The gold market is moving at a red-hot pace. This level of excitement won’t last — it simply can’t — and there will be setbacks along the way, cautions Brien Lundin, editor of Gold Newsletter.
The important thing to remember is that this has all the markings of a bull market that will last years, and bring the base levels of the market much, much higher.
Amex Exploration (Vancouver: AMX) (OTC: AMXEF) is closing in on a four-bagger gain since we added it to our portfolio last August.
That performance includes a doubling of Amex’s share price since mid-June on the back of high-grade results from its Perron project in Quebec.
A recently closed C$15.8 million private placement has allowed the company to double its already aggressive 100,000-meter drilling program on Perron to 200,000 meters.
That program will eventually consist of six drills, four of which are currently targeting the Eastern Gold Zone (“EGZ”) with a fifth starting soon that will help test the EGZ’s High Grade Zone (“HGZ”) at depth.
Proof that the HGZ is aptly named came this morning in the form of significant assays from three holes that confirmed the continuity of the zone’s mineralization and extended it to the east and at depth.
Hole 167 hit 35.1 g/t gold over 3.3 meters, including 220.7 g/t over 0.5 meters at 828 meters depth. Hole 168 cut 15.6 g/t over 11.4 g/t, including 260.5 g/t over 0.6 meters at 504 meters depth.
Better still, core that’s currently at the lab from other holes drilled on the HGZ, the Denise zone and the Grey Cat zone all hit visible gold. In other words, more high-grade results are likely on the way.
With such an ambitious drill program and with high grades coming back consistently from that effort, I think AMX is heading much higher from here. Even at current elevated levels, it remains a buy.
