When a student discovers gold under the schoolhouse, Melody Flats' town boss and his henchmen try to jump the schoolmarm's claim. Kit and El Toro come to aid of the schoolteacher.
Boone Williams, the Curly-Haired Kid, has been released from prison and prepares to carry out threats he's made against Kit Carson and Judge Trumbull, the men who he blames for putting him in prison. While wearing clothes similar to Kit's he dry-gulches the Judge after arranging for the Judge's son to witness the crime with Kit nearby so he can be identified as the criminal. El Toro breaks Kit out of jail and the two men pursue Williams to the Panhandle with the Judge's son in pursuit.
A crooked assayer and his henchman attempt to steal an old miner's claim by relocating its apparent entrance to a worthless mine-shaft.