Potential for cost-effective value enhancement of the project
In our coverage of Australian American West Metals (WKN A3DE4Y / ASX AW1), we have so far focused on the promising explorer’s Storm project in the Canadian province of Nunavut. Rightly so, in our opinion, as American West has been most active there recently – and has repeatedly been able to report spectacular drill results. But as the name suggests, the company also has projects in the USA. At the Copper Warrior project in Utah, American West has now started initial drilling. And the location of this copper project alone makes it already extremely exciting in our view.
That’s because Copper Warrior is not only directly adjacent to the former producing Big Indian copper mine, but it’s also just 15 kilometres from Utah’s second largest producing copper mine, Lisbon Valley.
American West had conducted an Induced Polarization (IP) survey on the project area in 2022 and identified several, large target zones whose geophysical signature the Company believed was indicative of copper mineralization. A theory that was also reinforced by the fact that high copper grades of up to 3.3% were measured when geochemical samples were taken from outcrops over IP Anomaly 1, which covers an area of 850 to 550 meters!
First ever drill program started
American West has now initiated its first ever program of reverse circulation drilling at Copper Warrior. It initially consists of ten drill holes, each of which is to advance to a depth of no more than 150 meters. However, this is not only to investigate the IP anomalies discovered in 2022. American West also wants to confirm that regionally known prospective copper horizons also extend into the Copper Warrior project area.
Namely, copper mineralization at the Lisbon Valley mine is hosted in both so-called Dakota and Lower Burro Canyon sandstones, with mineralization in the Lower Burro Canyon unit accounting for approximately 80% of the reserves and geological resource (40.4 million tonnes at 0.46% copper for over 180,000 tonnes of copper). All of Big Indian’s resources were located in the Lower Burro Canyon unit. Copper mineralization at Copper Warrior consists of disseminated chalcocite in the sandstone units and chalcocite, azurite and malachite where mineralization outcrops. Vein-type and higher grade mineralization is widespread in the project area near the Lisbon Valley Fault, the main source of the copper-bearing fluids.
In addition, outcropping Dakota and Lower Burro Canyon sandstone with widespread occurrences of disseminated and fracture-controlled sedimentary copper mineralization occurs in the Copper Warrior area. Surface outcrops in the project area look very similar to those at the Big Indian Copper Mine, which is adjacent to Copper Warrior, and the Lisbon Valley Copper Mine, which is 15 kilometres to the south, the company said.
Potential for several large copper deposits in the project area
American West intends to use the results of this initial drilling to subsequently design further exploration programs, which are expected to include additional drilling and geophysical surveys. This is because, according to the company, the size and distribution of the known IP anomalies already indicate that the potential exists for multiple, large deposits – comparable to Lisbon Valley – within the Copper Warrior property.
Dave O’Neill, Managing Director of American West Metals stated, ” […] With large copper showings adjacent to Copper Warrior and along strike, as well as copper outcrops already identified throughout our property area, the project represents a compelling, cost-effective opportunity to discover potentially significant amounts of copper mineralization. […] Modelling and interpretation of the IP survey data has resulted in strong anomalies that bear significant similarities to the geophysical signature of known copper deposits in the area. Significantly, several of the IP anomalies at Copper Warrior are associated with high-grade copper outcrops. […] This exploration program is particularly exciting as it has the potential to add significant value to the project.”
Conclusion: Most recently, the market's attention was - understandably - almost exclusively focused on American West Metals' highly prospective Storm project. But Copper Warrior (and West Desert) in the U.S. should not be forgotten. As Managing Director Dave O'Neill has said, there is the potential to significantly increase the value of Copper Warrior at relatively low cost. With drilling now underway, there, and exploration and drill results still pending from Storm, American West shareholders should be able to look forward to a steady news-flow and a busy end to the year.
Pursuant to §34b WpHG (Securities Trading Act) and in accordance with Paragraph 48f (5) BörseG (Austrian Stock Exchange Act) we would like to point out that principals, partners, authors and employees of GOLDINVEST Consulting GmbH hold or may hold shares in American West Metals and therefore a possible conflict of interest exists. We also cannot exclude that other stock letters, media or research firms discuss American West Metals during the same period. Therefore, symmetrical information and opinion generation may occur during this period. Furthermore, there is a consulting or other service contract between American West Metals and GOLDINVEST Consulting GmbH, which means that a conflict of interest exists.