AMEX Exploration delivers exceptional PEA for Perron Gold Project

Amex Exploration Inc. has unveiled a compelling Preliminary Economic Assessment (PEA) for its 100%-owned Perron Gold Project, located near Normétal, Quebec. The report outlines a high-margin, stand-alone mining operation with a low environmental footprint, positioning Perron as a significant growth driver for the company.

 

“This PEA marks an important milestone for Amex and reaffirms our view that our fully owned Perron Project is a high-quality asset and has the potential of being a highly profitable stand-alone mining operation with minimal environmental impact,” said Victor Cantore, President and CEO of Amex Exploration. “The Project represents a strong combination of high-margin production and modest capital requirements, with the opportunity for significant resource growth in the future.”

 

PEA Highlights for Perron Project

The PEA, based on a gold price of US$2,000/oz and an exchange rate of 1.35:1, provides a robust financial and operational outlook:

• Production Rate and Life of Mine: 1,750 tonnes per day with a 10-year mine life.

• Grade and Production: An average diluted grade of 5.26 g/t Au, yielding an annual production of 101,000 oz Au. In the first five years, average grades and production will reach 6.49 g/t Au and 124,000 oz Au annually.

• Costs and Capital Expenditures: All-in sustaining costs (AISC) over the LOM are estimated at US$807/oz Au, with a reduced AISC of US$739/oz Au during the initial five years. Initial capital expenditures are projected at $229 million, with an additional $230 million in sustaining capital over the life of the mine.

• Returns: A pre-tax internal rate of return (IRR) of 59.5% and an after-tax IRR of 40.2%, with pre-tax and after-tax net present values (NPV) of $948 million and $525 million, respectively.

• Payback Period: The pre-tax payback is projected at 1.5 years, while the after-tax payback is expected within 1.8 years.

• Cash Flow: The cumulative pre-tax and after-tax net free cash flows are anticipated at $1,333 million and $767 million, respectively.

 

Conference Call for PEA Details

Amex will hold a conference call on November 13, 2024, at 10 a.m. EDT, to discuss the PEA results and host a Q&A session. Access to the webcast and registration details are available on Amex’s website.

 

Ongoing Exploration and Upside Potential

While the PEA provides an initial assessment of Perron’s value based on data collected up to June 30, 2024, Cantore highlighted that drilling has continued since the data cutoff, yielding promising high-grade intercepts. “This successful additional drilling demonstrates the continuation of mineralization and the upside potential for further resource and mine life additions in the future as we progress exploration,” he noted.

 

As exploration advances, Amex is well-positioned to grow its resource base at Perron, extending the project’s mine life and further enhancing its economic potential.

Tags: Quebec / Operational Updates / Gold / All Articles