Historical information

The largest gold mine in the area originated from a find in 1862. The mine was closed January 20, 1915 when a fire destroyed nearly all the above ground plant.

Published: Nillumbik Now and Then /​ Marguerite Marshall 2008; photographs Alan King with Marguerite Marshall.; p75

Beneath Mine Hill, as locals call it, runs a network of tunnels once of central importance to the fledgling township of Diamond Creek. These are relics of gold mines, which transformed early Diamond Creek.1
The tiny settlement of about 20 families soared to more than 200 because of gold. For around 50 years, from 1862, gold mining was Diamond Creek’s major source of employment.
On September 7, 1854 The Argus newspaper reported a find of a four pound (1.8kg) gold nugget in Nillumbik (an early name for Diamond Creek). Exactly where, is not known.2
The largest mine in the district, the Diamond Creek Gold Mine, apparently originated from a find in 1862. It is said Joe and Dave Wilson were visiting former tailor then cook, Charles Orme, at the southern end of Fraser Street. Sitting on a stump outside the front gate on land belonging to Dr A. E. Phipps the Wilsons found a vein of gold-bearing quartz, which led to the discovery of four quartz reefs varying in width to eight inches (20cm), running north and south. A reef found at the foot of the hill opposite Challenger Street became the Union Mine. This reef was traced south to Allendale Road where a small mine began operations.3 Other smaller mines later operated as well.
Dr Phipps immediately began to mine and also built the Diamond Reef Hotel as a boarding house for miners. But Charles Orme, who owned the land alongside, leased his mine to Dr Phipps probably because of insufficient funds and business skills. By mid 1865 the mine had produced 2530 ounces of gold – a 100% profit on the original outlay.
Of course there were problems. When the local dam dried up a Blake pump was installed to draw water from the creek. The Union Mine operated under the Diamond Creek Gold Mine management except when disputes sometimes resulted in separate management. However disagreements had to be resolved as the Union Mine depended on Diamond Creek Gold Mine pumps to remove underground water from common reefs.
In 1912 the main shaft of about 380 yards (350m) employed 200 men recovering an average of 5000 ounces (141.7kg) of gold a year. But not everyone did well out of gold. Records of failed mining companies in the Victorian Public Record Office, reveal that owner Dr Phipps leased his Right to others. Companies came and went over the next 40 years, most sponsored by Melbourne businessmen who sold shares to gullible locals and then became insolvent. Although there were some good profits, financial returns were haphazard until 1905. Some local residents, who were share holders in short- term companies, became well-known names in modern Diamond Creek such as Scott, Haley, Butler, Alder, Ryan, Wadeson, Reeves, Alston, Paul and Edwards.
Gold mining was brought to a disastrous end on January 20, 1915 at 3 pm, when fire destroyed nearly all the above-ground plant. Fortunately no lives were lost. But reopening the mine was almost impossible because of the increasing depth of water in the main shaft. The closed mine destroyed the livelihood of 200 families and the debris took many years to clear.4
In 1946 the Diamond Creek Gold Mine was reopened by the Golden Hind Mining Company, but money ran out before the 600 feet (182.8m) or so of water could be removed. Gold remains in the mine but enormous capital would be needed to buy the land, equipment and to remove the water.
Today 12 known sealed shafts along the ridge of the hills on private property extend west for around one kilometre from the corner of Fraser and Haley Streets, crossing Norma and Fyffe to Dering Streets. As recently as 1987, heavy rains revealed a former Union Mine shaft in the Georgiadis family Fyffe Street back yard.5 Allendale Mine, south of Allendale Road, is still open and one of the Union Mine’s main drives (horizontal excavation) remains unsealed, on the Creek Reserve.

Significance

This collection of almost 130 photos about places and people within the Shire of Nillumbik, an urban and rural municipality in Melbourne's north, contributes to an understanding of the history of the Shire. Published in 2008 immediately prior to the Black Saturday bushfires of February 7, 2009, it documents sites that were impacted, and in some cases destroyed by the fires. It includes photographs taken especially for the publication, creating a unique time capsule representing the Shire in the early 21st century. It remains the most recent comprehenesive publication devoted to the Shire's history connecting local residents to the past.

Physical description

Born digital image file