This was in 1887 by two prospectors acting on behalf of John Moffat, the Scotsman, who was to build a vast mining empire in the north Queensland.
After investing a considerable fortune in the district, Moffat realised that he did not have sufficient capital to exploit the Chillagoe deposits and in 1893 formed a syndicate with C.W.
Together they formed the Chillagoe Proprietary Limited and approached the Queensland Government with a proposal to extend its Cairns Railway to the mining leases.
Garnet Freehold Mining Co. notwithstanding that the whole line was worked by the Chillagoe Co. After a number of proposals had been made for the route of a railway to the Etheridge field, construction of the Etheridge Railway finally commenced in 1906 from Almaden to Mount Surprise on the Mareeba to Chillagoe line.
The final 41 miles from Einasleigh to Forsayth were not opened until 5 February 1911, construction having proceeded slowly due to union unrest and uncertainty within the mining industry generally.