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Amerix Precious Metals Corp. (TSX-V: APM)

       Amerix Precious Metals Corp. is a Canadian-based mineral exploration and development mining company listed on the TSX Venture Exchange (ticker symbol APM) (US Listing: APMFF) (Frankfurt: NJG) with head office in Toronto Ontario and focused on gold in Brazil. The Company has come to our attention due, in part, to the exceptional opportunity afforded shareholders as APM.V will this year see the beginning of a royalty income expected to result in payments to Amerix of ~$150K - $250K per month in year four. This income stream and elimination of $4M in obligations off its books comes from the sale of Ouro Roxo where APM.V retained a 2.5% Gross Royalty. This situation now allows Amerix to focus on developing its 100% owned Limão gold project where an extreme high grade gold deposit has already been established at a historic past producing open pit rudimentarily mined by locals. Limao appears prospective to rival other successes in the Tapajos Gold Region of Brazil such as the nearby Cuiu Cuiu project of Magellan.

Limão Gold Project, Brazil - 100% APM.V Owned

High grade gold deposit

The Limão property is situated in the Tapajós Gold Province in Central Brazil, located ~5 km north of Magellan's Cuiu Cuiu along the Tochantizinho Gold Trend.

Figure 3. Tapajos Gold Region & the Potential Amerix is in a prolific area where they have had proven success at Ouro Roxo and believe they can more than replicate at Limão. Neighbour Brazauro spent in the order of ~$20M and found a 2M oz gold resource at Tocantizinho. Neighbour Magellan Minerals (MNM) announced on Jan. 19, 2010 17m of 13.5 g/t at Cuiu Cuiu, (MNM has a market cap in the ~$55M range); from what Mining MarketWatch Journal is hearing MNM is drilling 500K-800K at 4-5g/t. Palito Mine was 800K oz gold mined out at an average grade of 12 grams. The Tapajos Region is one of the largest under-explored alluvial gold areas in the world. Production from streams over the past 40 years is estimated to be 20 – 30 million ounces. Ouro Roxo in which Amerix retains a 2.5% gross royalty has a 250K resource according to the last NI 43-101 report based on 27 holes, since then they have drilled an additional 80 holes. At Limão Amerix has grade on its side which will make it economic with substantially less investment. Amerix has only started exploration at Limão yet there is a good possibility there is going to be over 1M ounces of gold. Even if Amerix only finds 500K-600K oz they will still mine it, probably co-developing it with the Brazilian consortium that is now mining Ouro Roxo.

Limão Open Pit Deposit - See image of open pit above to left

Drilling in the pit area during the late 1980’s returned impressive gold values. Two holes drilled under the open pit returned 47 g/t over 13 metres and 18.7 g/t Au over 6.8 metres. Geochemical surveys during 1994 and 1995 by Barrick continued to show impressive results. Barrick’s work notes that the gold mineralization in the area is directly associated with a syeno-granitic body rich in pink K-feldspar belonging to the plutonic-volcanic event Utamã. Fifteen samples taken by the Barrick geologists from the pyrite rich syeno-granitic rocks returned values ranging from 1.75 g/t Au and 25 g/t Au -- Amerix has since confirmed these values see November 2, 2009 release entitled "Initial Sampling on Limão Gold Property Returns High Grade Gold Results in Tapajós Gold Province in Central Brazil". Barrick at the time was chasing lower grade projects of size with improved infrastructure and Brazil was not the hot spot it is now.
   

Amerix’s review and due diligence of the area consisted initially of satellite/aerial photography and location of the artisanal workings. A crew was mobilized to the property and re-established the camp and airstrip. A small grid was established for sampling and mapping control over the pit area and other artisanal workings. A total of 11 float samples were taken from sulphide-rich syeno-granitic rocks located in the pit area (see photo album). Results range from 2.37 g/t Au to 106.6 g/t Au with an average of 38.5 g/t Au or 1.12 oz/t Au. The Company believes these samples to be representative of bedrock mineralization at the bottom of the open pit which was previously mined by local miners. The open pit is now filled with water and is believed to be 20 metres deep.

When Amerix was conducting ground work at Limão in the summer of 2009 they employed a couple of people that actually worked in the Limão open pit mine and they commented that they were taking out 5 to 10 ounces of gold a day between 5 to 10 of them. APM.V obtained the high grade sulphide rock seen in Image 4 (to the left) as the rocks were scattered around the open pit area from when local miners using primitive techniques hit bedrock and realized the disseminated sulphide rock could not be washed.
  

