Ballarat Goldfields is an Australian gold explorer and developer, with a strong
portfolio of projects primarily focused on the highly prospective Ballarat gold
province in Victoria.

Situated in one of the most famous historical gold mining regions of Australia,
Ballarat produced over 12 million ounces before it's premature closure, around
the time of the first world war.

In 2004, for the first time following discovery in the 1850's, the leases over
the entire Ballarat field were consolidated under the sole ownership of BGF.
This has resulted in the company constructing a comprehensive geological model
of the entire field, demonstrating what many had suspected, that Ballarat had
massive unexplored prospectivity.

BGF completed a pre-feasibility study in 2004 which proposed an initial
underground mine at Ballarat East, with twin access declines servicing the
haulage and ventilation. The mine, based on BGF's geological model, has a life of 21 years, and would achieve an average production rate of approximately
200,000 ounces of gold per annum.

Website For Own Research
http://www.ballarat-goldfields.com.au

Top 20 Ordinary Shareholders Hold 69.66% of Issued Capital: 5th July 2006

Diggers & Dealers - Investor Presentation ASX and Media Release: 9th August 2006

Ballarat-Goldfields Annual Report2006

Ballarat East Revised Development Strategy ASX and Media Release: 7th September 2006

Depends on the price given on the 2.5m sale which justifies a price rise.... Price could fall further to 8p I think, hold tight and wait. I need to see news on production, fall is due to global gold prices falling which have been multiplied within stocks, some oversold. At 9p this becomes a buy for me once again.

Explosive,
I know this is not the SER thread but it seems to quite a quiet thread for us to talk...
I had 40% of my portfolio tied up in SER [went OTT on last top up looking for a quick profit and then the shares plummeted so I had no trading pennies at all and an overdraft because of my over zealousness[if there is such a word]
I sold some for the overdraft but got a poor deal from hoods[0.5 when elsewhere was 0.7p, my fault I asked for 'at best'. didn't do that the next time set a min of .95 and they gave me 1.0p maybe they felt guilty!]
The market then went wild so I sold some more out at 1.0p. I now have half my original holding. I bought some more CHP as I have been wanting to but not had the cash[catch 22 i think]
I have a little left over so will have a look on mon/tues to see if I can buy some more SER [ I will buy some more, just at what price. They will go up I'm sure but I am now not over drawn from spending money I shouldn't have.]
It was a tough call as to whether to buy CHP or more BGF but i think CHP has stablised a bit more at this time. what do you think?
Alex

Sorry to be dim, but why would you want to put your money in this company? It sure doesn't look very exciting to me, and by the looks of it has very low liquidity. Also, though it is not immedaitely visible, I would guess that its cap is also tiny.

If you want mining shares, then perhaps look at (in no order at all) ENK or KAZ or ANTO or POG for a safer bet and potentially better return, or at lest that is my view ..... By the way, I currently hold none of them!

Alex, think you made the right decision with CHP, I also hold and lots going on at the moment. A good pick I think from Sharesure. As for your sale in Sefton, again you have done very well, the sp has fallen so I wish you all the best your timing getting back in. Fingers crossed you've settled some debts and get a bargain with SER!!

Cynic, low liquidity, are you mad?? 136.6m market cap which I think is a good justification for this company. 1,188,150,000 sharers in issue equals an 11.49p sp. With a discounted 10% increase in gold global demand p/a I think organic growth alone should generate a good return.... Should the economy warm slightly even better and I personally think it will.... Also current sp is around 11.49p in high risk time for BGF, as soon as producing 100,000 ozs a year risk falls and so should see an increase in sp..... Yeah a risk but I think will out perform the likes of ENK etc. above. KEN also a good stock but not one I hold.

What a shit day for BGF, -10% but then and again as per my post on the 20th a fall in sp I thought would happen. I don't think this is quite over yet either and am looking to top up at 9p or below....

