The information I have states that it was an Iron Mine.
Quote from a book I have
'A mine at Drws-y-nant near Dolgellau was also worked as a deep open trench at least as early as 1838, because the name Tyllau-mwn, meaning mine shafts, appears on the ordinance Survey maps of that date. It was worked again about 1880. The output of pisolitic ore from all sources reached its highest figure in 1857 when it was 80,000 tons. For a few years after 1908 it varied between 10,000 and 14,000 tons but by 1925 all the mines had closed.'
Gold is where you find it