Exceptional Pipeline of Drill Targets for 2024
After just one season of targeted resource drilling (10,000 m) on its Storm Project on Somerset Island in Nunavut, Canada, American West (ASX: AW1; FRA: R84) already presents its first near-surface resource, thereby laying the foundation for what management considers to be ‘a globally significant new copper camp’.
The first independent JORC 2012 estimate of indicated and inferred mineral resources (MRE) defines 17.5 million tonnes at 1.2% copper and 3.4 g/t silver (0.35% copper cut-off) with a total metal content of 205,000 tonnes of copper and 1.9 million ounces of silver. The mineralization begins at or very near the surface and can potentially be developed as an open pit. 100% of the estimated resource is classified as fresh sulfide, predominantly consisting of the copper mineral chalcocite. Preliminary studies indicate that cost-effective processing, including ore sorting (Direct Shipping Ore), is possible.
The company sees extraordinary growth potential in the Storm Project, of which American West owns 80%. 20% of the project and a 2% royalty belong to the Canadian company Aston Bay (TSXV: BAY; FRA: 6AY). American West and Aston Bay are working together on an NI 43-101 compliant MRE for the Canadian market, which is also expected to be published shortly. The Storm resource is open in all directions, offering the potential for significant and rapid growth in 2024 and beyond.
Resource Also According to Canadian Standards Soon
Not included in the MRE are several high-grade copper discoveries made in 2023 at Thunder (48.6m @ 3% Cu in ST23-03), Lightning Ridge (15.2m @ 2.3% Cu and 15.2m @ 2.1% Cu in ST23-52) and Cyclone North (7.6m @ 1% Cu in ST23-55).
Storm has the size of a future world-class copper camp. Less than 5% of the 100 km long prospective copper-bearing horizon within the project area has been tested by drilling so far, including the Tempest prospect, where a 4 km long copper-zinc gossan has been identified at the surface.
Dave O’Neill, Managing Director of American West Metals, commented: ‘The first JORC-compliant Mineral Resource Estimate (MRE) for the Storm Project has exceeded our expectations and laid the foundation for what we believe to be a globally significant copper district. In the shortest possible time, we have defined four robust copper deposits at or very near the surface: Cyclone, Chinook, Corona and Cirrus. The location and size of the mineralization gives us the potential to mine 100% of the resource via open pit, using cut-off grades much lower than underground deposits. The result is more copper metal. The initial resource has excellent and immediate growth potential. The known copper occurrences remain open and the high-grade discoveries Thunder, Lightning Ridge and Cyclone North from 2023 are not yet included in the MRE.’
Potential Open Pit with Potential for Cost-Effective Mechanical Ore Sorting
The company has begun mining and processing studies, which represent a crucial step in preparing future mine permit applications. Initial studies indicate that due to the near-surface nature and favorable geometry of the Storm copper mineralization, the deposits may potentially be mined using conventional open pit methods. American West’s ongoing metallurgical studies have confirmed that the ores are suitable for a range of cost-effective ore sorting and processing methods with excellent copper recoveries.
Exploration drilling in the northern part of the Cyclone deposit (Zone 4100N) in 2023 intersected a thick section of copper sulfide. Drill hole SR23-55 intersected a 24.4 m thick section of breccia and copper sulfide vein mineralization, believed to occur in the same prospective horizon as the copper mineralization at Cyclone. The mineralized zone contains a stronger sulfide breccia interval of 7.6 m at 1% Cu, which includes 1.5 m at 2% Cu. The >2% copper mineralization is interpreted as the source of the EM anomalies.
Significantly, the untested FLEM anomaly located 300 m north of drill hole SR23-55 shows higher conductivity and could represent larger quantities of >2% copper mineralization. These two anomalies cover an area of approximately 16 hectares and, given the current size of the Cyclone deposit (12.1 million tonnes at 1.2% Cu and 3.8 million oz Ag), have the potential to host substantial amounts of additional resources.
American West believes there is considerable potential to expand the MRE through further exploration in the Storm and regional areas. Four immediate opportunities for expansion and addition of further resources at Storm have been identified, particularly the recently discovered high-grade zones Thunder and Lightning Ridge, Cyclone North, and The Gap Prospect.
Exceptional Pipeline of Drill Targets for 2024
In the southern graben area alone, six significant fault-controlled copper deposits and prospects (Chinook, Corona, Cirrus, Thunder, Lightning Ridge, and The Gap) have been identified (Figure 6). All of these discoveries are at or near the surface and have only been tested to a depth of about 100 vertical meters so far. Additionally, a series of EM anomalies in the southern graben area have not yet been tested, showing exceptional potential for the discovery of further high-grade copper mineralization.
Exploration drilling in 2024 will aim to expand the search space deeper and along strike within the extensive fault zone of the southern graben area, as well as test the existing high-priority EM targets in this area.
Conclusion: The term ‘world-class’ should be used sparingly. However, the designation simply imposes itself in the case of American West’s Storm project. The speed with which the company has drilled its first resource demonstrates how well the underlying exploration model works. Therefore, there is a strong indication that American West could add further resources at the same pace in the coming drilling season. The near-surface nature, simple geometry, and high copper grades of the Storm deposits favor an open-pit scenario, particularly in the higher-grade core of the resource, which contains 11.2 million tonnes at 1.5% Cu and 4.3 g/t Ag (cut-off grade of 0.7% Cu) with 173,000 tonnes of copper and 1.5 million ounces of silver. Such ore grades are exceptionally high for open-pit mines. In addition, there is the favorable mineralogy, which, according to initial tests, allows for simple mechanical ore sorting without water, without chemicals, and thus without sulphide tailings. Such factors could make Storm’s direct shipping copper concentrate a sought-after ESG raw ore in the future. American West and Aston Bay have a unique opportunity at Storm to realize a low-threshold entry into copper mining with a particularly small (environmental) footprint. The capital requirement for a production start with open-pit mining and ore sorting is likely to be a fraction of what would be required for the development of a high-tonnage, low-copper grade porphyry copper project with chemical processing. At the same time, Storm still has the potential to become a globally significant mining camp. American West has only tested 5% of its license. The Storm project belonged to Teck’s predecessor Cominco until 2007. In 2017, BHP ended an earn-in with Aston Bay after 2,000 drilling meters. One can be certain that the mentioned (and other major) companies are following the development near the Northwest Passage very closely. American West is just at the beginning. The company could become the new star in the copper sky.
