Amex Exploration Charts Self-Funded Path to Gold Production in Quebec's Abitibi Belt

• Amex Exploration controls 70+ kilometers of strike on the Abitibi Greenstone belt with $25 million exploration budget fully funded through end of 2026
• Company plans toll milling approach starting 2027, producing 112,000 ounces annually at $1,100/oz AISC, generating substantial cash flow before building own mill
• Pre-production revenue of $68 million plus $100+ million from initial production phase expected to internally fund $146 million capex requirement
• Phased development model eliminates need for tailings facility initially and allows proper mill sizing after four years of operational data
• 831,000 ounce resource at half-ounce per ton grade near infrastructure provides high-margin production with minimal technical and financial risk

Amex Exploration is advancing a gold development project in Quebec that combines near-term production potential with significant exploration upside. President and CEO Victor Cantore recently outlined the company's strategy for bringing its Perron property into production while maintaining an aggressive exploration program across more than 500 square kilometers of prospective ground.

The company has structured its business model to minimize financial risk and avoid the pitfalls that have challenged other junior miners transitioning from exploration to production. With gold prices hovering above historical averages, Amex's approach focuses on generating cash flow through toll milling before committing capital to build its own processing infrastructure.

Strategic Land Position on the Abitibi Belt

Amex now controls over 70 kilometers of strike length on the Abitibi Greenstone belt, one of the world's most prolific gold-producing regions. The company's land package spans both Quebec and Ontario, with recent acquisitions expanding the exploration potential significantly.

The Perron project hosts 831,000 ounces of gold, with Cantore noting that the Champagne zone alone could deliver nearly a million ounces. The deposit averages approximately half an ounce per ton and sits adjacent to established infrastructure including hydroelectric power, an available workforce, and supportive communities.

The property's location between Val-d'Or and Noranda - a 90-kilometer stretch that has hosted numerous mines, suggests significant discovery potential across the land package.

Fully Funded Exploration Program

The exploration side of the business enjoys complete financial independence from the development track. Amex has secured $25 million in exploration funding already deposited in the bank, supporting over 100,000 meters of drilling across both existing properties and recently acquired Ontario assets.

The geological team has identified what they believe to be a mirror image of the existing gold mineralization on newly acquired ground referring to structures and rock types that replicate those hosting known mineralization.

Beyond gold, the Abitibi belt offers VMS (volcanogenic massive sulfide) potential, though Amex's primary focus remains gold exploration. The company plans to fund future exploration from operating cash flow once production begins, eliminating shareholder dilution from ongoing drilling programs.

Development Timeline through Permitting

Amex completed a Preliminary Economic Assessment in early September and is currently working on a feasibility study. The company expects minimal differences between the two studies given their proximity in timing and the advanced understanding of the deposit.

The first production phase targets 112,000 ounces annually with all-in sustaining costs around $1,100 per ounce. The company has applied for permits to extract 40,000 tons through a bulk sampling program, representing a conservative request given that regulations typically allow 1% of measured and indicated resources.

The permitting process typically requires three to six months, and Amex is currently two months into the application. "We're right beside the town. So we have hydroelectric electricity, you have a workforce, you have supporting communities," Cantore noted, highlighting advantages that accelerate the permitting timeline.

Local First Nations communities have expressed strong support for the project following recent presentations. This social license, combined with the project's location near established infrastructure, significantly reduces development risk.

Interview with Victor Cantore, CEO, Amex Exploration

Financial Model with Capital Requirements

The phased development approach fundamentally changes the capital equation for Amex. Rather than raising hundreds of millions for a conventional mine build, the company needs only $146 million for initial capex - an amount it expects to generate internally before construction begins.

The financial model works through several stages. Starting in 2027, the company will extract ore while developing the decline, generating approximately $100 million in revenue. Additionally, as the ramp descends, stoping operations will produce $68 million in pre-production revenue that can be sold directly to toll mills without stockpiling.

"By 2027, when you're getting your first ore from there, even if gold is at $5,000 Canadian, which we're well above that today, that's over $100 million that's going to come in." 

The initial phase involves toll milling, annticipating moving to 1,000 tons per day, with commercial production phase beginning when the operation reaches 600 tons per day. All ore extracted during ramp development can be sold, with the company already planning to send bulk samples to local mills to establish relationships and processing parameters.

Phase Two: Building Internal Processing Capacity

After proving the operation through toll milling, Amex will invest $191 million in growth capital to install its own mill and develop open pits. This phase-two investment comes after the operation has generated substantial cash flow and provided four years of metallurgical data.

