Hi Rodstar,
As usual Loamer is right on the money with his info. I will try to add a little to try to help you understand what was often going on back in the day. As stated, from the tell tail sign of washed river stone in the photo it does look like in this case they were chasing an old river bed. They dug down in certain places for different reasons but rarely for no reason. Small tell tail signs gave them a clue, just the same as they give us clues now. First we have to remember that the dirt on the top of the mullock heap came from the bottom of the hole. So sitting on the top is what they were digging down to. The gold bearing dirt from the bottom is often missing because it was taken away to be processed. This doesn't mean there is no gold on top as there could have been gold thrown out before they knew that they had hit the pay dirt. The easiest way for them to empty a hole is to throw the shovels full down hill. With this in mind remember gold is heavy so it will get thrown further. Check down hill from mullock heaps.
Why the diggings are up hill is because they were chasing the original river bottom. Keep in mind that a lot happens over time to an original water course. It can erode its way to new locations or the ground can shift as the earth moves and settles. (think earth quakes etc) They pick up traces of gold/color and start their process of elimination. First the easy gold is taken then the search starts for the course the gold took to get where it is. This requires sinking holes to find the original water course. A lot were fruitless exercises but some other holes paid off with persistence. Sounds like a lot of digging and hard work I know, but they worked hard back then.
Just a note of caution. These depressions in the middle can be a dangerous place to tread. If they went deep it is possible you are looking at a false bottom. Think for a moment when you look at these mullock heaps that it all came out of that center hole. How deep did they have to go to produce that amount of mullock heap? People have lost their lives by standing in the middle of these depressions only to have them give way to a deeper shaft and then they fell to their death. Don't think that big mullock = deep hole because all the dirt from a deep hole could have been taken to another location to be processed. Therefor a deep hole could still be just under a slight depression. It wasn't unusual for deep shafts to be covered with some timber and a bit of tin. Over the years this is covered with overburden and the timber and tin rots away.
Good luck and stay safe.
Wow. Just a quick edit. A lot got posted on this topic in the time it took me to type my post. Sorry if it repeats other posts.