American West Metals (ASX: AW1 | WKN: A3DE4Y) has presented a significantly upgraded resource estimate (JORC 2012) for its Storm copper project (80% American West) on Somerset Island in Nunavut, Canada. The update focuses not only on an increase in contained metal, but also on a higher proportion of resources classified as “Indicated”. This brings the project one step closer to the next development phase: A Pre-Feasibility Study (PFS) is scheduled to be published in the first quarter of 2026!
Specifically, the combined Indicated and Inferred resource estimate for Storm grows to 28.2 million tonnes averaging 1.0% copper and 3.3 g/t silver. According to company information, this corresponds to approximately 276,000 tonnes of copper and approximately 3.0 million ounces of silver. Compared to the previous basis, this represents an increase in the amount of copper contained by 20% and the amount of silver ounces contained by 36%. Another key point: More than 65% of the contained metal is now classified in the Indicated category, which, according to the JORC standard, typically provides a better basis for further planning such as reserve estimates and development studies.
American West Metals: More high-quality resources in the Storm copper project
The updated resource estimate is based on a cut-off of 0.25% copper and includes several defined deposits within the project. The Cyclone, Chinook, Corona, Thunder, Cirrus, Lightning Ridge and Gap deposits are mentioned. Indicated resources are located in Cyclone, Chinook, Corona and Thunder in particular, while other areas have so far been identified as Inferred. Overall, the new compilation includes 15.94 million tonnes Indicated at 1.13% copper and 3.59 g/t silver, while 12.28 million tonnes are reported as Inferred at 0.78% copper and 2.85 g/t silver.
American West Metals emphasizes that the recent drilling served not only to expand, but also to convert resources from Inferred to Indicated. In addition, the company refers to new sub-areas that have not yet been fully incorporated into the pit designs. As an example, the management mentions borehole PFS-002, which intersected 12.6 meters with 5.6% copper and 21 g/t silver from a depth of 70 meters outside the current open pit designs. At the same time, resources were defined for the first time with the Gap deposit, which, according to the company, contributes to the broader basis of the total resource.
Technical factors behind the increase in resources
According to the release, the upgrade is supported by several technical components that were improved or re-evaluated in the course of the 2025 work. These include updated geotechnical parameters, an optimized metallurgical model and a revised geological domain classification. In addition, it is pointed out that higher copper prices and a reduced cut-off support the resource estimate. The resource is fed by an extensive data foundation: Data from 210 reverse circulation boreholes and 124 diamond boreholes, a total of 50,088 meters of drilling and 27,917 samples were incorporated into the modeling. Around 16% of this data comes from the 2025 field season.
Geologically, the copper-silver mineralization on Storm is described as sediment-bound and occurs partly on the surface or at shallow depths. The company also distinguishes between different geometries and controls: Chinook and Lightning Ridge are presented as more structurally influenced, including breccia- or fault-bound mineralization, while Cyclone is described as more stratigraphically controlled and shallow-dipping. Corona, Thunder, Cirrus and Gap are interpreted as mixed forms with both structural and sub-horizontal components. The defined mineralization is characterized as fresh sulfide material, chalcocite-dominated, and remains open in most directions, according to the company, which implies further drilling to delineate it.
PFS in progress and regional potential along a 110 km horizon
In parallel with the new resource estimate, American West Metals has been working on the pre-feasibility study, into which the updated model is to be incorporated. The company is building on a Preliminary Economic Study (PEA) from March 2025. This PEA assumed an open-pit operation with processing, with a stated low initial investment requirement of US$47.4 million, a project NPV of approximately US$149 million and an internal rate of return of approximately 46% after tax. The basis of the PEA at that time was a resource estimate from 2024 of 20.6 million tonnes with 1.1% copper and 3.8 g/t silver (cut-off 0.35% copper), which contained 229,000 tonnes of copper and 2.2 million ounces of silver.
For the upcoming steps, American West Metals highlights not only the integration of the new resource estimate into the PFS, but also regional exploration. A 110-kilometer-long, copper-bearing horizon is mentioned in the vicinity of the project, of which less than 5% has been systematically explored by drilling to date. In addition, eight high-grade prospect areas have been identified that are ready for further drilling. Overall, the company therefore classifies the update both as progress for development planning and as a starting point for further resource delineation and discoveries within the project corridor.
