The French steamship Arctique ran aground on the northern coast of Cape Virgenes in Argentina; gold was discovered during the rescue effort, triggering the Tierra del Fuego gold rush.

Cape Virgenes is the southeastern promontory of continental Argentina in South America. A little to the south-west, the southernmost point of land is Punta Dúngeness. Ferdinand Magellan reached it on 21 October 1520 during the Spanish expedition to East Asia and discovered a strait, now called the Strait of Magellan in his honor. As 21 October was the feast day of Saint Ursula and the Eleven Thousand Virgins, he named the cape in their honor.

Between 1883 and 1906 Tierra del Fuego experienced a gold rush attracting many Chileans, Argentines and Europeans to the archipelago, including many Dalmatians. The gold rush led to the formation of the first towns in the archipelago and fueled economic growth in Punta Arenas. After the gold rush was over, most gold miners left the archipelago, while the remaining settlers engaged in sheep farming and fishing. The rush made a major contribution to the genocide of the indigenous Selkʼnam people.