Traditionally, First Nations people had occupied this region; by the 1930s they had a settlement on a point of land on the east side of Yellowknife Bay, Dettah. The current municipal area of Yellowknife was occupied by prospectors who ventured into the region in the mid-1930s.
A Klondike-bound prospector, B.A. Blakeney, made the first discovery of gold in the Yellowknife Bay area in the late 19th century. The discovery was viewed as unimportant in those days because of the Klondike Gold Rushand because Great Slave Lake was too far away to attract attention.
In the late 1920s, aircraft were first used to explore Canada's Arctic regions. Samples of uranium and silver were uncovered at Great Bear Lake in the early 1930s, and prospectors began fanning out to find additional metals. In 1933 two prospectors, Herb Dixon and Johnny Baker, canoed down the Yellowknife River from Great Bear Lake to survey for possible mineral deposits. They found gold samples at Quyta Lake, about 30 km (19 mi) up the Yellowknife River, and some additional samples at Homer Lake.
The following year, Johnny Baker returned as part of a larger crew to develop the previous gold finds and search for more. Gold was found on the east side of Yellowknife Bay in 1934 and the short-lived Burwash Mine was developed. When government geologists uncovered gold in more favourable geology on the west side of Yellowknife Bay in the fall of 1935, a small staking rush occurred. Con Mine was the most impressive gold deposit and its development created the excitement that led to the first settlement of Yellowknife in 1936–1937. Some of the first businesses are Corona Inn, Weaver & Devore Trading, Yellowknife Supplies and post office, and the Wildcat Cafe. Con Mine entered production on September 5, 1938. Yellowknife boomed in the summer of 1938 and many new businesses were established, including the Canadian Bank of Commerce, Vic Ingraham's first hotel, Sutherland's Drug Store, and a pool
