Gold Canyon is located a few miles south of Alleghany, California, on the border between Sierra and Nevada Counties. The middle fork of the Yuba River flows through the canyon. Gold mining began in Gold Canyon in the early 1850s and has continued to present day. Three major gold mines are located here: German Bar Mine, Gold Canõn Mine, and Independent Mine. Today there is still active mining in Gold Canyon, both placer and hard rock. The Plumbago Mine, for instance, was still in operation as of 2006.