Ampella Mining* (ASX:AMX) High grade gold intercepts at new...

Ampella Mining* (ASX:AMX) High grade gold intercepts at new Wadaradoo prospect
• Ampella Mining continue to make new discoveries along and off the company’s 150km licensed shear zone in Burkina Faso.
• The company report significant gold intersections shown below:
74m at 2.6g/t  inc. 27m at 5.0 g/t from 46 metres
9m at 5.9g/t gold inc. 5m at 9.2 g/t from 76 metres
7m at 8.0g/t gold inc. 2m at 27.1 g/t from 77 metres.
• The results from this show very good gold grades and intersections although they do not represent true thicknesses as such.
• Auger drilling at the Wadaradoo prospect around the site of an artisanal gold rush highlighted the 1500m x 1500m prospect.  A further 93 RC holes were drilled across five lines to check the gold anomaly.
• “Only a limited number of drill holes intersected major structural targets” but almost all drill holes saw “significant wide zones of lower tenor gold mineralisation”.  
• Higher grade intersections will now be used to target further drilling.
• There is no comment on the metallurgy of the prospect which can have significant impact on the eventual value of the prospect.
• Ampella’s shares have been hit over the past year by concerns over the metallurgy and recovery rates of ore within the Konkera gold project.  Metallurgical test work is ongoing with new options being explored to enhance the overall recovery rate for the Konkera project (3.1moz JORC resource).  Other mines in the region are thought to process ores of similar metallurgy and the process route is being examined with this in mind.
• The potential issuance of better recovery rates for the Konkera prospect could make a marked difference in valuation for this project.  Metallurgy can vary substantially for deposits within the region.
Conclusion:  Ampella continue to record new gold discoveries and should increase the value of the business significantly from a discovery perspective.  Any enhancement to recovery rates at Konkera should add significantly to the company’s perceived value.  
* Fairfax has previously acted for Ampella Mining in the issue of new shares 
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