Ohinemuri Regional History Journal 20, June 1976
By ANDREW ROBINSON.
Some prospecting was done between 1894-1896. In 1898 an amalgamation of claims took place. The Waihi Beach Goldmining Co. Ltd. (Auckland) started about 1898 to exploit the Treasure Island and other lodes. After prospecting by adits, the Company sank a shaft on the headland to a depth 355 ft., equipped with winding and baling plant. Although below sea level, little water was encountered until a large crosscourse was cut in the drive. This caused cessation of mining. A considerable amount was spent trying to dewater the workings but to no avail. In the shaft workings about 1,000 ft. of driving was done, North and South of the crosscut from the shaft to the reef. Shaw's party took a parcel of picked stone from a winze sunk off a cross cut near the base of the headland.
Alluvial gold could be found in small quantities from the Waihi stream to Fraser's creek at Houmunga [Homunga – E] Bay where detrital cinnabar was found.