How Is Gold Ore Formed? A Guide to Gold Deposit Types

By Jinhao Technical Team Reading time: about 7 minutes Updated October 2026
Mineral processing plant with crushing, grinding and recovery circuits

Key takeaways

  • Gold deposits form in two broad ways: primary (lode) deposits, where gold is locked in rock, and secondary (placer) deposits, where weathering and water have concentrated free gold.
  • Orogenic and Carlin-type deposits supply much of the world’s gold; porphyry systems deliver gold as a by-product of copper.
  • The host mineral matters as much as the grade. Oxidized ore is free-milling and easy to leach; sulphide ore is often refractory and needs pre-treatment.
  • Deposit type decides the flow sheet. Placer gold suits gravity concentration; lode gold usually needs comminution followed by flotation, cyanidation or a CIL/CIP circuit.
  • Test work, not assumption, sets the process. Two deposits with the same grade can need completely different plants.

Gold does not sit in the ground waiting to be picked up. It is dispersed through the Earth’s crust at a few parts per billion, and a deposit only exists where geology has concentrated it hundreds or thousands of times. Understanding how gold ore forms is not academic — the mechanism that concentrated the gold also decides its grain size, its host mineral and how hard it will be to recover.

This guide covers the main gold deposit types, what each one looks like in the ground, and how that translates into the processing route a plant will need.

Where gold comes from

Gold is a siderophile element: it prefers to bond with iron and, early in Earth’s history, most of it sank into the core. The gold that remains in the crust arrived through later magmatic and hydrothermal activity, carried in hot, mineral-rich fluids that rose along faults and fractures.

As those fluids cool, change pressure or react with surrounding rock, the gold comes out of solution. Where it precipitates inside a fracture system, you get a lode deposit. Where rock containing that gold is later weathered and eroded, and the dense gold particles are concentrated by flowing water, you get a placer deposit. Almost every gold deposit is a variation on these two stories.

The main types of gold deposit

Table 1. Gold deposit types at a glance
Deposit typeOriginTypical gradeGold formTypical processing route
Orogenic (lode)Hydrothermal fluids along faults in metamorphic belts2–10 g/tFree to refractory, in quartz veinsCrushing, grinding, gravity, flotation or CIL
Carlin-typeHydrothermal, disseminated in sediment1–5 g/tSub-microscopic, often refractoryRoasting, pressure oxidation or bio-oxidation before leaching
PorphyryMagmatic-hydrothermal, large tonnage0.3–2 g/t Au with CuFine, in sulphidesBulk flotation for copper; gold recovered as by-product
Epithermal (low/high sulphidation)Shallow hydrothermal near volcanic systems1–20 g/tFree gold with silver, in veinsGravity plus cyanidation (CIL/CIP)
VMS / skarnSeafloor or contact metamorphic systemsVariableFine, locked in sulphidesFlotation to a concentrate, then smelting
Placer (alluvial)Weathering and water concentration0.05–2 g/m³Free, coarse to fineWashing, screening and gravity concentration

Orogenic and lode gold

Orogenic deposits form where hydrothermal fluids move through fault systems during mountain-building. The gold precipitates in quartz veins and in altered wall rock, commonly alongside sulphides such as pyrite and arsenopyrite. These are the classic “lode” deposits, and they are the mainstay of hard-rock gold mining.

Their behaviour in the plant depends on grain size. Coarse, free gold responds well to gravity concentration early in the circuit; fine gold locked inside sulphide grains will report to a flotation concentrate instead.

Placer and alluvial gold

Placer deposits form when a primary deposit erodes and rivers carry the liberated gold downstream. Because gold is dense and chemically inert, it settles out in riffles, behind boulders and on bedrock, while lighter material is flushed away. The result is free gold in sand and gravel — coarse near the source, finer far downstream.

Placer gold is the easiest to recover in principle, because it is already liberated. In practice, clay, cemented gravel and very fine gold all cause trouble, and the alluvial gold recovery route lives or dies by how well the circuit washes and size-classifies the feed before gravity concentration.

