No, but that's what I kept finding so your on the right track.
This one had better graphics and an almost Lemmings feel to it, except they weren't suicidal idiots. the view was that of a sidescroller but you told the little dwarf gnome things what to do.
I've seen a couple of people looking for the same game but unfortunately also to no avail
Not sure of your idea of mining game but since you mentioned that there is Lemmings feel to it, there was 1 side-scroller which was made which Lemmings feel i.e. The Adventures of Lomax. It was by the same publisher as Lemmings. Check out the screenshots to see if it is the game you are looking for.
You make a valid point, there may not be any mining, but they were defiantly underground, you controlled multiple dwarfs/gnomes, you made a village, you could make taverns and graveyards...
No, I'm sorry, thanks for all the help but i think I might have to go delving into old boxes under the house to see if i can find the origional, if i find it, I'll be sure to tell you guys