Two brothers from Scotland - John and Donald Mcleod found an outcrop of silver-lead ore while prospecting for gold in early 1862. They named the ore body 'The Talisker of Scotland' after a locality in their homeland on the Isle of Skye but this was soon shortened to Talisker. 

The Talisker Mining Company was formed in July in 1862 and primarily appointed Alfred Jenkin as Mine Captain to manage the mine. More than 20 miners were soon at work and by November the first shipment of 30 tons was dispatched from Fishery Bay to England. The first crushing and dressing works were established at Fishery Bay consisting of a small 12 horsepower steam engine, boiler and crusher worth about 1,000 pounds. Later extensive plant and equipment were established at the mine itself.  The associated town of Silverton was established in 1864 and had a peak population of 300 in 1870. It had an eating house, hotel, store and post office, school-chapel, mechanics institute and numerous wattle and daub cottages. Some miners built their cottages on the Company lease near the mine rather than in Silverton. 

By 1867 the main shaft had reached nearly 80m below ground, a Cornish stamp battery was installed to crush lower grade ore and in 1869 a brick kiln was built to make fire bricks. 1870 was a difficult year for the company as the shallow reserves became exhausted and water in the mine made pumping necessary the mine closed in 1872 and the workers went to other mines at Moonta and Kadina. Total production in the decade from 1862 to 1872 was valued at 46000 pounds but no dividend was ever paid. The mine was briefly reopened in 1890-91 and then arsenic was mined intermittently at the site between 1917 and 1925.