late afternoon - end week rush , page-3

Goodone,

My take is that it's a combination of factors. Firstly it's the sovereign situation in Burkina Faso and how it has affected sentiment. It may even have caused a major shareholder to take an exit if it violated one of their risk criteria.

Secondly, the news flow has been very slow to say the least. For a company with a $40M exploration and PFS budget for 2011, the drill results should have been coming thick and fast. I understand that AMX have had assay delays but that is a temporary issue as you get over the initial hump in delays. After that, there should be consistency.

Thirdly, the company isn't delivering on expectations. The January resource upgrade was only an interim statement which in itself disappointed due to grade and size. The fact that the next statement hasn't arrived is further concern. Investors don't want delays as it generally signals bad news.

Fourthly, the resource wasn't that spectacular. It showed a company, bizarrely, focusing on the lower grade "gap" area and the more expensive to mine deep extensions below 100m. What about all the shallow opportunities along strike? Where is that news flow?


Lastly, and this is just a personal view, but there appears to be a slight diversion from what the market thought Ampella was all about. Everyone was talking about how big and how fast can they get to 5M ounces so that they're on the radar of the big boys for a takeover. Suddenly, they're focusing on the local Konkera area and doing a PFS!! Why so soon? Why not continue to aggressively explore that 110km sheer zone that is spruiked in every single release. Demonstrate potential scale! THAT is what the investors want to see. Drill intersections. Not a PFS for a resource that is currently disappointingly small.

This is a good management team so I'm staying the course as I believe what they have will deliver in the long term. However for the past few months, for the first time, I am really confused by Ampella's direction. I don't feel like big resource upgrades are right around the corner and I just don't know when to expect any positive announcements. And where is the promised resource upgrade??