BGF Ballarat Gold

RNS Number:8774G
Ballarat Goldfields N.L.
28 July 2006

Ballarat Goldfield NL
ACN 006 245 441
ASX and Media release: 28 July 2006

BGF Increases Gold Resource to 1.4 million ounces including an Indicated
Resource of 0.24 million ounces

Ballarat Goldfields NL (BGF) has increased its Total Mineral Resources of gold
at Ballarat East by 0.3 million ounces to 1.4 million ounces. This estimate
includes an Indicated Mineral Resource of 0.24 million ounces and a 1.2 million
ounce Inferred Mineral Resource. This resource estimate includes all information
compiled by BGF to the end of June 2006.

Drilling results over the past 18 months, and recent underground stope access
have identified a number factors which translate into important refinements
included in the resource estimate at Ballarat East. These include:

   * Higher gold grades at depth, particularly at 500m to 650m below the
    surface.
   * The discovery of the Blue Whale fault, a large fault which is
    interpreted as having been a significant control of the gold mineralisation
    at Ballarat East, (see BGF announcement on 26 April 2006).
   * The inclusion of 240,000ozs in the higher confidence "Indicated Mineral
    Resource" category.
   * A more detailed understanding of the nature of the quartz veining at
    Ballarat East, particularly those that carry high grade gold mineralisation
    (see BGF quarterly results ending 30 June 2006).

The reported resource is calculated and reported using the conventional
"Ordinary Kriging" grade estimation technique. This method correlates well with
previous calculations all of which used an 85 gram per tonne top cut. The use of
this top cut is interpreted to effectively exclude the effect of very coarse
gold (ie gold particles > 1.2mm) from the resource estimate. (see our
information sheet on the gold distribution at www.ballarat-goldfields.com.au).

The data available to BGF, indicate that approximately 50% of the contained gold
is very coarse gold. However, in publishing the Mineral Resource, BGF has
assumed a very coarse gold content of 25%, with a range from 0% to 50%.

Recent underground mapping and reconciliation of various parts of the gold
deposits at Ballarat East has identified "stope scale" controls which
distinguish the high grade gold mineralisation from low grade. This discovery
and a review of the drilling information, has found that most of the gold
mineralisation below 3g/t is associated with low grade gold veins, the result of
a separate mineralising event.

This low grade population has been removed from the current resource estimate.

BGF managing director, Mr 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."

"The discovery of high grades near the Blue Whale fault is extremely significant
for us. We have only drilled this area along a small portion of its available
strike length at Ballarat East and already we have identified a resource block
of 0.3Mt @ 20.6g/t for 0.2Mozs. Further discoveries like this one would have a
huge positive impact on the project."


Resource Statement

The estimated Mineral Resource identified to the end of June 2006 is:

                          3.9Mt @ 11.3g/t for 1.4Mozs.

This resource includes an Indicated Mineral Resource of:

                         0.6Mt @ 13.4g/t for 0.24Mozs.

The resource estimate assumes a very coarse gold content of 25%.

Possible ranges identified for the total Mineral Resource, depending the very
coarse gold content are:

                3.9Mt @ 8.5g/t for 1.1Mozs (0% very coarse gold)

               3.9Mt @ 17.0g/t for 2.1Mozs (50% very coarse gold)

The June 2006 Mineral Resource has been reported in accordance with the 2004
JORC Code and independently audited by AMC consultants. The resource is
summarised in the following tables:

                        Table 1: Total Mineral Resource
  Very Coarse Gold   Tonnes                    Grade (g/t)          Ounces
         0%           3.9Mt                         8.5            1.1Mozs
        25%           3.9Mt                        11.3            1.4Mozs
        50%           3.9Mt                        17.0            2.1Mozs


                      Table 2: Indicated Mineral Resource
  Very Coarse Gold   Tonnes                    Grade (g/t)          Ounces
        0%            0.6Mt                       10.0             0.18Mozs
       25%            0.6Mt                       13.4             0.24Mozs
       50%            0.6Mt                       20.1             0.36Mozs


                       Table 3: Inferred Mineral Resource
  Very Coarse Gold   Tonnes                    Grade (g/t)          Ounces
        0%            3.3Mt                        8.2             0.8Mozs
       25%            3.3Mt                       10.9             1.2Mozs
       50%            3.3Mt                       16.4             1.7Mozs

.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.


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

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