Positive sentiment starting to re enter the market place. And for good reason.
"Most exploration companies would be delighted to make just a single discovery of this type over a five year exploration program. For Ampella new discoveries appear to come along every few months."
Company News
Ampella Mining (ASX:AMX) ? Deep drilling at Konkera indicates potential doubling of resource
? Ampella have released results from some deep drill holes at the Konkera Main project Burkina Faso
? The results indicate that gold grades continue at depth with 3.8g/t seen over 13m at 444m depth A further 10 deep drill holes are nearing completion and we expect the results to verify our assumption that the deep drilling could potentially double the resource of the Konkera prospect.
? Infill drilling also shows good grades over relatively long intersections within the proposed pit at Konkera Main.
? Further exploration work has also highlighted another ?potential new gold discovery? at Wadaradoo and Foumbiri.
? Investors should note that Ampella hold licenses over a major shear-zone in Southern Burkina Faso and that we expect this area to reveal multiple discoveries along its length.
? Most exploration companies would be delighted to make just a single discovery of this type over a five year exploration program. For Ampella new discoveries appear to come along every few months.
? Politics; Press reports in Australia about incidents in Burkina Faso appear to have been substantially overdone. We have questioned miners and explorers working in Burkina Faso and travelling through the main airport in Ouagadougou. The protests over pay which stated with the Army and then spread to the police and other areas appear to have been resolved peacefully and the disruption which occurred seems to have subsided. Burkina Faso has been peaceful and stable for many years and while its people may have felt unsettled by events in the Ivory Coast and North Africa they appear far more peaceful and less divided along tribal lines than surrounding nations.
? Mine planning: the pre-feasibility study has now started at the Konkera project assuming a 2.2moz JORC gold resource. We are looking for an initial mine plan for some 200,000ozpa from a number of open pits at Konkera and we expect studies to incorporate a significantly larger resource in time.
Conclusion; we see the recent pull back in Ampella?s stock price as a good opportunity for investors to gain further exposure to the stock. Regular positive news flow and the prospect of some significant new gold discoveries make this one of the market?s more exciting stocks to invest in. The company?s cash resources and capitalisation make Ampella suitable for major institutional investment and the leading management team are well respected through the industry.
AMX Price at posting:
$2.23 Sentiment: Buy Disclosure: Held
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