It broke up after striking a submerged reef near Cape Banks, off the coast near Carpenter Rocks, southwest of Mount Gambier, in the early hours on 6 August 1859.

Survivors clung to the wreck for over a week and many people took days to die as they glimpsed the land from the sea and watched as one rescue attempt after another failed.

[citation needed] Under the command of Captain Hugh McEwan Admella left Port Adelaide for what was to be her final trip early on 5 August 1859, on her usual run to Melbourne with 84 passengers and 29 crew.

A few rockets were found and fired in the hope of attracting the attention of lighthouse-keepers at Cape Northumberland, 13 nautical miles (25 km) away, but they were damp and failed to ignite correctly.

[3][4] Daylight revealed a deserted coast about 1,100 yards (1 km) away interrupted by raging surf, and plans were being formulated for an attempt to reach shore when a steamer was seen in the distance.

Corio left from Adelaide and Ladybird from Portland but, due to poor information, both rescue boats had difficulty locating the now desperate Admella.

In the words of one lifeboat captain they were: more like statues than human beings; their eyes fixed, their lips black, for want of water, and their limbs bleached white and swollen through exposure to the relentless surf.Later-owner of the 1864 Melbourne Cup winner, the recollections of passenger Hurtle Fisher[6] were given: Over the next few days, several rescue attempts were made by Corio and Ladybird rescue boats.

Rockets were fired to try to get lines aboard but mountainous seas and severe winter storms drove the rescuers back and lives were lost as the lifeboats were swamped.

The Portland lifeboat which had been towed to the scene by Ladybird had made an earlier attempt to reach the wreck but was driven back by the raging seas.

In Adelaide, the news of the disaster brought hundreds of people to the telegraph office to hear the story as it unfolded; businesses closed and both Houses of Parliament adjourned.

After the commission of inquiry into the wreck of Admella, the loss was attributed to the effects of a current that pushed the vessel off course, although investigations were also held into a magnetic disturbance in the area that may have affected the compasses on iron-hulled ships.