THE township of Costerfield is situated in the parish of Costerfield, county of Dalhousie, and lies 6 miles east of Heathcote and 30 miles south-east of Bendigo. It is separated from Heathcote by the Mt. Ida Range, which forms the western boundary of the Silurian formation. It is situated at the head-waters of Tin-pot Creek, a small southerly tributary of the Deegay Ponds Creek, which flows east to the Goulburn River.The field was discovered in 1860 by two prospectors, Coster and Field, who were guided there by a shepherd, M Nicol Coster and Field had already discovered an antimony lode about three miles nearer Heathcote, when M Nicol offered to guide them to the larger outcrop. The main Costerfield reef at that time projected above the surface, and was white through oxidation, though the bluey sulphide showed on fracture. No alluvial gold of any consequence was obtained at Costerfield, but a little was obtained, at Redcastle, 7 miles to the north, and in some of the gullies to the east.Following its discovery there came a period of prosperity to Costerfield, while the mining operations were confined to the oxidized zone. The early success of mining at Costerfield was due to the gold values, and it is probable that the oxidized zone was secondarily enriched. The earliest available record of values is a crushing of Coster and Co. on the Antimony reef (now known as the Costerfield reef), when 200 tons from a depth of 70 ft. averaged 4 oz. per ton in July, 1861. At this time a crushing mill had not yet been erected at Costerfield, and the ore was carted and treated at Redcastle. The massive antimony ore, consisting of mixed oxides and sulphides, was separated by hand-picking as "marketable ore," and the remainder crushed for gold. A higher average is recorded from South Costerfield in September, 1861, when a 15' cwt. parcel...