Might be a little quiet in the coming days, my Selftrade broker account has been updated and moved to another platform and its going to take me a while to figure it all out.... Can't even get simple data without lots of clicking like % increase today and bid price..... :-(

Explosive,
happy computing, hope you back on line soon
Alex

ASX and Media release: 5th July 2006


Top 20 Ordinary Shareholders


Ballarat Goldfields NL (BGF) advises that following the notice by Mason Hill
Asset Management dated 14 June 2006, ceasing to be a substantial shareholder,
the top 20 registered holders of ordinary fully paid shares as at 30 June 2006
are as follows:

Rank Name Units Held at % of Issued
end of period Capital
1 NATIONAL NOMINEES LIMITED 180,263,853 15.17
2 WESTPAC CUSTODIAN NOMINEES LIMITED 133,914,284 11.27
3 J P MORGAN NOMINEES AUSTRALIA LIMITED 107,249,482 9.03
4 ANZ NOMINEES LIMITED 68,382,595 5.76
5 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 57,687,975 4.86
6 CS THIRD NOMINEES PTY LTD 53,063,263 4.47
7 HSBC CUSTODY NOMINEES (AUSTRALIA)LTD 40,910,597 3.44
8 INTERNATIONAL COMMODITY FINANCE LIMITED 32,438,266 2.73
9 CITICORP NOMINEES PTY LIMITED 25,697,282 2.16
10 NORTHCLIFFE HOLDINGS PTY LTD 24,600,000 2.07
11 COMPUTERSHARE CLEARING PTY LTD 22,163,942 1.87
12 RBC SECURITIES NOMINEES PTY LIMITED 20,354,612 1.71
13 FORTIS CLEARING NOMINEES P/L 13,602,084 1.14
14 ALCHEMY SECURITIES PTY LTD 10,000,000 0.84
15 MR COLIN SMITH + MRS ADRIENNE SMITH 9,990,000 0.84
16 MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LTD 6,467,066 0.54
17 MECHANISED MINING SERVICES PTY LTD 5,490,000 0.46
18 MR JOHN S HEWSON + MRS ROSEMARY HEWSON 5,400,000 0.45
19 RFC GROWTH FUND LIMITED 5,150,000 0.43
20 LOFIVA PTY LTD 5,045,490 0.42
Total Top Holders Balance 827,870,791 69.66

LONDON (AFX) - Ballarat Goldfields NL has increased its total mineral resources of gold at Ballarat East by 0.3 mln ounces to 1.4 mln oz, including an indicated resource of 0.24 mln oz.

This rise is due to the company finding higher gold grades at depth, the discovery of a significant new fault and upgrading of 240,000 oz into the 'indicated resource' category.

Ballarat managing director Richard Laufmann said: 'The inclusion of Indicated Mineral Resources from the drilling program at Ballarat East is a significant result, highlighting the ability to develop gold reserves at Ballarat East based on drill hole data.' newsdesk@afxnews.com tc

Explosive,
am bailing on BGF for a 40% loss as want to invest elsewhere and need some funds. i will keep on my watch list to see if anything will make me want to return to it in the future.
Alex

I bailed out too, not going anywhere fast, better opportunities elsewhere.

Just a quick question.

Does anyone know the anticipated cost of production per oz?

Not yet no

explosive,

With respect, how can you make an informed judgement if you can't work out the probable profit?

I like the story here, the mine is in effect under the town!, and this is an histrical site, and have wanted to invest for some time. I did notice the reference to "problems" in the workings delaying the startup, which probably accounts for at least some of the drop in SP.

I would like to know a little more before I made an investment decision, but am keeping this on the watchlist.

