Mining company hopes to strike gold exploring the Eurobodalla, but locals aren't excited

There are two mineral companies with current exploratory licenses in the Eurobodalla: Mitre Mining Corporation Limited (Mitre) and CCJ Enterprises Pty Limited. (CCJ).

Mitre is an Australian mineral exploration and development company based out of Melbourne focusing on large-scale, precious metal deposits. Their priority is gold, rare earth elements and lithium.

The company is the sole holder of 'The Batemans Project' - an exploratory program based out of Buckenbowra identifying potential locations of precious minerals. It is the company's first project.

The company holds an exploratory license - issued by the NSW Government - granting Mitre exclusive access to explore their designated 134 kilometres squared area - stretching from west of Batemans Bay to south of Mogo - for their listed minerals.

The Mitre website says the license - in the Eurobodalla - is in "a resource development friendly jurisdiction with strong local support".

Mitre obtained a five year exploratory license on April 30, 2021. Funding for the project was achieved through the company raising $5 million through investors when the company listed on the ASX as MMC in September 2021.

READ MORE: Early voting in full swing as NSWEC begins rollout of postal voting packs

In November 2021, Mitre acquired a 228 kilometres squared tenement near Araluen, more than doubling the company's footprint in the Eurobodalla Shire.

The other company with an exploratory license in the Eurobodalla is CCJ - a privately owned West Australian company. Their designated exploratory area is south west of Moruya township.

The company has held an exploratory license for the area since 2017, and has carried out exploratory expeditions under the former name of GDR Mines Development Pty Ltd. The license was transferred from GDR Mines to CCJ in April 2021.

CCJ's exploratory license expires April 24, 2022.

Exploratory licenses do not permit mining, and do not ensure a mining lease will be granted.

At the council's public access session on February 1, 2022, a resident - who requested to remain anonymous - raised concern regarding the exploratory expeditions. The resident shared with councillors how they stumbled upon surveyors on their private property performing exploratory work on the Donkey Hill goldmine site near Moruya for CCJ.

The resident used the public access session to raise concern regarding environmental negative externalities caused by any potential mining leases in the area.

The resident was worried about acid mine drainage (AMD) - the oxidisation of sulphides when water comes into contact with exposed sulphuric rocks, creating sulphuric acid. AMD increases the acidity of ground water and water run off.

Water run off from the Mitre exploratory site flows into the Buckenbowra River, which feeds into the Clyde River. CCJ's designated area includes Coila Creek and Moruya River.

According to a paper by Professor Nicholas Frederick Gray from Trinity College Dublin, "The effects of AMD are so multifarious that community structure collapses rapidly and totally, even though very often no single pollutant on its own would have caused such a severe ecological impact".

Mitre Mining CEO Clinton Carey said there was no AMD because Mitre wasn't carrying out any mining.

READ MORE: TAFE to offer micro-brewing course in regional areas

"It's not something we've even considered at this stage because we are an exploration company, even though we are called Mitre Mining," Mr Carey said. "We should be Mitre Exploration really."

When asked if Mitre intended to establish mines in the Eurobodalla, Mr Carey said "We won't know any of that until we know what's there".

"Who knows if we will find anything?

"At the moment, we are purely exploring - which is just surface exploration. We might dig a small hole somewhere with a shovel. That's it.

"As a mining company, we'd have to operate under the Australian government legislation and we'd have to make sure that all environmental impact studies were done."

Exploratory licenses have included environmental management procedures, outlined by the Environmental Planning and Assessment Act 1979.

A Mitre Mining Corporation announcement on December 16, 2021 said:

"Mitre Mining Corporation Limited is pleased to announce that it has achieved significant inroads on the exploration program of work over the Bateman Project.

"Given the results to date and the addition of the Araluen Project (EL9325) the company is well poised for exploration success. We look forward to progressing our projects through to a targeted drilling program in 2022."

READ MORE: Council urged to prepare for future extreme weather events

Before any mining could begin, Mitre - or another company - must acquire a mining lease from the NSW Government. All new miners must adhere to the Environmental Planning and Assessment Act 1979 and carry out an environmental impact assessment.

"We're not trying to do anything on the quiet," Mr Carey said. "I am available at all times for people in the area to talk to and I'm happy to meet up with them, when appropriate."

A council spokesperson said the NSW Government was responsible for assessing and approving mining activities, and as such the council had not been formally notified of the exploration license.

"Any proposed mine would require significant environmental assessment and public exhibition prior to it being considered," the spokesperson said.

"The council would thoroughly review any proposed mine application within the water supply catchment when a proposal and environmental assessment is available, as we did with the Dargues Gold Mine."