American West Metals (ASX:AW1) shares zoom over 66%; is this the reason?

3 min read | September 01, 2022 01:22 PM AEST | By Bhawna Gupta

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American West Metals (ASX:AW1) shares zoom over 66%; is this the reason? — Image source: © Bonacquisthf | Megapixl.com

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Highlights

American West Metals today (September 1) shared first assay results for the diamond drilling program at the Storm Copper Project on Somerset Island.

The company’s shares skyrocketed today at AU$0.23 per share, up 66.67% at 12.59 PM AEST.

This outperforms ASX 200 Materials index which was 3.61% lower at 15,613.70 points today at 1.00 PM AEST.

Shares of mining company American West Metals Limited (ASX:AW1) were spotted trading 66.67% higher today (01 September) at AU$0.23 per share on ASX at 12.59 PM AEST.

This outperforms ASX 200 Materials index which was 3.61% lower at 15,613.70 points today at 1.00 PM AEST.

Interestingly, the shares of American West Metals are rising even if the whole material index is down. This might be because of the announcement made by the company today related to its Storm Copper Project.

In an ASX filing on Thursday (01 September), American West Metals shared first assay results for the diamond drilling program at the Storm Copper Project on Somerset Island, Nunavut, Canada.

The Storm Project consists of the Storm Copper Project (intersections include 110m @ 2.45% Cu from surface, 56.3m @ 3.07% Cu from 12.2m, 19m @ 3.41% Cu from surface, 15m @ 3.88% Cu from 72.4m, and 6.84m @ 8.98% Cu from surface), as well as the Seal Zinc-Silver Deposit (intersections include 14.4m @ 10.58% Zn, 28.7g/t Ag from 51.8m and 22.3m.

Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 01 September 2022

More on Drill Hole ST22-05

ST22-05 was drilled to a depth of 89m and is one of eight drill holes performed so far in the 2022 drill program to investigate the resource potential of the shallow 2750N Zone.

The drill hole, which is located in the same section as drill hole ST22-04, was testing the upper continuation of the deeper mineralisation intersected in ST22-04 (assays have yet to be obtained).

Notably, from around 22m downhole, ST22-05 intersected a broad 60m zone of vein and fracture type copper sulphide mineralisation. Within this interval, the stronger and more significant mineralisation comprises breccia and massive sulphides between 38m and 79m downhole, yielding 41m @ 4.18% copper. Between 48m and 53m, a thick zone of massive bornite and chalcopyrite exists, with an average grade of more than 24% copper.

Road ahead for American West Metals

Work on the Storm Project's near-surface mine development and exploration/discovery lines will continue in tandem.
Further diamond drilling is anticipated to expand the 2750N Zone and define the first resources at the 4100N and 2200N Zones, where past drilling found high-grade copper mineralisation.
Drilling and geophysics are also planned to follow up on the important new discovery of sediment-hosted type copper mineralisation.
Beneficiation and metallurgical testing on drill core from this year's program will begin soon.

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