The Sandstone Brewery was constructed in 1907 by Irishman J. V. Kearney to provide for the demands of the many miners then working in the area. It was built on top of a breakaway, close to where the cliff drops some 10-12 metres. From the topmost storey, where water was pumped from a well, the product of the establishment found its way by gravitation to the coolers (which were provided with fans in the hot weather) and then to two large vats on the main floor.
From there it went to the cellar, which was an immense tunnel driven into the face of the breakaway, and pipes conveyed the beer to the receptacles provided. The cellar was originally cut out with dynamite and the material out of it was made into a loading ramp so that the wagons could drive up to the door to load the beer.
The cellar could be kept remarkably cool in the hottest weather by means of a connecting rise or winze which is a hole bored through the ceiling of the cellar up to the top of the breakaway. The liquor from the Sandstone Brewery was sold to the surrounding hotels. However, with the opening of the railway line, regular supplies of beer from breweries elsewhere became available and the Sandstone Brewery closed for business.