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

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

explosive

There does not seem to be much interest in BGF I got in 2 months ago thinking they have a lot of potential and a positive RNS today do you still think the same ?

Explosive,

Am I reading this correctly, 2007 production startup has been deferred until 2008?

Hi Andy

I only had time to have a quick read, had a lot on to day. a positive Rns I thought ! 2008 TO deliver higher production rates! but did not read it all yet,
Do you hold BGF ?

smiler o,

Not at the moment but it is on the watchlist.

If however, If I am interpreting the RNS correctly, and production start has been delayed, I would view that as a negative for now.

Andy

Thanks for that, I guess its just better than the RNS; I have had to read lately on oxs & aen ! ! hopefully one to look forward to !

Smiler o,

The price is down 10% today, -1p, on no volume.

I wonder if my interpetration of production being delayed a year is correct?

Andy

I think your right, I have been keeping an eye on them, I need to sell oxs to get some more funds,could be a long wait, I hear you saying !! any more thoughts on them ?

Production is set for 2008-2009 yes. I am expecting to see higher reserves and better grades as the blue whale fault is fully mapped.

250,000ozs per year @ $300oz cost. @ $500oz current discount price thats $200oz profit equating to $50mil profit p/a. (Personally I think gold prices will rise further).

Director buys also today a good sign the boards happy. Price took a slip from earlier in the year to production slipage. DYOR of course.

Updated the title footer and added some links to important info.

Off to Antwerp in a few hours, back in a week.

explosive,

"I have to wonder whats drawn you to this stock?"


I have only just seen this question which you asked a few posts back, so apologies for not answering sooner.


I guess the first thing that attracted me to BGF was the historical link, and that the mine is actually under the town!

But the main reasons I am watching BGF is that the company ticks quite a few important boxes for me;


I currently prefer near to production small mining stocks.

I have a preference for gold and zinc, as I believe the price of both has much further to rise, particularly AU, if some of the doom and gloom re the US $ comes to pass.

I prefer low cost producers,

I perefer the country to be politically stable, and am currently avoiding FSU, (although I am excepting AVM in Tajikistan, but even that is currently only on the watchlist).

I want companies that have potential to expand the resource.


Naturally, the delay in production startup by a year is disappointing, even though there is a good reason being spun out to cover it.

I had read previously that they had some problems in the mine itself, so this at least partially confirms those rumours I guess.

BGF remains on the watchlist, and I feel it will stay there until such time as production startup approaches, and I am happy I resisted the temptation to chase the price when it rose earlier this year.

watch and come back in a year I'd say.

steveo,

I agree.

RNS - 2,500,000 shares issued at 4.72 Australian cents! (around 2.25p)


Ballarat Goldfields N.L.
18 September 2006

BALLARAT GOLDFIELDS NL
Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B


New issue announcement,

application for quotation of additional securities

and agreement


Information or documents not available now must be given to ASX as soon as
available. Information and documents given to ASX become ASX's property and may
be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/
2001, 11/3/2002, 1/1/2003.



Name of entity
BALLARAT GOLDFIELDS NL

ABN
50 006 245 441


We (the entity) give ASX the following information.



Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough
space).

1 +Class of +securities issued or to be issued Fully Paid Ordinary
Shares
------------------------
------------------------
2 Number of +securities issued or to be issued (if 2,500,000
known) or maximum number which may be issued ------------------------
------------------------
3 Principal terms of the +securities (eg, if Fully Paid Ordinary
options, exercise price and expiry date; if Shares
partly paid +securities, the amount outstanding ------------------------
and due dates for payment; if +convertible
securities, the conversion price and dates for
conversion)

------------------------
4 Do the +securities rank Yes
equally in all respects from
the date of allotment with an
existing +class of quoted
+securities?

If the additional
securities do not rank
equally, please state:

the date from which they
do

the extent to which they
participate for the next
dividend, (in the case of a
trust, distribution) or
interest payment

the extent to which they
do not rank equally, other ------------------------
than in relation to the next
dividend, distribution or
interest payment

------------------------
5 Issue price or consideration 4.72 cents
------------------------
------------------



This puts a little bit of extra cash in the coffers, I suppose, but it's annoying ofr a PI to see this going through at such a low price.

whats happened to the SP. i bailed out at 11p with a big loss, glad i did.
Alex

same here, would like to get it back one day, but that day is a way off yet!!

I'll sit tight on my holding I think, confident these will turn around nearer to production too. May even buy further stock with the lows. Should have been out when I was 30% up, oh well this is trading.

I picked this up on another BB, and it doesn't read too well IMO!


http://www.minesite.com/storyFull5.php?storySeq=3808

Minews Story Date: September 21, 2006

Ballarat Goldfields Finds Major Fault In Its Plans

By Rob Davies

One of the worst things that can happen to a mine geologist is to discover something totally unexpected. And when that thing radically changes everything you thought you knew about the deposit you know that the next conversation with the mine manager is going to be tricky. Such must have been the feeling of the chief geologist of AIM and ASX listed Ballarat Goldfields when he discovered the existence of the Blue Whale Fault. Apparently this is the largest fault ever discovered in the field and is described as having a significant impact on the gold mineralisation of Ballarat East.

A seasoned observer might interpret that as saying that it completely changes everything the geologists thought they knew. In any event it has had a dramatic effect on the mine. Production will not now start until 2008 and the mine plan is being drastically revised and will cost an additional A$92million to implement. To try and ameliorate all this bad news the company did say that the resource has been increased by 27 per cent to 1.4 million ounces and that when production does start it will be 25 per cent more than it promised before. It is important to remember that this is a resource and not a reserve. The nuggety and erratic nature of gold distribution in the quartz veins means that the normal standards applied to generate an ore reserve cannot be used in this location.

Moreover, it only tells part of the story because the company has discovered it actually had less gold in the upper levels as a consequence of earlier mining being more extensive than first thought. That means the addition of new resources must be substantial to compensate for the losses and increase the overall figure. A table to reconcile the changes to resources would considerably help analysis of all these changes. In any event details about precisely where and how much ore there is hasnt stopped the company building a mill and sinking shafts and declines to access the gold it thinks is there, or was before the fault moved it many millions of years ago. The corporate video still refers to the mill starting at the end of 2005 so the scale of the setback and changes is large in anyones language.

Despite these problems the market still thinks the company is worth 100million, albeit that is less than half the value it was at the peak. But for that you get a mill worth A$30million in the books and A$26million of cash. Unfortunately, you still get pretty much the same management team. True, Colin Smith is no longer Chairman. He has been farewelled into retirement, a creative use of the English language that almost matches the companys geological expertise. He is replaced by Alastair Maitland who moves up from non-executive director, but the rest of the technical team is intact.

A schoolboy error this team has made is to underestimate the amount of gold removed by previous miners in times past. This is a factor that many miners have experienced when opening up old workings. By going deeper the miners will avoid these voids, and expect to encounter higher grades, but the cost and delay of the extra work will have a big impact on the valuation of the mine. How much of that is priced in to the shares is probably still a matter of debate. The company didnt return calls to elaborate on these issues.

very grim reading, not going to be much support for these now.