At the beginning of October 1863, a party of four miners were sent out by Governor James Douglas to prospect for gold in the Victoria area. Ten days later, they returned and reported that they had discovered diggings paying 4 or 5 cents to the pan at a stream flowing into Gold or Deadman’s Creek.
“A number of persons carrying packs and mining tools started for the scene of new excitement. The new “Douglas Diggings” at Goldstream presented the appearance of a thorough mining locality possessing every facility for working. The proximity of the location would tender the working expenses trifling; mining would be easy owing to excellent facilities for washing and the shallowness of the diggings; and, the road was accessible as a dray could be taken within four miles of the spot, whence packing was very easy on horse or foot.”
Goldseekers made their way to the stream that lay between the 12th and 13th mileposts on the five foot-wide Cowichan trail, about two or three miles from Langford’s Lake.
On October 20, 1863, one day after the discovery of gold was reported, the Colonist printed:
“One hundred people were headed for the diggings. A great many lost their way with some going down the trail to Sooke and others unable to follow the proper trail. Those who succeeded in reaching the mining grounds spoke in the highest terms of the appearance of the country as a gold-bearing region and expressed confidence in the ultimate results of efficient prospecting. A quantity of liquors and other things were sent out from town, and several applications for permission to sell the former were made.”
In just a few days, the population at Goldstream grew to over 300, including several Cariboo miners. Companies were formed and claims were staked. There was even talk of making the trail from Langford’s Lake to Goldstream a wagon road.
As the weeks went by, it became apparent that the gold was scattered through the quartz for some miles. Finding flecks of gold in a pan soon dwindled. Only with machinery was it possible to hit paydirt and the expense of reaching bedrock was greater than anticipated.
As interest in the area began to wane the following spring, there were a few companies said to have ore assessed which made their claims valuable.
In April, 1864, The Muir Company’s ore was assessed at $10,500 for gold and $24 for silver to the ton. “A great demand for shares in this company resulted with their value rising from $7 per share (of 15 feet) to $15.”
In response, W.A.G. Young, Colonial Secretary, rose in the House to request $4,000 for the purpose of constructing a road to Goldstream. Amor De Cosmos called the gentleman to order for he was not aware that Young represented the Governor any more than any other member of the house.
On July 17, 1864 the discovery of gold on the Leech River became known and the miners abandoned their claims at Goldstream.