AmMex Gold Mining Corporation
OTC Bulletin Board : AMXG

AmMex Gold Mining Corporation

August 28, 2007 16:15 ET

AmMex Gold Reports Scoping Study on their Castle Copper/Molybdenum Project with 28.3% IRR

OTTAWA, ONTARIO--(Marketwire - Aug. 28, 2007) - AmMex Gold Mining Corp. (OTCBB:AMXG)(FRANKFURT:R5E)(WKN:A0KE72) is pleased to announce the results of a recently completed scoping study by John Hedges. This study examined the economics of the Castle Copper / Molybdenum deposit located in Yavapai County, Arizona. The deposit was drilled in the 1960's through to the early 1990s by numerous mining companies which outlined a secondary enrichment blanketed about 90 feet thick totalling approximately 40 million tons at depths approaching 2000 feet. Based on several holes drilled outside of this resource area, there is potential for discovery of additional tonnage with similar grades.

The scoping study, based on 40 million tons, a head grade of 1.53% copper and 0.036% molybdenum, used an 8,000 and 10,000 ton per day production rate with both floatation and solvent extraction recovery methods. The prices used for this study are $1.50 per lb. copper and $12.00 per lb. molybdenum. This scoping study was an update of a similar economic analysis done by Watts, Griffis and McQuat in 1992, with up-to-date costs incorporated. No provisions were made for precious metal credits in this valuation.

The internal rate of return calculated by John Hedges based on a 330 day per year operating schedule were:

8,000tpd -Floatation - 28.3% 10,000tpd -Floatation- 28.7%
Solvent Extraction - 20.0% Solvent Extraction - 22.0%

Conclusion by John Hedges

Based upon my review of the project data and the cost structure developed by WGM and updated in this report the project would appear to have the potential to become a profitable midsized copper-moly producer. In the absence of any metallurgical testing, it would appear that concentrating the ores using a flotation circuit would be the likely option to pursue based solely on the economics shown here.

The selection of 8,000 and 10,000 tpd production rates seems rather arbitrary. The life of the mine and the production rate should be examined with a view to optimizing rate of return when more concrete information on the reserves and metallurgy is available. I suspect that a lower production rate would actually have better economics due to lower capital requirements.

The results achieved at current metal prices are outstanding.

For the full report visit our website at:

John Hedges has more than 35 years management experience in the mining, engineering/construction and financial industries. From 1993 to present, Mr. Hedges has been an Independent Consultant to both small and large banks and corporations, hedge funds and private investors. He has assisted in mergers and acquisitions, asset valuations for regulatory agencies bankruptcies, asset appraisals, market analyses, and investment portfolio analysis. Mr. Hedges had key roles in the structuring and successful financing of major mining, industrial and infrastructure projects worldwide with particular emphasis on the Americas. This included most of the copper mines developed in the 1980's (Escondida, Tintaya, Chuquicamata expansion, Cananea expansion, Cerro Verde, Ok Tedi) and many of the Gold mines of North America in the early 1990's.

Mr. Hedges has a B.Sc., Geology, Engineering Geology, and Hydrogeology from Concordia University. He has also completed post graduate studies at McGill University in Professional Development Mineral Economics.

About AmMex Gold

AmMex Gold Mining Corp. is a precious metals exploration and development company. It is management's objective for AmMex Gold to become a gold and precious metals producer by developing projects in Mexico and Nevada, and by acquiring other advanced-stage projects and/or producing mines in proven precious metal districts throughout the world. The Company trades on the OTC market under the symbol "AMXG" and on the Frankfurt Exchange under the symbol "R5E". For more information, please visit the Company's website at

(Available in English and German).

Contact Information

  • AmMex Gold Mining Corp.
    Bill Reed
    VP of Exploration
    Investor Relations: