"Today's results illustrate that the copper rich core of QF zone is becoming more robust at the 600 metre level and shows a very good eastern lateral extension with copper values of about 2% over a thickness of approximately four to five metres," executive chairman of Amex Exploration Jacques Trottier said.
Amex highlighted the following results from the new follow-up drillholes on the copper rich volcanogenic massive sulphide AF Zone :
PEX-21-083W1 intersected 2.86% CuEq comprising 2.17% Cu, 0.90% Zn, 0.28g/t Au and 18.84g/t Ag over 6.40 metres including 4.81% CuEq comprising 4.25% Cu, 0.18% Zn, 0.36g/t Au and 32.44g/t over 1.60 metres at a vertical depth of approximately 570 metres;PEX-22-108 intersected 2.08% CuEq comprising 1.84% Cu, 0.17% Zn, 0.13g/t Au and 11.77g/t Ag over 7.10 metres, including 6.08% CuEq comprising 5.43% Cu, 0.27% Zn, 0.40g/t Au and 35.39g/t Ag over 1.90 metres at a vertical depth of approximately 560 metres; andPEX-21-098W2 intersected 6.03% CuEq comprising 5.37% Cu, 0.39% Zn, 0.36g/t Au and 33.58g/t Ag over 2.20 metres at a vertical depth of approximately 610 metres."The apparent gap of intercepts and borehole geophysical anomalies between the surface and the 600 metre level may simply be due to the absence of drilling in this area," Trottier said.
"Additionally, the QF VMS discovery is still open in all directions and additional work including more borehole geophysics and drilling will be needed to fully evaluate the real potential of this VMS discovery at Normetal," he said.
The company said the QF Zone grades and widths compare favourably to the neighboring Normetal Mine which produced about 10.1 million tonnes grading 2.24% Cu, 5.41% Zn, 0.53g/t Au, and 44.45g/t Ag from 1937 to 1975.
Canaccord Genuity Capital Markets analyst Michael Fairbairn called the results "slightly positive" and said they help to validate the company's 2021 discovery.
"We believe the polymetallic ore with copper grade potentially exceeding ~2% is noteworthy, particularly in the current ~US$4.00/lb copper price environment," he said.
"Additionally, the QF Zone's discovery ~200 metres away from the HGZ at ~700 metres of depth lends itself to the possibility of shared underground infrastructure, enhancing economics.
"Glencore's Horne smelter located nearby in Rouyn-Norada is also noteworthy, presenting a hypothetical toll-mill processing option for copper-rich VMS ore from Perron in the future," he said.
He added that it is still premature to say whether GMS will turn into something significant.
Amex's share price was quoted as C$1.96 (US$1.51) on June 20. The company has a market capitalization of C$202.36 million.