BGF Ballarat Gold

RNS Number:9194I
Ballarat Goldfields N.L.
23 February 2005



ASX and Media release: 23 February 2005

                     BGF Increases Gold Resource by 57% to
                  1.1 million ounces and Exploration Potential
                          by 53% to 9.2 million ounces

Ballarat Goldfields NL (BGF) has increased its Inferred Mineral Resources at
Ballarat East by over 400,000 ounces to 1.1 million ounces and its total
Exploration Potential to 9.2 million ounces. This is the result of additional
drilling completed by BGF over the 18 months to December 2004 and the
acquisition of mining lease MIN4847. The Inferred Mineral Resources have been
reported in accordance with the 2004 JORC Code.

The drilling results have continued to intersect high grade gold mineralisation
in the target zones identified by the geological model throughout the Ballarat
East field. This has led to an increase in the Inferred Resource to 3.1Mt at 
11g/t for 1.1 million ounces.

BGF managing director, Mr Laufmann said "BGF has had an outstanding success rate
in converting Exploration Potential to Inferred Resources and this result
continues to demonstrate the robustness of the geological model".

The ongoing refinement of the geological model, together with the acquisition of
mining lease MIN4847 at Ballarat South, has led to BGF reassessing the
Exploration Potential for the Ballarat field. This has led to an increase in the
total Exploration Potential for BGF from 6.0 million ounces to 9.2 million
ounces.

Resource Statement

Key features of the new resource estimate at Ballarat East include:

   *The top cut grade has been reduced from 145g/t to 85g/t.


   *BGF's interpretation of the assay data is that the 85g/t cut off grade
    excludes the very coarse gold (i.e. gold particles >1.2mm) in the estimate.


   *Significantly, metallurgical test work by BGF and historical data from
    open pit mining at Ballarat South in 1997 indicate that up to 50% of the
    total gold recovered is very coarse (i.e. gold particles >1.2mm).


   *In arriving at the resource estimate, BGF has taken a conservative
    approach by assuming that 20% of the total gold content within the Inferred
    Resource estimate is very coarse.


   *On this basis the estimated Inferred Resource based on drilling to
    December 2004 is 3.1Mt @ 11g/t for 1.1 million ounces.


   *Possible grade ranges identified for the resource depending on variations
    of the very coarse gold content are:

3.1Mt @ 9g/t for 0.9 million ounces (0% very coarse gold)
3.1Mt @ 18g/t for 1.8 million ounces (50% very coarse gold)

The December 2004 Ballarat East Inferred Mineral Resource estimate has been
audited by AMC Consultants. AMC has advised that, in its opinion, the estimate
is fair and reasonable, and is classified and reported in accordance with the
2004 JORC Code. AMC's audit was only in respect of the Inferred Mineral Resource
estimate.

A summary of AMC's opinion is available on BGF's web site at
www.ballarat-goldfields.com.au.

Exploration Potential

BGF has continued to refine its geological model in light of new information
from drilling at both Ballarat East and Ballarat West combined with data from
the recent acquisition of mining lease MIN4847 (Ballarat South). Ballarat South
has given BGF access to the southern extension of the mineralised trends from
the Ballarat East project.

The results of current drilling has improved BGF's confidence in the Exploration
Potential of the Ballarat field, as key geological features associated with the
gold mineralisation are confirmed.

The expanded Ballarat portfolio is divided into three project areas: Ballarat
East (based on the existing pre-feasibility study area and further extensions),
Ballarat South and Ballarat West.

The Exploration Potential for BGF on its Ballarat licences has been upgraded to
8.3 million ounces as follows:

Ballarat East            4.5 million ounces
Ballarat West            1.1 million ounces
Ballarat South           2.7 million ounces
                         8.3 million ounces

BGF has determined the Exploration Potential by discounting a much larger target
inventory. The Exploration Potential for the Ballarat field of 8.3 million
ounces has a 90% confidence range of 2.8 million ounces to 14.4 million ounces.

An update of the detailed Exploration Strategy Report will be available on the
company website www.ballarat-goldfields.com.au in March 2005.

Summary

In addition to the Exploration Potential for the Ballarat field (8.3 million
ounces), BGF has previously announced in 2004 an Exploration Potential of 0.9
million ounces for its Berringa project. The total Exploration Potential for BGF
is 9.2 million ounces.

A summary of the Inferred Resources and Exploration Potential of BGF are
provided in the table below. The total portfolio has increased from 6.7 million
ounces in June 2003 to 10.3 million ounces at December 2004.

Project     Category          Tonnes      Grade   Dec 04 Dec 04      June 03
                                                  oz (M) Range oz    oz (M)
                                                         (M)
            Inferred
            Resource
Ballarat                      3,000,000   11g/t    1.1   0.9 - 1.8      0.7
East

            Exploration
            Potential
Ballarat                                           4.5   1.9 - 7.4      4.0
East
Ballarat                                          *1.1   0.15- 2.3      1.5
West                                                     
Ballarat                                           2.7   0.7 - 4.7      0.5
South
Berringa                                           0.9   0.5 - 1.3      0.0
    TOTAL   Exploration                            9.2                  6.0
            Potential


* The lower Ballarat West value reflects a reclassification of the Yarrowee
Creek target from Ballarat West to Ballarat East and Ballarat South due to
recent drilling results.

The information in this report that relates to Mineral Resources and Exploration
Potential is based on information compiled by Mr Steve Olsen. Mr Olsen is a full
time employee of the Company, 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.


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

                                      END



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

END
DRLIIFIIFDIVFIE

Ballarat Gold (LSE:BGF)
Historical Stock Chart
From Jun 2024 to Jul 2024

Ballarat Gold (LSE:BGF)
Historical Stock Chart
From Jul 2023 to Jul 2024