Thank you for replies everyone.
It was likely burnt, I'm digging out the remnants of a burnt building, which has trash in it, and ash that was thrown on top as refuse after. Its also possible that there was a fire pit in the spot this was recovered from that was used by a cooperage...
it was in the ash in the left of the brick in this picture. The loose brick you see is from a gold rush era building torn down in 1902, that stood in the front of the lot. There was a wooden addition built on the back, which had the fire pit for the cooperage and there are also signs that a building burnt here although it was likely from the early gold rush. The brick structure you see in the ground is a set of steps that led up to the back door of the wooden building, and the ash the coin came out of is either from this later addition burning or ash thrown out the back door along the side of the steps... With it were a few other items like a harmonica, a bottle, a large brass key and lots of thick rusted metal... Its hard to say whether the coin was burnt or lost here... the key and bottle are not burnt, and I have no records of any fire after 1856...
