AMPELLA MINING LIMITED Video Webcast

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AMPELLA MINING LIMITED (AMX)

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AMPELLA MINING LIMITED (AMX) Events

Company (Stock Code)	Date/Time	Event	Timezone: Australia/Sydney
AMPELLA MINING LIMITED (AMX)	Tue, 8 Sep 2009 2:30pm	Africa Downunder Conference 2009 - Dr Paul Kitto, CEO
AMPELLA MINING LIMITED (AMX) African Junior Gold Explorer Ampella Mining	Thu, 9 Jul 2009 12:30pm	Interview with Evan Cranston - Executive Director
AMPELLA MINING LIMITED (AMX)	Fri, 3 Oct 2008 2:00pm	AMX - Resources Rising Stars - Dr Paul Kitto, CEO
AMPELLA MINING LIMITED (AMX)	Tue, 2 Oct 2007 3:15pm	Read Corporate: Resources Rising Stars 2007 - Mr Richard Burden, Finance Director
AMPELLA MINING LIMITED (AMX)	Tue, 17 Nov 2009 1:00pm 11:00am Australia/Perth	Annual General Meeting Subiaco Hotel Function Room, 456 Hay Street, Subiaco, WA
AMPELLA MINING LIMITED (AMX)	Tue, 20 Oct 2009	Full Year Results
AMPELLA MINING LIMITED (AMX)	Sun, 15 Mar 2009 11:00pm	Interim Results
AMPELLA MINING LIMITED (AMX)	Mon, 24 Nov 2008 4:00pm 02:00pm Australia/Perth	Annual General Meeting City West Function Centre, 45 Plaistowe Mews, West Perth, WA
AMPELLA MINING LIMITED (AMX)	Wed, 24 Sep 2008	Default
AMPELLA MINING LIMITED (AMX)	Fri, 23 Nov 2007 10:00am	Annual General Meeting The Western Australia Club, 101 St George's Terrace Perth WA 6000
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AMPELLA MINING LIMITED (AMX)

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PRESENTATION BY PAUL KITTO, CHIEF EXECUTIVE OFFICER OF AMPELLA MINING LIMITED (AMX)

“Resources Rising Stars”

http://www.brr.com.au/event/52062

 

FRIDAY, OCTOBER 3, 2008, 02:00 PM.

 

            AMX     Good afternoon, ladies and gentlemen and I want to congratulate you all for still being here, firstly. Secondly, for still being awake, congratulations. Let’s

10                    thank or I’d like to take the opportunity right now to thank the organizers for a how wonderful day it has been. This is my first time of being here. I’ve been very impressed with the presentations, the information that’s being transferred and I think this has been great day, congratulations.

 

15                    Alright, so let’s start, Ampella. I believe Ampella presented last year and they floated in August of 2007, so it’s been going thirteen months, and this will give you an update of where we’re at and what we think is going on and what we’re going to do in the future. I’ve only been with Ampella for the last four months and during that time, I’ve spent two of those months in Africa,

20                    reviewing all the projects and putting a strategy together for the future development, and this will be a bit of an update of exactly where we are right now and where we’re going.

 

                        The usual disclaimer.

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                        You’ve already heard a lot of Google about myself. I am the CEO and I don’t need to hide from all of that. The other thing, a manager in the company is a gentleman man called, Dr. Francois Ouedraogo, who has twenty five years experience in West Africa, in general. He worked as a research fellow in the

30                    university there. He’s got his degree from a major university in France, and he has been working in West Africa for twenty five years. Now, it’s worth making a point to the fact that the team that we have now in West Africa is the team that who’s been working with for over twenty years. So, we’ve got thirteen people there with a lot of experience, know how to operate,

35                    (inaudible) (00:01:53) contacts, and it’s making our life very, very easy.

 

                        Okay. You’ve got to ask yourself the question, why are we in Burkina Faso?  Why are we in West Africa in general?  But if you look at that image on the board, I’m not sure whether you can see it particular where as I’ve noticed

40                    today that images are not coming up very clearly, but the point to take out there that is Burkina Faso, itself, and you can see it outlined in red. The pinks and greens and colours that you can see there are the Birimian Greenstone Belts of West Africa which host the gold mineralisation. I want you to recognize there is that Burkina Faso is pretty much completely underlain by

45                    the Birimian Greenstone Belts.

 

                        Now, historically, the exploration for gold is taking place in Ghana and Mali, and what would you expect to happen?  Most of the resources have been found in Ghana and Mali. But when you look at the amount of ounces that have actually been identified, Ghana and Mali, 140 million ounces of resources. But when you look at Burkina Faso, it’s underlain by 22% of the Greenstones of West Africa, but only hosts 6% of the gold deposits, and you’ve got to ask yourself, this definitely untapped mineral potential for gold

5                      exploration in Burkina Faso, and this is a sideline if you happen to look at (inaudible) (00:03:21)  that’s got 35% of the Greenstone Belt. But politically it’s probably (inaudible) (00: 03:25) as much (inaudible) (00:03:27) in Burkina Faso.