Geochemistry reveals size potential at Limão

A total of 134 one-metre auger samples were taken at 20 metre intervals along parallel north-south lines spaced at 100 metre intervals. Sample results from the geochemical survey taken from saprolite material range from 5 ppb Au to 638 ppb Au. Results taken in tailings or artisanal areas returned values as high as 5.13 g/t Au. Further follow up and infill lines are required to determine size and orientation of the anomalies. The image to the right shows the geochemistry at Limão performed by Barrick. Right in the Limao area are several anomalies and workings, the property has only been drilled once and high grade was intersected -- there are numerous equally as good targets as demonstrated from the soil geochemistry and APM.V expects to find several of these near surface ore bodies.

Exploration, strategy, and plans at Limao

Amerix's plans are to continue to develop the extreme high grade at Limão as the capital expenditures if there is a mine will be extremely low. APM.V has arrangements to be sufficiently capitalized in order to facilitate meaningful drilling; ~20 holes ~100 - 150m a piece to start off with.  APM.V is making plans for Q3 2010 to barge a drill down river and march it in onto the property 10 - 15km. Mining MarketWatch Journal contacted Amerix's President & CEO, Jeffrey Reeder BSc. P.Geo., who offered the following synopsis "We want to develop the near surface gold results first and then expand down depth -- keep drilling the ore and build out the resources as we can."

Mr. Reeder explained how APM.V is going after syenite hosted disseminated gold deposits, intrusive syenitic hosted gold similar to the big gold deposits in Quebec which are associated with these syenite plugs. You couldn’t ask for better rock and the assays confirm APM.V has found what they are looking for. To start APM.V would aim for a high grade near surface open pit mine and for the long term go for a larger high grade disseminated gold deposit typical of West Timmins and Cripple Creek – these are all associated with these alkalik syenitic rocks. Magellan Minerals and Brazauro are going after quartz stock works and fractured granite so they are larger open pit things, but APM.V are going after the syenite plugs that act for these granites; "these are the things that I think carry the high grade and that’s why I am focusing on this area rather than going after the bigger bulk tonnage, if we can build up with ounce material in the jungle obviously we can have small open pits and eventually an underground mine -- if we can get 300K oz near surface ore body and then maybe 800K oz in the hard rock I think we could start with an operation in the satellite first and then move into the hard rock later".

See May 19, 2010 News Release entitled "Amerix Precious Metals Completes First Phase of Exploration on the Limao Project in the Tapajos Gold Province in Central Brazil": The initial phase of the 2010 exploration program comprised of 1,664 one-meter auger holes and 42 deeper auger holes ranging from 2 to 4.8 meter depths. The deep auger holes were completed to further define drill targets near the old workings in the pit area. The Company also located several old garimpero workings outside the pit area. The most significant workings are located 1.5 kilometres from the pit area. Sixty-four rock samples were also collected during this initial phase. The Company is currently establishing a more permanent camp and widening the airstrip for later programs. The Company expects to announce the initial results within the next couple of weeks.

Regional and Property Geology

The area of the Limão Project is located in the Amazon Craton, in the Central Amazon sub-province. It is composed of the Cuiu-Cuiu Metamorphic Suite, representing the undivided basement formed by migmatized gneisses, granitoids of varied compositions, relics of amphibolites, rock of granulite facies, and remains of a volcanic sedimentary Jacareacanga Group.
 
During the mid-Proterozoic the area was influenced by a widespread magmatic-volcanic event and sedimentation represented by the Uatumã Group. This is further divided into two major units; the basal unit called the Iriri Formation, composed of acidic volcanics rocks, associated tuffs and sediments and intrusive Maloquinha Suite represented by acidic intrusive rocks. The Maloquinha Granite is hosted preferentially in epizonal crustal portions, exhibiting alkaline metaluminous characteristics and probably is responsible for the formation of prospective sites for gold mineralization.
 
In the Cenozoic, deep tropical weathering resulted in the oxidization of the rocks and formed the present day drainage and landscape.
 
Mapping and geophysics by Barrick determined two main geological domains on the property. Domain 1 occupies the north and south portions of the mapped areas and Domain 2 occupies the central portion. Mapping of the two domains is further supported the magnetic signature.
 
Domain 1 is typically characterized with granites of the Maloquinha type and is suggested to be sub-volcanic in origin. Rock belonging to the Domain 2 show gneissic textures and are granitic to monzonitic in composition. The granitic rocks in Domain1 are considered to be younger than the rocks in Domain 2. Ground magnetic surveys show that the gneisses in Domain 2 are associated with a zone of low magnetic gradient.

