Amex Exploration (TSXV: AMX: OTCQX: AMXEF) released what it calls an ‘exception’ preliminary economic assessment (PEA) for its 100% owned Perron gold project near the town of Normetal, Que. It gives the project a per-tax internal rate of review of 59.5% and a net present value of $948 million (5% discount) with gold at US$2,000 per ounce. The all-in sustaining cost will be US$807 per ounce.
The mine will operate for 10 years at a rate of 1,750 t/d. In the first five years, annual production will be 124,000 oz. gold, totaling 1.0 million oz. over the life of the project. The initial capital cost will be $229 million, plus sustaining costs of $230 million. The investment will be recovered in 1.5 years, based on pre-tax numbers.
“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, Amex president and CEO.
“This PEA demonstrates Perron’s early potential based on a database close date of June 30, 2024. Since the closing of the database, drilling has continued at depth and laterally and has already shown excellent high-grade intercepts beyond the currently defined mineral resource. 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.”
Amex is planning a mechanized underground mine, complimented by open pit production. An underground method of longitudinal longhole stoping with cement rockfill will be used. Zone in the mine will be accessed via ramps and drifts for ventilation and efficient mining. Haulage will be accomplished using 10-tonne load-haul-dumpers and 42-tonne haul trucks.
Processing will occur at a rate of 1,750 t/d in a plant with a primary crusher, followed by a semi-autogenous grinding (SAG) mill in an open circuit and a ball mill in a closed circuit with cyclones. A gravity circuit will recover course gold before treatment in a carbon-in-leach (CIL) circuit followed by cyanide destruction. Tails will be thickened and stored in empty pits.
Gold will be recovered in an adsorption-desorption recover circuit and electrowinning cells. Gold recovery is estimated to average 95% over the life of the mine.
Construction of the mine and mill will take 18 months and employ 250 people, excluding contractors. A total of 164 permanent jobs will be created.
Since the Perron gold project will have a production rate of less than 2,000 t/d, it is not subject to an environmental impact assessment under provincial rules. Instead, Amex will apply for ministerial authorization to the based on applications to Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs. However, the process demands hydrological studies, hydrogeological and geochemical analysis, soil quality analysis, surface water, groundwater and sediment quality, characterization of the natural environment, including water bodies, wetlands, species with special status, and wildlife inventories for certain species.
Amex issued a resource estimate in September 2024 that included total resources of 4.3 million measured and indicated tonnes grading 4.28 g/t gold and containing 594,100 oz. There are another 8.6 million inferred tonnes grading 3.80 g/t gold and containing 1.0 million tonnes. Numbers are for the combined open pit and underground stopes.
The PEA was prepared in collaboration with independent engineering and geological firms Evomine, Bumigeme, Alphard, GoldMinds and Laurentia Exploration.
Additional information is posted on www.AmexExploration.com.
