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A technique known as placer mining was used to find loose gold in river beds. As to why the gold was there, it all comes down to erosion. Some rocks naturally contain gold in flecks and or chunks (nuggets). As the rocks erode (get wrn away) the gold is relased and carried downstream by the currents. In quiet areas it settles out o form placer deposits.

Old movies about gold panning often had the prospectors looking for the "mother lode." This was the location where the gold was being eroded from.

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