Potential Starter Pit: American West Drills 42.7m @ 3.1% Cu from Surface

American West Metals (ASX: AW1; FRA: R84) continues to deliver outstanding drill results from the Storm Copper Project on Somerset Island, Nunavut, Canada. The latest assay results confirm that resource drilling at the Chinook deposit has intercepted wide, high-grade, near-surface copper intersections that are interpreted to be close to true width.

Several holes returned some of the best results in the industry: hole SR24-068 intersected 42.7 meters of 3.1% Cu, 4 g/t Ag from surface, including 1.5 meters of 7.1% Cu, 6 g/t Ag from 25.9 meters downhole. Hole SR24-080 returned 35.1 meters of 2.7% Cu, 5.8 g/t Ag from 22.9 meters depth, including 9.2 meters of 7. 3% Cu, 15.3 g/t Ag from 27.4m depth and 3.1m of 3.9% Cu, 5.5 g/t Ag from 38.1m depth. And hole SR24-081: 29 meters of 2.6% Cu, 4.3 g/t Ag from surface, including 3.1 meters of 11.1% Cu, 1.5 g/t Ag from 1.5 meters depth and 4.6 meters of 4.8% Cu, 5.7 g/t Ag from 21.6 meters depth.

The geometry and fracture-like nature of the mineralization within the Chinook deposit suggest that it is related to a fault. Since the immediate area of Chinook has only been explored to a vertical depth of approximately 120 m, there is excellent potential for expanding the deposit at depth and along strike. These latest results qualify Chinook as a possible starter project for later production.

Cyclone resource drilling continues to be successful

Drilling to expand the already larger Cyclone resource was also highly successful in the 2024 season. Samples from resource drilling around and within the Cyclone deposit continued to intersect wide, high-grade copper intervals: Drill hole SR24-117 returned 16.8m @ 1% Cu, 4 g/t Ag from 15.2m depth and 33.5m of 1.5% Cu, 8.5 g/t Ag from 35.1m depth, including 3 .1 m of 6.9% Cu, 23 g/t Ag from 54.9 m depth.·Infill drilling is confirming excellent lateral continuity of the ore body, which is expected to allow a significant portion of the resource to be upgraded to the Indicated category. Assay results for the remaining Cyclone drill holes are expected over the next 2 to 4 weeks.

The current resource modeling and geological interpretation of Cyclone constricts the known resource along the Northern Graben Fault. Recent drilling southwest of the deposit (refer ASX announcement 27 September 2024: Drilling Hits 22.9m @ 8.5% Cu at Storm) confirms that Cyclone mineralization continues across this critical structure and at depth within the down-dropping stratigraphy of the Central Graben. South of this newly identified structure in the eastern part of the deposit, very little drilling has been done and this area remains a highly prospective target for future resource growth.

Dave O’Neill, CEO of American West Metals, commented, “The drill program continues to impress us with the high quality of near-surface copper mineralization at Storm. Assay results from drilling at the Chinook deposit continue to underscore the resource quality and open-pit potential of the copper deposits at Storm. Drilling at Chinook has intercepted wide sections of copper mineralization at surface, including very high-grade zones with individual samples of up to 11.1% Cu. The drilling was designed to upgrade the current inferred resources and has also expanded the near-surface extent of copper mineralization. We believe this will enhance the development potential of Chinook, highlighting the deposit as a potential starter pit at Storm. The latest drilling results continue to clearly demonstrate the strong open-cut potential of the Storm copper deposits, with 100% of the resources either outcropping or being near surface.”

Figure 1: Plan view of the Chinook deposit showing JORC Code 2012 MRE outlines, historical and current drilling and regional geology. The Chinook deposit is one of seven discoveries to date in the southern graben and there is strong potential for further discoveries within the extensive fault network.

Figure 2: N-S geological schematic cross section through SR24-068 showing locations of recent drill holes, recently received assay results and the current MRE shell for the Chinook deposit.

Figure 3: Plan view of the Cyclone deposit showing JORC Code 2012 MRE outline, historical and current drilling, overlying regional geology.

Conclusion: The wide intercepts and high grades of outcropping and near-surface copper mineralization at Chinook support a potential open pit mining of the deposit and qualify Chinook as a potential starter mine at the Storm project. In addition, the immediate area of Chinook has only been explored to a vertical depth of approximately 120 meters and offers excellent potential for expansion of the deposit at depth and along strike. Successful drilling on the shallow-lying Cyclone project further north also promises a significant expansion of the resource, with American West geologists seemingly striking a good balance between expanding the resource and improving resource quality through infill drilling. It cannot be repeated often enough that the Chinook and Cyclone deposits mentioned are just two of seven discoveries to date in the southern graben area. American West therefore sees great potential for further discoveries within the extensive fault network.