What Is Gold Mining? Gold mining is the mining resource that extracts gold. How Is Gold Mined? Gold is mined using four different methods. Placer mining, hard rock mining, byproduct mining and by processing gold ore. Placer mining Placer mining is the technique of extracting gold accumulated in a placer deposit. Placer deposits are composed of relatively loose material that makes tunneling difficult, so most extraction methods involve water or dredging. Panning Gold panning is mainly a manual gold separation technique from other materials. Large, shallow pans are filled with gold-containing sand and gravel. The pan is submerged and shaken in water, sorting the gravel gold and other material. It quickly settles down to the bottom of the pan as gold is much denser than rock. Usually the panning material is removed from stream beds, often at the inside turn in the stream, or from the stream’s bedrock shelf, where gold density allows it to concentrate, a type called