March 8, 2019

Amex Exploration Inc (CVE:AMX) Completes $5.4 Million Private Financing

Midas Letter
Midas Letter
Amex Exploration Inc (CVE:AMX) Completes $5.4 Million Private Financing

Amex Exploration Inc (CVE:AMX) (OTCMKTS:AMXEF) (FRA:MX0) VP Exploration Kelly Malcolm is ecstatic about the company’s 2019 drill program. Malcolm notes that the high-grade gold project has a very affordable $160/m cost to drill thanks to existing infrastructure at the Quebec site. Amex recently announced it would drill an additional 10,000 metres at the site and that it is hitting visible gold in almost all its drill holes. The company has made all its drilling data publicly available and Malcolm is confident investors will like what they see. Amex recently announced a $5.4 million private financing and the addition of Eric Sprott as a strategic investor.


Ed Milewski:  I’m joined now by Kelly Malcolm, VP Exploration, Amex Exploration. How are you doing?

Kelly Malcolm: Thanks for having me on. I’m doing very well, thank you. PDAC is busy, we’ve got a really exciting story, and we’ve had a lot of meetings that –

[stock_chart symbol=”AMX:TSV” align=”left” range=”1M”]

Ed Milewski:  Unbelievable story.

Kelly Malcolm: Very exciting high-grade gold in Quebec, great infrastructure. We’ve got a lot of traction in the market, and the management team is very excited about this story.

Ed Milewski:  Now, since Victor was here, I’m going to say four or five weeks ago, maybe a little longer, stocks – when I first found it, it was $0.19, $0.20. It hit $1.50 recently, sold off hard, and you might say it’s technical. There’s been some stories floating around that maybe aren’t the kindest – well, maybe we’ll talk about that a bit later. You’ve also put $5 million into the company by way of a financing at $0.75, I believe.

Kelly Malcolm: Correct, and the majority of that was taken up by Eric Sprott, who’s a big mining investor.

Ed Milewski:  He’s sort of the man, you know? And okay, so now you’ve got more drilling, you’ve announced another drilling –

Kelly Malcolm: 10,000 metre campaign, we announced it today, that’s in addition to the 3,000 metres that we’ve done this year. We’re fully funded for that. We’re drilling for about $160 a metre, all in.

Ed Milewski:  That’s not that much, is it?

Kelly Malcolm: It’s peanuts in comparison to many other companies.

Ed Milewski:  No helicopters involved here?

Kelly Malcolm: Zero helicopters, we’ve got over $5 million in the bank, very well financed for this drilling campaign, and we should have enough money to continue drilling if we do decide to extend this program even further.

Ed Milewski:  So as far as a project goes, would you argue this is a difficult one? Easy one?

Kelly Malcolm: It’s honestly such a simple system. It looks like a sheeted quartz vein system, very linear. When we’re drilling into this system, we’re able to target effectively within about 3 metres of our projected pierce point. We’re not really seeing any folding nor faulting nor defamation; it just looks like a sheet that plunges off to about 70 degrees and it’s simple, and simple is a good thing.

Ed Milewski:  And these things – I was talking to Victor earlier, and he said these things can go for several kilometres.

Kelly Malcolm: Correct. In the Abitibi greenstone belt, the typical depth to strike extension – so, strike is your horizontal extension, depth is your vertical component – is often 5 to 20 times your strike claim. So theoretically, say you had a kilometre-long strike, arguably it could go down for 10 kilometers in vertical extent.

Ed Milewski:  Wow. And so if this all, if we can dream a bit, potentially this could be a monster deposit.

Kelly Malcolm: We think it could be a very valuable deposit. We don’t know the numbers of ounces –

Ed Milewski:  I know.

Kelly Malcolm: But these are very inexpensive ounces. We’ve been drilling some beautiful bonanza, correct.

Ed Milewski:  And you’re adding them fast, too, you’re adding bonanza-grade, adding them fast…

Kelly Malcolm: Exceptional grades. It’s a, like I said, it’s an easy story. We’re developing this thing very rapidly.

Ed Milewski:  So going back to the thing I mentioned earlier, there was a guy who writes, I guess, about mining deals, and he came out with some untoward comments about the way the information was being –

Kelly Malcolm: Portrayed, yeah.