Oxidized versus sulphide gold

Near the surface, weathering oxidizes sulphide minerals and liberates much of the gold. This oxidized zone is free-milling: the gold is accessible to cyanide, and recovery is usually straightforward. Deeper down, the same deposit becomes sulphide ore, where gold is locked inside pyrite or arsenopyrite and often invisible even under a microscope.

That transition is one of the most consequential facts in gold processing. Sulphide or refractory gold resists cyanidation and may need roasting, pressure oxidation or bio-oxidation before any leaching will work. We cover this in detail in our guide to oxidized gold ore processing.

Why deposit type decides the flow sheet

The geology sets the rules. A placer deposit needs no comminution at all — the gold is already free — while a hard-rock lode deposit may need three crushing stages and fine grinding to reach the liberation degree the ore demands.

Table 2. From deposit type to recovery method
Ore characteristicBest recovery route
Free coarse gold (placer, some lode)Gravity concentration — jigging, shaking tables, centrifugal concentrators
Free fine gold in oxidized oreWhole-ore cyanidation, CIL or CIP
Gold locked in sulphidesFlotation to a concentrate, then smelting or oxidation
Refractory sulphide goldRoasting, pressure oxidation or bio-oxidation ahead of leaching
Gold with copper (porphyry)Bulk flotation for copper concentrate; gold as by-product
Low-grade, coarse oreHeap leaching

Notice that the same metal produces completely different plants. A 3 g/t orogenic ore with coarse free gold might use a simple gravity circuit; a 3 g/t Carlin-type ore of the same grade might need a pressure-oxidation autoclave. Grade alone tells you almost nothing about the plant.

Gold ore processing plant showing flotation and recovery equipment for lode gold
Deposit type decides the circuit: free gold suits gravity, sulphide gold usually goes to flotation first.

From deposit to recovery

In a hard-rock plant, the path from run of mine ore to gold bullion usually runs through four stages. Comminution crushes and grinds the ore to the fineness of grinding needed for mineral liberation. Gravity concentration or flotation removes coarse or sulphide-hosted gold early. Leaching dissolves the remaining gold into a cyanide solution, and electrowinning or zinc precipitation recovers it from solution before smelting.

Each stage has an efficiency that can be measured and improved, and each has a cost. That is why the geological work matters so much up front: knowing whether your gold is free or locked tells you which of those stages you actually need.

The key point: gold grade makes a deposit economic or not. Gold mineralogy decides whether it is recoverable at all. Always characterise the ore before designing the plant.

Frequently asked questions

What is the difference between lode and placer gold?

Lode gold is still locked in the rock where it formed, usually in quartz veins with sulphides; it must be mined, crushed and ground. Placer gold has been eroded out of its host rock and concentrated by water into sand and gravel, so it is already free and is recovered by washing and gravity concentration.

How can you tell if gold ore is oxidized or sulphide?

Oxidized ore is usually brown, rusty and soft, and the gold is accessible to cyanide. Sulphide ore is grey-green and harder, with visible pyrite or arsenopyrite, and often resists leaching. Only a leach test and mineralogical examination can confirm which you have.

What is refractory gold ore?

Refractory ore is ore from which gold cannot be recovered economically by direct cyanidation, usually because the gold is locked inside sulphide minerals or the ore consumes cyanide. It needs pre-treatment such as roasting, pressure oxidation or bio-oxidation first.

Which deposit type is easiest to process?

Placer and alluvial deposits are the easiest, because the gold is already free and needs only washing, screening and gravity concentration. Free-milling oxidized lode ore is the next easiest; refractory sulphide ore is the most demanding.

What grade of gold ore is worth mining?

There is no fixed number. Cut-off grade depends on gold price, mining cost, recovery and the processing route. Oxidized ore that leaches at 92% recovery can be economic at a much lower grade than refractory ore that needs an autoclave.

Not sure which recovery route your deposit needs? Send us your assay and mineralogy, and our engineers will recommend the right flow sheet.

Talk to a Jinhao engineer