Industrial Alliance Securities analyst believes Amex Exploration Inc. (TSXV:AMX) may have discovered the next large gold trend in the Abitibi Greenstone Belt
SmallCapPower | June 26, 2020: Amex Exploration Inc. (TSXV:AMX) shares gained 14% to close at $2.40 on Thursday after the gold junior announced multiple drill results from the Eastern Gold Zone on its Perron property in Quebec, which included 28.97 grams per tonne (g/t) gold over 5.60 metres.
Amex said this intercept increases the bonanza grade core of the high-grade zone on the eastern depth extension by approximately 75 metres, with it being the most easterly hole drilled to the high-grade zone to date, increasing the strike by about 50 metres.
The Company added that all pending holes at the high-grade zone have encountered visible gold mineralization.
On Tuesday, Industrial Alliance Securities analyst George Topping initiated coverage of AMX stock with a “Speculative Buy” rating and a $3 per share target price, expecting the Company’s early success to continue.
Amex Exploration owns 100% of the Perron gold project in the Abitibi Greenstone Belt of Quebec. The analyst called the Company “tightly owned and fully funded,” pointing out that Eric Sprott owns a 12% equity interest.
“Amex may have discovered the next large gold trend in the Abitibi Greenstone Belt with its Perron project,” Mr. Topping wrote.
“To date, the Company has identified three main zones on the property, defining approximately 3 kilometres of strike length so far. However, most of the drilling has been into the Eastern Gold Zone. Investors will hopefully benefit from additional drilling (200,000 metres budgeted) to better understand the Gratien and GCZ zones as well as exploring other regional targets as management tries to fully delineate all 15 kilometres of the two faults that run along its property.”
The Industrial Alliance Securities analyst thinks Amex Exploration’s stock price will increase with a bankable feasibility study and the eventual sale of the company to a producer.
Amex shares have surged 59% year to date and 208% over the past 52 weeks.
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