Gold was officially discovered at Bendigo in September 1851 at a location known as “The Rocks” near the junction of the Bendigo Creek and Golden Gully in what is now Golden Square. The discovery was made by Mrs. Margaret Kennedy and Mrs. Julia Farrell, the wives of two employees of the nearby Ravenswood Run. Gold discoveries had been made in this area by shepherds and prospectors as early as the 1840’s. However, these discoveries were kept secret by the squatters and the Victorian colonial government who feared that a gold rush would disrupt the colony’s pastoral industry and social order.

Margaret Kennedy - one of Bendigo’s gold discoverers
Source: Central Deborah Heritage Collection
Early Beginnings: The Ravenswood Run
Prior to the 1850’s gold rush large sections of Central Victoria were taken up by squatters as grazing land. One of these pastoral “runs” which covered the Bendigo area was known as the Ravenswood Run. One of the shepherds that worked on the Ravenswood run was a pugilistic ex-sailor nicknamed “Sailor Bill”. He was also nicknamed “Bendigo” after William Abednego Thompson, the notorious English bare-knuckle prize-fighter and heavyweight champion who was known amongst his fans as “Battling Bendigo”. Due to his reputation the area became known as Bendigo whilst the creek became known as Bendigo’s creek. In 1855 the goldfield was renamed “Sandhurst” after the English military academy. In 1891 however a poll of ratepayers resulted in a vote to change the name back to Bendigo.
The first gold rush to Bendigo was short lived and disappointing. A second gold rush was sparked in November 1851 and by December 1851 there were some 800 people camping along the banks of the Bendigo Creek. Over the next two years an influx of tens of thousands of diggers from all around the world spread out along the main creeks and tributary gullies. As each locality was either choked up by diggers or completely worked out, new areas were rushed.
By mid-1852 the gold rush was in full swing with as many as 5,000 diggers a week arriving on the field and the population reaching 50,000. By this time a large influx of migrants from Great Britain, Ireland and mainland Europe was beginning to arrive as news of the Victorian gold rushes hadn't reached London until late 1851. Upon their arrival in Melbourne, thousands trudged overland to the goldfields, braving treacherous conditions and bushrangers along the notorious Mount Alexander Road which passed across the Keilor Plains, through the notorious Black Forest near Woodend and over the Big Hill Range before reaching Bendigo. Another influx also came from the Americas, including experienced alluvial miners and prospectors from California, Nevada, and South America.

Hopeful diggers walking along Mount Alexander Road to Bendigo
Source: State Library of Victoria
The Victorian Gold Rush: A Melting Pot of Cultures and Challenges
At the time of the Victorian gold rushes mainland Europe was a scene of instability and conflict, thus many German, Italian, French, Hungarian and Polish political refugees made their way to Victoria. Thousands more from Great Britain, especially Ireland and Cornwall, ventured Victoria on the journey of a lifetime to not only make a fortune but also to escape poverty, economic turmoil, and religious persecution. Amongst these migrants were experienced hard rock miners from Cornwall and Germany, as well as experienced coal miners from England, Scotland, and Wales.
Shipping played a vital role in the Victorian Gold Rush, transporting tens of thousands of hopeful diggers from all corners of the globe to the Australian ports of Melbourne, Adelaide and Sydney. Travelling by migrant ship the voyage to Australia could take anywhere from 3 - 4 months to complete. Conditions on these migrant ships were cramped and primitive with privacy, sanitation and hygiene being limited. The outbreak of contagious diseases was common with many migrants dying during the long journey.
Living conditions on the diggings were also rough and primitive. Some lived in huts made of bark and bush timber whilst others pitched tents made of canvas and calico. Many slept outside under the stars, being exposed to the elements and the rain. Poor hygiene, lack of sanitation, and the shortage of fresh water also led to many on the diggings suffering from a range of diseases.

