Right bank of the Lower Bannockburn Creek, now the eastern side of the Bannockburn inlet. Approx 0.8 km from the Kawarau River.

in August of 1897 J L Gibson and W R Parcell (2) took up an area of land on the eastern side of the Lower Bannockburn Creek, about 0.8 km from the Kawarau River. They prospected, with the aid of a 15 year old boy by the name of John Patrick Parcell, a nephew of W R Parcell. Three places were prospected in the area of the old Cairnmuir Mine of Anderson & Ridland, location #190. Then Mr Gibson struck coal near Charlie Angel's old tunnel, location #392. The group dug a shaft to the coal which they accessed from a long tramway located in an old tailrace. They started selling coal using Mr Edward McNulty as their carter.

In May of 1897 the Cromwell Coal Mine opened up again. Mr McNulty persuaded Gibson and Parcell to move to Cromwell, to work the Cromwell Coal Mine. However, this mine was soon closed down again due to the inflow of water. Mess'rs Parcell & Gibson returned to their Bannockburn Creek coal mine. They constructed a dip or decline of about 60m before they struck the good coal. To haul up the coal and water they required a horse. A fine old horse was located at Hawksburn Station and the young J P Parcell was sent to get him. he was located down near the Fraser River. It was a long walk for a fifteen year old boy. The married couple on Hawkesburn Station (the Hinds) thought that John Parcell worked for Kawarau Station and gave him his dinner. The horse had been out in the paddock for too long and had to have his feet trimmed down before being re-shod. Old Duke turned out to be a fine horse for the job and worked until he was replaced by a steam driven winch. The young john Parcell was in charge of old Duke and together they would truck out the bags of coal, or a tank of water on a mine trolley. When not hauling, John dug coal. His pay was 25 shillings per week for 6 days, plus 2 hours on Sunday. Bill and young John Parcell camped in a small hut in Bannockburn Creek, location #393. For a time, James Gibson also dug coal. John Parcell and Duke hauled the coal to the surface, then Bill Parcell carted the coal, but his team was not the best.

The coal trade increased with the start of the dredging boom. The mine got the contract to supply coal to the Electric Gold Dredging Company's no 1 dredge. The extra income meant that the mine could be upgraded. A boiler and steam engine were installed, along with a de-watering pump and a hauling winch. More workers were taken on. This ended the jobs for young John Parcell and the faithful old horse Duke.

John Parcell again came to work in the Excelsior No 2 Coal Pit. He was paid 4 shillings per ton, or three pence per bag to dig, bag, and truck the coal to the bottom of the decline. With 16 bags to the ton, and the coal face a long way from the decline, this was very hard work. The empty truck had then to be taken back to the face loaded with empty bags. At this time the miners in the Excelsior No 2 Mine were : Frank Jones (Francis) Jack mcCabe John Flynn Alex Clark John Patrick Parcell Jim Donnelly Jim Hancock Jack Crombie (there last three may have been working in the other end of the mine - Wilson's - location #160) At this time the mine had been connected with the Wilson's Coal Mine underground. The miners in Wilson's Mine at this time were: Jack Taylor and the Cooper family (John and son James) and they were still there in Nov of 1900.

In May it was reported that the Excelsior No 2 Coal Mine was well equipped and producing excellent returns of around 100 tons of coal per week.

In February 1899 and advert in the Cromwell Argus stated that ' Parcell and Gibson were prepared to deliver coal on the Bannockburn at 16 shillings per ton, cash within a month of delivery ; or at 18 shillings per ton booked ; 10 shillings at the pit mouth ' Yhis may have been from the Excelsior No 2 mine.

In April of 1900 the Cromwell & Bannockburn Colliery Company was formed. The company took over location #194 along with other major mines in the area.