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superseded by steam puddles, buddles, and other machinery, and sometimes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