Ed Milewski:  Portrayed. And, like, I’ve known Victor; Victor’s character is impeccable, as far as I’m concerned. So, I mean, is he just discussing? Is this guy – ?

Kelly Malcolm: So I never heard the actual presentation, but what we did today is, we uploaded all of our drilling data. So we wanted people to be able to do their own due diligence.

Ed Milewski:  Right, so it’s clear, right? It’s like –

Kelly Malcolm: Take our collars, take our surveys, take our asset composites, and make your own interpretations of where our drill holes are going.

Ed Milewski:  So you got nothing to hide, obviously.

Kelly Malcolm: Nothing to hide. We’re happy, we’re ecstatic, for that matter. We had a little price correction over the past few days –

Ed Milewski:  Look, I’m a technical guy. I look at charts, and it would be almost like saying, things don’t just go in one direction. There’s buying forces, selling force, and the more you go one direction, the greedier people get and tend to push it a little further, and conversely, the other way around, like if it starts to back off, people think, Oh my God, what am I doing? I’m buying into something that’s going to make me lose all my money.

But anyway, look: the ship looks to be righted now; I think you’re trading around $0.98, $0.99.

Kelly Malcolm: Yeah, somewhere in that range.

Ed Milewski:  Yeah. No, it’s an amazing story considering where you were, and how long you sat at –

Kelly Malcolm: At the $0.05 to $0.08 range for two years, basically, just with little flutters here and there. Even our original discovery hole into the system was in December of 2017, we hit that: 12 point something grams over 4 point something metres, with a 47-gram over 1 metre interval, and a 15 gram over half a metre interval; didn’t really move the needle for the market. It got us intrigued enough that we came back and did our follow-up hole, but we were still sitting at that $0.08 range for a year or so prior to our current follow up holes, which have got the market very excited.

Ed Milewski:  Right, right, right. So now with this money that you have, and we’re going forward here, can we expect results on an ongoing basis?

Kelly Malcolm: Yeah, absolutely.

Ed Milewski:  And you’ve got one rig, and you’re going to add another rig?

Kelly Malcolm: So we’ve got one drill; we’re basically doing a hole every, call it 4 to 5 days right now. As we start drilling deeper –

Ed Milewski:  It’s going to take longer.

Kelly Malcolm: It takes a lot longer. So at that point, we will bring a –

Ed Milewski:  Yeah, cause the rocks get denser, don’t they, as they go –

Kelly Malcolm: It’s not even that, it’s just, it takes a long time to drill a deep hole, because you have to step back continuously, because you’re drilling on an angle down. So to drill a hole at 500 metres, you have to drill an 800-metre-long drill hole. So they take sometimes up to three weeks. So when that comes in, when that happens, we’ll bring another drill rig in, in order to have continuous news flow as we’ve done so far; every two to three weeks, we’ve had news.

Ed Milewski:  Yeah, but how many holes have you released now that have had this high-grade…

Kelly Malcolm: I think we’re at 8 or so holes from 18, 17 through to 2019, 27. So ten holes is what we’ve released. We’re drilling now on hole 33. We’ve got some holes in the lab right now, and we’re hoping to have some news out maybe sometime next week once we start compiling all the –

Ed Milewski:  Sure. And I take it that when people start to see this kind of grade in the mining sector, bigger mines, you probably get phone calls from companies, and –

Kelly Malcolm: We’ve had some nice chats with a couple different companies.

Ed Milewski:  I won’t go any further with that, because it’s conflict, or it’s confidential. Well look, is there anything you want to add?

Kelly Malcolm: No, we’re happy, we’re enthused, we’re drilling – as we mentioned today in our press release, hitting visible gold continuously in almost all of our drill holes. I just want to stress how much of a dream this project is to drill.

Ed Milewski:  Yeah, sure.

Kelly Malcolm: It’s just easy.

Ed Milewski:  It’s gonna look good on your resume.

Kelly Malcolm: It’ll look nice, yes.

Ed Milewski:  Kelly, thank you very much. Great to have you.

Kelly Malcolm: Thanks so much for having me again. Really appreciate it.

Related Articles


Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.