Amex Exploration Inc (CVE:AMX) (OTCMKTS:AMXEF) (FRA:MX0) VP Exploration Kelly Malcolm joins Midas Letter to share what is shaping up to potentially be one of the biggest gold discoveries. The company has identified gold across 2.4 kilometres, with a remaining un-tested 7 kilometres to the south and 8.4 kilometres to the north, both of which are gold mineralized and have seen limited drilling. Kelly discusses the exploration program and future drilling plans.
James West: Kelly Malcolm joins me now. He’s the Vice President of Exploration for AMEX Exploration, trading on the TSX Venture under the symbol AMX. Kelly, welcome.
Kelly Malcolm: Thanks so much for having me on. Really appreciate it.
James West: Kelly, the AMEX Exploration project has taken on a district-wide sort of potential in terms of what the perception is of observers. Tell me about the whole project and how it came to become such a big deal from no deal.
Kelly Malcolm: Sure. So we made our original discovery in December of 2018; that was a very high-grade zone called the Eastern Gold Zone. Since then, we’ve drilled about 20,000 metres into that zone specifically. In June of this past year, we decided to do some regional exploration work. So we started stepping out, testing different targets on the project, made two additional high-grade gold discoveries, and have really unlocked the potential of the property. Now we know that the entirety of the fault system is mineralized, and now it’s a matter of testing those structures and expanding as we go.
James West: Right. So it’s sort of grown incrementally. What is the total strike length potential at this point?
Kelly Malcolm: So we’ve identified gold across 2.4 kilometres. We have un-tested 7 kilometres to the south and 8.4 kilometres to the north. Both structures are gold mineralized, and the majority of those structures have not seen any drilling, or very limited drilling. So we’re really excited about the exploration potential here, and the district-sized potential that we have on this project.
James West: Wow. So this thing is like, it’s like it’s shaping up to be like one of the biggest gold discoveries of – certainly of the 2010 to 2020 period, if not even –
Kelly Malcolm: Absolutely, looking very, very prospective. It’s looking like we’re going to be able to build multiple deposits on this property. The geology is repeatable, the structures are repeatable, and we’re hoping and going to test very shortly that we can identify multiple deposits along this very large strike length.
James West: Right. So I would assume that you’re not having a hard time attracting investors to this project.
Kelly Malcolm: No, we’ve certainly garnered a lot of interest. We’ve got about $3 million in the bank at the moment, so very sufficient capital to continue our aggressive exploration program using two drills. But there’s certainly some interest from a number of different investors that would like to take a big position.
James West: Sure. If you can pull up my NDI, I’ve got some pictures of some of the core there, and that’s visible gold we’re seeing.
Kelly Malcolm: Beautiful visible gold. On the left, I think that sample graded 580 grams per tonne over about half a metre; on the far right of that screen, that graded 677 grams over half a metre, as well. So, very, very high grade gold, here.
James West: And that’s incredible. And does it originate at surface?
Kelly Malcolm: All of our zones start directly at surface, just below a thin layer of overburden. And the deepest that we’ve drilled to date is about 550 metres vertical depth. We announced a hole about three weeks ago now, that graded 7 grams per tonne over, I believe, 32 metres, at a depth of about 550 metres. So this system is extensive vertically, and now extensive over that 2.4 kilometer corridor of high grade gold.
James West: Sure. So what is the host system type?
Kelly Malcolm: So it’s hosted in a rhyolite (phon). It’s a little bit unconventional for most gold deposits, and maybe that’s why it was under-looked and under-appreciated in the past. But the ryalites fracture in a different way than the normal Abitibi greenstone rocks, and that may be why we’re getting such a high accumulation of very high grade gold within these vein systems.
James West: Mm-hmm. So the potential for this to sort of continue to demonstrate continuity across the entire strike length, is that something you’re seeing in the sort of stratigraphic sort of layout of the whole system?
Kelly Malcolm: Sort of. So it’s structurally controlled; there’s primary faults, the 7 kilometre and the 8.4 kilometre one to the north, and what we’re seeing is, we’re getting high grades where we get cross-structures coming across those different structures. And when you look at other areas in the Abitibi greenstone belt, which is, by the way, the second-most prolific producer of gold in the world, in global history, when you get these two or three structures intersecting, that’s often where you get your accumulation of high-grade gold. And these are typically repeatable over about 1 to 1.5 kilometres along these primary structures, and that’s what we’re targeting, is these different deposits along that primary belt.
James West: How long till we see a preliminary economic assessment?
Kelly Malcolm: Well, our original goal when we started drilling on the Eastern Gold Zone was to aggressively and quickly drill off, not a PEA, but at least an inferred resource on the project. Once we started doing our regional exploration, we realized there’s a lot of gold on this property, and it’s our test now to test as much as we can of these two structures. And once we get a good handle on how much gold is on the property, then we’ll work on our resource.
James West: And I guess it’s premature for any metallurgical testing, at this point?
Kelly Malcolm: It is, but it’s very much free-milling gold. We see the gold very visually. When we see visible gold, it runs; when we don’t see visible gold, it’s quite low-grade. So we think it’s probably quite amenable to gravity methods, which is very simple in metallurgy.
James West: Sure. Okay, and so how much drilling planned for 2020?
Kelly Malcolm: We’re hoping to do greater than 50,000 metres, probably more in the range of 75,000. By the end of 2019, we will have completed 40,000 metres on our original 25,000-metre drilling budget. So, very inexpensive drilling, here; we can do a lot of work with limited capital. And we’re really excited about the future.
James West: Yeah, you bet. I am too, for you guys, Kelly. Well, that’s great. We’ll leave it there for now; we’ll have you back soon, and hopefully we’ll be onsite soon enough with cameras rolling.
Kelly Malcolm: Right on. That would be great.
James West: Thanks for joining me, Kelly.
Kelly Malcolm: Appreciate it. Thank you.
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