The soldiers under Valdivia became wearied and disgusted by this continual war, so different from what they had expected; and as they believed him obstinately bent upon adherence to his own plan, and resolved to continue the settlement in spite of every opposition from the natives, they entered into a conspiracy to kill their general and to return into Peru, where they expected to enjoy more ease and tranquillity.  Having fortunately got notice of this conspiracy, Valdivia, who possessed great prudence and an insinuating address, soon conciliated those who were least implicated.  After this, as he only had the title of general which did not confer any civil and judicial power, he assembled the Cabildo of the city, and persuaded them to invest him in the office of governor of the city and kingdom.  In this imposing capacity, he tried and capitally punished some of the ringleaders of the conspiracy, and then prudently exerted himself to soothe the turbulent and seditious spirits of the remainder, by buoying up their hopes with the most flattering promises of future wealth.  He had often heard in Peru, that the valley of Quillota abounded in mines of gold, and was hopeful therefore of being able to obtain a sufficient quantity from thence to satisfy the avidity of his soldiers.  Notwithstanding the difficulties with which he was surrounded, he sent a party of soldiers into the valley of Quillota, with orders to superintend and protect a number of labourers in digging for the precious metal said to be abound in that place.  The mine which was opened upon this occasion proved remarkably rich and productive, surpassing their most sanguine hopes; so that all their past sufferings and present difficulties were soon buried in oblivion, and henceforwards no one had the remotest wish to leave the country.  Valdivia, encouraged by this success to new enterprises, ordered a carrack or ship of some considerable size to be built at the mouth of the river Chillan, which traverses the valley of Quillota, for the purpose of more readily obtaining succours from Peru, without which he was fully sensible he could not possibly succeed in the vast enterprise he had in view, which was no less than to accomplish the entire reduction of Chili.

In the mean time, considering the urgent state of his affairs, Valdivia resolved to dispatch two of his principal officers, Alonzo Monroy, and Pedro Miranda by land to Peru, with an escort of six horsemen, whose spurs, bits, and stirrups he directed to be made of solid gold, hoping thereby to entice a sufficient number of recruits to come to his assistance, by this obvious proof of the riches of the country.  Although these messengers were escorted to the confines of Chili by thirty additional horsemen, they were attacked and defeated in the province of Copaipo by a hundred archers, commanded by Coteo, an officer of the Ulmen of that province.  Of the whole party none escaped with life but the two officers, Monroy and Miranda,