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

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.

steveo,

I agree, they could fall a tad more yet IMO.

I will wait until closer to production, as I feel they will fall further.