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Pat, your flood gold will be on top of the clay layer. There may also be gold just inside of the first inch. Clean the overburden off until you his the clay, then run that stuff through your sluice box.
As for the clay, who knows!
I have a claim up in Alaska, I don't know if we see the same thing you are seeing, but the blue clay has always been a good sign to us. The clay acts like a "false bedrock" and we find the gold no so much in it, but on top of it.
I met an old timer who claimed he made his fortune when he found turquoise blue clay.
thanks elkie..i saw another spot i think its turquoise blue clay..its this the one?
Wow that certainly is turquoise! I've never run into it on my claim but did see something like that at a recreational area up north near the Canadian border i used to go to. It did have quite a bit of gold but it was all mixed up and piled there by a backhoe so I never got to see where it came from. Lord was it a lot of work to process!
The stuff your seeing reminds me of an article I read about a historic claim near mine. Scan down to where they are talking about the clay layers/colors and specifically where the gold was in relation. http://www.detectorprospector.com/steves-mining-journal/gold-layers-crow-creek-mine-alaska.htm#.UZSOiCi9Kc0
Have you ever heard of a hydro force nozzle? We find this can work well to clean the top of the clay after we've run everything above it.
I hope this is not too far off topic but.... I recently saw on a show called "America Unearthed" an entire episode called "America Maya Secrets". They talk about a mound site found in Georgia's Chattahoochee Forest they believe is related to the Mayans. They use and analyze the blue clay vs. blue pigment used by Mayans in South America. They seemed to think that some of the South American pigment may have came from the Georgia blue clay. What is funny I NEVER heard them once say the word GOLD! The Mayans all but worshiped gold. SO it is MY theory that if the blue clay went south for pigment why would gold not come North. For that matter if the site in Georgia is related to the Mayans and has the blue clay I bet there is also a gold source near by. BUT that is just my thought on it.