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Amex Fully Funded for 300,000 Meter Drill ProgramBob Moriarty We are still in the correction that I correctly called a few months ago but kept thinking it was near an end. Clearly it is not ended and given that tax loss selling will be kicking in for the next month, look for a DSI of 10 or below and a low between Dec 15th and Jan 15th. Amex Exploration (AMX-V) is another of the typical companies that I keep seeing that has extraordinary potential yet remain off the radarscope of most investors. The company is in the midst of a drill program with 300,000 meters of drilling planned. No one does that unless they know they have a lot of gold but we are a year or more from an initial 43-101 resource estimate. The company is located in the Abitibi Gold Belt in Quebec but if you have a good throwing arm you can chuck a rock into Ontario. Their Perron project is 100% owned and has various forms of gold mineralization but high-grade hits are common with over 60 holes showing greater than 10 g/t gold. Recent bonanza grade results included 56.75 g/t Au over 8.50 meters, 44.22 g/t Au over 9.1 meters and 35.13 g/t Au over 3.3 meters. The company reminds me a lot of Great Bear and certainly they are beginning to realize that retail customers need to be woken up to their potential. Frankly I have never heard of a junior with a 300,000-meter drill program. They have six drills turning now, two are being put into position and by the end of the year there will be ten rigs in total working. The company expects to be reporting on 10,000 meters of drilling a month. That is if the assay labs ever wake up. At today’s price, the company has a market cap of just about $250 million but with $36 million in cash for the drill program, have only a $214 million enterprise value. A number of brokers have done studies on the company and the consensus seems to be that the valuation is about right for 3 million ounces of gold. For a company that was selling for $.10 a share a year ago the return to investors has been on the same level or higher than was with Great Bear. I think the company is exceptionally cheap. Their technical exploration and reporting is excellent and I think they will surprise on the up side when the 43-101 is released in 12 months or so. Without a resource, investors are betting on the come and the latest drill results. Eric Sprott is an investor for 12% of the company and he’s been making some good calls lately. The company is not as cheap as it was a year ago but I think it’s a lot cheaper than it will be a year from now. Amex is an advertiser. I do not yet own shares but I am looking for some low hanging fruit in the next month to six weeks and Amex is on my list. Do your own due diligence and follow the assay results stream closely. Amex Exploration ### Bob Moriarty 321gold Ltd |
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