A major oil shale mine with two headings was started on the north side of the Wolgan River, opposite the works. It was intended to tunnel through the mountain to meet up with some earlier workings in the Capertee Valley as mining conditions in the Capertee were regarded as being much better than in the Wolgan. However, mining difficulties and the generally low quality of the shale in this area meant that mining became concentrated on the No. 2 mine and work on the No. 1 mine was eventually abandoned. Although construction of a tunnel linking the Wolgan Valley with the Capertee was proposed on numerous subsequent occasions, it was to remain an elusive dream.