Gold was discovered in Beechworth in February 1852. The Ovens gold rush at Beechworth was followed closely by discoveries at Yackandandah, Nine Mile Creek, Stanley and Wooragee. There were three distinct gold fields areas in Indigo Shire: Beechworth, Yackandandah and the 'Indigo Goldfield' (Chiltern-Rutherglen).
It is estimated that by November 1852 there were as many as 8000 miners camped on Beechworth's Spring and Reid's Creek goldfields. Rushes continued from 1852 - 1854 with miners inundating, then abandoning areas, sometimes to return again when more gold was found.
Living conditions were harsh, even by the standards of the day. Unsanitary conditions combined with the cold and wet winters made life hard and increased risk of illness and disease. Although there were many success stories, in many ways life on the Beechworth goldfields seems to have been harder and generally less rewarding for the hopeful digger - and his family.
The miners came from around the world, including Europe, the UK, the USA and Asia. The business of buying and selling gold is a good one to get into wherever in the world you may be.
Gold mining around Beechworth was alluvial. There were wet diggings, such as those at Spring Creek, worked by miners referred to as 'Monkeys' and dry diggings, worked by miners called 'Punchers'. Rivalry between the two groups gave the police considerable trouble.
While much early mining was similar to that done in other goldfields, including Ballarat and Bendigo, there are aspects that make the Beechworth fields unique. Early methods for separating gold included pans and cradles, and other simple methods, requiring little in terms of equipment. Puddling, another slightly more expensive method, was carried out on all the other gold rush fields as well.
However, Beechworth is notable for the extent of the use of 'hydraulic sluicing' as a major method of removing washdirt. Hydraulic hoses (the equipment looked a little like a mounted machine gun) with a high pressure nozzle (usually about 10 cms in diameter) spraying jets of water to breakdown washdirt.
This method requires a large quantity of water, dams and water races. As a result, long water races and deep tailraces were constructed, especially at Nine Mile - Stanley. Some of these were real engineering feats, cut through solid rock.
As alluvial gold became harder to find, miners began mining gold bearing rock such as quartz. The dangers of storing blasting powder led to the construction of the Powder Magazine (1860).
By the start of 1880 it is estimated that about 900 miles of water races had been cut though soil and rock in the Beechworth district, making it unique in Victorian goldfields. In 1880 The Rocky Mountain Mining Company, operating at Lake Sambell, completed a 800 metre tunnel which ran under the township, to reduce water levels at Spring Creek.
Noticeable environmental damage or change to the area as a result of sluicing can be seen in the erosion of creek beds, exposed banks and changes in the natural flows of many rivers and streams. Land around creek beds was dug, washed, and generally disturbed.
Over four million ounces of gold (115 tones) or approximately 2 billion dollars (1997 prices) were found in the first 14 years after its discovery in 1852. It is estimated that two thirds of the gold went through official channels, and the remainder was disposed of privately. By 1866 the main thrust of the rush was over in Beechworth.
Miners took their politics seriously, and both the 'Monkeys' and the 'Punchers' sponsored rival candidates for Parliamentary representative for the Ovens Goldfields. After a series of bitter clashes, the election of September 1855 was a colourful event which resulted in the creation of the Golden Horseshoes legend. Although there are conflicting stories about the incident, it is generally believed that the horseshoes were made from gold supplied by "Big " Johnston, owner of the Woolshed field's richest claim. To support their candidate on polling day, a procession of flag-waving, banner-carrying 'Monkeys' marched to Beechworth from the Woolshed diggings. The golden horseshoes were not fitted to the horse until the procession reached the old Vine Hotel, one mile from Beechworth, and they were removed upon arrival into town (the legend has it that they were one ounce lighter after the one mile trip).
Huge crowds, free beer and brass bands added to the day's chaos, and although at one stage the police placed a cordon across the main street, they eventually gave up trying to control the crowds. Finally, both candidates appeared at the balcony of the Star Hotel and by a show of hands (holding their miners' rights documents) - Daniel Cameron, the man with the Golden Horseshoes - was declared elected. It is no surprise that the 'Puncher' demanded a recount, which was duly held at the Courthouse the following day. Cameron was again declared the elected candidate and "Big" Johnston celebrated the win with a 300 pound champagne shout.
As happened in other goldrush areas, there were problems on the goldfields. In 1853 the Reid's Creek riot was attributed to the general resentment miners felt towards the unsatisfactory system of mining licences (including issuing costs and inspections). It led to the shooting of a miner by a police trooper, which in turn led to armed rebellion by the miners. The arrival of backup troopers from the Beechworth Camp prevented further rioting.