Update: 1pm Monday
Police have confirmed that a person has died in a house fire near Dalton.
Emergency services were called to the home on Jerrawa Road, 3km southwest of Dalton at 8.50am, after shearers and other people working at the wool growing property alerted them to the blaze.
Addressing media at the site, Inspector Matthew Hinton said a person's body had been found inside the home after the fire was extinguished. The person is yet to be formally identified.
He would not confirm their age and gender, saying only some family members had been informed.
"It's a devastating incident," he said.
"Everyone knows everyone in a rural community. We've told several family members . The next stage now is to examine the cause."
Inspector Hinton said firearms and ammunition kept in safe storage inside the home had sparked explosions, temporarily keeping firefighters back.
The home was destroyed. The blaze is not being treated as suspicious.
A Police Rescue unit is enroute from Goulburn to remove the body. A crime scene investigation unit is also headed to the site to investigate the cause.
The death will be referred to the NSW coroner.
Meantime, friends of the family have been coming and going from the property this morning paying their respects. It's understood they are long-term residents well known in the area.
RFS operations officer Daniel Osborne said 20 personnel fought the fire, including Brigades from Dalton, Gunning, Broadway and a Fire and Rescue pumper from Yass attended. A bulk water carrier was also onsite.
He confirmed that the explosions inside suspended firefighting for a short time but following advice, resumed soon after.
Update: 11.02am Monday
Loud bangs from exploding ammunition have been heard at the Jerrawa Road house fire in Dalton.
The explosions temporarily pushed back firefighting efforts, for safety reasons, Inspector Matthew Hinton of Yass Police Station said.
However, firefighters have resumed attacking the blaze about 11am.
They expect to continue working on the blaze for another 30 minutes.
The fire has been contained to the house at this stage, sparing lots of outlying sheds close to the property as well as surrounding trees.
Winds are expected to pick up later today, so firefighters are acting quickly.
Smoke can still be seen billowing from the house.
No patients have been transferred to hospital, but paramedics remain on standby.
Earlier: 10.13am Monday
Dozens of firefighters are battling to extinguish a house fire at a rural property in Dalton.
They've been on the scene for well over an hour, with emergency services called about 9am by shearers working nearby.
Smoke can be seen billowing from the house, which is still well alight.
Paramedics and police are also on scene, with the situation under direction by the firefighters.
Police say they are unsure of the fire's cause at this stage.
They will establish a crime scene once firefighting efforts have ended.
Fire brigades have been called from the Upper Lachlan, Gunning, Crookwell, Broadway and Dalton to assist.
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