Gunga is out in the back blocks of West Africa, and will not be back in contact until Dec 18 or thereabouts. Had a beer with him and got a few notes, as he has drifted through the Batie area and a lot more....some notes
1. The geology has not changed ( hasn't changed in the last 2.2 billion years of course), but what is changing is the ability to predict or read where the gold is. Sometimes it is very easy, like following where the artisinals dig and drilling under them, which is what happened with the early wins in Ampella, but then this will not always work. Also people get a bit complacent, they think its too easy...
2. There is a lot of evidence of oxide gold in their leases, and he posted a picture of one of the sites (really just a small part of one of the sites)and the chase into the intrusive related mineralisation is very timely. It appears a little more difficult, as mineralisation is in 3 different directions, and you have to be very careful in this situation as chasing the direction which the artisnals think is important maynot be where the ounces are...So you need a lot more geology and indeed tighter control (see 4).
3. There is also good evidence of oxide ounces outside of their leases.
4. The labs in Burkina are empty, so turn around and near realtime control is now a possibility, and this will enhance their exploration effectiveness. Blasting away with a drill rig/s without getting feedback from the labs can be problematical.
5. Ampella need to slow the exploration RATE down to the speed at which they can do it effectively (get significant results consistently). This needs to go hand in with a reduction in the cash burn. Results are what is needed not drill meters. Once they get the next geological or exploration lead, then they can step up the tempo, and one could see the discovery rate head up to the 1 m ozs per year, which is what it was (people have short memories).
6. There is a sense of tall poppy syndrome floating around, but Gunga has been through this and he reckons sanity will return.
7. The new guy doing the feas study seems to know what he is doing.
He thinks it will be great Xmas as well.
AMX Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
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