Offshore exploration during the 1960's for gold off southern New South Wales and for tin in Tasmanian waters did not result in the discovery of economic deposits. Although very rich gold-bearing beach placers were worked in the past, individual deposits were small and rested on bed rock; the chances of locating and exploiting similar deposits offshore appear to be remote. In the case of tin, sub-economic resources were outlined in submerged river channels at a number of places off northeastern Tasmania. Such channels can be outlined by seismic methods, but to locate workable tin deposits in the buried alluvium by drilling alone is likely to be impracticable and successful exploration may depend on the development of other geophysical prospecting techniques. Large resources of rutile- and zircon-bearing heavy-mineral sands have been indicated off the east Australian coast by mining company work, but no economic deposits have been found to date. Studies of the morphology of the eastern shelf by the Bureau of Mineral Resources have revealed linear features believed to be related to shore lines developed during Quaternary low sea-level still stands. The most persistent of these off northern N.S.W. are about 105 m, 85 m, and between 35 and 45 m below present sea level. A widespread change of slope at a depth of 20–30 m marks the base of the main body of the present-day paralic-zone wedge of sediment, but seismic profiles indicate that a veneer of recent sediment commonly extends seawards into water depths of about 100 m. Much of the outer shelf is floored by relict sediments and extensive areas of bed rock crop out on the middle shelf. Virtually all sub-surface data from company drilling for heavy-mineral sands relates to the present-day paralic-zone wedge of sediments; this wedge includes undisturbed sedimentary sequences deposited during pre-Holocene high sea-level periods. No large economic-grade deposits have been outlined by this work offshore, and there is reason to believe that the bulk of the heavy-mineral deposits formed during Holocene and previous high sea-level stands are located above present sea level. In addition, the best-developed submerged strand lines are in deep water probably inaccessible to mining. Nevertheless, the possibility that substantial deposits occur offshore in moderate water depths exists. Outcrops of bed rock are extensive in the mid-shelf zone in the southern part of the area, but north of 29° S they are much less common. Significant areas with sediment thicknesses greater than 20 m in water depths of less than 60 m occur to the east of Newcastle, to the southeast of Smoky Cape, and to the north of Yamba. Two sediment sequences, an upper and a lower, are recognizable. Highest heavy-mineral values in surface sediments occur offshore from the Permo-Triassic basins. Subsurface enrichment may occur at the junction of the upper and lower sequences, or where the upper sequence overlies basement. The abundance of heavy minerals is a function of the total sediment throughput, and the intensity and direction of shore-line sorting, so that the highest potential for accumulation occurs in the northern part of the area. The most likely prospective areas occur mainly near Cape Byron and near Sugarloaf Point. These areas have been defined on the basis of the thickness of sediments, the depth to the base of the upper sequence, the distribution of ancient strand lines, and the abundance of heavy minerals in the surface sediments.