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,

"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.

followed this for some time as a fan of Aus but this is looking like the typical description of a small miner " a hole in the ground into which money disappears"

maddoctor,

LOL!


RNS out today!


Ballarat Goldfields arranges 100 mln aud debt facility
AFX


LONDON (AFX) - Ballarat Goldfields NL said it has a non binding term sheet in place for the provision of a 100 mln aud delayed-draw financing facility which, when combined with current cash, will provide the required 120 million aud funding to implement the improved development plan for Ballarat East.

The debt facility is being arranged by RFC Corporate Finance Ltd and is subject to a number of conditions, including third party due diligence, final credit approval and legal documentation.

Ballarat said the new development plan for Ballarat East provides greater certainty to production and cash flows by bringing capital development forward.

newsdesk@afxnews.com

rw



COPYRIGHT



Copyright AFX News Limited 2005. All rights reserved.

Hi Andy . may come good one day.

Well we all read it differently I suppose, the article doesn't mention higher grades found within the fault or the increase in company reserves. Oh and Andy you posted only half of the RNS, the rests below.

As stated previously, the new development plan for Ballarat East provides
greater certainty to production and cash flows albeit by bringing capital
development forward. Highlights of the improved development plan (more detail is
provided in previous announcements) include:

* greater certainty to achieve higher production rates of around 250,000
ounces of gold per annum (previously 200,000 ounces per annum) with
increased flexibility to deliver a consistent production tonnage to the
process plant;

* concurrent access to the substantially higher grade gold mineralisation
at depth, in the southern and northern areas, by re-locating a proposed
ventilation shaft to the southern end of the mine and equipping it for
haulage;

* cash operating costs falling below A$300/oz when in full production;

* conservative rates of development for underground access and shaft
construction given the successful completion of the North Prince Extended
ventilation shaft in 2005 and on-going development experience;

* by-passing potential upper level ore sources, above the base of the
historical workings, which are proving to be difficult to access and
unreliable for consistent large scale production. These areas may provide
a supplemental ore source at modest production rates once full scale
production has commenced; and,

* the ability to carry out resource definition drilling well ahead of
production.

BGF is committed to the improved development plan for Ballarat East and will
provide further details on the debt facility once it is finalised.

At todays prices in '09 we'll be producing 250,000 ozs gold p/y at a cost of under $300 per oz. Cost of production p/y $75m, price of gold today $576.2 per oz. At todays prices turnover would be $144m, less cost of production profit would be $69m p/y. Just a thought!!

http://www.theage.com.au/news/business/talks-boost-ballarat-goldfields-hopes/2006/10/13/1160246327180.html

Trading halt, merger!

explosive, I already hold whats your thoughts ?? back up to 10p i see

BALLARAT'S chances of being revived as a major goldfield have received a boost, with project owner Ballarat Goldfields (BGF) placed in a trading halt pending the outcome of "merger" talks with an unnamed suitor.

Favoured speculation among brokers was that the world's biggest gold producer, Barrick, could be about to make a 30-a-share takeover bid, valuing the company at $360 million.

Other tips for potential suitors included St Barbara and South Africa's Gold Fields.

Fellow Victorian gold producer Perseverance was ruled out because it has its hands full with its takeover of Stawell goldminer Leviathan. CSM was also ruled out because of its focus on expanding its nickel business.

The takeover talks follow the collapse of BGF's share price after its revelation in early August that it needed to raise $100 million to develop a bigger and better redevelopment of the old goldfield, one based on bypassing old workings altogether.

RFC Corporate has been working on raising the required $100 million.

re post 146 got that wrong then!! ;o(

Looks good to me! Stability with growth at times of high prices..

LONDON (Mineweb.com) --ASX and NASDAQ listed Lihir Gold, operator of Papua New Guineas major gold mine producing close to 600,000 ounces a year, has announced a proposal to merge with ASX listed Australian gold producer, Ballarat Goldfields. The merger, recommended by the Directors of both companies, would give PNGs major gold producer a foothold in the Australian gold mining sector too.

Lihir operates the mining operation of the same name on Lihir Island and is southeast Asias most productive gold mining operation after Freeports Grasberg copper and gold mine in Indonesia. After a setback in output due to a serious landslip in 2005, the mine is planning an expansion to some 800,000 ounces a year over the next two years.

The current strength in the gold price has given Lihir the financial muscle to expand its operations into Australia with the Ballarat merger and the cash availability to see the latters current expansion plans through to fruition.

According to the joint statement from the companies to the Australian Stock Exchange, The combined company will have two world class assets in Australia and Papua New Guinea, a strong growth profile, reducing costs and significant exploration opportunities. The company is expected to achieve annual gold production of more than 900,000 ounces in 2008, around 1 million ounces in 2009, and well in excess of 1 million ounces per annum thereafter.

Importantly, the transaction also will secure the future of the Ballarat operation by providing the financial resources required to take the project to full development.

The merger will be achieved through a scheme of arrangement under which Ballarat shareholders will receive 5 Lihir shares for every 54 Ballarat shares held which equated to a value of 28.8 cents per Ballarat share based on prices at the close of trading Monday.

The offer thus values Ballarat at $350 million representing a 28% premium. The combined company would have a market capitalisation of more than Aus $4 billion, with Ballarat shareholders holding approximately 8% of the combined group.

Lihir CEO Arthur Hood would be CEO of the merged company, while Ballarat Chief Executive Richard Laufmann will be appointed as the companys Executive General Manager Australian Operations and Business Development, and will continue to be directly responsible for the Ballarat operation.

The corporate head office of the combined entity will be in Brisbane and operational headquarters of the Ballarat mine will remain in Ballarat.

Ballarat's directors intend to unanimously recommend that shareholders vote in favour of the scheme in the absence of a superior proposal with the usual provisos.

Lihir has stated that is committed to the development of the Ballarat East gold project in accordance with Ballarat's development plans over the next 18 months which have been previously announced to the market. To cover interim funding requirements, Lihir has agreed to provide Ballarat with A$41.7 million through the unconditional subscription for 149 million Ballarat shares at 28 cents per share.

Lihir Chairman, Dr Ross Garnaut, said that for both Lihir and Ballarat, the merger was compelling. The deal creates genuine value for shareholders of the merged group, by creating a Tier One Asia-Pacific gold producer with strongly growing production, he said.

source http://www.mineweb.net/gold_silver/293438.htm