Eldorado’s C$100M Amex stake: Perron project economics for mine planners
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Eldorado Gold is committing a further C$20.6 million to Amex Exploration to restore its 27% stake, taking its total investment close to C$100 million as the Perron gold project in Quebec advances on the back of a strong April feasibility study. Perron’s stage-one plan outlines 147,000 oz/y gold output for five years at an all-in sustaining cost of $910/oz, 1.9 Mt of reserves grading 12.1 g/t at the Champagne zone, initial capex of C$193.9 million and a post-tax NPV5 of C$1.1 billion at $3,500/oz gold. The project is fully permitted for a 40,000-tonne bulk sample, is targeting toll milling at nearby facilities such as Eldorado’s Lamaque-Sigma complex, and has funding in place for up to 100,000 metres of drilling across the expanded 570 km² land package.
Technical Brief
- Feasibility study assumes a 17.5‑year mine life, with two years of pre‑production development.
- Proven and probable reserves at Champagne zone total 1.9 Mt at 12.1 g/t Au (774,000 oz).
- Post‑tax payback is modelled at 0.5 years at US$3,500/oz gold price.
- Average operating cost over life of mine is estimated at US$617/oz, excluding sustaining capital.
- Bulk sample permit allows extraction of 40,000 t, with portal and declines expected in ~18 months.
- Stage one envisages five years of toll‑milling operations before potential transition to owner‑operated onsite processing.
- Flow‑through and hard‑dollar financings (~C$37.3M) support up to 100,000 m of drilling through 2026.
- Current focus includes a 15,000 m drill programme at Perron West (Ontario) with two rigs, expanding.
- Land position has expanded from 46 km² to 570 km² contiguous ground, including 60 km of strike.
Our Take
The very high post‑tax IRR (114%) and short 0.5‑year payback period reported for Perron are unusually strong compared with most gold projects in our mining corpus, suggesting that even moderate capex or schedule creep could be absorbed without destroying project economics, an important buffer in Quebec’s tightening labour and contractor market.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
Related Articles
Related Industries & Products
Mining
Geotechnical software solutions for mining operations including CMRR analysis, hydrogeological testing, and data management.
CMRR-io
Streamline coal mine roof stability assessments with our cloud-based CMRR software featuring automated calculations, multi-scenario analysis, and collaborative workflows.
HYDROGEO-io
Comprehensive hydrogeological testing platform for managing, analysing, and reporting on packer tests, lugeon values, and hydraulic conductivity assessments.
GEODB-io
Centralised geotechnical data management solution for storing, accessing, and analysing all your site investigation and material testing data.
