Major Resource Upgrade Fuels Rapid Move to Gold Production For Amex Exploration

• AMEX Exploration's updated mineral resource estimate shows 1.615 million ounces in measured and indicated categories at 6.14 g/t across all zones, representing a 172% increase over the 2024 estimate with a 43% grade increase.
• The flagship Champagne Zone contains 831,000 ounces of measured and indicated resources at an exceptional 16.20 g/t, plus 128,000 inferred ounces at 9.83 g/t, forming the core of the production strategy.
• The company is transitioning from pure exploration to near-term production through bulk sampling, toll milling, and eventual construction of their own processing plant to generate cash flow.
• The project sits in Quebec's Abitibi Greenstone Belt near the town of Normétal, providing access to existing infrastructure, skilled workforce, and multiple toll milling options within the region.
• Management expects to release a new preliminary economic assessment within 60 days, followed by a feasibility study on toll milling within six months, with production targeted within two years.

AMEX Exploration Inc. (TSXV:AMX) is positioning itself as both an exploration company and near-term gold producer, leveraging its high-grade Quebec project to generate cash flow while continuing regional exploration. CEO Victor Cantore recently outlined the company's strategic evolution during a comprehensive interview, detailing plans to advance from updated resource estimates to commercial production within two years.

Enhanced Resource Base Drives Production Decision

The foundation of AMEX's production strategy rests on its significantly upgraded mineral resource estimate, which demonstrates substantial growth in both ounces and grade. The company now reports 1.615 million ounces in measured and indicated categories at 6.14 g/t across all constrained zones, representing a remarkable 172% increase in measured and indicated resources over the 2024 estimate with a 43% increase in grade.

The flagship Champagne Zone (formerly High Grade Zone) contains 831,000 ounces of measured and indicated resources at an exceptional 16.20 g/t in 1.594 million tonnes, plus 128,000 inferred ounces at 9.83 g/t. This high-grade core provides the foundation for the company's near-term production strategy.

"We have 830,000 ounces and measured and indicated, you know, 16.2 grams per ton." 

The total resource base of 2.313 million ounces (1.615 Moz M&I + 698 koz inferred) positions AMEX among the more substantial undeveloped gold projects in the Abitibi Belt.

Strategic Transition to Dual-Path Approach

Rather than abandoning exploration entirely, AMEX is implementing what Cantore describes as an enhanced business model combining continued discovery efforts with near-term production. The company maintains 197 square kilometers of prospective land in the Abitibi Greenstone Belt, with all current deposits remaining open in multiple directions.

"We're still going to continue exploration in a limited way. But in the meantime, how can you really turn this into real cash flow and then go to a real exploration program where you could get back again, having 10 drills in a non-dilutive way."

The production strategy follows a phased approach beginning with bulk sampling to validate grade reconciliation and metallurgical characteristics. This scientific validation provides crucial data for optimizing the eventual processing plant design while generating initial cash flows through toll milling arrangements.

Location Advantages Enable Rapid Development

AMEX's project benefits from exceptional infrastructure advantages that reduce both capital requirements and development timelines. Located near Normétal, a town historically built around mining operations, the project provides access to an established workforce without requiring fly-in, fly-out operations or construction of mining camps.

The strategic location offers multiple toll milling options within economic transport distances. 

"There's a lot of mills in the area with excess capacity, not only on the Quebec side, there's also on the Ontario side."

The high-grade nature of the ore makes transport economics favorable across the entire Abitibi Greenstone Belt region.

Infrastructure requirements remain minimal, with the project located approximately five kilometers from existing electrical infrastructure serving the local community. The underground mining approach requires only portal development rather than large-scale surface facilities, further reducing environmental permitting complexity and timeline.

Accelerated Development Timeline

Management has outlined an aggressive but achievable development timeline targeting commercial production within two years. The sequence begins with releasing an updated preliminary economic assessment within 60 days, followed by a focused feasibility study on toll milling operations.

"The minute we've got that [PEA], I would do a feasibility study just on toll milling…hopefully we could get it within six months or so."

The streamlined approach focuses initially on toll milling to accelerate revenue generation while simultaneously advancing permitting for the complete mining operation. Environmental permitting typically requires two years in Quebec, but the toll milling approach reduces complexity by utilizing existing regional infrastructure for waste management.

