Southern slope of Adams Gully. Approx 0.6km south of Adams Creek Road crossing on Bannockburn Nevis Road. The portal is now closed off and not visible but underground workings may still exist. The main drive was a 90m decline at a grade of 1 in 3. The tiphead / loading bank is still visible, west of the Bannockburn-Nevis Road. The location of the portal site is further west over a water race and a low rise. A survey plan produced by Mr J Hayes (inspector of mines), probably in 1902 shows the underground workings of location #255 plus that of location #386 and #504. The coal seam was approx 2m thick and the mine was dry.

The exact history of the mine is not very clear but it appears that it was opened up by John Pryde about this time. The mine manager was John Crombie Campbell.

In February of 1889 John Pryde purchased the Royal Standard battery at Quartzville and removed the boiler along with the 12hp steam engine to use in his Kawarau mine (#255). The inspector of mines reported that the Kawarau Colliery of John Pryde was in good condition and that the powder was kept in a magazine. (Note - because John Pryde called all of his mines the Kawarau Colliery, it is not clear which mines these comments refer to. They may be related to #386 or #183 in lower Shepherds Creek)

In June, John Pryde sold his coal mines, #183 in lower Shepherds Creek, and #386 (which included the area later worked as #255). These mines were purchased by the James Horn syndicate.