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Highlights
- American West Metals reports high-grade copper and silver intersections, indicating significant resource expansion potential at Cyclone.
- Recent funding of up to US$12.5 million aims to advance exploration and support a pre-feasibility study.
- Successful sealift operations are expected to reduce costs for the upcoming exploration and development programs.
American West Metals (ASX:AW1) is making strides in resource expansion and upgrade potential at its Cyclone project. Recent drilling results have showcased a remarkable 9.1 meters hit at 14.4% copper and 21.3 grams per tonne (g/t) silver from a depth of 93 meters. This finding is part of broader intersections, including 22.9 meters at 8.5% copper and 17.8 g/t silver, as well as 53.3 meters at 3.9% copper and 12.6 g/t silver.
The recent results indicate the presence of additional high-grade copper intersections in other drill holes. Notably, the latest strike occurred 75 meters south of the current resource, which has yet to be factored into the existing significant copper inventory of the Storm project.
Ongoing Success at Storm
The drilling results continue to bolster the positive outlook for American West Metals at the Storm project. Recent achievements also include securing up to US$12.5 million in royalty funding from TMRF Canada, contingent on reaching specific exploration milestones. These milestones include delivering a pre-feasibility study and upgrading the resource estimate to at least 400,000 tonnes of copper at Storm. So far, US$5 million of this funding has been allocated, with additional funds contingent upon the successful completion of the study and resource upgrade.
Currently, the Storm project hosts a resource of 17.5 million tonnes at 1.2% copper and 3.4 g/t silver, translating to approximately 205,000 tonnes of copper and 1.9 million ounces of silver. The latest assay results indicate a strong trajectory towards increasing this resource.
High-Grade Intersections and Potential for Open-Pit Mining
Recent drilling has confirmed exceptionally thick and high-grade copper intersections at Cyclone, particularly at the western end and south of the deposit. The west end of Cyclone is home to the shallowest and highest-grade copper mineralization, which is advantageous for the potential development of an open-pit mining operation.
Significant copper grades were also encountered in two other drill holes, showcasing rare results in modern exploration. Drill hole SR24-070 revealed 45.7 meters at 1.9% copper and 9.4 g/t silver from a depth of 35.1 meters, with contained intervals that included 27.4 meters at 3.1% copper and 14.6 g/t silver. Another hole, SR24-045, recorded 57.9 meters at 1% copper and 4.3 g/t silver from a depth of 32 meters.
American West Metals continues to focus on infill drilling to confirm the lateral continuity of the orebody and transition inferred classified resources into a higher confidence indicated category. Managing Director Dave O’Neill expressed enthusiasm about the program, stating that it has now exceeded 22,500 meters of drilling and continues to demonstrate the exceptional quality of copper mineralization at Storm.
“The latest assays from the Cyclone deposit have delivered one of the best copper intersections at the project to date, with a true-width interval of 22.9 meters grading 8.5% copper,” O’Neill noted. This interval includes semi-massive sulphide zones with individual assays reaching up to 27% copper, emphasizing the ongoing potential for resource expansion.
Successful Sealift Operations
In preparation for the 2025 exploration and development programs at Storm, the NEAS cargo ship MV Mitiq successfully completed a sealift operation to Somerset Island, where the project is located. This achievement is projected to save approximately $4 million in next year’s budget. Additionally, bulk samples containing copper were transported offsite via the cargo ship, demonstrating the efficiency of the logistics chain for Storm's direct shipping ore mining potential.
O’Neill emphasized the importance of these developments, stating, “The latest results and progress clearly demonstrate the potential of the project to keep delivering stunning intersections and innovative logistical solutions. Further updates on this exciting program are anticipated in the coming weeks.”
