fairfax analyst - earmarks 5miloz+ at konkera

"The gold resource at Konkera should continue to expand to over 5moz with much of this offering open pit mining potential"

My comment - The best part is , that they are highly likely to find BETTER than konkerra elsewhere in the province. Konkerra was only chosen as the first resource due to logistical reasons and cash constaints in the early days. Is a must have stock for any gold investor worth his salt imo.


Ampella Mining* (ASX:AMP) 3.1moz JORC gold resource ahead of expectations

http://www.ampella.com.au

• Ampella Mining continue to deliver and to impress with the announcement of their 3.1moz JORC Resource

• The expansion of the gold resource in relatively short order is partly due to the scale of the orebody at the Konkera prospect and also due to the professionalism of the Ampella team.

• The Batie West project which includes the Konkera resource is fully owned by Ampella Mining. The expanded gold resource is as follows:

- Indicated Resource – 30.0mt at 1.6 g/t for 1.5moz

- Inferred Resource – 31.8mt at 1.5 g/t for 1.6moz

Global Konkera resource - 61.8mt at 1.6 g/t gold for 3.1moz at a (0.5g/t cut-off)

• Mineralisation extends over 4.9km of strike giving potential for a significantly larger resource at Konkera

• The gold resource comes to surface reducing the initial stripping ratio to relatively low levels.

• The project has a higher grade section of 13.9mt grading 2.9g/t containing 1.3moz indicating potential for the proposed mine to go underground in later years.

• Batie West exploration update: $30m is being spent on outlying exploration at Foumbiri, a new discovery for infill drilling and at other prospective areas.

• 16 other gold discoveries have been made along the 110km shear zone and are to be tested through drilling now that the wet season is over. Delays of around four months on assays within Burkina Faso are holding up the reporting of samples and Ampella has built a new Lab on site to speed up the reporting process.

Conclusion: We expect the pre-feasibility work to extend to potentially include plans for a 300,000ozpa gold mine and for the company to aim for gold mining in 2014. The gold resource at Konkera should continue to expand to over 5moz with much of this offering open pit mining potential. The rest of the license area along the shear zone looks likely to yield a number of new gold discoveries with significant potential for economic prospect development.