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8 million pounds; and in 1860, 1180 million pounds sterling. The gold first worked for in Australia, as in other places, was of course alluvial, by which is usually understood loose gold in nuggets, specks, and dust, lying in drifts which were once the beds of long extinct streams and rivers, or possibly the moraines of glaciers, as in New Zealand. Further on the differences will be mentioned between "alluvial" and "reef" or lode gold, for that there is a difference in origin in many occurrences, is, I think, provable. I hold, and hold strongly, that true alluvial gold is not always derived from the disintegration of lodes or reefs. For instance, the "Welcome Nugget" certainly never came from a reef. No such mass of gold, or anything approaching it, has ever yet been taken from a quartz matrix. It was found at Bakery Hill, Ballarat, in 1858, weight 2195 ozs., and sold for 10,500 pounds. This was above its actual value. The "Welcome Stranger," a still larger mass of gold, was found amongst the roots of a tree at Dunolly, Victoria, in 1869, by two starved out "fossickers" named Deeson and Oates. The weight of this, the largest authenticated nugget ever found was 2268 1/2 ozs., and it was sold for 10,000 pounds, but it was rendered useless as a specimen by the finders, who spent a night burning it to remove the adhering quartz. But the ordinary digger neither hopes nor expects to unearth such treasures as these. He is content to gather together by means of puddling machine, cradle, long tom, or even puddling tub and tin dish, the scales, specks, dust, and occasional small nuggets ordinarily met with in alluvial "washes." Having sunk to the "wash," or "drift," the digger, by means of one or more of the appliances mentioned above, proceeds to separate the gold from the clay and gravel in which it is found. Of course in large alluvial claims, where capital is employed, such appliances are superseded by steam puddles, buddles, and other machinery, and sometimes mercury is used to amalgamate the gold when very fine. Hydraulicing is the cheapest form of alluvial mining, but can only be profitably carried out where extensive drifts, which can be worked as quarry faces, and unlimited water exist in the same neighbourhood. When such conditions obtain a few grains of gold to the yard or ton will pay handsomely. Lode or reef mining, is a more expensive and complicated process, requiring much skill and capital. First, let
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