Amex Gold tables development update at Quebec project
Amex Gold Mining Inc. [AMX-TSXV, AMXEF-OTCQX, MXO-FSE] has released an update on development activities at its 100%-owned Perron Gold Project, located near Normetal, Quebec. Following the successful completion of portal construction and the commencement of underground development, the decline has now advanced more than 75 metres underground as part of Amex’s permitted 40,000-tonne bulk sample program.
The program is designed to provide important technical information on underground mining conditions, grade continuity, dilution, mining recovery and metallurgical performance of the high-grade Champagne Zone.
In parallel, Amex said it continues to advance key surface infrastructure at Perron. Construction of the mechanical shop has commenced, while clearing of the right-of-way for the 25 KV power line has been completed. Installation of the power line poles is expected to begin in the coming weeks.
The 100%-owned Perron Gold Project is located approximately 110 kilometres north of Rouyn-Noranda, Que. The proposed mine is based on a positive feasibility study released earlier this year and contemplates a high-grade underground mining operation with mineral processing at an existing regional mill. This development strategy is designed to leverage Perron’s exceptional grade while reducing initial capital requirements and accelerating the path towards commercial production.
The feasibility study envisages average annual production of 147,000 ounces of gold at an all-in-sustaining cost of US$910 an ounce. It also forsees a low initial capital cost estimate of $193.9 million. During the pre-production period, $68.1 million of revenue is expected to be generated which could offset some of the required capital.
The feasibility study includes 1,989 million tonnes at a grade of 12.1 g/t.
Amex has made significant high-grade gold discoveries, along with copper-rich volcanogenic massive sulphide (VMS) zones at the Perrron project, which is located in northern Quebec, approximately 110 kilometres north of Rouyn-Noranda.
Amex has officially filed Project Notice for the Perron Gold Mine with Quebec’s Environment Ministry. The company said the move represented another significant milestone in advancing the Perron Project toward commercial production. It formally initiated Quebec’s environmental assessment process for the proposed mine and reflects the company’s continued execution of its development strategy.
The Project Notice provides government authorities with a comprehensive overview of the proposed mining operation, including the underground mine, surface infrastructure, environmental setting and overall project design.
On Monday, Amex Gold shares eased 2.9% or 13 cents to $4.25. The shares trade in a 52-week range of $5.34 and $2.43.
The company recently announced the discovery of a new zone of gold mineralization, to be named the Rose Zone, which commences approximately 165 metres directly below the ramp development currently being advanced for the bulk sample and planned future mine. The company said the Rose Zone provides it with an opportunity to continue to add important accretive ounces to the project. Drilling highlights include 8.02 g/t gold over 4.30 metres, including 23.93 g/t gold (and 8.80 g/t silver) over 1.15 metres at a vertical depth of 210 metres.