The Amex Southwest royalty asset is a 1,500 hectare property within the prolific Abitibi Subprovince. The asset is currently operated as the Portage River Project by Frontline Gold Corp. (TSX-V:FGC, “Frontline”). The project is prospective for both VMS and orogenic styles of mineralization.
Amex Southwest lies within a greenstone belt, close to a fault-bounded contact with metasediments. There are numerous historical mines and mineral occurrences surrounding Amex Southwest, however, only eight drillholes have been drilled on the property to date.
There are several targets at Amex Southwest. The western portion of the property contains Hunter Mine volcanic rocks that host VMS copper and zinc mineralization at the historical Duvan Mine to the south. Zones of rheologic contrast between plutons and the surrounding volcanic country rock are prospective for vein-style gold mineralization related to brittle fracture development and fluid traps. There are three corridors of D2 deformation that transect the property; this generation of deformation provides an important control on mineralization throughout the Abitibi Subprovince. Additional targets exist at Amex Southwest where these D2 structures intersect iron-rich diorite sills, as the iron may have reacted with mineralizing fluids to initiate sulfidation and gold precipitation.
Next steps planned for the Amex Southwest property include completion of an IP ground survey, a review of historical geophysical data, completion of a deep penetrating high-resolution magnetic and EM survey, and drill testing of the best geophysical anomalies.
Frontline has an option agreement to earn-in 100% on the Amex Southwest asset. This agreement provides EMX with work commitments and cash payments during Frontline’s earn-in period, and upon earn-in, a 1.5% NSR royalty. Frontline has an option to buy back a 0.75% NSR for a total purchase price of CAD$400,000 at any time. EMX acquired the royalty asset from Perry English in 2020 (see EMX Press Release dated July 7, 2020).
EMX has additional properties available for partnership within the Abitibi Subprovince.
*Note: The nearby mines and deposits mentioned above provide context for EMX’s Project, which occurs in a similar geologic setting, but this is not necessarily indicative that the project hosts similar tonnages or grades of mineralization