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Gold prospecting in Calaveras County began in late 1848 with a camp founded by Henry Angel. Angel may have first arrived in California as a soldier, serving under Colonel Frémont during the Mexican War. After the war's end, he found himself in Monterey where he heard of the fabulous finds in the gold fields. He joined the Carson-Robinson party of prospectors and set out for the mines. The company parted ways upon reaching what later became known as Angels Creek. Henry Angel tried placer mining but soon opened a trading post. By the end of the year, over one hundred tents were scattered about the creek and the settlement was referred to as Angels Trading Post, later shortened to Angels Camp.

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