Gold was discovered here in 1860. Luke Huset and Peter Mawson sank a shaft called the New Chum Mine. The area became known as New Chum and also Maiden Town. The large Welsh mining community renamed it Llanelly after a little town near Cardiff in South Wales.
Alluvial gold was later discovered, thus leading to the establishment of a township comprising of various shops, banks hotel, churches, a school and a Chinese camp. By the mid 1870’s Llanelly’s fortunes were on the down turn. Mid 1920’s most businesses had closed with the exception of the Post Office and General Store.
The little town made a big surge forward in the mid to late 1860s when the New Chum and Sandstone Reefs were in their hey-days. With the large population, the Tarnagulla police were often hard pressed to keep the peace on Saturday nights.
Now privately owned, the small brick building standing on the west side of the main road was the Colonial Bank. The foundation stone, laid on 29/4/1869. Opposite is the later General Store and Post Office which has been closed for many years.
The Llanelly School is situated on the Llanelly/Newbridge Road and was opened on the 24/5/1871. By 1875 there were 135 students. By 1948 only six children attended the school and these were transferred to the Arnold State School.
A writer of the time observed that you were more likely to be expected to be able to converse in Welsh rather than English.