Interview with CEO Victor Cantore

Team Expansion for Mine Development

Recognizing the operational shift from exploration to development, AMEX is expanding its technical team to include mine building expertise. The company recently added a mining engineer and plans to bring on an executive with 40 years of mine building experience.

"We're going to have a dual team of mine builders and also exploration people. You need to bring in the mine builders, mining contractors." 

This dual-track approach ensures continued exploration activities while building operational capabilities for near-term production.

The team expansion extends beyond technical roles to include specialists in community relations and First Nations engagement, recognizing the importance of social acceptability for long-term project success. These additions reflect the company's comprehensive approach to transitioning from exploration to operations.

Anti-Dilutive Financial Strategy

Central to AMEX's strategy is minimizing shareholder dilution through cash flow generation rather than continued equity financing for exploration activities. Cantore, noting his position as a significant shareholder, emphasizes creating value through operational cash flow rather than traditional exploration financing cycles.

"I'm a shareholder myself and I definitely want to grow this company in the least dilutional way possible, and I think you do that with free cash flow down the road."

The approach leverages the project's high-grade nature and favorable location to generate returns that fund future growth without significant equity dilution.

While the company will require additional financing for initial development, management indicates this may involve strategic partnerships rather than broad equity raises. The presence of Eldorado Gold as a 9.9% shareholder provides potential access to mining industry expertise and capital resources.

Market Position and Partnership Benefits

AMEX's relationship with Eldorado Gold provides strategic validation and technical support through regular technical committee meetings. The partnership offers insights from Eldorado's operational experience with similar high-grade projects, including their Lamaque operation.

"You look at their Lamaque project, right? High-grade mine, very similar. If you looked at the PEA of the Lamaque project back in 2017 to our last PEA, they look pretty similar."

This comparison suggests potential for similar development success and operational performance.

The strategic partnership provides access to mining industry expertise while maintaining management independence for operational decisions. Eldorado's support strengthens AMEX's technical capabilities during the critical transition from exploration to production.

The Investment Thesis for AMEX Exploration

• Substantially Enlarged Resource Base: 1.615 million ounces measured and indicated at 6.14 g/t provides robust economics for staged production, with high-grade Champagne Zone (831k oz at 16.20 g/t) offering exceptional returns
• Massive Resource Growth: 172% increase in measured and indicated resources with 43% grade improvement demonstrates successful exploration and provides significant production runway
• High-Grade Production Core: Champagne Zone's 16.20 g/t grade enables economic toll milling across wide geographic area, providing operational flexibility and strong cash flow potential
• Rapid Production Timeline: Clear path to cash flow within two years through toll milling of high-grade zones, followed by proprietary plant construction leveraging larger resource base
• Strategic Location: Project situated in established mining district with existing infrastructure, skilled workforce, and multiple toll milling options reducing both capital requirements and operational risks
• Multi-Zone Expansion Potential: Total resource base of 2.313 million ounces across multiple zones with continued exploration upside across 197 square kilometers of prospective land
• Anti-Dilutive Growth Model: Larger resource base supports extended mine life and cash flow generation to fund continued exploration and development with minimal equity dilution
• Experienced Strategic Partner: Eldorado Gold's 9.9% ownership provides technical expertise and potential additional capital access, with validation from resource upgrade success

Macro Thematic Analysis

The gold mining industry is experiencing a renaissance in high-grade, smaller-scale operations as companies seek to maximize returns per ounce while minimizing capital intensity. AMEX Exploration exemplifies this trend, leveraging exceptional grades and strategic location to bypass traditional large-scale development models in favor of rapid cash flow generation.

This approach reflects broader industry recognition that high-grade deposits can generate superior returns through focused, efficient operations rather than pursuing maximum tonnage throughput. The toll milling strategy demonstrates how modern mining companies can access processing infrastructure without massive capital commitments, particularly in established mining districts like Quebec's Abitibi Belt.

The anti-dilutive financing approach addresses a key investor concern in the exploration sector, where companies traditionally dilute shareholders through repeated equity raises to fund drilling programs. By generating operational cash flow to finance exploration, AMEX represents a new model that aligns management and shareholder interests while maintaining growth potential.

Rising gold prices enhance the attractiveness of high-grade projects, where modest production volumes can generate substantial cash flows. The combination of grade, location, and operational flexibility positions companies like AMEX to capitalize on favorable commodity cycles while building sustainable long-term operations.