[1][2] By March 1874 the Raspberry Gully shaft had yet to strike the aimed for Borehole Seam of coal, so the directors of the Waratah Coal Company decided to sink a shaft closer to existing working collieries where the seam was known to exist and was being worked.

This shaft was adjacent to the route of the railway line being constructed to the Raspberry Gully mine, and was known as Stuart's Pit.

[1] A town grew from the influx of miners from the mine to the south and was named after Charles Smith, the manager of the Waratah Coal Company in the 1870s, and became known as Charlestown.

The Borehole seam at Flaggy Creek was 10 ft thick, however due to unsuitable ground conditions at the surface the Waratah Coal Company was unable to construct railway sidings & loading facilities at this site so a 2120 yard long tunnel was driven between the Flaggy Creek shaft & Charles' Pit.

Soon after this Charles' Pit was officially opened with a special train being run to the colliery on 25 November 1887.

During a confrontation with strike breakers, Alfred Edden, President of the Waratah Colliery Miners' Lodge was arrested.

The coal won from this drift was moved by a conveyor belt to a newly constructed screens & loading point.

[1] There are some remnants of the colliery such as Stuart's Pit, which is now filled with water, heavily vegetated and in the grounds of St Pius X High School, Adamstown.

Lake Macquarie City Council has created a short heritage trail depicting a brief history of the former Waratah Colliery and rail corridor which carried coal from the mine to Port Waratah, with interpretative signage located along a multi-use pathway.