Victoria’s Environment Protection Authority (EPA) is assessing the risks from Stawell Gold's leaking tailings dam, which threatens to flood nearby waterways with toxic water.

Former engineer Ian Magee has told reporters this week that the environmental watchdog's investigation may not comprehensive enough.

Mr Magee is on the environment review committee overseeing Bendigo's gold mines.

He says seeping groundwater from the mine's 100 hectare dam is not the only issue.

“I don't think anybody is seriously looking also at the risk of a sudden discharge,” he told the ABC.

“In other words, if there's a discharge to the surface and it goes into the local creek system and the Wimmera River, and I think that's just not seriously being talked about at the moment and probably should be considered in part of this process.”

EPA acting north-west regional manager Danny Childs says the agency has the Department of Resources onboard to ensure appropriate controls for the tailings dam.

“Over a number of years there have been reports or assessments completed at the gold mine but in particular in recent times the EPA have issued a pollution abatement notice to the mine and that was mainly around a notification that impacts to the groundwater or detection of cyanide beyond the mining licence was identified,” he said.

“We'll assess... [Stawell Gold’s rehabilitation plan] to ensure that it meets the requirements set out in the pollution abatement notice.

“If it has, the recommendations from the plans submitted will be considered in further remedial notices.

“If a non-compliance of the pollution abatement notice is identified, EPA assesses all non-compliances against our compliance and enforcement policy.”

Canadian firm Newmarket Gold now owns the mine.

Newmarket has promised to conduct remediation works on the leaking tailings dam in accordance with its licensing requirements.

The company claims to be working with the Victorian Government on the environmental audit as well as a pollution abatement notice and other regulations.