the distraction, had already escaped with the real gold—and eloped with Hannah.

Dejected by the loss of both Hannah and the gold, Pike concludes his letter to Wash, lamenting his bad luck and vowing to return to Antioch to give Wash a sound thrashing for tricking him into leaving.