Amex Exploration Perron Gold Project Delivers Strong Economics in Updated PEA
Executive Summary
- Amex Exploration released an updated PEA for the wholly‑owned Perron gold project, incorporating the May 21 2025 Mineral Resource Estimate and a two‑stage production plan (4‑year toll‑milling phase followed by a 13‑year owner‑operated mine).
- The base‑case model (US$2,500/oz Au, CAD 1.38/USD) shows an after‑tax NPV of C$1.085 billion, an after‑tax IRR of 70.1 %, and a payback period of 1.4 years; cumulative post‑tax free cash flow over 17.5 years is C$1.768 billion.
- Initial net CAPEX is C$77.5 million (gross C$146.1 M offset by pre‑production gold sales of C$68.6 M); growth CAPEX for Phase 2 is C$191.6 M, with sustaining CAPEX of C$386.3 M.
Key Details
- Project Scope & Timeline
- Phase 1: 4‑year, 1,000 tpd contract mining/toll‑milling; net initial CAPEX C$77.5 M; average production 102,000 oz/yr at AISC US$1,165/oz.
- Phase 2: 13‑year, 2,000 tpd owner‑operated mine with on‑site processing; growth CAPEX C$191.6 M; average production 93,000 oz/yr at AISC US$1,027/oz.
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Total LOM 17.5 years; average annual gold output 95,000 oz (112,000 oz/yr for first 10 years).
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Economic Highlights (Base Case)
- After‑tax NPV (5% discount): C$1,085 M
- After‑tax IRR: 70.1 %
- Payback period: 1.4 years from commercial production start (target 2028).
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Pre‑tax NPV: C$1,885 M; Pre‑tax IRR: 99.1 %.
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Capital Structure
- Initial CAPEX (gross): C$146.1 M → net after pre‑production offset: C$77.5 M.
- Growth CAPEX (Phase 2): C$191.6 M.
- Sustaining CAPEX (LOM): C$386.3 M.
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Total projected capital outlay (gross): C$724.0 M; net cash‑required: C$655.4 M.
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Operating Cost Summary
- LOM average operating cost: US$891/oz Au.
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LOM AISC: US$1,061/oz Au (placing the project in the bottom quartile of global gold cost curve).
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Sensitivity Analyses
- Gold price ±40 % changes NPV from C$500 M to C$1,924 M; IRR varies 20.7 %–111.5 %.
- Operating‑cost variations (±40 %) shift NPV between C$811 M and C$1,354 M; IRR 56.1 %–82.8 %.
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CAPEX ±40 % changes NPV from C$966 M to C$1,201 M; IRR 51.8 %–102.1 %.
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Production & Recovery
- Expected gold recovery for both toll‑milling and on‑site processing: ≈95 %.
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Phase 1 toll‑mill cost assumption: C$102/tonne (sensitivity ±40 %).
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Infrastructure & Workforce
- Peak staffing: ~272 employees (Phase 1) and ~335 (Phase 2).
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Required infrastructure includes 25 kV power line, substation, road network, water‑management facilities, and on‑site processing plant.
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Environmental & Permitting
- Environmental impact assessment underway; tailings to be stored in mined‑out open pits, eliminating a conventional tailings facility.
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Multiple provincial and federal permits will be required before construction.
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Exploration Update
- Recent acquisition of Perron West property expands land package to 197.5 km².
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Ongoing surface exploration and 3‑D lithostructural modelling to support a maiden drill program on Perron West in 2026.
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Qualified Persons & Disclosures
- Technical information signed off by a team of qualified engineers and geologists (Evomine, Bumigeme, P&E Mining Consultants, Norda Stelo, Laurentia Exploration).
- Standard non‑GAAP financial measure disclosures included.
Notable Quotes
- “Our staged approach to production and construction is both fiscally and technically prudent, minimizing permitting and technical risk, reducing upfront capital and enabling early cash flow.” – Victor Cantore, President & CEO.
Materiality Assessment: Material – Positive (the PEA provides a materially positive economic outlook for the Perron project, with high IRR/NPV metrics and detailed capital and operating cost structures).