ocr: CALIFORNIA N 1848, the discovery of gold in the rivers draining the Sierra Nevada mountains led to the California Gold Rush. Gold eroded from the mountains was carried downstream and deposited as nuggets (lumps) in gravel on the riverbeds. The gold was originally extracted by panning, a method still practiced in developing countries. GOLD PANNING IN THE 1880s Prospectors vorking a pater channel, or "sluice, J to washgravel.