It's been a while and no one else has answered so I'll give it a shot (keeping in mind that I make no claim to being a grammar expert). Deep within his breast there smothered an unquenchable desire. It's grammatically correct and uses "there" correctly but it doesn't make any sense.
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TeacherScottinBusansome basic rules about "there referential and non referential"?I'm not sure what rules you might be talking about. Try using the search box at the top right of the page. I'm sure someone has already written a lot about this.
TeacherScottinBusanDeep within his b reast there smothered an unquenchable desire