Amex Exploration (TSXV: AMX) has reported the best drill intercepts to date from its copper-rich volcanogenic massive sulphide (VMS) QF Zone, highlighting the continued exploration upside of the company’s flagship Perron project in Quebec’s Abitibi region.
The project, which hosts both gold and base metals discoveries, is located about 110 km north of Rouyn-Noranda.
The Montreal-based explorer said Wednesday that hole PEX-22-118 had intersected 1.7% copper-equivalent, comprising 0.92% copper, 1.6% zinc, 0.08 grams gold per tonne and 12.26 grams silver per tonne over 14.8 metres of core length, from 480 metres depth. The hole also returned a higher-grade interval of 3.58% copper-equivalent, entailing 3.1% copper, 0.32% zinc, 0.19 grams gold per tonne and 28.8 grams silver per tonne over 3.6 metres.
Amex drill core showing the massive to disseminated zinc-rich sulphide mineralization. Credit: Amex Exploration
Amex said hole PEX-22-107W1 intersected 0.58% copper equivalent comprising 0.29% copper, 0.57% zinc, 0.03 grams gold per tonne and 5.32 grams silver per tonne over 5.5 metres, from 625 metres depth.
The results are the latest batch from the ongoing multi-year 300,000-metre drilling campaign at Perron. While most of the drilling has been focused on gold, the company is also focused on expanding the known mineralization of the polymetallic VMS target, located some 200 metres from Perron’s previously defined gold-hosting High Grade Zone (HGZ).
Amex currently has one rig dedicated to the QF Zone to support a 5,000-metre program following the zone’s discovery in the second half of 2021. Discovery hole PEX-21-076 returned 2.4% copper, 0.72% zinc, 0.27 gram gold per tonne, and 22.15 gram silver ver 7.8 metres from 663.1 metres depth.
Canaccord Genuity Capital Markets noted the latest results entailed the longest high-grade intersection released from the VMS target to date, which analyst Michael Fairbairn believes supports a material expansion of known mineralization at the zone.
The nearby Normetal mine, a polymetallic copper-gold-silver-zinc deposit that was in production for about 50 years, producing about 10.1 million tonnes grading 2.24% copper, 5.41% zinc, 0.53 grams gold per tonne and 44.45 grams silver per tonne, helped to establish and support the town of Normetal.
“The area is known as ‘VMS-country’ on account of the Normetal Mine Horizon, the geological package that hosted the Normetal mine and the adjacent Normetmar zinc deposit. The Horizon extends for about 4.5 kilometres on Perron and offers reasonable prospectivity for a material VMS discovery, helped by the fact that VMS deposits tend to occur in clusters,” Fairbairn wrote in a note to clients.
Geological map of the Normétal Volcanic Complex, with the location of the Perron property and polymetallic VMS QF Zone, along with the location of the past-producing Normétal mine. Modified from Lafrance et al., 2000. Credit: Amex Exploration.
Canaccord is convinced the copper-zinc story at Perron is starting to materially evolve given the width of PEX-22-118, which was intercepted roughly 75 metres vertically above the discovery. While it remains early days, Fairbairn sees this as a possible indication of a high-grade core of mineralization forming within QF, potentially supporting a future resource for the zone if the company continues to intersect high-grade mineralization.
The analyst had previously noted the QF Zone presented “intriguing optionality” to base metals for Amex, particularly in light of the zone’s 200-metre proximity to the HGZ, “which may present opportunities for improved economics from sharing of underground infrastructure.” Canaccord also pointed out that multinational metals trader Glencore’s (LSE: GLEN) Horne smelter is nearby in Rouyn-Noranda, offering a hypothetical toll-mill processing option for copper-rich VMS ore from Perron in the future.
Amex stated that it plans to conduct further borehole geophysics to help define the system and that several assays from its ongoing gold-focused drill program are expected to be received soon.
The company expects to release an initial resource for Perron before year-end.
Laurentian Bank Equity Research analyst Ryan Hanley also pointed out in a separate note to clients that Amex remained well funded to carry out its exploration plans after completing a $50 million equity financing in February. He also expects regular news flow from the company as more assay results come in.
The company’s Toronto-quoted equity gained as much as 4.3% on Wednesday morning to $1.69, giving it a market capitalization of $171.9 million. Its shares have traded in a 52-week window of $1.45 and $3.36.
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