The company has been pouring small amounts of gold during its development at Woolshed Gully, but this month it began ramping up operations.

From October, it will be pouring gold on a greater scale, the start of what has been hailed "the big gold" period.

Lihir Gold Limited, which owns Ballarat Goldfields, has invested about $60 million into the company in the first six months of this year.

LGL chief executive officer Arthur Hood said the amount would increase between now and the end of 2008.

"Out of the next two months we should start producing some gold and ramp up production by the last three months of the year," Mr Hood said.

"There will be a gradual increase in production, with a major announcement of development and people will be very pleased with having a significant gold-producing mine in Ballarat."

The company will increase its employment rate, which currently stands at about 200, to about 400 by the end of the year.

Mr Hood said it would boost Ballarat's profile as a mining town.

"Ballarat Goldfields will become a major employer in the town and will be a major source of economic activity," he said.

Earlier this week LGL announced a 78 per cent increase on its profits for the six months to June 2008, up on the six months to December 2007.

Mr Hood said the combination of Ballarat Goldfields coming into production in Victoria, along with its overseas Bonikro mine, had significantly increased LGL's profits.

"The market is a bit dubious about Ballarat and the Victorian goldfields because of past disappointments of other operating mines, but we're very confident Ballarat is going to be a comfortable investment," he said.

"Ballarat will be different to other gold mines in Australia because it's a residential line, the workforce is part of the community and a lot of the jobs are generated in Ballarat.

"We're really pleased we are now delivering on the promise to the Victorian goldfields."