Amex Exploration Has Hit A Very Impressive Orogenic Gold System
A ship of high-grade gold heading in the direction for big success.
I stay very focused on the key market movers for gold because where the price of gold goes so goes the gold stocks. One of the biggest catalysts to move the price of gold is the action on the USD index.
Since November 2022, the USD index has been under substantial pressure. In the early trading for 2023 it has gone through a Death Cross. What has the currency traders concerned is the likelyhood that the Federal Reserve is near the end of its rate hikes that were relentless during 2022 which is bullish for the USD.
On the other hand, gold has been doing very well as the USD has been under pressure and is within days of a Golden Cross.
A very good indicator for the year ahead is the January Effect that has a remarkable record of predicting how the year will play out. Assets that do well in early January, have a bullish January Effect rating. This is because a lot of institutional funds are positioning themselves for the year ahead.
With the USD index going through a Death Cross in the first week of January, it is predicting a poor January Effect rating and a tough year ahead. While gold has been having an excellent start to 2023 and is pointing toward a strong January Effect rating and a powerful year ahead.
I’m a big fan of Amex Exploration (AMX.V) and have been since they were around 50 cents and have reported on them many times. They are significantly higher than when I started coverage because they have delivered exceptional results with their drilling.
The image above gives you a couple views that helps paint the picture of what I have a lot of confidence will be a future mine. The top part shows the plan view which is looking down.
As you can see, they have several zones in their orogenic gold system with widespread high-grade gold mineralization. This suggests that they have a very big and powerful gold mineralizing system. From west to east, the system is 3.4 km which is extremely big.
The second image shows the view from the side from the surface down to their deepest drilling. The key zone is their High Grade Zone that starts from surface and continues for 1600 metres. This is impressive for a couple key reasons.
Not all high-grade is created equal. If you have sporadic distribution of high-grade you aren’t going to have a mine. There will be way too much dilation of waste rock between the high-grade gold.
What you need to make a high-grade underground gold mine is continuity. It is very clear that the high-grade gold zone has exceptional continuity of the high-grade gold. In addition it also has easy recovery characteristics. The bottom line is that what they have is the making of a low cost, high-grade mine of the future with high margins.
The High Grade Zone on its own is a company maker. But the big picture is equally as exciting. The next image helps explain why.
All the gold zones you see in the plan view in the first image are contained within the tan unit of rock called the Beaupre Block. It is bounded by the Perron Fault on the south and the Normetal Fault on the north. Faults, or cracks in the earth are important in an orogenic gold system as they are the path of least resistance that the gold bearing fluids from much deeper follow up.
On the Perron Fault, you see a series of gold deposits along that fault in the plan view. With the High Grade Zone a little to the north of the fault. The Perron Fault dips to the north, think of it as the side of a boat. At some point at depth where that High Grade Zone intersects with the north dipping fault they will find the source of where all their widespread gold is coming from along the Perron Fault.
These orogenic gold systems can go on for thousands of metres, and often see higher grades the deeper they go as they get closer to the heat engine. Consider the Red Lake mine, they got down to 1000 metres, and then started hitting the bonanza grades that continued for over another 1000 metres. That made GoldCorp one of the lowest cost gold miners, with bonanza grades which made for extremely high margins. That is why I say the High Grade Zone alone could be a company maker.
Inside the Normetal Fault, there is another series of high-grade gold deposits. It would not surprise me at all if that has a southern dip to it. Going back to the boat analogy, you could be looking at both faults dipping toward each other and the Beaupre Block is in the middle of the boat.
If that is what is happening, as those two faults converge they could have like the keel of a boat. As the faults get closer they compress the rock and concentrate the gold. From an exploration perspective this is all very exciting, but it doesn’t stop there.
More evidence that this could be the model is if you follow the Perron and Normetal faults to the east, they come together into close proximity. That part could be thought of as the bow of the boat. I’m very excited about their recent news because in the second image there is a series of red lines on the east side of the Beaupre block. Those are planned holes that will test the bow of the boat.
The good ship Amex has a company maker at the High Grade Zone and the potential to have a ship of high-grade gold with excellent continuity and a very rich keel and bow.
There current valuation is very cheap considering what they have already found, figuring out the entire ship could easily send the valuation well over $1 billion.
In Closing
You can find past interviews I’ve done with management of Amex Exploration and in the reports on the sector here on my Youtube channel.
As always my reports are for research purposes only, before making any investment decisions you should speak with your financial advisors and do your homework. A good place to start your homework on Amex Exploration is on my Youtube Channel. Then check out their website where you should look at their news releases and corporate presentations.
All the best,
Allan Barry Laboucan
Founder
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