When the Klondike Gold Rush came, Heney was ready. He visited the Skagway area to survey potential routes to the interior. By chance, he met Erastus Hawkins representing the Pacific Contract Company, Limited, which was organized to build through the White Pass inside of the St. James hotels lobby. A deal was struck and Heney was hired, first as labor foreman and then as contractor. Built through mountainous wilderness, far from supplies, using labor that was returning from the gold fields, the 110.7 mile White Pass and Yukon Route was an outstanding achievement and gained Heney an international reputation.[3]: 6–8, 17–34
Heney next turned his attention to the copper and coal deposits recently discovered on the Copper River (Alaska). He surveyed a route, bought land, named the city of Cordova, Alaska and started construction, while rival companies built on different lines.[3]: 87, 91
The dramatic conflicts between the various crews included gunfire. The Guggenheims and J.P. Morgan, via the Alaska Syndicate, sought access to the copper ore deposits at Kennecott, Alaska. When an alternate route starting at the Katalla, Alaska, port was "wiped out in a winter storm", the syndicate acquired the Close Brothers-Heney interest."[4]
Heney was bought out for $250,000 and he retired for a second time.[3]: 100
After having many problems building the railway they appointed him contractor. The Copper River and Northwestern Railway was one of the most difficult construction projects ever undertaken. The line crossed in-between two glaciers, under primitive conditions, far from any supplies. The Million Dollar Bridge, which is between the two glaciers, was completed just hours before the spring ice would have destroyed it.[3]: 117–130
At the pinnacle of his career, Heney left Cordova to complete some business arrangements in Seattle and New York. On his way back north, his ship hit an uncharted rock and sank. Heney went under deck to rescue his horses, but the last boat left without him when he returned on deck. So he swam to a boat and held on to the stern while it was rowed ashore as there was no room on it. Shortly afterwards he developed pulmonary tuberculosis and died within a year. He is buried in Calvary Cemetery in Seattle.[1][3]
Widely popular, Heney was known as "Big Mike" or "The Irish Prince of Alaska". A glacier,[5] Heney Peak and range of mountains in Alaska overlooking Cordova bears his name.[6]