Placer gold was discovered in California Gulch in 1860, during the Pikes Peak Gold Rush, and the town of Oro City sprung up near present-day Leadville. The boom was brief, and Oro City never became a major settlement. The placer gold mining was hampered by heavy black sand in the sluice boxes.
In 1874, gold miners at Oro City discovered that the heavy sand that impeded their gold recovery
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