Amex Exploration Phase 1 Perron Mine Feasibility: CAD$1.13B NPV and 114.6% IRR
Amex Exploration’s Phase 1 Perron feasibility study identifies 1.989 Mt proven and probable reserves at 12.1 g/t, 774,000 oz Au and CAPEX of CAD 193.9 M. It projects average annual output of 147,000 oz at an AISC of US$910/oz, post-tax NPV5 of CAD 1.13 billion and IRR of 114.6%.
1. Feasibility Study Highlights
The Phase 1 feasibility study for the 100%-owned Perron Gold Mine reports Proven and Probable reserves of 1.989 million tonnes at 12.1 g/t for 774,000 oz Au. It forecasts 147,000 oz average annual production at an AISC of US$910/oz over five years.
2. Financial Metrics and Economic Returns
The study estimates initial capital expenditure of CAD$193.9M and projects a post-tax NPV5 of CAD$1.13B, an IRR of 114.6% and cumulative after-tax cash flow of CAD$1.44B. Payback is expected in 0.5 years post-tax, assuming US$3,500/oz gold and a 1.38 exchange rate.
3. Development Strategy and Timeline
Phase 1 targets first production in 2028 via a 1,100 tpd underground mine using toll milling to leverage existing Abitibi infrastructure and minimize dilution. Concurrent exploration across a 618.53 km² land package will feed Phase 2, which contemplates an on-site mill and open pit operations.