Amex Exploration (TSX-V:AMX, OTC:AMXEF) has been one of the bright spots in my portfolio over the last few months. This morning, AMX announced some impressive bonanza/high-grade intersections from the Denise Zone at the Perron Project in Quebec, Canada.
Highlight intervals include:
- 8.25 g/t Au over 44.80 meters, including 602.00 g/t Au over 0.50 meters, at a vertical depth of ~230 meters in hole PE-21-337;
- 1.22 g/t Au over 64.75 meters, including 10.96 g/t Au over 3.55 meters, at a vertical depth of ~200 meters in hole PE-21-305;
This morning's results from Denise are significant because Denise has always been thought of as a much lower grade, near surface zone, that would be used to ramp down to mine the High Grade Zone (HGZ). This morning's confirmation that Denise also contains mineable widths of 8g/t - 10g/t gold is a huge bonus to the economics at Perron.
Amex is keen to drill to the east of the diabase dyke that remains open for at least one kilometer. This area is ripe for adding ounces and Amex has already seen some nice gold intersections in a few holes to test along the contact to the east. Amex plans to begin using two rigs to expand gold mineralization to the east of the dyke before year end.
Revisiting an article that I wrote at the end of June, I'd say that recent drill results have Amex a lot closer to the 3 million ounce total gold resource number. In addition, in June I was not factoring in anything for the recently discovered QF Zone which I did not know existed at the time.
Based on the company's fundamental momentum and the current gold price trajectory, the $4.00 share price level is back in play for AMX shares. Yesterday, I posted a chart highlighting the technical significance of September's 'failed breakdown' and the importance of this week's close:
Amex continues to deliver results without making excuses, which is becoming increasingly rare in a sector full of lab delays, cost overruns, and labor shortages.
Disclosure: Author owns shares of Amex Exploration at the time of publishing and may choose to buy or sell at any time without notice. Author has been compensated for marketing services by Amex Exploration Inc.
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