The NSW Aboriginal Land Council and representatives from the state's Local Aboriginal Land Councils gathered for a "truth telling" meeting in Orange on Wednesday to discuss the fallout from a stalled gold mine near the Central West town of Blayney.

The McPhillamys Gold Project was blocked on cultural heritage grounds in August by federal environment minister Tanya Plibersek due to the location of its tailings dam.

The Aboriginal protection order was granted after Traditional Owner group Wiradyuri Traditional Owners Central West Aboriginal Corporation (WTOCWAC) said the site was of cultural significance and would be desecrated by the project.

The project's owner, Regis Resources, was required to consult the Orange Aboriginal Land Council (OLAC) during the assessment process, with OLAC eventually disagreeing with WTOCWAC's view that the area required protection.

Speaking at the meeting on Wednesday, Orange Local Aboriginal Land Council chief executive, Annette Steele, said she had been originally convinced to oppose the project based on information presented to her that she says had since been proven incorrect.

"I signed that document, and I put my hand up and I signed it based on the trust and the information that was given to me at the time," Ms Steele said, The Australian reports.

"(But when) we said to Regis at the time, we need to get access to your site … and we debunked everything that she had said."

Ms Steele alleged WTOCWAC director Lisa Paton, a former OLALC member, suggested the Council oppose the development based on evidence provided by the Belubula Headwaters Action Group, an organisation Ms Paton was a member of.

Ms Steele said after Ms Paton brought the heritage matter to OLALC's attention, she left the organisation and joining WTOCWAC after OLALC cultural heritage assessors were permitted on the site and dismissed her heritage concerns.

"She used, like Plibersek, Aboriginal cultural heritage to overturn a decision that should have been made under the Environmental Act," Ms Steele said on Wednesday.

"If those laws don't work, change them. Do not use Aboriginal cultural heritage as a political tool to overturn decisions or use it as a strategic framework to keep the greens on side."

Last month WTOCWAC members broke silence to defend their opposition to the tailings dam.

Yanhadarrambal Uncle Jade Flynn, a WTOCWAC member, said the proposed tailings dam site contained artefacts while holding great spiritual importance to Wiradjuri people.

"There's 19 artefact scatters and 18 isolated finds," Mr Flynn told the ABC.

"This proof of occupation and use of that site directly correlates to the intangible cultural heritage of the area. So, that's the creation and dreaming stories and the song lines."

However, referring to evidence submitted by WTOCWAC to Ms Plibersek's office Ms Steele asked Wiradjuri representatives on Wednesday whether they had heard of the blue-banded bee Dreaming, and none indicated that they had.

In describing the conflict between state and federal Aboriginal cultural heritage protection laws, Ms Steele also compared the federal government to mission managers.

"The state government believe and are supportive of us, but it's a federal decision," she said," according to The Australian.

"The federal decisions always outrun the state. It's a bit like mission managers … We know they understand what you want, and they do the exact bloody opposite.

"(They say) we'll tell you what you want, we'll tell you what you need, and that's all you've got.

"(The decision) has undermined the LALC network. And if we don't stand up as a collective, in three to five years' time, our network will be disintegrated.

"Our voices will not be heard. It will be eroded away."

NSW Local Aboriginal Land Councils are calling for NSW Premier Chris Mines to lobby the federal government on federal Aboriginal cultural heritage law reform, to ensure land councils are the offical representatives of Indigenous communities at a federal level.

"This ensures that the voice and authority of the Local Aboriginal Land Councils are respected in federal level decision making, particularly in cases concerning land that falls outside the scope of native title," a position paper put together by the group said, the Herald Sun reports.

"(We want) formal recognition that the authority to act in land matters originates from the Aboriginal people of the area, as represented by the Local Aboriginal Land Council.

"This authority should exclude any claims by other individuals or groups that do not have legitimate representation or consent from the local Aboriginal communities."

OLAC chair, Jamie Newman, said the current legislative situation was creation division between First Nations people

"All that creates is more anxiety, stress, division, breakdown and lateral violence within our communities," Mr Newman told ABC.

"From a government level, they see breakdowns so they don't engage with us, so all we do is take our march towards self-determination backwards."

According to The Australian, a spokesperson from Ms Plibersek's office said the government "is already working with the states and territories on cultural heritage reform".

"The government and the First Nations Heritage Protection Alliance are also working with the land council network," he said.

"The Orange Local Aboriginal Land Council were invited to provide feedback on the section 10 declaration during procedural fairness rounds."