 

10                    Okay. In (inaudible) (00:03:31) we’ve got ten licenses in Burkina Faso. It covers a total area of almost 2,000 km2 those ten tenements, you can see there, are distributed around the country. We’ve got six down in the south, two in the north, and two in the southeast. So the gold potential, became a (inaudible) (00:03:56) reiterating a couple of points. It’s underlain by that

15                    Birimian Greenstone, the whole country. The endowment is largely untested by modern exploration and what’s happened in Burkina Faso, is that a putting a new Mining Act in 2003 modernized the whole Mining Act and what that’s done is brought in a lot of companies there, now over thirty mining companies operating or exploring in that country of Burkina Faso. What that’s done?

20                    Because of all those juniors have now come in there, they’re starting to make discoveries and the discoveries have resulted in three new mines in the last twelve months and two more in the next twelve months. So you’re going to see a lot more of these discoveries coming out at Burkina Faso over the next few years.

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                        Okay. If you look at the diagram down at the very bottom, you can see a little map of Burkina Faso and we’re looking at our tenements down in the southwest and those five tenements that you can see outlined in red, we call our Batie West project. Now, we’ve only had that project since July but we

30                    understand that those series of tenements are extremely exciting and I’ll show you why in a moment. So we’ve got five tenements, we have a 100% interest in those five tenements. They cover 800 km2 but the most significant thing about this they’d lockup a 110 km of a gold-bearing shear zone totally unrecognized by modern explorations. Go back through history and you will

35                    see that the French were there back in the 1940’s and prior to that, it was only mined by the ancients and so we knew we walk up and down these tenements, we find all the ancient mining areas. Okay, so it’s being forgotten, lost in history that we now have the whole region locked up.

 

40                    So, I just going to (inaudible) (00:05:57) concentrate on this area here called Tiopolo and it’s an area of around about 150 km2 and we had to make a spend on that to keep the tenement in good standing with the government. So we’ve done most of our work there and we’ve also done a little bit of work in the very northern tenement called Danhal, okay.

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                        So, Tiopolo and if you can consider Danhal as half done, what we’ve found there is that we’ve completed the regional soil geochemistry program. We’ve completed the regional mapping program and while we are doing both of those programs, we also took rock chips. We only took seventy two rock chips which is hardly in the outcrop but out of those seventy two rock chips, more than half came back with better than 2 g and more than half of those samples came back better than 5 g per tonne gold. Sensational results. The best result we had there is almost 50 g. Now, based on that work, that initial

5                      work so the soil geochemistry, we’ve got regional geophysics, the rock chip program and the mapping, we’ve identified a number of worked up drill targets.

 

                        The current program we’re working were just being undertaken. A high

10                    resolution geophysics program to better assist with that target generation exercise and that finishes on Friday. So, we flew, I think 11,500 line kilometres of close spaced geophysics, a big program, took thirty three days or something to complete. At the same time, we’ve also just completed on Friday our initial 3,000 m assay drilling program on those targets and we look

15                    at those targets right now.

 

                        So we’re now looking at a new (inaudible) (00:07:52) which shows the Tioplo tenements. The colours as you can see on there is just (inaudible) (00:07:57) of the soil geochemistry. I’ll make a point here that, I mentioned earlier that

20                    most of it is undercover so most of the (inaudible) (00:08:04) work, what we need to do is some regional Auger drill program, so shallow drilling to get the geochemistry to work for us even better. What it has highlighted is a major shear zone in which we could see already in the regional geophysics. Shear zone at Tiopolo is 2.5 km wide, it’s 16 km long and remember, this is 16 km

25                    out of 110 km. We’ve already looked at a couple of parts of it and all the while long at we’re finding gold on the way along it, 110 kms.

 

                        The other thing that we’re findings is that, that shear zone is multiple structured so it’s not just one gold-bearing structure, now we’ve got 16 km ,

30                    not just one structure but multiple structures. We’ve already mentioned it, it’s carrying gold. Some of you, if you can’t see particularly on that slide is a whole bunch of coloured samples along the shear zone near there actually the rock chip samples where more than half came back better than 2 g and more than half of those are better than 5.

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                        Okay. So based on that initial work, we’ve identified four (inaudible) (00:09:21) that we wanted to get into straight away and drill there. You can see the circle, we looked for our best rock chip while (inaudible) (00:09:30) of our best rock chips and some of our soil geochem. In that area, there’s 5,000,

40                    5,000 artisan miners. So they’re the local miners that come from around West Africa to explore for gold, 5,000 of them there.

