It is rumoured Mr Laufmann could buy the operation with Philippines-based Indophil Resources, of which he is now managing director.

Mr Laufmann is also a non-executive director of Ballarat's Rex Minerals.

He was appointed to Ballarat Goldfields NL in August 2002, where he remained as chief executive officer and managing director until March 2007.

Mr Laufmann did not return calls to The Courier yesterday.

Lihir Gold announced on Tuesday it would sell the Ballarat operation because it had failed to deliver production targets.

It is believed 100 workers were retrenched yesterday with the remaining 100 to be put off in the coming weeks.

LGL would not disclose potential buyers on Tuesday, but said it had received a number of expressions of interest.

LGL Australia and West Africa executive general manager of operations Peter Smith said there had previously been "unsolicited opportunities" brought to the table.

"Now we've formerly made that decision (to sell), we can go forward and revisit those opportunities," he said.

"We are really targeting getting it done by the end of the year and hopefully by the new year, we will have found a new owner."

Meanwhile, analysts have predicted the mine could sell for between $50 million and $100 million.

One mining identity told The Courier he believed that amount "would certainly cut it".

He said the mine would suit a smaller company or mining contractor and would be a great benefit, given its established infrastructure.

"Given (LGL's) effort and expenditure, it's put in good stead for a corporation with lesser production hurdles," he said.

Bendigo Mining was another company named as a possibility to buy Ballarat Goldfields.Earlier this month, it bought Tasmania's Henty Gold Mine for $8 million.

Canadian company Northgate Minerals, which owns mines at Stawell and Fosterville, was also considered a potential buyer.