On leaving the settled districts they at once found themselves in the barren country that was damming back the eastward flow of settlement. Having traversed it, they reached a range of granite hills, and turning more to the northward, they kept along these for the sake of the rain-water to be found in the rock holes. On striking again to the east, they encountered an extensive salt lake, and in attempting to cross an arm of this marsh, their horses were bogged, and extricated only after great labour. The lake was afterwards proved to be of great size, and to hem them in completely to the eastward, whilst, owing to its crescent-like formation, for five days it baffled all their attempts to proceed northwards.

Finally abandoning the lake, which they called Lake Moore, they turned to the westward to examine some of the streams crossed by Grey during his return from Shark's Bay. On the head of one of these rivers, the Irwin, they found a seam of coal.

"Having pitched our tent and tethered our horses, we commenced to collect specimens of the various strata, and succeeded in cutting out five or six hundredweight of coal with the tomahawk, and in a short time had the satisfaction of seeing the first fire of West Australian coal burning cheerfully in front of the camp, this being the first discovery of coal in Western Australia."

The party then returned by way of the Moore River to Bolgart Springs, which they reached on the 22nd of September.

The discovery of coal deposits and of country available for settlement was seen to be of great importance by the Government, and Lieutenant Helpman, A.C. Gregory, his brother Henry, and Messrs. Irby and Meekleham, in the colonial schooner Champion, were despatched to procure a quantity of coal for testing. They were also instructed to make a further inspection of the pastoral capabilities of the district, of which there had been so many conflicting opinions. A three days' examination of the country convinced them that it was suitable for settlement.

In 1846 Gregory took charge of an expedition to the north of Perth, organised by the settlers of the colony, and entitled The Settlers' Expedition; its object being to proceed to the Gascoyne River, examining the intervening country as to its suitability for pastoral purposes.

Gregory was accompanied by one of his brothers, Messrs. Burges, Walcott, and Bedart, and private King of the 96th Regiment, of whose services he speaks very highly. This expedition excited great hopes amongst the settlers, who found most of the horses and provisions. The party left Lefroy's station of Welbing on the 9th of September, with ten pack, and two riding-horses, but did not succeed in penetrating any distance beyond the Murchison, being turned back at all points, after repeated efforts, by the belt of impervious scrub between the Murchison and Gascoyne. They therefore returned without seeing the latter river, after having attained a distance of 350 miles from Perth; but they succeeded in finding a considerable extent of available country, both pastoral and agricultural, and in discovering a vein of galena on the Murchison. They re-entered Perth on the 17th of November.

The following month, Gregory, Bland, and three soldiers of the 96th accompanied Governor Fitzgerald by sea to Champion Bay to examine the new mineral discoveries. The galena lode was found to be more important than had been at first supposed. On their return to the schooner, an affray occurred with the natives, in which the Governor was wounded.

"As the country was covered with dense wattle thickets, the natives took advantage of the ground, and having completely surrounded the party, commenced first to threaten to throw their spears, then to throw stones, and finally one man caught hold of Mr. Bland by the arm, threatening to strike him with a dowak; another native threw a spear at myself, though without effect; but before I could fire at him, the Governor, perceiving that unless some severe example was made, the whole party would be cut off, fired at one of the most forward of our assailants and killed him; two other shots were fired by the soldiers, but the thickness of the bushes prevented our seeing with what effect. A shower of spears, stones, kylies and dowaks followed, and although we moved to a more open spot, the natives were only kept off by firing at any that exposed themselves. At this moment a spear struck the Governor in the leg, just above the knee, with such force as to cause it to protrude two feet on the other side, which was so far fortunate as to enable me to break off the barb and withdraw the shaft. The Governor, notwithstanding his wound, continued to direct the party, and although the natives made many attempts to approach close enough to reach us with their spears, we were able by keeping on the most open ground and checking them by an occasional shot, to avoid their attacks when crossing the gullies."

The natives followed them for seven miles, but finally desisted, and the whites reached the beach and boarded the Champion without further mishap.