In 1839, Frederick determined to venture out on his own. Searching for new ground and buoyant markets, Frederick looked westward to the newly-founded colony of South Australia.
He travelled to Adelaide to observe the conditions for himself and while there, befriended Alexander Buchanan sometime in April or May 1839, quickly hiring him to undertake a special overland expedition. Buchanan had only recently arrived in the South Australian capital from the port of Greenock, Scotland, arriving via the ship Welcome.
Frederick entrusted Alexander with the task of overlanding 5,000 sheep from near Yass to Adelaide, the intent being to capitalise on the good prices there. Alexander’s remit though, was much larger: another 13,000 sheep were to be overlanded, taking the total flock to 18,000. Alexander’s overland journey, following the Murrumbidgee and Murray rivers, took six months.
Despite the tremendous six-month journey, sheep prices had declined by the time of Buchanan’s arrival as Adelaide’s markets depressed. Murphey’s Law prevailed. Frederick though, was undeterred. He made ambitious plans to establish a co-operative sheep company at Mount Dispersion (later renamed Mount Waterloo) to be financed by astute investors. Despite detailed expense and revenue projections, this plan, too, fell through. The only option was to go out alone.
Frederick established a sheep run on the River Light, managed by his brother, Francis. This was the beginning of Anlaby. During his tenure as the first manager at Anlaby, Francis, and his neighbour Captain Bagot, discovered copper in the area, laying the foundation for the Kapunda copper mine which was the first commercially successful mine in Australia. Frederick invested in the mine, creating considerable wealth to expand Anlaby.
In 1842, Alexander Buchanan was installed as manager of Anlaby Station. Over the next 23 years, he oversaw extraordinary growth: Anlaby ballooned to over 100,000 acres, with a flock numbering greater than 50,000.