 

                        As I’ve said, we’ve completed the drilling program on Friday. Hot off the press, we’ve got some extremely wide zones of sulphide alteration

45                    mineralisation. We don’t have any assays back, if I did I couldn’t tell because we haven’t released it, but we’re expecting some extremely good results to come back very shortly in the next two weeks. So we’ve got multiple sulphide zones in each hole and we drilled 21 holes. So extremely exciting stuff happening.

 

                        This will give you an idea of what these areas look like, we haven’t drilled this particular region, it’s called Pampouna. These ore pile that we’re working in this are pulling at over a kilogram of gold per day. Now, we work at what a

5                      kilogram gold’s worth. It’s a lot of money as these guys when their average wage is less than $2 a day. These guys can only operate down to the water table which takes some them to a maximum of 30 m and then that’s it. The sort of alteration and mineralisation that we’re seeing across this region are sericite, silica, albite, pyrite, and of course, gold.

10

                        Now, we’re moving to the next tenements which I would wind up in this little (inaudible) (00:11:10) we move to the north and our prospect up there is called Madougou. We have 100% interest once again with two tenements. It covers an area of 465 km2. We’re only searching for gold. There are several

15                    untested gold anomalies along this whole region and we’ll look at that in a moment. But the big problem once again, in Barkinda is that most of the areas are undercover and so we need take Auger drill program so that shallow drill program across most of these tenements. Okay.

 

20                    These are what they look like. It’s a major working. You can see that all of them are topographic highs are the only reason that we’ve known there’s a mineralisation here is because it sticks out of the ground. Everywhere else, where it’s undercover and we are talking 80%, 90%, we really don’t know what’s going on. So it’s only those areas that stick out to the ground,

25                    topographic highs that we know about on this tenement. So we’ve got six or seven of them, all with very high assay intersections. So we’re talking 5 m at 60 g and that sort of thing.

 

                        One of the tenements is actually... this one here called Dore, occurs under

30                    covered ground, the only one out of all of them which doesn’t stick out to the ground and it was found by the artisan miners we’ve talked about before. There’s only about 2000 of those guys working at Dore at present

 

                        This is an image of the serology and chemistry across the Madougou and

35                    what you can see or what it’s highlighting is there’s a 10 km long gold anomaly on the eastern side of that tenement. The rest of it as I’ve said, is undercover. We have no idea of what’s going on there. We’ve been able to look at the prospects which is sticking out of the ground and we have a much bigger understanding of what those structure controls on the gold are. Our

40                    future drill programs on these particular prospects would be governed by the work we do in terms of structural understanding of the controls in the gold mineralisation.

 

                        What I want to do is just look at one of these prospects, next Dore right up in

45                    the north. That’s the one with (inaudible) (00:13:24) under 5 m of cover. So it doesn’t stick out of the ground. Dore, as I’ve already mentioned has only 2,000 artisan new miners working on it. These guys that are working in the area of almost a kilometre so you can’t see them in this image but where this circle is, radiating around this diagram, that’s about 700 m, 800 m long and there’s 2,000 people working there. We’ve already undertaken last year a small assay drill program and it was outside of the area where the guys were all working because it was the wet season, we couldn’t get a bulldozer in there to drill or drill rig in there to drill. So a few drill holes that have been

5                      already undertaken there have a significant Intercepts. You can see there’s 6 m at 3.5 g,  18 m of almost a gram, 10 m at 1.5 g. but the plan for us in the next couple of months is to get drill rig and drill this area here where already structures are coalescing around (inaudible) (00:14:26) porphyry. We’ve got rock chips across the area that are coming back (inaudible) (00:14:31). That’s

10                    where the (inaudible) (00:14:32) concentrating their work as well. So, we’ve got a strike, a known strike than clear of over 700 m. The map that you’re seeing there is based on geophysics and samples at the (inaudible) (00:14:45) of action brought to the surface.

 

15                    Moving on, we’re now moving to the various (inaudible) (00:14;52), so you look at the map at the top. We’re looking in the south east of the country. Once again, we’ve got two permits, 100% ownership, 500 km2 we’re talking of huge areas again, limited modern exploration. There was some exploration there done by (inaudible) (00:15:10) which is the bass metal arm of Anglo.

20                    They were exploring for volcanic hosted massive sulphide zinc mineralisation. Now, we’ve put it on the back burner because we don’t think right now, in the current common zinc is worth chasing. Zinc is expensive to explore for (inaudible) (00:15:30) particular environment in a long term projects, so right now, that’s on the back burner.

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                        What we’re interested in is a new gold discovery which we called Kollo. You’ll notice in this diagram the colours occurring down here in the southern area that (inaudible) (00:15:42). So what is Koilo?  It’s two prospecta, one originally Koilo North and Koilo South. The east west trending gold anomaly

30                    seems they’re structurally controlled and they’re open in all directions. We know not very much about them and we’ll see that in a moment. But we think, based on what we already understand, is they have significant potential.

