Perron Feasibility Study Delivers CAD$1.13 B NPV5 and 114.6% IRR
Amex Exploration's Perron Gold Mine Phase 1 feasibility study forecasts a post-tax NPV5 of CAD$1.13 billion and IRR of 114.6% at a $3,500/oz gold price, underpinned by 774,000 oz of proven reserves grading 12.1 g/t. Phase 1 will produce average 147,000 oz at AISC USD$910/oz over five years from a $193.9 M capex.
1. Feasibility Study Economics
The Phase 1 feasibility study for the 100%-owned Perron Gold Mine projects a post-tax NPV at a 5% discount rate of CAD$1.13 billion and IRR of 114.6% at a gold price of USD$3,500/oz, with a post-tax payback period of 0.5 years and cumulative after-tax cash flow of CAD$1.44 billion.
2. Production Profile and Costs
Phase 1 Proven and Probable reserves total 1,989 kt at 12.1 g/t for 774,000 oz of gold, supporting average annual production of 147,000 oz over a five-year commercial phase at an all-in sustaining cost of USD$910/oz following a two-year pre-production period.
3. Capex and Toll Milling Strategy
Initial capital expenditure is estimated at CAD$193.9 million, partially offset by CAD$68.1 million in pre-production revenues; employing toll milling in the Abitibi region leverages existing processing facilities to reduce upfront investment, simplify permitting and accelerate first gold production, targeting 2028.
4. Expansion and Phase 2 Outlook
Amex plans Phase 2 development including an on-site mill and open-pit operations while advancing exploration across its 618.53 km² land package with over 70 km of strike, aiming to expand the 2.3 Moz resource base and extend mine life beyond the initial seven-year Phase 1 plan.