10am WST Thursday 10 November 2011
Dear Shareholders,
Ampella's priority for this year has been resource growth at
Batie West through further exploration of its existing
assets. During the year the Company's resource grew from 1.2
million ounces to 2.2 million ounces. Today, we are pleased
to announce our upgraded gold resource of 3.1 million ounces,
which is the culmination of 3 years of exploration at Batie
West. This represents Burkina Faso's largest single
undeveloped gold resource at a 1 g/t gold cut off.
The Company continues its aggressive exploration program in
the region, by far one of the largest in Burkina Faso. No
fewer that fifteen new gold prospects have been identified.
Seven rigs have been sourced for up-coming drill programs,
including an additional three auger rigs. Drill rigs are
currently being mobilized onto the new discovery at Foumbiri
where an infill drill program is set to run over the coming
months. During the last financial year Ampella drilled
133,000 metres with considerable success and the Company was
recognised as the "Gold Explorer of the Year" by the Gold
Mining Journal. Detailed results of the drilling are to be
found in the Operations section of your 2011
Annual Report.
The build-up of a considerable backlog at the laboratories in
Western Africa certainly has not helped in achieving a quick
understanding of the extent of the reserves. As a result,
Ampella has decided to purchase and build its own on-site
preparation laboratory, which will be fully operational in
January 2012. Fortunately, that is a timing issue only and
the outstanding laboratory results are imminent.
A prefeasibility study is now under way on the Konkera
resource and will incorporate the 3.1 million ounce upgrade
announced this morning. The study is targeted to be completed
by the end of the first quarter in 2012 and it is intended
that, shortly thereafter, Ampella will move to commence a
bankable feasibility study, hoping to complete that study by
the end of the calendar year 2012. On the present timetable
Ampella would hope to be pouring gold in early 2014.
I have dealt with these "technical' matters at a very high
level. I have asked our MD and CEO, Dr Paul Kitto, to deal
with these issues in more detail after we have completed the
formal business of the meeting and I have declared the
meeting closed.
On the corporate front it has been a year of significant
change for Ampella:
www.ampella.com.au
Suite 22, Level 1
513 Hay Street Subiaco WA 6008
PO Box 352 Subiaco WA 6904
ABN. 59 121 152 001 phone. +61 8 6142 0980 fax. +61 8 9200 1879
email.
info@ampella.com.au