Bendigo General History - Department of Planning and Community ...

May 1861:
Eaglehawk and Huntly Division [G W Hart].
The population is as follows:
European Chinese
Alluvial miners 3,300 350
Quartz miners 1,000
4,300 350
The machinery is as follows:
Alluvial mining:
Steam-engines puddling, 1-4hp
Horse puddling mills at work, 329 at work, 141 idle
Quartz mining:
Steam engines pumping, winding 5-92hp
Steam engines pumping, crushing, and winding, 42-654
Whims, 18
It appears that it is now pretty well decided that puddling by steam, especially with cylinders, is a
failure, and that puddling by horse only will remunerate the miner. The last of the lately established
steam puddling companies in the division have given up work a few days since, and the greater part
of them are now endeavouring to dispose of their interests in their leases - when , no doubt, the
same ground that could not be worked by steam puddling will be worked to advantage by the
individual puddler. The extended claim system, whereby each company of alluvial miners is
entitled to hold 100 yards square of ground, in deep sinking, or where any very great outlay is
required, I think will work well, and will, most probably, give a great impetus to the alluvial
mining at Huntly, where such ground is mostly found. In quartz mining nothing of great
importance is now going on. The reefs continue to yield the average amount of gold, which
certainly does not diminish in quantity as the depth increases. The greater portion, however of the
reefs, that is those yielding at present only sufficient gold to clear expenses, are still prevented from
being worked extensively, by water, and such will be the case until some effectual drainage law
compels the cooperation of very claim holder who is or may be benefited by an adjacent pumping
engine. 1
1861: New Year dawning across the Bendigo Valley in 1861 carried with it little of the glow of optimism
that had swept in 1860 ...although the investment spree had left in its wake a flotsam of wrecked
hopes and empty pockets, the simultaneous influx of capital into legitimate companies on rich
ground has proved a desired boost ... In a wider sense, the investment boom was premature ...
Essential as capital was to exploiting the reefs, it could not compensate for the unavailability of
mining machinery and other equipment. That already in use was often makeshift, unsuitable and
uneconomic ... until 1862 all heavy mining machinery equipment had to be secured from
Melbourne or Castlemaine. 2
1861: In February the Bank of Australasia was exhibiting a spectacular cake of 1,036 ounces won by
Taylor and Lindsay from two tons of quartz from their claim on Johnson’s Reef. The claim was a
bonanza, its owners being credited with taking £30,000 of gold from it. Other companies working
the same line of reef were similarly rewarded. Abbott and Company secured 1,188 ounces from
710 tons; Thorpe and Company 3,934 from 262 tons. In September another party took 245 ounces
from 16 tons; still another party turned out a cake of 332 ounces from six tons. Earlier, on the same
golden line, Dowding and Chapple secured 4,734 ounces from 336 tons. Early in 1861 the Oriental
Bank displayed a fine cake of 604 ounces from 17 tons of quartz that the Red, White and Blue
Company had taken from their shaft on the Sheepshead Reef. On the Victoria Line the Hercules
continued to prosper and on the Hustler’s. Latham and Watson were jubilant at having rediscovered
a lost rich lead. 3
1861: Kelly had set up an early 12 stamp battery with amalgamator at the foot of New Chum Gully
[Christened the Bendigo Quartz Mill]
1 Mining Surveyors’ Reports, May 1861
2 Cusack, 1973, p131
3 Cusack, 1973, p132