This is an example of what has happened to stigmatize Hg due to the irresponcibility of miners from the 1800's. People today don't understand Hg any better now than then. Hg can be an excellent tool for gold recovery, or it can be a hazard. It all depends on how it is used.
Mercury is not deadly upon simple exposure. It does however pose a problem with CHRONIC exposure to fumes and an extremely severe danger to the organic alcohol methyl mercury. This stuff is extremely toxic. It's also what some habadashers used in making hatbands.(mad as a hatter) That helped to give Hg a bad name. We still use mecurichrome as an antibiotic. During the Civil War it was mixed with honey and called methyl blue as a medicine.
A simple way to store Hg, without it evaporating, is to store it under a weak solution of NaOH. Also, if your working blacksands, add acouple of tablespoons of weak NaOH to tumbler and tumble the blacksands, Hg, and NaOH together. The Hg won't pill as bad, and will recover more gold.
Here is a good article written by Prof. Ken Williams PHD:
http://webpages.charter.net/kwilliams00/bcftp/docs/mercury.htm
He was a character and a good mentor. He was killed in a fall at his home in Coasta Rica back on THanksgiving 2005. I still miss his wit and advice.
In working with anything used to recover and refine precious metals, we work with potentiallly deadly chemicals all the time. It simply comes down to 2 things:
1) Use every safety precaution necessary for your safety(gloves, fume hood, eye protection etc)
2) If you are afraid or unsure of a substance, don't use it. Fear will make someone screw up faster than respect for chemicals.
Chuck