In September 1883, Mr. Charles Rasp a German-born boundary rider of Mt. Gipps sheep station was checking the boundary fences when he discovered what he thought after examining his prospectors guide "Tin oxide", when Rasp's sample results returned, his findings were in fact Lead and Zinc with traces of Silver.
Rasp together with co-workers David James and James Poole (contractors on Mt. Gipps), pegged out and registered what they thought a 40 acre block (once officially surveyed was in fact 37 acres), the first mineral lease block on Mt. Gipps station, which later earned world fame as Block 12.
On reaching camp that night, Rasp mentioned the matter to his boss George McCulloch manager and part owner of Mt. Gipps station, even though he knew quite well McCulloch was against anyone going on his land looking for minerals. McCulloch however was interested in the discovery and with Rasp immediately pegged off more blocks.
Seven blocks pegged-Lease Nos. and Applicatian names
- Lease No.10 George McCulloch and Co. - George Urquhart
- Lease No.11 Phillip Charley - David James - James Poole
- Lease No.12 Charles Rasp
- Lease No.13 George McCulloch
- Lease No.14 George Urquhart
- Lease No.15 George Lind
- Lease No.16 George Lind - James Poole - Phillip Charley
The interest in the seven blocks was then amalgamated into one private company or syndicate, under the name of The Broken Hill Mining Company. McCulloch's men had no money so George lent them seventy pounds each in which they paid back on weekly instalments.
Phillip Charley found the first real amount of silver in January 1885.
The township of Broken Hill was developed in the “Broken Hill Paddock” which was part of Mt Gipps Station.
Source- Broken Hill Barrier Miner, Monday 7 September 1891, page 2