The gold-bearing deposits associated with the glacial Lake Souris sediments in McHenry County were "rediscovered" in 1931 when reports from Chicago claimed that gold nuggets had been taken from the crops of turkeys grown near Denbigh.

Individuals and organizations filed placer claims and took mining leases until virtually all of the ground over a large area surrounding Denbigh and Towner was covered.

The glaciers that transported the gold to north-central North Dakota flowed over what are today the Gods Lake, Flin Flon, and Lac La Ronge mining districts of northern Manitoba and Saskatchewan.

This part of the Canadian Shield is situated about 500 miles (800 km) straight north of the Denbigh area and, based on flow directions believed to have occurred during the glacial ice, it is in a likely position to serve as a source for the gold.

After glacial sediments were dropped by melting ice, they were washed by streams of meltwater, which helped to concentrate the gold by removing the lighter weight material.