Geologist Tully Richards thinks it is possible and has applied for a number of exploration licences covering the Wolumla, Nethercote, Millingandi and Wyndham/Whipstick areas. He is focusing on looking at the areas where there has been previous gold mining.

Mr Richards, who is based in Orange, set up a company late last year, Sapphire Resources Pty Limited, to specifically apply for the local exploration licences.

He currently has a licence to explore the Yambulla area which is Forestry Corporation owned, inland from Eden and Green Cape.

He said the current high price of gold could make some of the old mines economic if there was still sufficient gold remaining.

“Back in the 1980s when some of these mines were last worked gold was $250 an ounce but now it is closer to $1800 an ounce,” he said.

“There are a number of old goldfields in that South Coast area and I’m looking to go back to them and explore with additional resources.”

Two exploration licences, ELA 5329 and ELA 5330, have been lodged with the NSW Department of Industry by Sapphire Resources. 

ELA 5329 covers an area of about 48 square km, located 3.6km east of Wyndham and over the town of Wolumla. ELA 5330 covers an area of 57sqkm located 2km west of Pambula.

Exploration is not permitted until the application is granted and unless subject to an access agreement agreed between the applicant and the landholder. A decision by the state government is likely to take between two and six months.

Mr Richards has requested three year licences to explore.

The areas covered by the prospective licences include both privately owned land and Forestry Corporation land.