Probable profit can not be calculated at the moment as the mine and blue whale fault is still being logged. Under a month ago .4 million extra tones was added to reserve estimates. Cost of production can only be calculated once reserves and their grades have been fully mapped. I choose to invest based on the evidence so far, the strong financial position of BGF and the very good possibility that reserves will grow further as higher grades are uncovered. The initial production phase is only looking to produce 100,000 ozs of gold per year, theres plenty of profit and life in this mine. I just choose to get in early where as other investors way well make there play in 9 months time. Mine is early as I believe the gold price alone to reserves is enough to produce an early profit and further reserves will be found as the blue whale fault is fully mapped. You must remember that BGF is exploring and developing production together, this I believe when time comes to start producing will move the company straight into profit and should shunt the sp.

Of course do your own homework and only invest once your comfortable, I must stress though this play is a 3 year min play. You may choose to take advantage of the current low sp as I'm doing but don't expect to see a return just yet! I'll endevour to answer more questions if you have any but please be patient as quite often I don't post on the BB's if I feel I don't have anything further to contribute.

Alex - Good luck in your next play, a wild guess would be your moving all in on another oil & gas player!! I currently hold SER, RIFT, GOO, CHP, FTO, BLR within this market segment. Thats enough for me as try and keep a rounded portfolio.

Explosive,

Thaks for your informative reply.

I have been looking around their website, and found this very recent presentation given to the recent Diggers and Dealers Forum in Australia.

Click HERE

You may wish to include the link to the presentation in the header, as it's an excellent view of the state of the company right now.

Explosive,
you guessed right topped up on GOO.
Alex

Thanks for the link Andy, have added it to the title header. Would also be intrested to hear your views on BGF, as you've seen from the thread not alot of intrest however I have to wonder whats drawn you to this stock?

Alex, good choice, in GOO also and in profit so won't be topping up further unless the sp slips for no reason!! Good luck

RNS JUST OUT

Ballarat Goldfields NL
ASX and Media release: 7 September 2006

Please see our website www.ballarat-goldfields.com.au for the release complete
with pictures.

Ballarat East Revised Development Strategy

KEY POINTS

*Deeper higher grade gold Resources, influenced by and adjacent to the
Blue Whale fault, drive the revised development strategy.
*New plan expected to deliver gold at a rate of 250,000 ounces per annum
in 2009.
*Cash operating costs planned to fall below A$300/oz when in full
production.
*The Blue Whale fault to the north, as yet un-explored, provides enormous
upside potential from the new development plan.
*Estimated funding requirement of approximately A$120 million.
* Funding negotiations well advanced.

SUMMARY

Ballarat Goldfields NL (BGF) has undertaken a comprehensive review of its
development strategy for the Ballarat East project. The outcome is a new and
substantially superior development plan, which emphasises accelerated access to
the deeper, higher grade Resources. As a result, an increase of 25% in the
planned mine production rate should be achieved.

Early development in the upper levels of the mine encountered intermittent
geological features and unmapped historic mine workings, which negatively
impacted development advance rates and the availability of shallow ore sources.
The experience, from accessing these early stopes, lead to significant advances
in understanding the gold mineralisation of the field and, coupled with the
discovery of the higher grade features associated with the blue whale fault,
provided the framework for this review.

The new development plan, based on this strategy, incorporates:

* Relocating a proposed ventilation shaft to the southern end of the mine
and equipping it for haulage. This will provide faster access to higher
grade zones, whilst boosting haulage capacity and flexibility.
* The substantially higher grade of the deeper Resources allows BGF to
develop a production plan which delivers the higher production rate, of
250,000 ounces per annum, at a lower mining rate of 600,000 tonnes per
annum. In full production, cash operating costs are expected to be under
A$300/oz.
* The new plan brings forward major shaft and decline development and
by-passes upper level potential ore sources deferring 2007 production into
2008. This allows BGF to deliver higher production rates with increased
development flexibility in 2008.
* Enhanced understanding of the significance of the Blue Whale fault has
substantially improved the confidence in delineating further high grade
Resources. In particular, potential to the north is yet to be explored or
incorporated into the production plan.

The recent exploration results and the revised development plan at Ballarat East
put BGF in the enviable position of developing an exciting and truly
significant, low cost, long life gold project. The Blue Whale fault and its
implications for grade and extent of mineralisation at depth may prove to be one
of the most exciting discoveries in the history of the Ballarat field.