A typical 1850’s gold rush camp
Source: State Library of Victoria
Establishing Order: The Role of the Goldfield Commissioner
At the time of the gold rush no local government authority or infrastructure existed in at Bendigo to cater for an overwhelming influx of aspiring diggers and service providers. By late 1851 the Colonial Executive had taken charge of the Bendigo Goldfield and delegated local authority to a newly appointed Goldfield Commissioner who was responsible for issuing gold licences, collecting licence fees, allotting mining claims, settling disputes, and maintaining law and order. The infamous “gold licence” with its hefty monthly fee and the militant style tactics used by the local authorities to maintain law and order on the goldfields led to many protests amongst the goldfield population, including Chewton’s Monster Meeting (Dec 1851), Bendigo’s Red Ribbon Agitation (Aug 1853) and Ballarat’s Eureka Stockade (Dec 1854).
The Bendigo gold rush peaked in 1853. This peak period of gold production came at a time when the alluvial diggings had been opened out to their fullest extent with tens of thousands of diggers scattered across the goldfield’s alluvial creeks and gullies. Good rainfall also provided an ample supply of water for the diggers to process their alluvial wash-dirt. Although Bendigo was not one of the noted nugget fields like Ballarat, Castlemaine, Maryborough and Dunolly it did produce one gold nugget weighing 500 ounces (15.55 kg) and three others weighing more than 300 ounces (9.33 kg).
Throughout the gold rush alluvial gold was easily won from the surface and at shallow depths. As much of the alluvial gold found during the early years of the gold rush was coarse in nature it was easily recovered by using simple tools including picks, shovels, pans, cradles, tubs, sluices and long toms. During this time thousands of closely spaced holes and shafts were worked by individuals and small co-operative parties. Alluvial mining had a profound impact on the local environment and landscape through the removal of thousands of tree, as well as leaving behind a myriad of shallow alluvial workings which became a muddy quagmire after heavy rainfall.

Diggers used hand tools like gold pans to win gold from the loose soil of the Bendigo Creek
Source: State Library of Victoria
The Decline of Alluvial Gold Production
Following the peak of the gold rush alluvial gold production dropped dramatically in 1854. With much of the easily won alluvial gold being depleted and poor rainfall limiting water supply, thousands of alluvial diggers abandoned the goldfield in search of greener pastures. As of 1854 Bendigo’s population was around 15,500. This number included 4,000 Chinese diggers and 1,500 puddling machines.
A large influx of Chinese migrants arrived on the goldfield from 1854. Chinese migrants focused on alluvial mining and were able to profitably work abandoned low-grade alluvial deposits. The Chinese population who faced racial segregation rarely participated in underground hard rock mining, an industry which was dominated by Europeans. Despite facing racism and resent the Chinese emerged as an influential part of the goldfield’s social and cultural fabrics.
After the gold rush, it became apparent that large quantities of fine-grained gold remained trapped within the stiff clay matrix of the alluvial gravels and soils. By mid-1854 horse drawn puddling machines were being widely used by small co-operatives to work the clay-rich soils and alluvium. Puddling machines generated large volumes of sludge which choked up local streams and caused widespread flooding and disruption to landowners and businesses located downstream. To stop this problem the government authorised the construction of a drain which carried sludge to a swamp on the flood plain of the Bendigo Creek between Epsom and Huntly to the north of Bendigo.

Horse Puddling Machine being used to process alluvial washdirt, circa 1855
Source: State Library of Victoria
Water Scarcity and Seasonal Mining
The lack of a reliable water supply seriously impeded alluvial mining which by the late 1850’s had become a seasonal subsistence occupation for the common miner. When water became scarce miners shifted onto other work including agriculture or tending to their own gardens on small plots of land which had been granted under a Miner’s Right. This pattern was to be repeated annually until the late 1870’s when water was finally channeled into the region through the Coliban Water Scheme.
The discovery of gold in Victoria sparked one the largest gold rushes the world had ever seen with hundreds of thousands hurrying from from overseas to find their fortunes. Gold was especially attractive as it was one of the very few ways in which an overwhelming majority of men, many who were poor and had no money, could become rich.
The 1850’s gold rush sparked mass migration and rapid population growth in Victoria. In 1851 before the "official" gold discoveries Victoria had a population of only 77,000. However, by December 1852 this number had risen to over 160,000, subsequently increasing to over 500,000 by 1860. Melbourne also experienced rapid growth with its population increasing from 29,000 in 1851 to 490,000 by 1891, thus becoming the second largest city in the British Empire after London.
Lasting Impact on Victoria
The gold rush brought sweeping and lasting changes to Victoria. It produced great wealth and prosperity which ensured the financial viability of the precarious Australian colonies. The gold rush also stimulated rapid population and economic growth, brought an end to convict transportation, laid the foundations for Australian democracy, and played a key role in establishing Australia as a nation. Victoria saw developments which had taken decades or centuries to occur in other countries to happen in the space of several years. Rapid urbanisation and infrastructure development also added to the mix, resulting in Victorians enjoying the highest standards of living anywhere in the world. The wealth derived from gold subsequently evolved Victoria from a backwash sheep run into a permanent jewel.

Pall Mall, Bendigo, circa 1906
Source: Central Deborah Heritage Collection