Ownership, Obligations, and Relationships

APM.V effectively has 100% ownership of Limao. There remains only $238K and 200K shares to be issued in order to complete on the balance of the agreed option to purchase. Exploration and development permits in Brazil are issued on 3 year contracts. On October 19, 2009 APM.V was renewed at Limao for another three years; APM.V is required to spend on the contract $1M in the next two years and then submit a new plan to the government -- so APM.V has good title for 3 more years plus 3 more years as a renewal extension and in the 6th year are expected to take Limao into production.
 
It is important to note that Amerix is fostering a symbiotic long term relationship with the Brazilian consortium that now owns Ouro Roxo as the consortium have proven mining expertise in the region (they know how to open pit and vat leach in that area) and Amerix has proven exploration expertise. This relationship will be mutually beneficial when it comes time to take Limão into production. The new APM.V has certainly proven their competency and worth to the consortium at Ouro Roxo as within three months after the new President Jeffrey Reeder and Dan Hamilton, the CFO, took over management of the company in March 2008 not only did they reinstate APM's financials, they also turned around the consortium's drill rigs at Ouro Roxo and started drilling in the opposite direction, adding significant more ounces. The consortium has since been following Mr. Reeder's drilling direction and relying on his past experience in working in these jungle environments. Future 50 - 50 joint ventures between the two entities are a distinct possibility.

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Ouro Roxo Gold Project (A.K.A. Vila Porto Rico) - Income Stream, Brazil

The project was sold by APM.V to clear its books however APM.V managed to retain a 2.5% NSR

 Figure 8. Ouro Roxo North - Tailings Pond Operation

The Ouro Roxo project is now owned by a private Brazilian consortium that took close to $4M in payment obligations off the books of Amerix and left APM.V a 2.5% Gross Royalty. Based on the mining plan filed with the Brazilian Ministry of Mines and our assessment of the operation Mining MarketWatch Journal estimates APM.V will generate in excess of $20M worth of royalties on Ouro Roxo over the mine life. When asked if our estimation of the income stream was sound management of APM.V did not think we were out of line in our expectations of the royalty, however they are required to employ conservative accounting principles (such as only looking at published data; the last NI 43-101 on the property was from over half a decade ago) -- in the company’s most recent audited financial statements the carrying value of the royalty was ~$14M. [This is the point at which astute investors grab their calculator and figure out APM.V is mathematically destined to gravitate upwards in share price to reflect the inherent value].

The Brazilian consortium is pressing ahead with the mining of Ouro Roxo and production of old tailings will begin by Q3 2010. The consortium has already invested about $7M into developing Ouro Roxo since acquiring the property from APM.V. The original plan for when APM.V sold it was for them to put $7 - $8M into Ouro Roxo and build it up to a 20K – 30K oz gold per year producer but the Brazilian consortium found additional gold zones and they now believe that what they are going to do in the first 3 years is mine the tailings first (as they can do that with current mine permits) then they are going after a large scale permit. They are probably going to increase the production up to ~65K oz per year by the fourth year. Mining of the tailings will begin by late second quarter 2010 and APM should see some revenue from that. This year APM.V will not get a large amount, maybe ~$150K, however eventually it is believed that in year four Amerix will be earning $150 - $250 a month. APM will not need to worry about any further shareholder dilution from that point forward. There is also a good chance that with all the good synergy between Amerix and the consortium now APM.V would be an attractive fit for the Brazilian consortium to use as a public vehicle for Ouro Roxo when it hits 70K oz gold production per annum -- a win-win scenario all around.

 Figure 9. Ouro Roxo North shows efforts of past local miners (garimpeiros) which have been compensated to be elsewhere

Note: There is a 2% Gross Royalty (held by Matapi Exploration) underlying APM's 2.5% Gross Royalty however the 2% royalty is capped at $800K (Amerix has the right to buy it out for US$800k, APM.V has no cap on its royalty). APM.V is in the process of negotiating with Matapi to buy out the 2% NSR once the final mine plan is obtained. The initial royalties from the mining of the tailings will create revenue in the order of $100K - $150K in the first year for Amerix before consideration of the underlying royalty.

Supplementary information on Ouro Roxo & the larger Vila Porto Rico claims once owned by APM.V (2.5% NSR retained by APM.V)

The Vila Porto Rico properties are located in the municipality of Jacareacanga in the State of Pará, immediately east of the Tapajós River, a major north-flowing tributary of the Amazon. Manaus, the nearest principal centre and capital of the adjacent State of Amazonas, is located to the northwest in the heart of the Amazonian territory, at the confluence of the Amazon (Solimões) and Negro Rivers. Manaus has a population of approximately 1.4 million, and enjoyed an extraordinary boom in the latter part of the last century due to the rubber industry.
 
