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Update from Fairfax :


Ampella Mining (LON:AMX) – New JORC gold resource at Konkera in Burkina Faso

• Ampella Mining have announced a new and updated JORC compliant gold resource for the Konkera project.

• Konkera is now reported to host an additional 178,611oz +5.8% or 3.25moz using a 0.5g/t cut off grade

• The grade of the project also rises by 10.3% to 1.71g/t at the 0.5g/t cut-off grade with higher grade 3.1g/t ore for 1.2moz close to surface.

• The underground mine plan also included a high grade section of 3.3g/t for 487,000oz assuming a 2.0g/t cut-off.

• The rise in grade and ounces is good news for the Konkera project.

• Consultants are now optimising the pit incorporating the new information ahead of the evaluation of the project by way of a full feasibility study.

• Eg. the mine would use a CIL circuit for the first 4-5 years to produce some 300,000oz of gold from free milling material and for the mine to move to develop its sulphide circuit using the free cash flow generation from this.

• Management are careful not to predict the results of the new pit optimisation but we are hopeful that the new resource should be close to enabling this .

• Ampella continue to drill the Konkera project with two multiple use rigs, two RC rigs and five aircore rigs

• Cash: the company had $30.1m at the year and appear well funded to complete sufficient drilling to enable the development of an economic feasibility study.

• Torkera: Management reported good drill results from the Torkera prospect late last year. The team are now in their third phase of drilling here and should be able to publish a resource on this property this year. [very interesting]

• Management; Ampella is led by Paul Kitto, one of the world’s better respected structural geologists. Kitto’s work in Burkina Faso is likely to have the potential development of several new gold mine’s in time. Continuing discovery along the structural fault trend on Ampella licenses should help the company report a number of new resource developments over the next few years.

Conclusion: Ampella is close to the development of its mine plan and feasibility study for the Konkera mine in Burkina Faso. The project is just 50km from power lines and good road infrastructure and is within easy reach of the Ghana boarder crossing.