Amex Exploration (TSXV: AMX) has laid out a definitive roadmap for its Perron project, releasing a feasibility study that positions the gold asset as a high margin, low capital contender in the Abitibi region. The study outlines a Phase 1 development strategy that prioritizes speed to market and capital efficiency over building a massive, all-at-once footprint.
By opting for a toll milling arrangement, essentially renting space at existing regional processing plants, Amex expects to bypass the hefty costs and long lead times associated with building its own mill. The numbers reflect this lean approach: an initial capital cost of $193.9 million to get the mine running, a figure that is partially offset by $68.1 million in projected revenue generated during the pre-production period. Sustaining capital meanwhile is pegged at $238.2 million.
Using a base case of $3,500 per ounce, the study estimates a post-tax internal rate of return of 114.6% and a net present value of $1.13 billion. Payback is estimated at just 0.5 years on a post-tax basis, due in part to a high grade profile, with reserves averaging 12.1 grams per tonne.
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The spot price scenario, which utilizes $4,750 per ounce gold, meanwhile calls for a post-tax NPV of $1.7 billion, alongside an IRR of 152%.
Operationally, the plan calls for a five-year initial mine life producing an average of 147,000 ounces of gold annually, which is based on a 1,100 tonne per day underground operation using contract mining. The cost of digging that metal out of the ground remains competitive; all-in sustaining costs are pegged at $910 per ounce, providing a wide cushion against price volatility.
President and CEO Victor Cantore characterized the strategy as a disciplined, staged approach designed to minimize shareholder dilution while de-risking the project through established infrastructure.
“Perron delivers very high margins and powerful cash flow generation from the outset. The project’s strong economics position it among the most compelling development opportunities in our sector,” added Cantore.
While the current focus is on this immediate five-year window, the company hasn’t lost sight of the bigger picture. This first phase acts as a bridge to a potentially much larger operation. A previous preliminary economic assessment from 2025 suggested the project could eventually support a 17-year mine life, and Amex intends to use the cash flow from Phase 1 to fund the permits and studies required for a full-scale, on-site production facility in Phase 2.
The current study targets the first gold pour for 2028, which is based on two years of pre-production work.
Amex Exploration last traded at $4.17 on the TSX Venture.
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