The placer deposits of Utah occur in two distinct types of environments. These are 1) placers found adjacent to, and derived from, gold, silver and base-metal deposits; and 2) placers found in major rivers and derived from unknown, distant sources.

Only the richest ores could be worked and shipped off for processing at a profit. As a result, early mining in the southern part of the Humboldt Range was short-lived. In the 1880s, placers were discovered in Spring Valley and American Valley on the east side of the range...

There are a number of Tertiary river channels in the area, most of which trend south-southwest. They tend to be steep, narrow, and rich with coarse gold.