 Dakota Indian Agent Steve Reynolds (Charles Starrett) receives a copy of the Bonanza City Nuggett from Jim Mallory (Hal Taliaferro, ten years past using Wally Wales as a billing name credited or otherwise) and reads a story blaming the Durango Kid for recent gold mine raids. Steve, also the Durango Kid, and his pal Smiley (Smiley Burnette) head for Bonanza City to contact Mallory and Rance Hudson (Norman Willis), his partner in the mining machinery business. Mallory sells his interest in the business to Hudson for $50,000 and heads for California. Seeing him off are Hudson s secretary Anne Parker (Doris Houck), her father Sam Parker (Nolan Leary), owner of the Gold Moon Mine and his miners Hank Penny (Hank Penny) and the Plantation Boys (Harold Hensley, Noel Boggs, Sanford Williams and Fenton Reynolds). Hudson plans to rob the wagon train and blame the Durango Kid, and sends Curlew (Bud Geary) and his henchmen to do the job. Killing Mallory in the raid, Curlew caches the money rather than taking it to Hudson. Despite that, Hudson learns that Carter plans a gold shipment and orders Curlew to rob the stage. Steve and Smiley hit town and Steves decides that Curlew and his brother Red (Frank McCarroll) could bear watching. The Durango Kid breaks up the first robbery attempt, but a second one is successful, although Durango learns from a wounded henchman (Stanley Price) that the Curlew gang has a hideout in Lost Canyon.