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operated along the banks of two Spring Creek tributaries, upstream from the current dam site, from 1879 to the 1960s.The mine extracted iron ore, silver, gold, copper sulfide ore, and pyrite from a rock formation dating to approximately 780,000 years ago.Water is also diverted from Slickrock Creek to the treatment site.Altogether, over 95 percent of toxins in the water are removed by the treatment process.The ownership was transferred to Mountain Mines Ltd., a London company, in 1894.At the very end of the 19th century, Iron Mountain Mine took blames for several fish kills in the Sacramento River.This spill heavily contaminated the Keswick Reservoir and threatened the water supply of Redding, California.Despite the fact that the region was suffering from a drought, 77,000 acre feet (95,000 dam) of water were released from Shasta Lake, which was only half full, to dilute the pollution.

The Iron Mountain Mine is known for having the most acidic naturally found water content on Earth, with samples having up to a −3.6 p H value when tested in the early 1990s, which is roughly 100 times the acidity of battery acid.Acid mine drainage flowed, unfettered, down Spring Creek directly into the Keswick Reservoir, depositing contaminated sediment and turning a portion of the water a rusty red shade.Previously, the water would have continued down the creek into the river, and flushed to the Pacific Ocean.Nevertheless, mining activity continued, and by 1928, 600 tons of ore were being extracted from the site per day....[acid mine drainage is] most vividly illustrated by the problems at the Iron Mountain Mine in California....release of this waste resulted in virtual elimination of aquatic life in many of the creeks surrounding the Iron Mountain Mine site.

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The primary purpose of the Spring Creek Dam was to collect acid mine drainage from the old Iron Mountain Mine, which was heavily polluting Spring Creek and its tributaries.

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