BACKGROUND

GEOLOGY

Exploration drilling at Ballarat East has continued to validate the geological
model. The June 2006 Resource estimate of 3.9Mt @ 11.3g/t for 1.4Mozs includes
an Indicated Mineral Resource of 0.6Mt @ 13.4g/t for 0.24Mozs. This was a 27%
increase over the previous Resource and deeper drilling continues to delineate
zones of mineralisation with gold grades higher than the historical average from
the upper level mines. Our success in using the model to target resource
drilling demonstrates our ability to convert Exploration Potential to Resource.



Figure 1: June 2006 Resource, 1.4Moz (colour), with Exploration Potential (grey)
and the Blue Whale Fault

Earlier this year, drilling at depth intersected the largest fault ever
discovered in Ballarat. Named the Blue Whale fault, we now have over 20
intersections confirming its size and location. This presents tangible evidence
that it may have been the pathway for gold mineralisation for the entire
Ballarat East field.

Historically, the size of fault offset was directly related to the size of
associated gold lodes. The Blue Whale fault, with an offset of over 100 metres,
appears to be up to 5 times larger than the historically largest producing
faults in the field. The fault has been intersected at a depth of 600 metres
below the surface at the southern end of Ballarat East. Only a small section of
its available strike length has been drilled and, already, a Resource of 0.3
million tonnes @ 20.6 grams per tonne for 0.2 million ounces has been delineated
adjacent to the fault.

Our main target area lies to the north in an area not yet explored. The surface
projections of these targets correspond to the largest and most prolific
original alluvial workings, and lie beneath the highest concentration of
historic underground gold production.


Figure 2: Schematic diagram illustrating the Blue Whale fault (shown in blue)
dipping beneath the historical workings to the west. View looking from the
north-west.

Due to the nugget effect (very coarse gold) and the style of mineralisation in
Ballarat, the economics of mining at Ballarat East will be improved by
developing a more detailed understanding of the nature and timing of the quartz
veining.

Recent detailed geological mapping of the first stopes has revealed new
information, potentially enabling BGF to differentiate between high grade and
low grade mineralising events and associated quartz veins.

This discovery suggests there are several identifiable generations of quartz
veining, and that the high grade coarse gold is associated with flat to east
dipping veins that extend away from the large west dipping faults. The high
grade quartz veins are also recorded in the historical literature when detailed
mapping of the vein sets has been illustrated (Figure 3).



Figure 3: Cross sections showing the relative position of high grade zones and
generic drill plan to define reserves. The historical section shows similar
features from the Last Chance mine "pug lode" (after W. Baragwanath, 1923;
Geological Survey Report, Memoir 14, Figure 58).


REVISED DEVELOPMENT STRATEGY

The framework for a comprehensive review of the development strategy was
provided by growth in the Resource base, higher gold grade at depth, the
discovery of the Blue Whale fault and experience gained from access to the first
stopes. This led to changes in the development plan to focus on accessing the
higher grade zones at depth, whilst prioritising development to Resource blocks
well below the historical workings.

The new plan has additional haulage capacity, achieved by relocating the planned
ventilation intake shaft to a position close to both the decline portal and the
processing plant and equipping the shaft for haulage. This will provide earlier
access to the deeper high grade areas at the southern end of Ballarat East,
including the Blue Whale fault.

The original development plan, outlined in the June 2004 pre-feasibility study,
used twin access declines in the upper levels of the mine to provide drilling
platforms, haulage and ventilation, and 4 internal declines equally spaced along
the strike of the field to access ore horizons. (Figure 4)

The decline system was to be supported by two ventilation shafts, the
now completed North Prince Extended exhaust shaft, at the southern end of the
field, and a proposed air intake shaft at Golden Point, approximately midway
along the strike of the field.

