American West Metals (ASX: AW1; FRA: R84; OTCQB: AWMLF) is on a roll. The company has quietly secured A$3,087,500 in fresh capital at $0.095 per share to expand its ongoing drilling at the Storm Project on Somerset Island in Nunavut. Investors have reportedly offered the company a multiple of the amount raised. The closing price in Australian trading then ran up to A$0.145 (up 21%) on a trading volume of around A$3 million after all.
American West Metals (ASX: AW1; FRA: R84; OTCQB: AWMLF) is on a roll. The company has quietly secured A$3,087,500 in fresh capital at $0.095 per share to expand its ongoing drilling at the Storm Project on Somerset Island in Nunavut. Investors have reportedly offered the company a multiple of the amount raised. The closing price in Australian trading then ran up to A$0.145 (up 21%) on a trading volume of around A$3 million after all.
Figure 1: Large gravity and IP anomaly directly beneath current drilling.
Figure 2: Cross section shows that American West’s previous drilling has only scratched the surface (zones 4100N, 2750N and 2200N). The deeper drill hole ST22-10 last year only scratched the edge of the suspected copper system.
CONCLUSION: Strong investor interest and recent share price performance underpin the special status of American West’s Storm discovery. American West shines among a lacklustre sea of junior explorers in the current extremely cautious market environment. With a 100% hit rate to date, the company is on track to present a maiden resource for the near surface 4100N, 2000N and 2750N zones in the fall. The exciting part is that these high-grade copper deposits could lend themselves to open pit mining potential with direct shipping due to their location and simple mineralogy. This would free American West from the capex trap that porphyry copper explorers, for example, are stuck in. American West plans to update on this shortly. The real game-changer, however, was the recent spectacular release of the gravity survey. The data support the theory that a much larger copper system is located directly beneath the near-surface copper targets drilled to date (see Figures 1 and 2). This interpretation is supported by gravity data and by coincident historical geophysical anomalies. In addition, American West has already discovered copper sulfides in hole ST22-10 in 2022, however, that hole was now known to be on the periphery of one of the newly identified gravity targets. Investors have now given American West sufficient capital to begin drilling the large sedimentary copper target at depth. If drilling is successful, American West’s share price performance to date would likely only act as a prelude. The company’s stock market value is currently around A$38 million.
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