TWELVE months after the closure of Ballarat Goldfields, mining development is planned to start again next month.It is expected the production of gold will be under way in September.Up to 150 workers are predicted to be employed in the project.Castlemaine Goldfields, the company that acquired the Ballarat mine from Lihir Gold last year, has confirmed previous speculation that enough gold exists, and has now planned development to extract it.A mining contractor is expected to be signed on within two weeks and extension of the current tunnels will then begin.The current tunnel is 500 metres below the ground and is located approximately below the Ballarat Skate Park on Main Road.Castlemaine Goldfields managing director and chief executive officer Matthew Gill said the initial contractors would conduct “waste management”, where they simply extended the tunnels. “They will extend the tunnels that are currently underground before we hit quartz,” he said. “After that we will be recruiting from within the Ballarat area and from interstate.”Mr Gill estimated that from September onwards, between 30 and 40 workers would be hired for the project. He said the company was hoping to produce 50,000 ounces a year throughout its operation.With current gold prices, that equates to more than $67 million.“This is great timing, given the current high gold prices and sentiment for this precious metal,” Mr Gill said.It is expected the initial production period in Ballarat East will provide an “excellent springboard” for increased production in the future.Castlemaine Goldfields acquired the Ballarat mine from Lihir Gold last year following the mine’s closure in March and a loss of 90 jobs.