Canada's Amex Advances Perron Gold Mine Phase One with Initial Capital of C$193.9 Million

en.Wedoany.com Reported - On September 26, Canada's Amex Gold Mining is advancing the 40,000-tonne underground bulk sample program at the Perron Gold Mine in Quebec, and plans to use the gold sales revenue and pre-production cash flow generated from this phase for Phase One mine construction. The company currently estimates the bulk sample program investment at approximately C$60 million, of which about C$40 million corresponds to infrastructure such as the ramp, power supply, and water treatment that can continue to be used by the Phase One project. The initial capital expenditure listed in the Perron Phase One feasibility study is C$193.9 million; after deducting C$68.1 million in pre-production revenue, the net initial funding requirement is approximately C$125.8 million.

Underground development of the project has already begun. In early September, Amex completed construction of the Perron underground portal and carried out the first round of ramp blasting. The underground ramp has now advanced approximately 75 meters, with an advance rate of about 5 to 6 meters per day, targeting an average of 150 to 180 meters per month. The planned ramp has a total length of approximately 1.5 kilometers and will extend to a vertical depth of about 235 meters, providing access for the extraction of the 40,000-tonne bulk sample from the high-grade Champagne Zone and for subsequent Phase One underground mining. The underground work is being carried out by CMAC.

The bulk sample program is also being equipped with surface facilities according to Phase One production specifications. Amex plans to invest approximately C$7.7 million to connect to a nearby substation, replacing its long-term reliance on diesel generators; the surface water treatment facilities are likewise being built to Phase One production capacity. The company expects the 40,000-tonne sample to produce approximately 20,000 to 28,000 ounces of gold, and plans to use the related gold sales revenue directly for subsequent mine capital investment. Company management stated that if a funding gap remains, it would prefer to supplement funds through methods such as forward gold sales rather than issuing new shares.

Perron Phase One development is centered on the Champagne Zone. The feasibility study published in April 2026 shows that Phase One proven and probable reserves total 774,000 ounces of gold at an average grade of 12.10 g/t; the planned commercial operating period is approximately 5 years, with average annual gold production of 147,000 ounces, all-in sustaining costs of approximately US$910/oz, and total recovered gold of approximately 751,000 ounces. Based on a base gold price of US$3,500/oz, the after-tax net present value (5% discount rate) is C$1.127 billion, the after-tax internal rate of return is 114.6%, and the after-tax payback period is approximately 0.5 years.

Regarding ore processing, Amex has signed a letter of intent with Eldorado Gold, which holds approximately 27% of its equity, to use a third-party processing plant to process the bulk sample and Phase One ore, but the two parties have not yet signed a final processing agreement. The feasibility study metallurgical test uses a gravity concentration plus cyanidation flowsheet, with overall gold recovery exceeding 97.5%. The company also stated that there are other processing plants in the Abitibi region with spare capacity that could serve as potential processing channels.

Regarding permitting, Amex has submitted the Perron Gold Mine Project Notice to Quebec's environmental regulator, formally initiating the Phase One environmental assessment process. Company management currently aims to obtain Phase One permits in the third or fourth quarter of 2027 and to transition to Phase One production after completing bulk sample extraction; this timing target is earlier than the mid-2028 permitting milestone assumed in the feasibility study.