The community is located above Gold Run, the first lode discovery of gold in Colorado (at that time the area was part of the Nebraska Territory) on January 15, 1859. The discovery occurred nearly simultaneous with prospecting in Gregory Gulch and Clear Creek, but these latter discoveries were not exploited until later that Spring. On March 7, 1859, the Gold Run discovery became the first mining district in region (named either the Mountain District No. 1, Mining District No. 1 of the Nebraska Territory, or the Nebraska Gold Hill Mining District, according to various historical sources). Word quickly spread among miners in the region, prompting a flood of new arrivals and the establishment of Gold Hill as the first permanent mining camp in present-day Colorado. By autumn, a quartz stamp mill was erected at the base of the hill, the first such piece of equipment in the region, one that had been transported by ox cart westward over the Great Plains. The first productive vein was the Scott, followed quickly the Horsfal, Alamakee, and Cold Spring. Nearby placers were also worked for the gold in stream beds.