Placer gold was historically mined from Nugget Gulch located about 13 kilometres southeast of Barkerville. Production recorded from the periods 1906-20 and 1936-45 totalled 73,209 grams gold. Bedrock geology is indicated to be greenstone of the Paleozoic Snowshoe Group.

"Data from the Cariboo mining district indicate that supergene leaching of gold dispersed within massive sulphides by Tertiary deep weathering followed by Cenozoic erosion is the most likely explanation for the occurrence of coarse gold nuggets in Quaternary sediments" (Exploration in British Columbia 1989, page 147).

The recorded gold production in the Cariboo mining district is considerably greater than that of any other in the province. The first discoveries of placer streams were made in 1860; new creeks were found quickly, and production mounted so rapidly that 1863 was the year of greatest placer output. Although detailed records of production are available from 1874 onward, it is believed that fully one-third of the total Cariboo production was mined in the preceding fifteen years (Bulletin 28).