BGF Ballarat Gold

RNS Number:3816K
Ballarat Goldfields N.L.
31 March 2005

Spectacular drilling result at Ballarat East



Ballarat Goldfields NL (BGF) is pleased to announce that it has again
intersected significant mineralisation at the Ballarat East project.  Diamond
drill hole BDD025B, returned a true width, weighted average assay grade of 30
metres @ 24g/t gold, from a depth of 562 metres down-hole.



The intersection is interpreted to be the continuation of an ore shoot, already
intersected 100m further north, which included previously reported gold
intersections of 5.1 metres @ 11.3g/t, 6.0 metres @ 9.0g/t and 1.55 metres @
42.4g/t.



This ore shoot is located approximately 350 metres below the current decline
position at the southern end of Ballarat East and will be accessed within the
first two years of production.



BGF Managing Director, Mr Richard Laufmann said, "The most pleasing and
important outcome is that our ongoing drilling success continues to demonstrate
the robustness of BGF's geological model, which has already delivered over 1
million ounces of Inferred Resource at a very low discovery cost."



"It is encouraging and significant that these ore shoots at the southern end of
Ballarat East are similar in size to the large high grade ore shoots defined by
drilling in the northern part of the field, where most of the current Inferred
Resource is located."



"From the drilling to date, it also appears that the grades of the ore
intersections, at depth, are significantly higher than the historical average
grades achieved from the shallower old mines, which rarely went deeper than 300
metres on the East field." Mr Laufmann said.



"BGF's continuing ability to intersect high grade gold will allow it to better
define its resource and reserve base in advance of the development program as
drilling continues," he said.



Background  Information



BGF is currently developing the Ballarat East project, an underground mine with
an expected life of 21 years, beneath the historic Ballarat Goldfields in
Central Victoria.  Production is currently planned to commence at around 100,000
ounces per annum and ramp up over three years to an average 200,000 ounces of
gold per annum.



BGF has previously announced an Inferred Resource of 3 million tonnes at 11g/t
for 1.1 million ounces of gold at Ballarat East. In addition to this resource,
BGF also announced southern end of Ballarat East, and will be accessed within
the first two years of production. An Exploration Potential for the total
Ballarat field of 8.3 million ounces of gold together with an Exploration
Potential of 0.9 million ounces of gold for its Berringa field.



The exploration results in this release were prepared by Mr Steve Olsen.  Mr
Olsen is a full time employee of the Company and is a Competent Person under the
definition of the 2004 JORC Code. Mr Olsen consents to the publication of this
information in the form and context in which it appears.  The drilling result
widths reported are estimated to be the true width of the mineralisation
intersected.



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
END

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