In 1866, Erasmus Jacobs found a small brilliant pebble on the banks of the Orange River, on the farm De Kalk leased from localGriquas, near Hopetown, which was his father's farm. He showed the pebble to his father who sold it. The pebble was purchased from Jacobs by Schalk van Niekerk, who later sold it. It proved to be a 21.25 carat (4.25 g) diamond, and became known as the Eureka. Three years later Schalk van Niekerk sold another diamond also found in the De Kalk vicinity, the Star of South Africa for £11,200. The second diamond was promptly resold in the London market for £25,000.
In 1871, an even larger 83.50 carat (16.7 g) diamond was found on the slopes of Colesberg Kopje on the farm Vooruitzigt belonging to the De Beers brothers. Henry Richard Giddy recounted how Esau Damoense (or Damon), the cook for prospector Fleetwood Rawstone's "Red Cap Party", made the discovery on Colesberg Kopje after he was sent there to dig as punishment. Rawstorne took the news to the nearby diggings of the De Beer brothers — his arrival there sparking off the famous "New Rush" which, as historian Brian Roberts puts it, was practically a stampede. Within a month 800 claims were cut into the hillock which were worked frenetically by two to three thousand men. As the land was lowered so the hillock became a mine – in time, the world renowned Kimberley Mine.
The Cape Colony, Transvaal, Orange Free State and the Griqua leader Nikolaas Waterboer all laid claim to the diamond fields. The Free State Boers in particular wanted the area as it lay inside the natural borders created by Orange and Vaal Rivers. Following the mediation that was overseen by the governor of Natal, the Keate Award went in favour of Waterboer, who placed himself under British protection. Consequently, the territory known as Griqualand West was proclaimed on 27 October 1871
