The Mount Bischoff tin deposit was discovered in 1873 by James Philosopher Smith, who formed a company two years later to extract the ore. Professor G. H. F. Ulrich was brought in to assess the find, which was positive, and William M. Crosby was appointed mine manager, but was soon forced to resign on grounds of ill-health. At the insistence of Professor Ulrich (also from Clausthal) and Professor J. Cosmo Newbery, yet in the face of considerable opposition, Kayser was hired as mine manager. Confounding the doubters, Kayser built the township of Waratah and a railway to the coast, allowing the mine to prosper, making around £1,250,000 for its investors.