Amex Exploration Inc (CVE:AMX) Stock Soars on Quebec Drill Program Results
Amex Exploration Inc (CVE:AMX) (OTCMKTS:AMXEF) (FRA:MX0) CEO Victor Cantore shares details of the company’s drill program returns of 12.6 grams of gold over 4.6 metres. The project site contains both high grade and low grade gold and the 300 metre strike length contains visible gold as well. Amex Exploration Head Geologist Kelly Malcolm joins the discussion from the project site via Skype and walks viewers through a collection of rock samples from the Hole 22 intercept. Malcolm stresses the project’s consistent vein system and that all intercepts in the zone display visible gold. Cantore shares that Amex Exploration raised $500,000 in December and that financing round will pay for the entire project, which is projected to cost $160 per metre.
James West: And I’m back here now with Victore Cantore, CEO of Amex Exploration, trading on the TSX Venture under the symbol AMX. Victor, welcome back.
Victore Cantore: thank you, thank you for having us here. It’s really exciting.
James West: It has been a long time that we have been following you – we’ve been following each other through the mining market – and now you have gotten yourself involved with a company called Amex Exploration. Why don’t you give us a thumbnail overview of what the asset is, or what the target is, and how it’s going
Victore Cantore: Absolutely. So I got involved in Amex sometime in late 2016. We financed the company in early 2017, we went through a series of financings, raised them about $3.5 million, and this target, Jacques Trottier, our PHC, was also the founder under, he was actually found the Sulliden mine in Peru –
James West: That’s funny – that’s anther mine that I follow quite extensively.
Victore Cantore: Well, Show Window – I call it Sulliden is the company; the Show Window mine –
James West: The Show Window mine, yeah! Who ended up buying that? It was another company that ended up buying that, and didn’t they end up putting it into production?
Victore Cantore: Yeah, yeah, it’s in production. So Jacques Trottier, our executive chairman, which was also the past CEWO of the company, he actually bought that for 410,000, went there, he picked it up, and he actually turned it into the Show Window mine, and that’s what we’re trying to do right now with Amex. We had an interesting – so the asset is Normetal, it’s north of Val D’or; there was a Normetal mine that was mined for many years, it’s been shut down since, they pretty much ran out of ore. We’re right beside, and usually the best place to find gold is wherever there was a gold mine.
James West: Sure.
Victore Cantore: We’re right behind – so there’s three different zones, so this is a brand new discovery, even thought they’ve been out in that area for over 20 years, there’s the old Perrot zone, there’s the polymetallic zone where Agnico Eagle had an option, they dropped it sometime last year, and then there’s the eastern gold zone where we started exploring this year, and we had some of these bonanza grades.
James West: Interesting. So now, what amount of drilling has been done, and what are some examples of the best intercepts?
Victore Cantore: Well, last February when we hit an intersection, if I talk vertical depth, was around 29\0 metres; they intersected about 12.6 grams over 4.6 metres. Jacques was really excited about that, and then we waited till – in Quebec, if you’re using hard dollars, you always end up getting 40 percent of your exploration expenditures back to you. We were getting close to $500,000 back to us, so we waited till October to actually start doing the drilling program. So we got prepared, did a 3D modelling, did the ore vision, so really prepared our targets property.
So in December we ended up really hitting a really nice zone; so that zone was 88 metres above the other zone that was one around 290 metres, and we ended up interception 269 grams per tonne over 1.35 metres. That’s the high grade zone, and then just beside it, another 70,80 metres beside it, we intercepted another zone that’s over 100 metres at 0.7. So when you start putting this all together, you almost start building out like the deeper model where you’ve got the high grade and the low grade.
What really put this on the map, we ended up drilling 35 metres above that, now, taking us to a vertical depth of about 170, 175 metres approximately, and we really hit a big bonanza grade where the one that we reported at 393 grams per tonne over 1.7 metres.
Ed Milewski: So excuse me, 393 grams, is ounces, is like 13 ounces.
Victore Cantore: Yeah, 15 ounces.
Ed Milewski: And, at $1,200 an ounce, so that’s like $16,000 a tonne rock.
Victore Cantore: Rock. Absolutely.
James West: Sure. Okay, so what is the geological setting, what is the strike length anticipated to be, and what’s the actual, you know have you, is it terminated at depth yet or…
Victore Cantore: No, at depth, we followed for at least 375 metres, all the way down to depth. We followed it over 300 metres, we’re following it over 300 metres over strike line up to now. It’s really orogenic gold; just about every single hole, there was visible gold. It’s really quite impressive. And above that, we reported in the last press release also, it’s the paragraph that starts right under the table, so we’re following up this quartz vein. So we reported that we actually intersected also that quartz vein; the results are going to be pending, but it’s quite impressive.
Now, you can follow it for almost 150 metres from the first one all the way up, so you’ve got 150 metres up to the strike lin. Again, we don’t have results o that, but it’s quite impressive.
James West: Sure. So as of right now, are there any drill core at the lab where there might be results coming soon?
Victore Cantore: Absolutely. So our whole 20 – so we reported yesterday Hole 22, Hole 23 is leaving to the lab and that should be coming back, and we should be intercepting shortly, we have to confirm it with the geologist, there’s another hole, Hole 34, we should be intersecting that area.
