In July 1880, some Waitoa residents planned to form a prospecting association to explore the Te Aroha mountain, but it was not established until early November, after Hone Werahiko had made his discovery. An experienced prospector was appointed to lead the party that was paid for by the association. On opening day a claim was pegged out, and, based on encouraging signs, a company with 14 shareholders was formed in March. A failure to find the expected good ore meant the collapse of this company after just four months of work.