Analysts at PI Financial said that they continue to believe that Amex Exploration Inc warrants a “premium valuation” given Perron's multi-million-ounce potential and exploration upside.
In a note to clients, PI Financial said that Amex Exploration delivered more positive high-grade assay results from the Team Zone target on the company's Perron property in Quebec.
“New intercepts continue to enhance and define high-grade mineralized structures which Amex plans to continue following up on with 12,500 meters (m) of new drilling dedicated to the target in 2023,” said the PI Financial analysts.
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“Follow-up drilling in 2023 is expected to aid in correlating high-grade structures being intersected in multiple holes that will support deposit orientation and overall dimensions," they added. "With a maiden resource on the horizon in mid-2023, we expect Amex to incorporate Team Zone into the estimate.”
Amex continues to define and expand the overall mineralized footprint at the recently discovered Team Zone.
“We note that the Team Zone is a new discovery from 2022 and is not incorporated into our property-wide 4.1-million-ounce gold equivalent (AuEq) resource estimate for Perron,” noted the analysts.
In conclusion, PI Financial emphasized that Amex deserves a premium valuation given Perron's “multi-million-ounce potential, high-grade deposits and significant exploration upside.”
The analysts maintained their C$2.95 target price and “Buy” rating for Amex Exploration, which currently trades for around $1.60 on the Canadian Venture Exchange.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive