Gold was found in the Dolgellau area in the 1850s and a mining rush developed. The first gold was discovered at Gwynfynydd in 1863, but it was not until 1887 that the mine was developed commercially. By this time the mine had been acquired by William Pritchard Morgan, who was to become known as the "Welsh gold king", and who paid for two police constables to protect the mine.
By 1888, two hundred people were employed at the site, the gold being extracted by driving horizontal tunnels (adits) into the mountainside, with the miners working deep underground by candlelight. The machinery was powered by water wheels and water turbines. In contrast to other mines in the area where the gold was found in shallow deposits, the Gwynfynydd gold is extracted from large quartz veins deep underground.
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