"After four years of toll milling, you're going to know how the rock behaves. You're going to be able to size your mill properly."

This approach addresses two common failure points in mine development: tailings management facilities and incorrect mill sizing. The company deliberately avoids building a tailings facility in the initial phases, relying instead on toll milling arrangements. 

At $3,200 per ounce gold prices, Amex projects margins of approximately $2,000 per ounce pre-tax, translating to roughly $200 million US or $280 million Canadian in the first year of phase-two operations. "The first year if gold is at these levels, you've funded everything internally," Cantore stated.

Risk Mitigation Strategy

The development strategy deliberately de-risks the project on multiple fronts. Financially, the company needs only the initial capital for ramp development, with subsequent phases self-funded through operations. Technically, the phased approach eliminates the two biggest risks in mine construction.

"A lot of the issues come from your tailings management facility which we don't need. We're going to be toll milling the first few years." 

By postponing this major infrastructure investment until operational cash flow is established, Amex reduces both capital requirements and execution risk.

The company is building both an exploration team and a mine-building team, though initial development will rely on established underground contractors already working at nearby operations, ensuring access to experienced personnel familiar with the geological setting.

Eventually, Amex plans to bring operations in-house to reduce costs, but the initial strategy emphasizes proven contractors and toll milling arrangements rather than building infrastructure and teams simultaneously.

Market Valuation with Future Outlook

With a current market capitalization around C$500 million, Cantore believes the company remains undervalued given its combination of near-term production, established resources, and significant exploration potential. "I really do believe we're undervalued," he stated.

The company's shareholder base has remained patient through the transition from pure exploration to a development and production model. 

"We'll definitely make more discoveries and we'll definitely put this into production."

The business model shift reflects changing market dynamics. While exploration spending wasn't being rewarded by investors in recent years, the combination of exploration upside with near-term, high-margin production provides multiple catalysts for value creation. At current gold prices, the economics support rapid project advancement while funding continued discovery efforts across the expanded land package.

The Investment Thesis for Amex Exploration

• Self-funding development model: $68M pre-production revenue plus $100M+ from initial production phases expected to internally fund $146M capex, eliminating need for large equity financing or debt
• High-margin production profile: 112,000 oz/year at $1,100/oz AISC with gold prices above $3,200/oz CAD creating $2,000+/oz margins and potential for $200M+ annual pre-tax cash flow
• Phased de-risking approach: Toll milling eliminates tailings facility risk and provides four years of operational data before $191M phase-two mill investment, avoiding common mine-building failures
• Significant exploration upside: Fully funded $25M exploration program through 2026 targeting 100,000+ meters across 70km of strike with geological team identifying mirror-image structures to existing mineralization
• Infrastructure advantages: Located adjacent to town with hydroelectric power, workforce, processing options, and First Nations support reducing permitting timeline and operating costs
• Non-dilutive growth strategy: Operating cash flow projected to fund all future exploration by 2027, preserving shareholder value while expanding resource base
• Proven geological setting: 831,000 oz resource in Abitibi Greenstone belt, one of world's most prolific gold districts, with deposit grades averaging 0.5 oz/ton
• Minimal technical risk: Proven contractors, multiple toll milling options, and proximity to operating mines provide operational certainty during critical development phase

Amex Exploration exemplifies how junior gold developers can capitalize on elevated gold prices by restructuring traditional mine-building models. The company's phased approach - beginning with toll milling rather than full infrastructure construction transforms the capital-intensive mine development process into a self-funding proposition. 

At current gold prices exceeding $4,000 per ounce, high-grade deposits near infrastructure can generate sufficient cash flow during ramp development to eliminate reliance on capital markets for construction financing. This model addresses investor concerns about dilution while providing exposure to both near-term production cash flows and significant exploration upside across a major land position in one of the world's premier gold districts.

TL;DR

Amex Exploration is advancing a self-funded gold development strategy in Quebec's Abitibi belt, targeting 112,000 oz/year production at $1,100/oz AISC through toll milling starting 2027. The company expects pre-production and initial phase revenues to internally fund $146M capex before building its own $191M mill, eliminating dilution while maintaining a fully funded $25M exploration program across 70+ kilometers of strike. At gold prices above $3,200/oz CAD, the high-margin operation could generate $200M+ annually while funding continued exploration across one of the world's most prolific gold districts.

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