Amex Exploration: From Discovery to the Next Canadian Gold Producer

Key Concepts

• Abitibi Greenstone Belt: A world-renowned, highly productive gold region in Quebec and Ontario with over 200 million ounces of historical production.
• Champagne Zone: The flagship high-grade gold deposit at the Peron project, characterized by steep dipping and simple geometry.
• VMS (Volcanogenic Massive Sulfide): A type of metal sulfide ore deposit that provides potential for base metals like copper and zinc.
• Measured, Indicated, and Inferred Resources: Standard classifications for mineral resources based on geological confidence levels.
• NPV (Net Present Value) & IRR (Internal Rate of Return): Financial metrics used to evaluate the profitability and efficiency of a mining project.
• AISC (All-In Sustaining Costs): A comprehensive metric representing the total cost to produce an ounce of gold.

1. Project Overview and Infrastructure

MX Exploration is a Canadian gold developer focused on the Peron Gold Project, located 8 km from Normétal, Quebec. The project benefits from exceptional infrastructure, including year-round road access, proximity to an airport (20 minutes), local workforce availability, and affordable hydroelectric power. These factors significantly lower the technical and financial risks associated with permitting and construction.

2. Geological Profile and Resource Estimates

The project is situated in the Abitibi Greenstone Belt. Mineralization spans at least 4 km of strike length, featuring both underground and open-pit potential.

• Total Project Resource (May 2025):
  • Measured & Indicated: 8.183 million tons at 6.14 g/t Au (1.615 million ounces).
  • Inferred: 5.044 million tons at 4.31 g/t Au (698,000 ounces).
• Champagne Zone Highlights:
  • Measured & Indicated: 1.594 million tons at 16.20 g/t Au (831,000 ounces).
  • Proven & Probable Reserves: 1.989 million tons at 12.1 g/t Au (774,000 ounces).
• Metallurgy: The project demonstrates high recovery rates, with over 75% of gold recovered via gravity separation and total recovery exceeding 97.5% using a simple flow sheet (gravity + cyanidation).

3. Economic Viability

The Phase 1 feasibility study highlights robust economics:

• Capital Expenditure (CAPEX): $194 million CAD.
• AISC: $910 per ounce.
• Production: Average of 147,000 ounces per year over a 5-year period.
• Financial Performance (at $3,500/oz gold): Post-tax NPV of $1.127 billion CAD and an IRR of 114.6%.
• Financial Performance (at $2,000/oz gold): Post-tax NPV of $427 million CAD and an IRR of 56.9%.
• Payback Period: Approximately 0.5 years.

4. Development Strategy

MX Exploration utilizes a phased approach to mitigate financing risks and accelerate cash flow:

• 2026–2027: 40,000-ton bulk sampling phase at 230m depth.
• 2028–2033 (Phase 1): Underground mining of the Champagne zone.
• 2033+ (Phase 2): Construction of an on-site processing plant and extraction of additional ore bodies.

5. Exploration Upside and Catalysts

The company has planned a 100,000-meter drilling program for 2026, targeting:

• Conversion and extension drilling at Peron.
• Initial 15,000-meter program at Peron West, an early-stage area with historical high-grade surface samples (up to 25.57 g/t Au).
• Testing of VMS systems (e.g., QF zone), which showed 2.4% copper and 0.72% zinc.

6. Corporate Structure and Management

• Shareholders: Eldorado Gold holds ~27% of the company, providing technical expertise and market credibility. Insiders hold 6.2%.
• Leadership: CEO Victoria Canouri is credited with the discovery and development of the Peron project, supported by a team experienced in finance and mine development.

Synthesis and Conclusion

MX Exploration is successfully transitioning from an exploration-focused entity to a near-term gold producer. The combination of high-grade reserves (specifically in the Champagne zone), low capital intensity, and a strategic location in a Tier-1 jurisdiction makes it a compelling development target. Key short-term catalysts include the commencement of bulk sampling, ongoing permitting progress, and the results of the extensive 2026 drilling campaign.