Ok I couldn't take it anymore lol, I know this thread is old and pointless but I drive by "Gold Gulch" every time I visit family in Scotts Valley and I think about this thread and this story. I decided to try and find the vein they failed to locate that they believe produced the nugget; mostly because I just don't believe the story but also because it's good practice for me hunting gold and trying to comprehend geology of gold etc - and also I'm poor and you never know lol.
Anyways here is a link to a site relating the original story
http://m.goldenstatenewspapers.com/...488-8718-11e4-b06d-ef35914590a4.html?mode=jqm
So I started at Boulder Mountain on the east side and drove up Lakeview Rd (or drive) this road runs next to Gold Gulch up the mountain. About a mile up maybe further the road cut reveals a large vein of iron stained quartz about 5 ft wide striking almost directly east to west too not sure on correct terminology through the mountain.
I couldn't really park or get to the vein to grab a sample as it is now a residential neighborhood but I marked the direction of the strike as best I could with my phone compass and backtracked to highway 9 to check the other side of the mountain for the other side of the strike.
Sure enough on the other side of the mountain another modern road cut reveals what I believe is possibly the same vein striking at the same angle. Of course at this point I grabbed my bucket and shovel and grabbed one 5 gallon bucket of dirt and some rocks from and next to the vein. Several people slowed down probably thinking the worst seeing a guy with a shovel on the side of the road but I wasn't deterred and got my samples home safely.
I ran the bucket of dirt through my GoldCube and sadly there wasn't a flake to be found although I guess if I put the rocks in acid or crushed them I might find a spec

I did find lots of indicator minerals like lots of galena/pyrite Quartz and even cinnabar.
I realized I have a long way to go as far as identifying things in the field vs having the Internet handy at home. I was sort of trying to find Monzonite but when I thought I found an outcrop I wasn't sure it wasn't just granite. I can't identify the different stages of granite and quartz and their replacements as well as I thought so I learned a lot about what I don't know in this exercise
Here are some pics of the more mineralized rocks I picked out of the bucket:
GE screenshot of area
At the end of Gold Gulch creek they beat me to it?
Final disclaimer, please don't go here expecting to find gold! This was an exercise and me looking into a historical account. If you go here you may get in trouble, hit by a car or who knows trying to check this area out so I hesitated for a second to post this for these reasons. I was checking out essentially a myth and there are way better places than this to prospect, even in the Santa Cruz area you would find more gold on the beaches near Aptos in the black sands if you can't travel far. If you need a location to prospect please feel free to pm me and I'll be glad to try to help you find one. Alex