I remember picking up this game from a local EB in my mall years ago. I don't remember it that great, but from what I can remember it was called The Diggers, and not to be confused with the original puzzle game called Diggers.

The game was on PC, if I had to say it was probably around 1996 give or take a year or two. It was sort of like the original diggers game but this game had more 3D characters. You had to mine and dig tunnels through this big underground area but you were able to upgrade and building diff things underground (I think one was like a bar of sorts and all these other things) and then your diggers in your community had babies that carried on the traits and some of the stats of the parents to keep your clan going.

If i need to explain more of what I remember from this game I can but does anyone have any idea or remember this game and where I might be able to find it?

Sounds like nothing I've encountered before.

Could it be the sequel "Extractors: The Hanging Worlds of Zarg"?

I just checked google of some screens of that game and no, its not the same game. It looks kind of like the style of the game that I remember but it had more modern graphics.

I can't seem to find any shread of evidence that this game even existed as far as the internet is concerned :p