Shepherds Creek, in the western slope of the terrace north of Long Alex Gully. Approx 334m south of the Gully Road, Bannockburn-Nevis Road intersection. The outline of the portal is still visible however it is closed off. The tiphead / loading bank still exists along with a concrete block which once carried a winch pulley. A survey plan produced by Mr G A Blaikie (surveyor) from Gore in 1943 shows some details of the underground workings.

The early history of this mine is unknown. However, if may be that it was opened up about this time by John Hodson (2) when he took up the coal lease on this land.

The mine was usually worked by three people. Jim Crabbe, Bill Crabbe, Alex (Sandy) Robertson and Charlie Scott worked at various times in this mine. Also worked here : Jim Hood, Ted Lawrence. The mine was accessed by a decline of approximately 18 metres at a grade of 1 in 4. At the bottom of this decline were various side drives, where the 1.8m (6ft) thick coal seam was worked. The lower end of the decline was crossed at right angles by a side drive. At the right hand corner of this intersection was a pump sump with a steam driven pump. The mine was serviced by a steam boiler which supplied steam for the dewatering pump and a winch which could haul one ton of coal. One truck with 8 bags of coal, approx 1 ton, would be hauled out of the mine at a time. The mine was worked during the winter, and each year one 'pillar' of coal was mined. A pillar of coal consisted of a 12.2m x 12.2m (40 ft) block of coal, 1.8m (6ft) thick. it contained approx 2,400 tons of coal. It was cut out in four quarter sections. The coal from location #243 was sold in Clyde, Arrowtown, Luggate and Cromwell. The slag was sold to William Henry Liddicoat (Bill) of Ripponvale who used it to fire the boiler to heat his glasshouses on his orchard where he grew tomatoes.

In March 1949 John Hodson went to the mine to check the pump in the pump sump at the bottom of the access decline. It appears that Mr Hodson had been leaning over the pump, maybe working on it, when a fall of rock from the roof pinned him over the pump. The force of the rockfall broke a number of Mr Hodsons ribs, one of which punctured a lung. After a period of time Jack Hodson was missed, and his son James Lewis Hodson came to check on him, finding him in a bad way. Jim got his father out of the mine and he was rushed to Cromwell hospital. The next day he was transferred to Dunedin hospital. Unfortunately several days later, John Hodson died of his injuries and he was cremated without a permanent memorial. Following Mr Hodsons death, the mine was closed.