Complex sentence: Gold was discovered in he immediate area in 1897 and the government had an area thought to be suitable for a townsite survyed in 1898, the area proved to not be satisfactory to the locals who wanted another area to be used.
Split into simpler sentences: Gold was discovered in the immediate area in 1897 and the government had an area thought to be suitable for a townsite surveyed in 1898. The area proved to not be satisfactory to the locals who wanted another area to be used.