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In 1855, four years after gold was first discovered in Ballarat, Edward Hill struck it lucky at Blackwood on January 4th 1855 at Ballan Flat which is on the Lerderderg River near the present day Blackwood Sports Ground. By the end of that year, the goldmining village of Blackwood, 85 km north-west of Melbourne, had 13 000 prospectors panning the creeks and sluicing the river banks and hillsides. While there is little or no remaining gold, some of the rich quartz-reefs, initially discovered by James Simmons was to the west of the town, at Simmons Reef. This was followed up by the discovery of the extension of the line of quartz reef at Barrys Reef where the rich Sultan mine and others yielded tons of gold. The Sultan mine was reported to have yielded 65,801 ozs of gold from 1869-1880 to a depth of 900 feet.

Blackwood was originally called Mt. Blackwood with townships of Red Hill, Golden Point, Barry's Reef and Simmons' Reef.

An historic goldmining village

Blackwood, with its timber cottages, is situated amidst the eucalyptus-covered hills which attracted the earliest settlers with their promise of instant riches. Today it is now little more than a memory of the thriving settlement which existed, albeit briefly, in the late 1850s.