In this month a report prevailed in the settlement, which seemed at first to gain some credit:—­It was, that one -Dailey_, a convict, had discovered a piece of ground, wherein he had found a considerable quantity of a yellow coloured ore, which, upon its being tried, appeared to have a certain proportion of gold in it; at this time the governor happened to be absent on a short excursion into the country, to the northward:  the report having been made to the lieutenant-governor, he, of course, examined the man, who had made the discovery, and who told his story with so much plausibility, that it was not doubted but an ore of some kind had been sound.

Dailey was interrogated as to the place, but this he refused to give any information of until the return of the governor, to whom he would give a full account of the discovery, provided he would grant him what the discoverer considered as but a small compensation for so valuable an acquisition; this reward was, (as there were ships upon the point of sailing) his own and a particular woman convict’s enlargement, and a passage in one of the ships to England, together with a specified sum of money, which I do not now recollect.  The lieutenant-governor insisted, that as he had already mentioned the discovery he had made, he should also show what part of the country it was in, otherwise he might expect punishment, for daring to impose upon those officers to whom he had related this business:  the fear of punishment disposed him to incline a little, though apparently with much reluctance; he proposed to the lieutenant-governor, that an officer should be sent down the harbour with him, for the mine, which, he said, was in the lower part of the harbour, and near the sea shore, and he would show the place to the officer.

Accordingly, an officer, with a corporal and two or three private soldiers were sent with him; he landed where he said the walk would be but short, and they entered the wood in their way to the mine; soon after they got among the bushes, he applied for permission to go to one side for a minute upon some necessary occasion, which was granted him; the officer continued there some hours without seeing the discoverer again, who, immediately on getting out of his sight, had pushed off for the camp by land, for he knew the road very well, and he had cunning enough to persuade the officer to send the boat away as soon as they had landed, as he supposed he would not choose to quit the place until a good guard came down; for which purpose, the officer was to have dispatched a man by land, as soon as he arrived at the place, and was satisfied that it merited attention.