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The Environment Protection Authority says it wants to see proof that a New South Wales gold mine has reduced its dust pollution.

The NSW EPA says it has received a letter from Cadia Valley Operations' parent company, Newcrest Mining, outlining measures it has taken to lower dust emissions.

"They've laid out a series of operational changes they've made to their underground processes that, in their view, have substantially reduced the production of dust and created a situation where the mine should now be in compliance," EPA chief executive Tony Chappel said.

"They've also laid out a number of other steps underground in terms of better containing and managing any dust that is produced."

Mr Chappelsayshe is waiting for data from the mine, expected in the next few days, to verify its claims.

"We need to see the data validate the outcomes they've achieved," he said.

"We are expecting the first data set as part of the new monitoring regime that's been imposed later this week, and we'll be regularly monitoring to ensure that compliance.

"If they can achieve and maintain these results and do that consistently across the site, that is a quantum shift in the performance of the mine and that should bring it into compliance."

It comes after the EPA launched an investigation into Cadia Valley Operations (CVO) in May after it found an unacceptable volume of dust was being released from the mine'sair vent and nearby residents had heavy metals in their blood and rainwater tanks.

Mr Chappel said the mine has reported taking initial actions including changing their underground operations to be compliant.

"They have responded with significant changes but there is still more work to be done," Mr Chappel said.

The EPA says it has been told the mine has reduced dust production levels, installed additional dust spays and spray curtains; and reconfigured its dust extraction systems.

CVO has told the EPA it has also taken steps to increase sampling of dust emissions.

The EPA has appointed a panel of nine experts to advise on the next stage of its regulatory actions against the mine.

"Panel members will provide advice on sampling, testing and monitoring to understand the extent, impact and potential of pollutants making their way into the Cadia Valley community," Mr Chappel said.

The EPA's action was prompted by blood and water testing that was ordered by concerned local residents and returned elevated levels of lead, nickel and selenium.

Heavy metals were also found in people's rainwater tanks.

The EPA has continued to monitor and sample rainwater tanks at 50 properties near the mine.

The ABC has contacted CVO for a response.

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Newcrest's Cadia gold mine responds to Environmental Protection Authority's order to reduce dust - ABC News