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About Ely,MN The first Europeans to explore the area were fur traders who made their way into the wilderness in search of furs. But it was the Lake Vermillion gold rush that brought the first large numbers of pioneers to the area in 1865. Although hardly any gold was ever found, it was discovered that the area did contain large deposits of iron ore. Thousands of new immigrants were arriving in America at that time, and many of them came to the area later to be known as the Minnesota Iron Range, looking for work. When the Duluth, Missabe and Iron Range Railway laid tracks extending the rails from Tower to Ely in 1888, Ely began mining operations with the opening of the Chandler Mine.
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