The Majors Creek-Dargues Reef gold project, proposed by Perth-based exploration company Cortona Resources Limited, covers a significant portion of the Majors Creek goldfield, the Jembaicumbene alluvial goldfield and a portion of the Araluen alluvial goldfield. This area is the largest alluvial goldfield in NSW.

An environmental assessment prepared by R W Corkery & Co Pty Limited to accompany the development application concluded that the project would have “a minimal and manageable adverse impact on the biophysical environment”.

However, Coastwatchers Association president Sheila Monahan believes that the toxic waste generated and the amount of water required by the project could have adverse consequences for the catchment area and eventually the Moruya River itself.

“The surface waters of this 480 hectare site flow into Majors Creek and on to the Deua River, which is part of the Moruya River system,” she said.

“Whatever happens at this site will affect the Moruya River catchment, which is a major source of the Eurobodalla’s water supply.”

Coastwatchers says the project will require 345,164 litres of water a day, much of which will have to come from groundwater.

The tailings (the material left at the end of processing) will be turned into a thickened slurry and pumped to a storage facility, which is to be constructed according to NSW Dams Safety Committee

standards.

Ms Monahan says that an accident involving the reservoir could be catastrophic.

“We don’t want a repeat of the event in Hungary where a reservoir broke and disgorged toxic waste into creeks and eventually the Danube,” she said.

Coastwatchers says its main concern is that this will be the first of many mines set up in the area by Cortona.

“This is just the first one, and they boldly say they are looking to put in more in the area,” Ms Monahan said.

Coastwatchers believes the financial gains of the mine will not be worth the risk to the environment.

“This mine is just for profit, and should we not be protecting our water supply?”

However, Cortona Resources insists that the environmental risks have been assessed and that there has been extensive consultation with surrounding communities regarding the mine.

“There will be no toxic waste produced on site,” Cortona managing director Peter van der Borgh said.

“Extensive analysis of the tailings indicates they are inert and pose no toxic threat, because we are only partially processing ore on site. Even still, Cortona will be implementing a variety of measures to ensure the safety of their workers, the community and the environment.”

Mr van der Borgh said his company had a strong environmental safety record.

“Cortona is committed to environmental excellence, cultural heritage and the community within which it operates,” he said.

Mr van der Borgh said the company hoped to commence mining in 2011.