Bendigo, October 30th, 1853.

During the period included in my last two letters, a new phase of these diggings was showing itself, and growing into a prominent feature. There had been for some time a number of people digging the surface from some of the slopes about these White Hills; for this to six inches, and in some cases to a foot deep, showed considerable quantities of gold in it. Huge piles of this reddish earth, chiefly a mixture of small quartz and burnt slate, had been carted down to the creek; and men were busy washing it through toms, races being cut from the creek, and streams of water conveyed through the toms. One party had been collecting their pile all the last summer, amounting to some thousands of tons; and this winter they have been as busy washing it out. It is said that their aggregate proceeds will not be less than 4000l.

Be that as it may, there is no doubt that their profit has been considerable, though they have had to pay 10s. a load for its carting. The surface stuff, however, was growing scarce, when suddenly the attention of the diggers became turned to the mountains of white, snowy-looking stuff thrown out of the deep sinkings on the White Hills. On testing it, some of it was found to yield from a quarter to half an ounce a load, and that ten loads might be put through in a day.