Amex Exploration (TSXV: AMX; US-OTC: AMXEF) has awarded a contract to build a dedicated power line to its Perron gold project in northwestern Quebec as it prepares to release a feasibility study within weeks, positioning the high-grade Abitibi asset for near-term development.
The company has mandated contractor Moreau to complete preparatory work for a connection from the Normétal substation to the Perron site, about 8 km away. The grid tie-in is designed to support bulk sampling and projected operations under the company’s proposed direct shipping ore strategy.
“Direct connection to Hydro-Quebec’s grid is expected to be an important contributor to the technical and economic parameters being evaluated in the ongoing phase one feasibility work,” Amex President and CEO Victor Cantore said. “Establishing permanent grid power early enhances cost visibility, operating reliability and overall project robustness.”
The infrastructure award comes as Perron advances on the back of a significantly expanded resource estimate published in May 2025 that nearly tripled measured and indicated ounces. It lifted grade and strengthened the project’s economics in a rising gold price environment.
Resource update
Open pit and underground constrained resources at Perron total 8.18 million measured and indicated tonnes grading 6.13 grams gold per tonne for 1.61 million oz., according to the estimate. Inferred resources total 5.04 million tonnes at 4.31 grams gold for 698,000 oz. contained gold.
The update marked a step change in scale compared with the previous estimate and reflected continued drilling success across multiple zones. The resource includes contributions from the Champagne, Denise, Gratien, Grey Cat and Team zones, with Champagne accounting for roughly half of contained measured and indicated ounces.
“This estimate demonstrates the team’s ability to identify and grow the Perron project into a world class gold asset,” Cantore said at the time. “Given the quality of the project, we are pursuing a dual pathway of development and continued exploration at Perron.”
Drilling supporting the estimate included 46,355 metres of new core, incorporating more than 30,000 assay results. Mineralization remains open in multiple directions, including at depth at Denise, where gold extends to at least 750 vertical metres from surface.
Feasibility focus
The upcoming stage one feasibility study will examine a smaller-scale initial operation centred on high-grade direct shipping ore, while preserving longer-term optionality for a larger build that would incorporate both open pit and underground mining.
A preliminary economic assessment from September outlined a 10-year operation producing 1 million oz. over the mine’s life, including 124,000 oz. annually in the first five years. At a base case gold price of $2,500 per oz., the study estimated a $948-million pre-tax net present value at a 5% discount rate and a 60% internal rate of return, with initial capital of $229 million and all-in sustaining costs of $807 per ounce.
While gold has traded materially above that price since, the company has emphasized disciplined advancement and staged development rather than scaling immediately to a larger build.
Updated economics
The feasibility study will outline a staged development plan beginning with a four-year direct shipping ore operation at 1,000 tonnes per day using contract mining. It would be followed by an expansion to 2,000 tonnes per day for 13 years under an owner-operated model with on-site processing.
Across both stages, the company has outlined average operating costs of $891 per oz. and all-in sustaining costs of approximately $1,061 per oz., reflecting both development phases and updated operating assumptions. At a base case gold price of $2,500 per oz., the study indicates a post-tax internal rate of return of 70% and a post-tax payback period of 1.4 years. At $4,000 per oz., the post-tax IRR rises to 131% with payback falling to 0.2 years.
The combined mine plan outlines a 17.5-year life with total production of about 1.6 million oz. of gold at an average diluted grade of 5.07 grams gold per tonne.
The feasibility work builds on the September 2024 preliminary economic assessment that outlined a 10-year operation producing 1 million oz. over the mine’s life, including 124,000 oz. annually in the first five years. It has a pre-tax net present value of $948 million at a 5% discount rate and a 60% internal rate of return at $2,500 per oz. gold.
The power line contract is part of that staged approach. Connection to Hydro-Quebec’s low-cost grid is expected to reduce reliance on diesel generation, lower operating costs and improve reliability. The project benefits from being close to infrastructure, including paved highways, labour and processing plants within the Abitibi mining district.
Abitibi context
Perron lies along the Abitibi Greenstone Belt, one of Canada’s most prolific gold-producing regions. The belt hosts major operations including Canadian Malartic, operated by Agnico Eagle Mines (TSX: AEM; NYSE: AEM), and the Windfall project owned by Gold Fields (NYSE: GFI; JSE: GFI).
Amex controls more than 70 km of the belt and about 9 km of the Perron fault, a structural corridor associated with high-grade mineralization. The company continues to target additional resource growth along strike and at depth while advancing engineering work.
The Abitibi setting offers logistical advantages relative to more remote northern developments, including established mining communities, experienced contractors and year-round road access.
Cost structure
Tonnage growth and grade improvement in the latest estimate have improved Perron’s development profile. The measured and indicated grade of 6.13 grams gold per tonne positions the project among higher-grade undeveloped deposits in the district.
The projected all-in sustaining costs of $807 per oz. were below the global industry average when the PEA was published. Updated feasibility-level estimates are expected to incorporate revised capital and operating assumptions as well as refined mine sequencing, Amex said.
The company hasn’t yet released updated capital cost guidance tied to the feasibility study.
Amex continues to allocate funds towards exploration, targeting expansion at Champagne and Denise and evaluating additional satellite zones that could add to the resource base.
The Denise zone, in particular, has emerged as a significant contributor, with mineralization extending to depth and remaining open. Grey Cat and Team provide near-surface open pit potential that may enhance early production sequencing, Amex said.
The company’s dual-track strategy reflects an effort to preserve exploration upside while advancing engineering and permitting.
Market positioning
Shares of Amex have strengthened alongside bullion prices and the expanded resource base. The Toronto-listed stock gained 7% this year to C$4.27 apiece by press time in February for a market capitalization of C$609 million.
With grid power under construction and feasibility nearing completion, Perron is entering a transition stage from exploration-led growth to development planning, as the company evaluates capital allocation options in a supportive gold price environment.
Cantore said the company remains focused on execution as it moves toward feasibility.
“Our focus is advancing Perron responsibly and efficiently,” he said. “We are pursuing a dual pathway of development and continued exploration.”
The preceding Joint Venture article is PROMOTED CONTENT sponsored by Amex Exploration and produced in co-operation with The Northern Miner. Visit: https://www.amexexploration.com/ for more information.
Be the first to comment on "JV article: Amex advances Perron towards feasibility"