William Mackinlay, discovered around 1870 that Ironstone Mountain (later renamed Mount Morgan) was auriferous (gold bearing).

He asked his family to keep his discovery a secret but his daughter told her boyfriend and he eventually told the Morgan brothers, who had mining and business interests in Rockhampton, Queensland.

In 1882, the Morgans pegged out and registered a claim on the Mountain and MacKinlay was the loser. The Morgan Brothers sold all their shares in the mine in 1884.