The plan was effectively a generic development plan based on a uniform grade
profile and designed to fully develop the field whilst accurately estimating the
decline development required. Initial production from the upper levels was to
fund the ongoing development of the mine.


Figure 4: 2004 Pre-feasibility development plan.


The new development plan is similar in concept to the previous plan utilising
decline access to all planned mining areas with production using mechanised
stoping methods. The overall underground mine development metres are similar in
both plans but the new plan brings forward major shaft and decline development
prior to production ramp-up.

The main intake ventilation shaft, now planned to be located in the
south, will be developed to a depth of 600 metres below surface and is expected
to take 9 months to complete. Further development in the lower levels, which is
expected to take around 9 months, will be required prior to hauling the first
ore. Exhaust ventilation is provided by raises from the mining zones to a
collection drive (Sulieman decline) which is connected to the exhaust
ventilation shaft. This drive will also provide a diamond drilling platform for
Resource definition.

The new decline layout is expected to provide more efficient access to the
Resource with development rescheduled to provide more rapid access to the higher
grade blocks located below 400 metres depth.


Figure 5: 2006 design, ventilation shaft moved south and First Chance decline
now 200m below the Sulieman decline.

PRODUCTION SCHEDULE

The revised production schedule targets an annual production rate of 250,000
ounces in 2009 from 600,000 tonnes of ore. It achieves this by prioritising
access to the higher grade Resources, defined below the historical workings,
with estimated head grade rising from around 9g/t in 2008 to around 14g/t in
2010. This compares to an estimated 8.4g/t in the original plan. The throughput
rate matches the current installed capacity of the processing plant, 600,000
tonnes of ore per annum.

The revised plan based on Resource and Exploration Potential gives a 20 year
mine life delivering over 14 million tonnes of ore. Using the Exploration
Potential grade of 8.4g/t, recovered to the surface, this would produce
approximately 4 million ounces during the life of the mine.

The impact of the Blue Whale fault and higher grades at depth is not yet
reflected in our published Exploration Potential and we expect to update these
calculations in the coming 18 months.


Figure 6: Production estimates from the revised Ballarat East development plan.


Figure 7: Major underground development overlaying current Resource plan.

FUNDING REQUIREMENT

The new development plan now brings forward major mine infrastructure prior to
ramping-up production. The funding required for the new plan is estimated to be
approximately A$120 million. This covers the accelerated development of the
southern shaft, all decline and mine development and additional surface
infrastructure.

BGF intends to implement an appropriate financing structure which complements
business risk and aims to fully fund the project until it is producing a
positive cash flow, expected in 2008.

BGF is currently in advanced negotiations with potential funding providers and
will provide further details once the structure and timing is determined.

Note:

The information in this report that relates to Exploration Results, Mineral
Resources and Exploration Potential is based on information compiled by Mr
Steven Olsen. Mr Olsen is an employee of Ballarat Goldfields NL, is a member of
the Australian Institute of Mining and Metallurgy and is a Competent Person
under the definition of the 2004 JORC Code. The Exploration Potential described
above is conceptual in nature, and there is insufficient information to
establish whether further exploration will result in the determination of a
Mineral Resource. Mr Olsen consents to the publication of this information in
the form and context in which it appears. The terms Exploration Results, Mineral
Resources and Exploration Potential are used in accordance with their
definitions in the 2004 JORC Code, which is available at www.jorc.org.


The future estimates, forward-looking statements and any other prospective
financial information set out in this document by Ballarat Goldfields NL are
inherently uncertain, are predictive in nature, may be affected by inaccurate
assumptions or by known or unknown risks and uncertainties, and may therefore
differ materially from results ultimately achieved or events ultimately
occurring. None of these estimates or statements is or will be or is intended to
be a representation or warranty as to any future matter on which any person can
rely.


For further information, please visit our website www.ballarat-goldfields.com.au
or contact Joel Forwood, Manager Corporate and Markets, on 03 5327 1111



This information is provided by RNS
The company news service from the London Stock Exchange