"The vast majority of us are not benefiting from the operations, yet we are losing property values and we feel disempowered in our own community," Distressed Residents Action Team spokeswoman Collette Spalding said.
"I know from experience that homeowners will be very, very upset at thought of more mining impacting on them.
"I've spoken to a real estate agent today who said it's going to have a huge effect on a lot of properties.
"Really, it's eating away at our town and destabilising people's long-term security in the investment of their homes."
Ms Spalding, who spent yesterday meeting worried residents and company representatives, believed any protest action would depend on what offers were made to homeowners.
Paul Roycroft said the mine had reduced his house value to $100,000 but said he had been assured the company would "top up" the sale price.
However, Green MP Catherine Delahunty told the Herald she had "huge concerns" about the programme's effect on the community.
Some residents were "terrified" about the proposal and wanted the company to buy out their homes, Ms Delahunty said.
"People in Waihi have told me the worst shaking and blasting effects don't come from opencast mines, but from the underground mine, so it's not good news for the environment and will have a big impact on property values.
"It should be one of the wealthiest places in the Coromandel, yet they're defined by the social deprivation index as being at the bottom of the heap. It's a real concern."
John Drummond of environmental group Coromandel Watchdog said residents would have the "uncertainty of future pit expansions on their homes, will bear the brunt of the continuing blasting, and have the legacy of a mounting toxic waste dump at their back door".
But Newmont Waihi Gold general manager Glen Grindlay said the new programme would ensure the continued employment of 700 workers and the sustainability of the local economy, including businesses, schools and social services.
Mr Grindlay said the project "may be daunting for some residents" but modern underground mining techniques meant there would be little environmental effect.
"We have successfully operated an underground mine near residential areas in Waihi for seven years and have in place a number of programmes to minimise and mitigate any adverse effects."
The company would meet affected residents, opening an information kiosk and would continue to offer payments to homeowners.
Hauraki Mayor John Tregidga saw the council's initial role as being a "listening post" for the community.
He had arranged to meet those affected and take any concerns to the company.
