All that glitters: The detective work has rediscovered a rich vein of reef gold potentially worth $87 million.
Amateur prospectors believe they have rediscovered a rich source of gold originally found by a working party from Shepparton during the height of the Great Depression.
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The team, who call themselves “The Chain Gang”, made the discovery after years of detective work sparked by two old newspaper articles.
While the discovery was reported at the time, it seems the Depression-era crew, which was press-ganged into prospecting in order to receive relief payments, disbanded before capitalising on their find.
The modern-day prospecting gang members, who wish to remain anonymous to protect their discovery, believe with little experience in prospecting, the 1930s team extracted some gold before losing the trail of the seam.
“Reefs are not continuous, they often have breaks and shifts caused by geological activity; using modern technology we have located where the seam continues,” the geologist in the group said.
“It is some distance from the early diggings and deeper than the original find, but it is richer in gold and an amazing discovery.”
Humble beginnings: The original article from April 20, 1931, on the formation of the prospecting gang.
The formation of the prospecting crew was reported in April, 1931.
The Shepparton Unemployed Borough Relief Committee was led by Mr Ludlow, who was an old miner who offered to “captain” the endeavour.
Twelve men signed up initially and their names were put forward to the Mines Department for assistance from the Unemployed Relief Fund.
In May another article revealed 28 men had actually joined the search for gold, and their relief payments had been approved.
“Each man also receives from the department a tent, a shovel and a dish,” the report said.
“If the party meets with the success which citizens wish them, they will do well.”
Off they go: The May, 1931, report of the expedition preparing to begin its search for gold.
The last public report on the prospecting gang appeared on July 13, 1931, under the headline “PROSPECTS HOPEFUL”.
“As reported in our last issue, word has been received from the Shepparton mining prospectors at Whroo that reefs had been discovered showing gold freely in the stone,” the article began.
After just six weeks in the field the prospectors had found “payable gold”.
Discovery: Gold was found at Whroo.
The article included several letters sent to then Town Clerk Mr R. West including one from Mr Ludlow, who was then leading the prospecting crew.
“Just a line to tell you that two of the parties your committee sent out here have been successful in discovering new reefs carrying gold, Smith and Sons and R. Sinclair and party,” he reported.
“Smith’s show excellent prospects, being a reef about two or three feet in thickness and showing gold freely, as the the gold was only struck on Saturday, I cannot say much about it until it is opened up — sufficient to say that it is in excellent position and locality, being on the same hill as was famous in the early days for rich reefs, and on the same chain of hills as the Balaclava Mine, Whroo, which produced over 8.5 tons of gold.”
Golden era: The rich Balaclava Mine at Whroo in 1858.
The trail then went cold, and so the modern “Chain Gang” enlisted the help of an historian and researcher who trawled through old mining records and state archives to establish that the discovered gold was mined for only eight weeks before the crew left, believing the gold seam had run out.
“Based on the information we uncovered we think what we have discovered is Smith’s reef; a pretty exact location was described in a letter to the Chief Mining Superintendent, which was still hidden in the archives,” the historian said.
Success: A report of the letter from the prospectors to the Town Clerk revealing their lucky strike.
The location remains a tightly held secret among the group but they have secured new mining leases and based on initial assays say there could be up to 45,000 ounces of recoverable gold worth nearly $87 million at today’s gold price.
The discovery also has the potential to spark a fresh mining boom in the region, especially given the crew has been unable to find the location of the reef discovered by Sinclair.
The “Chain Gang” chose April 1 to announce their discovery, thinking nobody would believe them anyway.
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