 

                        Looking first at Koilo South, you can see there we’ve completed soil

35                    geochemistry programs and that’s… what image is in the background , highlighting the soil geochemistry and what we have there is a 1 km long soil anomaly, better than 50 (inaudible) (00:16:26). We’ve undertaken rock chip across there and they’re coming back at around about 3 g per tonne. We’ve done some follow up trenching and the trench on the immediate left-hand

40                    side of that slide, trench no. 3, came back at 10 m at almost 8 g. Now, what we’re doing currently is we’re undertaking new programs of work and these have already started. We’re mapping the whole area in detail and the mapping itself is actually trending out to the western side, so the left-hand side of this slide. The reason we’re doing that is because that’s a major ridge

45                    and there’s a quite a few hundred ore piles working over that ridge right now and so we need to rock sample across there to channel samples and based on the results then we’ll come through into an assay drill program.

 

                        Kollo North, we know even less about, we’ve done the soils, we’ve got an anomaly which is 1.5 from the zone. That actually extends another 1.5 km but we’re not interested in finding that out just yet. The rock chips are coming back at up to 20 g, the average is around 5 g and obviously we need to

5                      undertake the mapping, the channel sampling and for our part, assay drilling program (inaudible) (00:17:38). So there’s our new gold discovery on those tenements.

 

                        We’re now moving down to the south back to where we originally started, you

10                    can see a map at the top here, we’re down in the southwest and we’re just looking at a single tenement called Donke which is next to the new tenements which we picked up last July. Once again, it’s a 100% owned, it covers 225 km2, it’s only 20 km from the Azuma resource which is in Ghana, next door. Now, just announced a 750,000 ounces and it’s also adjacent to (inaudible)

15                    (00:18:12) Resources,  a Candian junior (inaudible) (00:18:14) as just a merger of two companies. I’ve just signed a joint venture with Freeport for their porphyry copper gold and they’re going to announce the resource there in the next four weeks.

 

20                    There’s been no modern exploration on Donke, apart from what we’ve initially done and all we’ve done there so far is in regional serology and chemistry and we’ve just completed the airborne geophysics on Friday. The regional serology and chemistry highlights the fact once again that everything is under cover. This is what the area looks like in the south, there’s a bit of

25                    topography, a few quartz veins outcrop a bit of bit of alteration, a few bit of sulphide but in the north, that’s what this diagram is showing in the north, it flattens out, it’s under cover, nothing works we need to do major  Auger geochem programs there.

 

30                    This will show you a diagram of the (inaudible) (00:19:11)  of the serology and chemistry and essentially it’s only working in the south where we have some topographic relief. What we’ve found down there is that we’ve got a 3 km long soil anomaly, it’s better than 30 ppB, it has higher (inaudible) (00:19:25)  which trend in the northwest which are better than a 100 ppB. But the

35                    problem for us is that it goes on to the tenement next door. Now, we are talking to the local vendor which has said that it’s a (inaudible) (00:19:37) and we’ve almost got a deal set up there. So it won’t be too long before we can continue out work on this tenement and the adjacent tenement, too.

 

40                    Okay. So, I hope you have some idea and some flavour in what we’re doing. Right now, we are aggressively exploring our tenements. The spend has been quite large, and we will find out what our budget is in the moment. We’ve just completed our 3,000 m of assay on Tiopolo and I’ve already mentioned to you we’ve had some amazing drill results there where we had

45                    some amazing intersections. We don’t have the assays back yet to report, we’re expecting those back in the next two weeks so you should see a press release very shortly. We’ve undertaken our high resolution airborne geophysics over all those southern tenements and that in… first results will be available in the next two weeks and then we will start our target generation and interpretation of that.

 

                        Finally,  the other work programs that are ongoing on our other tenements is

5                      the channel sampling on our new gold discovery at Kollo. The follow up assay that’s going to be required in there, trenching in the very north of the region and drilling it (inaudible) (00:20:51)  when the weather conditions allow and then continuation of our exploration on those five tenements in the south. So we’ve got an extremely exciting future coming our way. (inaudible) (00:21:05) 

10                    structure you can see a total shares on offer is 67 million, approximately. We’ve got a market cap of $4.5 million. The top 20 shareholders are holding almost 70% of the company and then cash as of last month with $2.2 million.

 

                        So in summary, we’ve got a good team, our own labor is at the company.

15                    We’ve got great assets. We have a 100% interest in all of those fantastic assets. We’re located in a country, which I hope you now understand has significant undeveloped mineral potential. The cash on hand as already mentioned and that potential we believe is going to deliver a pipeline of projects into the future.

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                        Thank you very much.

 

PRESENTATION CONCLUDED

 

 

 

 

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