All this talk of African investments is quite topical. Below is an invitation received today from The Sydney Mining Club to a lunch during which investment in Burkina Faso will be discussed. I particularly like the reference to a Aussie junior mining company whose shares were 4c less than two years ago & were recently $1.94! So come on RMG grab some land & dig up there gold!
"So what were the resource analysts and investment bankers saying about Burkina Faso just two years ago? In essence, just about nothing, aside from one high profile multinational that in a spectacular gaff described the country as having rather limited potential for hosting large shallow gold deposits. This developing West African nation is now the hottest gold exploration address on the planet, with juniors flocking to search for the large shallow gold deposits that the West African country turns out in fact to have big potential for.
Early mover Ampella Mining is the poster child for the flood of new entrants, with shareholders of the Dr Paul Kitto-led junior seeing their stock going from 4c less than two years ago to a recent high of $1.94, capitalising the company at more than $A300 million. Ampellas Batie West project is described as a new gold province, with six virgin gold discoveries of multi-million ounce potential made in the past 12 months or so. Market chatter is that ten million ounces (or even more!) could be ultimately achievable given the promise of Ampellas extensive holdings along the Batie West shear.
Ironically, Ampellas prime focus on listing in 2007 was actually the countrys zinc potential based on the success in Burkina Faso of a company then-called AIM Resources and these days known as Blackthorn Resources. Led by former BHP executive Scott Lowe, it has had a few hiccups at its Perkoa zinc project, not least of which was the GFC. Still, development of the project in a JV with Glencore is expected in the next 6-12 months. That would correspond very nicely with the future zinc supply squeeze seen on the horizon by many. However while zincs price prospect may look good (and while the company has a very promising copper-gold joint venture with BHP in Zambia that is probably the portfolios current highlight), Lowe is also very keen to point out the gold potential of Blackthorns Burkina Faso ground, with the companys maiden gold drilling having had immediate success. Hear Lowe and Kitto talk about the huge potential of Burkina Faso, the so-called land of honest and upright men, at the Sydney Mining Club in June."
RMG Price at posting:
0.8¢ Sentiment: ST Buy Disclosure: Held