Prior exploration in the Vila Porto Rico concessions by Rio Tinto Mineral Development (RTMD) in 1995 and 1996 centered on the Ouro Roxo-Nova Brasilia-Cantagalo Shear Zone, and included geological mapping, geochemical soil surveys, and limited geophysical surveys, including Induced Polarization (IP) and magnetometer surveys, auger drilling for geochemical samples, and 4,840 meters of core drilling in 26 drill holes. The cut line grid established by RTMD involved a north-south baseline of 6.4 km with east-west section lines varying from 1.5 to 3 km in length.
 
Commencing in 2004, Amerix renegotiated the exploration concessions titles and purchase agreement, reviewed the available project technical data and is proceeding with exploration of the concessions at large by geochemical soil surveys and geology of selected mineralized areas and an initial core drilling program involving 4,081 meters of NQ core drilling in 29 holes in the Ouro Roxo North and South areas to add further definition to the identified mineralization in those areas.
 
Core drilling to date has identified several centres of gold mineralization associated with the Ouro Roxo-Cantagalo Shear Zone. Gold mineralization is interpreted initially to occur in association with quartz injections and accompanying pyrite from an epithermal source. The mineralization appears to occur irregularly along shears and fractures within the central mylonitic zone of the main shear structure.
 
The Ouro Roxo North (Buriti) zone is associated with a sheared to locally brecciated structure, made up of fragments of encasing rock in a matrix of quartz, calcite, pyrite, chalcopyrite, and sericite, which has accommodated hydrothermal mineralization. The mineralized zones vary for 0.20 to 50.0 meters in thickness and are associated with a mylonitic foliation trending north-south and dip 30° east. The highest gold grades are associated with the brecciated zones and where sulphide concentration is more evident. Breccia zones with sulphide content are also identified which do not contain high gold values. However, generally the sulphide containing breccia zones are indicative of elevated gold content.
 
Numerous smaller veins, to 2 cm thickness, are associated with the main structure and have the same mineralogy and trend as the main vein structure. The encasing rock contains disseminated sulphides, as well as fractures filled by sulphides.
 
In the garimpeiro operations, the majority of production is from the lateritic and saprolitic material within and especially near-by the footwall contact of the central mylonitic (sheared) zone with an underlying diorite or gabbro. The garimpeiro production and processing operations are elementary, with minimal mechanization and unsophisticated processing. Essentially, material is passed through a relatively short, 2.5 to 3 meter sluice with minimal or no riffles and gold containment is obtained from special gold blankets, from which the concentrate is amalgamated with mercury and retorted to produce a locally saleable product.

Mr. Reeder is a professional geologist registered with APEGBC in the Province of British Columbia and holds a BSc Degree with a specialization in geology from the University of Alberta. Mr. Reeder has worked extensively throughout Latin America for the last 15 years and has significant mineral discoveries to his credit and extensive knowledge and hands-on experience exploring for gold in terrains similar to Amerix’s Brazilian properties. Mr. Reeder is currently a director of Duran Ventures and was previously a director of Acero-Martin Exploration.
 

WILLIAM WHITEHEAD, Director
Mr. Whitehead began his career in the heavy equipment rental business where he became a major partner. He is a past director of CanClean Services and represented investors in mer of Beacon of Canada Truck Washes with CanClean Services Limited. He serves as a director of GLR Resources (a mining operation), a position he has held for over 30 years.

  
LUCIANO BORGES, Director
Mr. Borges graduated in Geology with post-graduation in Economic Geology at the University of Brasilia - UnB. He has enjoyed an outstanding career in the Brazilian Ministry of Mines and Energy where he held many senior executive positions including: General-Coordinator of the National Department of Minerals Production; General-Director of the National Department of Mines and Metallurgy; President of the non-Executive Administration Board of the Brazilian Geological Survey and National Secretary of Mines and Metallurgy. He is a founding member of the MERCOSUR Mining Subgroup and CAMMA - Conference of Mining Ministries of the Americas. He has also served on the non-executive board of Companhia Vale do Rio Doce (CVRD), among others.

Mining MarketWatch Journal Note: Luciano Borges is a past official with the Brazilian Ministry of Mines and Energy, his involvement in APM.V is very key as Mr. Borges is experienced and instrumental in negotiations in Brazil.

DANIEL E. HAMILTON, Director and CFO
Mr. Hamilton has over 25 years of experience in financial management and accounting roles, most recently as CFO of Crystallex International Corporation. Prior to that Mr. Hamilton was Vice-President, Controller of AMEC Americas, a multi-national engineering and construction management firm, and Group Controller, Noranda Inc.

For more information contact Amerix's head office at: Ph 416.867-1591
 

Company's web site: www.amerixcorp.com     SEDAR Filings: URL