The gym was closed last week when tests - undertaken to comply with the Health and Safety at Work Act - revealed traces of asbestos on the rafters and windowsills.
The tests, carried out by Southern Insulation, revealed no trace of asbestos in the air, but a sample from one of the mats returned a positive result.
"The air test came back clear but all that proves is, at the time, there was nothing in the air,'' Dunedin Gymnastics Academy executive committee member Michael Eathorne-Gould said.
"What they think is most likely is events like high winds and some other environmental factors may have played a part.''
In more bad news, Mr Eathorne-Gould, who is also the head of the club's facilities subcommittee, said the advice the club had received suggested any insurance claim for the lost equipment would be unsuccessful.
Academy president Louise Taylor said advice from an insurance broker was the loss of the equipment would not be covered.
Insurance covered only sudden events, so the contamination of the equipment, which took place over many years, was not covered.
The club was unlikely to proceed with any insurance claim, she said.
The losses will exceed $100,000, Mr Eathorne-Gould said.
"Our estimate is there is $120,000 worth of equipment that will need to be written off.''
The club can salvage anything metal, wooden or covered in vinyl.
"We've salvaged maybe 30 vinyl-covered mats and maybe 20 or 30 other vinyl covered pieces of equipment. All of the bars and all of the beams and any equipment made of wood or metal. The tumble trampoline can be salvaged.''
However, some of the equipment which cannot be saved included 21 large landing mats, valued at about $3000 apiece, and six large floor mats, with a replacement value of $2500 each.
It is a major setback for the club, but Mr Eathorne-Gould hoped other clubs could help.
"We have asked GymSports New Zealand to put out inquiries on our behalf to other clubs around the country.''
The club is seeking new premises and is talking to several potential landlords.