So when I was talking to you about that hole around 290 and the 269 grams per tone, so in between there, there’s 88 metres, so our Hole 24 is going to be right in between there to confirm it, so when you look at our press release, we have in Figure 3 we show the strike, we show the image of gold right through, but we cut it off, because 88 metres is quite a distance. We have to put a whole through that. We’re hoping to be able to announce that, not results, but if we’re saying we’re lucky that we hit the ports veins, so many metres, and pending results.
James West: What’s the distance on the surface between drill collars for those holes?
Victore Cantore: It’s all coming in because we’re taking it vertically, most of the holes are from the same pad, and we could have Kelly confirm it’s from the same drill pad; they’re just going from it from a different angle.
James West: Sure. Now, you’ve got geologist Kelly Malcolm is on the line from Skype from the project, live from a mining site, unbelievable, yes it’s true. Not a mining site yet, more of an exploration site, he’ll be joining us. Oh, sound.
Ed Milewski: There you go.
James West: So Kelly, what can you tell us about this deposit from a geological perspective?
Kelly Malcolm: It looks very simple, which is a good thing when you’re talking about geology and rocks; it’s a sheet-like orogenic type system. Basically, the eastern gold zone that we’re targeting has two components to it. One of them is the high grade zone, which is obviously the numbers that came out two days ago; the 394 grams over 1.7 metres. Inclusive in that intercept is 77 grams over half a metre. I actually have that core in front of you, and I’m happy to show it to you shortly.
In addition to that system, there’s also a low grade portion of the system; we’ve hit up to about 100 metres of about 0.6 mineralization; within that, several intercepts that are quite attractive that you can see through our previous press releases.
James West: Kelly, are you buying the stock? [laughter]
Kelly Malcolm: I am buying the stock.
James West: Okay. That’s all I wanted to know. You can go now. No, just kidding. Okay, why don’t you show us some images of that core now so that we can have a look?
Kelly Malcolm: Sure, happy to do so. So this the Hole 33 intercept; I apologize if it’s difficult to see, so I put the grades that we’ve hit on this intersection. So here you can see 236 grams over half a meter; over here, 677 over 0.5 as well, and then in this portion, 307.3 over 65. And the reason that we split this sample into three samples is was number one, we wanted to prove to the market that we’re not smearing anything within this vein, and that there’s gold distributed throughout the vein proper.
I’m going to try to zoom in and show you some of the visible; I’m not sure if you can see any of that, but there is visible gold scattered throughout that intercept. It’s probably quite difficult to see, but you can probably see some shimmers on that vein itself.
James West: Yes, we can, down there.
Kelly Malcolm: As well, we’re seeing very coarse mineralization, not coming through all that well in Epson, but we’re going to be updating the Amex website with some of these visible gold photos and they are very promising.
James West: Fantastic. And what is sort of the geological control and stratigraphic – I haven’t said that word in so long, I forgot how!
Kelly Malcolm: So it’s hosted within a rye-like package, an extensive volcanic system, and then you can probably see on my photos, sorry for this jump around, but here’s a darker rock below the vein which comes in right around here, and that’s like a sort of like a broke dyke that seems to have a control on the mineralization, and when we’re intercepting that dyke, we end up[with both wider and higher grade mineralization, as evident with the past press release.
So it seemed to b very consistent; we’ve intersected that gaborone and this vein system now in a number of holes, and as Victor mentioned, visible gold associated in a number with a all the intercepts in this zone.
James West: And so in your opinion, what are some of the linear dimensi0ns of the strike?
Kelly Malcolm: Difficult to say on the strike; like Victor’s mentioned, the eastern gold zone proper has been tested across 300 metres. This high-grade shoot, we haven’t yet determined dimensions of it. I can however mention that the Normetal mine, which is just about five kilometres to the southwest of us, was mined to a depth of 2.5 kilometres, indicative that this potential system would have a very substantial depth component to it as well.
James West: Interesting. Kelly, thank you very much for joining us now.
Kelly Malcolm: Thanks for having me.
James West: Sounds like just an absolutely exciting project – we do0nt’ see these come across our radar anymore that often anymore, do we? So now tell me, how much money do you have in the bank, and how much of the drilling you’ve got planned for 2019 that’s already paid for, and when do you have to go back to the market?
Victore Cantore: So we raised a little bit in early December, we raised a little over $500,000, so it’s all double paid that program that we announced. And drilling costs up there, like, our last budget, we review our budgets with actual expenditures, we do this quite often to make sure we still say in line; so all inclusive, that includes the assays, every expense associated, we are looking just a tad over $160 a metre, and that’s an area where it’s not remote; we don’t need helicopter support. We can et in a pickup and drive right to the drill pattern.
James West: Sure, well, there’s all kinds of mining infrastructure matter there.
Victore Cantore: That’s right.
James West: Yeah, okay, well Victor, that’s a n excellent introduction. I actually just bought some stock before we did this interview, by way of disclosure. We’re going to follow the story, and we’ll probably and a camera crew up to visit you when you’ve got some good action going on up there. Thanks so much for joining us today!
Victore Cantore: Thank you for having me.
Ed Milewski: Thanks, Victor. Thanks a lot.
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