Gene,Pat, and a young woman named Lita are on their way to deliver a shipment of gold bars, worth a quarter of a million dollars. A gang of outlaws lead by Duke Travis attack them, but get away when Gene rescues Lita. Gene then goes after the outlaws, who have headed to Ghost Town. Gene then contacts law agencies in order to track down the goldbars, which are found at the Mexican border, being sold as nuggets. Gene, Pat, and the Mexican officials ride down to Duke's mine, only to find that it hasn't produced gold nuggets in years. Gene traces the gold back to Ghost Town that are being sold is horseshoes with an iron shell to hide them. Gene recovers the gold, takes Duke's gang in, and Pat claims he's seen a ghost.

A new power-hungry mayor of Dry-Gultch, Manson, wants to drive newspaper editor Jean Winslow, and her son Timmy out of Dry Gultch. The new sheriff Gene, and his partner, Pat are called in to investigate. Jean doesn't think Gene will be any help, but she is later convinced otherwise, when Gene goes after Manson's men, who have kidnapped Timmy, and his father, to scare her out of town. Gene (and Pat sort of) come to the rescue, and the Winslow family is back together in a stronger bond, while Pat's song is completed.