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Desert fox is a spiral concentrator for black sand and fine gold. I doubt it would be effective with metal powders.
When HowardBlakeney talks about iron I think he means the magnetite gold concentrate you end up with when panning for gold.
The density of magnetite is only 65% of iron. It is also fully oxidized so it will not form rusty clumps trapping the gold.
Anyhow, a spiral concentrator isn't 100% effective so you would still have the problem of refining your gold with various metal powders in it.
HowardBlakeney, what was the nature of the iron powder with gold that you saw? Was it metallic iron or black sand?