The reef is located about 6 kilometres (3.7 mi) south of the town and was particularly rich in alluvial gold.

Another outcrop, the Queen of the Earth was discovered by the prospectors MacGregor, McAuliffe and party further from town.

This sparked a gold rush to the field and by 1896 the local miners had joined together and formed a progress association and requested that a townsite be declared.

A post office and four hotels were open in town in 1898:[4] A coach service from Coolgardie via Menzies and Yerilla to Pennyweight Point operated weekly in 1898.

A battery was erected in the area by working leaseholders some time after 1895, but was poorly patronised so by 1900 it was dismantled and taken to Niagara.