The small town was later named Cooktown, after the historical explorer. After repairing the ship and several attempts to cross the reef safely, the ship continued its journey and it was one hundred years later that the next white settlement was seen here. It was the discovery of gold, by James Mulligan, in 1872 that attracted hundreds of people to this remote area of the globe.

Cooktown became frontier town which supported the gold rush. Although the gold rush began on Palmer River, it soon spread to the neighbouring areas of Mitchell, Gilbert, Fitzroy and Einsleigh Rivers and small towns began to develop. Immigrants from all over the world including Europe, China and Malaysia flocked to Cooktown to look for gold and copper.