RETRANSMISSION: Amex Exploration Perron Gold Project Delivers Strong Economics in Updated PEA

Core Viewpoint - Amex Exploration Inc. has released an updated Preliminary Economic Assessment (PEA) for its Perron gold project, indicating strong economic viability with significant post-tax returns and a phased production strategy aimed at minimizing risks and costs [3][5][6]. Economic Highlights - The updated PEA assumes a gold price of US$2,500 per ounce and a C$/US$ exchange rate of 1.38:1, projecting a post-tax Internal Rate of Return (IRR) of 70.1% and a post-tax Net Present Value (NPV) of C$1,085 million [5][6][49]. - Cumulative undiscounted post-tax cash flow is estimated at C$1,768 million, with C$1,273 million generated in the first 10 years of production [6][49]. - The project anticipates an average gold production of 112,000 ounces per year over the first decade [6]. Production Strategy - The project will be developed in two phases: Phase 1 involves a 4-year toll milling operation with a low initial capital cost of C$146.1 million, while Phase 2 includes the construction of an on-site processing plant with a capacity of 2,000 tonnes per day [7][10][38]. - Phase 1 is expected to produce an average of 102,000 ounces of gold annually at an All-in Sustaining Cost (AISC) of US$1,165 per ounce [7][12]. - Phase 2 will have a life of mine (LOM) of 17.5 years, with an average annual production of 95,000 ounces and a LOM AISC of US$1,061 per ounce [10][12]. Financial Analysis - The PEA indicates that at a spot gold price of US$3,400 per ounce, the project could achieve a post-tax NPV of C$1,841 million and an IRR of 107.6% with a payback period of 0.4 years [50]. - The total initial capital expenditure (CAPEX) for Phase 1 is estimated at C$146.1 million, netting to C$77.5 million after accounting for pre-production revenues [37][38]. - Growth CAPEX for Phase 2 is projected at C$191.6 million, which includes the costs of building the processing plant and acquiring necessary equipment [38]. Environmental and Social Considerations - The project aims to minimize environmental impact by utilizing mined-out open pits for tailings storage, thus avoiding the need for a traditional tailings management facility [17][36]. - An environmental and social scoping study is underway to identify key risks and issues associated with the project, ensuring compliance with regulatory requirements [58][59]. Stakeholder Engagement - The company has established a relationship of trust with the local Abitibiwinni First Nation and prioritizes stakeholder engagement through regular communication and consultation [60][61]. - Active community participation is emphasized as a core value, with plans to establish working and consultation committees by the end of 2025 [61].