Amex Exploration: PI Financial, Canaccord Reiterate Targets Following Latest Drill Results

Canaccord Genuity reiterated their 12-month price target of C$4.25 and their speculative buy rating on Amex Exploration (TSXV: AMX) after they announced the discovery of a new high-grade gold structure returning 31.87 gold per tonne over 5.1 meters on Perron.

Amex Exploration currently has four analysts covering the company with a weighted 12-month price target of C$4.47. This is down slightly from the beginning of the month, which was C$4.49. One analyst has a strong buy rating, while the other three analysts have buy ratings.

Tom Gallo, Canaccord’s mining analyst, writes, “In our view this is what the company was looking for regarding broader mineralization. The gabbro / mafic intrusive appears to be a more receptive mineral host than the rhyolite, where gold mineralization is confined to narrow veins.” He believes that this could be a game-changer for the company.

He talks about the results from the zones and specifically highlights the Denise Zone, which results were a lower grade than the previous results. However, results do indicate that there is a possibility of higher-grade mineralization. He writes, ” We view Denise as a potential bulk tonnage deposit that could supplement the HGZ in a mining scenario.”

Gallo expects that the company will release additional drill results from Perron in the coming months and writes, “We expect the drilling in 2020 to potentially lead to an initial resource for the Perron property in H1/21, which we believe will be a catalytic event.”

PI Financial also reiterated their C$4.15 price target and a buy rating on Amex Gold in a note this morning. Phil Ker, PI Financial’s mining analyst, writes that his takeaway of this discovery is that “the new discovery suggests that more major structural features within the Beaupré Rhyolite Bloc (BRB) could be gold-bearing in addition to the main structural contacts of the (BRB).”

Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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