The Perron Phase 1 feasibility study, announced by Amex Exploration Inc. on April 13, 2026, lays out a focused and staged plan to bring high‑grade material into production quickly. The study models a two‑year pre‑production build followed by five years of commercial mining and contract processing. Under a production profile averaging 147,000 ounces per year, the operation targets an all‑in sustaining cost (AISC) of US$910/oz.
The economic case assumes a gold price of US$3,500/oz and a CAD/USD exchange rate of 1.38:1, yielding a post‑tax NPV5 of CAD$1.13 billion and a post‑tax IRR of 114.6%, with a projected cumulative after‑tax undiscounted cash flow of CAD$1.44 billion.
The Phase 1 design deliberately begins with a toll‑milling arrangement to accelerate revenue realization while limiting upfront spending. Toll milling — an arrangement where ore is trucked to an external processing plant for a fee rather than building an on‑site mill — reduces permitting scope and capital intensity, enabling the company to aim for early sales and a shortened timeline to cash flow. The plan anticipates commercial receipts in the near term and signals a conservative step toward eventual on‑site processing planned for Phase 2.
Table of Contents:
Project economics and schedule
The financial model emphasizes rapid payback and strong margins. Initial capital expenditure for Phase 1 is estimated at CAD$193.9 million, and sustaining capital over the life of the Phase 1 plan is estimated at CAD$238.2 million. The study reports a pre‑tax NPV (5%) of CAD$1,976 million and pre‑tax IRR of 160.4%. On an after‑tax basis the project still produces an impressive NPV5 of CAD$1.13 billion and a post‑tax IRR of 114.6%, with an after‑tax payback period of approximately 0.5 years from the start of commercial production. Sensitivity testing shows robust economics across a wide range of gold prices and cost scenarios, underscoring the resilience of the Phase 1 case.
Revenue assumptions and sensitivities
Revenue assumptions are explicitly conservative: the base case uses US$3,500/oz and includes transport and toll fees. The study includes sensitivity tables showing post‑tax NPV and IRR by gold price, operating cost and CAPEX variations. Even at lower gold prices, the high grade and short production profile preserve positive cash flow. Management highlights that some pre‑production revenue (CAD$68.1 million) from early ore sales could offset a portion of initial CAPEX, improving liquidity before steady‑state operations commence.
Mining, processing and reserves
Phase 1 focuses on the high‑grade Champagne Zone using underground mining methods at an average mill feed head grade of roughly 12.0 g/t Au. Proven and Probable mineral reserves total 1,989 kilotonnes at an average grade of 12.1 g/t, corresponding to approximately 774,000 ounces of contained gold. The mine is designed for a contracted mining rate of 1,100 tonnes per day during the five‑year commercial period, with assumed metallurgical recoveries near 97%. The mining plan anticipates conventional longhole stope methods with cemented rockfill and robust dilution and recovery factors applied to reserve conversions.
Processing route and logistics
Ore from site will be trucked to permitted mills in the Abitibi region using 30–35 tonne trucks under contract. Amex has executed a non‑binding letter of intent and ongoing discussions with multiple processors; toll costs modeled at roughly CAD$61.5/t plus transport assumptions that imply an average distance used in the base case. Metallurgical test work managed by consultants indicates the mineralized material is compatible with conventional Abitibi flowsheets, supporting the decision to begin with external milling.
Infrastructure, permitting and stakeholders
The Perron site sits about 6.5 km from Normétal and benefits from year‑round road access and proximity to regional processing facilities. Phase 1 scope lists required surface works such as a 25 kV transmission line, water management systems, portal and ventilation infrastructure, security and loading facilities. The feasibility identifies the environmental review process under Quebec regulations and notes ongoing baseline studies and early public consultations to shape the scope of the formal assessment. The company has initiated an advisory committee and maintains community offices to support continuous engagement.
Permitting and partner relations
Permitting activities will include provincial and federal authorizations as necessary; the study recognizes that certain elements — notably treatment of third‑party ore at external mills — depend on the processing facilities’ permits under the Environment Quality Act. The company states it will work closely with chosen processors to ensure authorizations are in place before any commercial processing occurs. The targeted staged approach is intended to reduce regulatory complexity in the short term while preserving optionality for an on‑site mill in Phase 2.
Overall, the Phase 1 feasibility presents a compact, capital‑efficient route to monetizing Perron’s high‑grade resources while the company advances exploration across its consolidated district‑scale land package. The study frames a near‑term, high‑margin production profile under a low‑risk start‑up strategy that balances fast cash generation with staged growth potential.
