In a recent research report titled “Storm Grows – More to Come,” analysts at MST Access primarily focus on the Storm Copper Project of Australian explorer American West Metals (ASX AW1 / WKN A3DE4Y). The focus is on a significantly larger and simultaneously upgraded Mineral Resource Estimate (MRE), the next development stage with an announced Pre-Feasibility Study (PFS) including an initial reserve, and the second pillar, the West Desert Indium Project in the USA, which strategically falls within the critical raw materials sector.
Storm Copper Project: Resource Grows – Higher Proportion of “Indicated” Resources
The core point is the updated Mineral Resource Estimate (MRE) for American West’s Storm Copper Project in Nunavut, Canada. According to the report, the contained copper quantity in the MRE has increased by 20% to 276 kt copper (Cu). At the same time, the contained silver quantity rose by 36% to 3.0 million ounces of silver (Ag). The updated resource is stated in the report as 28.2 million tonnes (Mt) at 1.0% Cu and 3.3 g/t Ag.
Remarkable is the reference to the low effort required for this upgrade, according to the report: Due to the “consistent nature” of the deposit, 16 RC drill holes were sufficient to achieve both the volume growth and to increase confidence in the calculation. Result: More than 65% of the contained metal is now in the higher indicated category instead of the inferred category.
This combination – resource growth plus a higher proportion of indicated resources – is presented in the MST report as the basis for rapidly advancing planning towards reserves and a Pre-Feasibility Study.
PEA as Starting Point: 10-Year Mine Life, 487 kt Concentrate, Capex Only US$47.4 Million
MST Access also recalls the Preliminary Economic Assessment (PEA) that American West published in March 2025. According to the report, this PEA describes a 10-year open-pit operation with a production of 487 kt of copper and silver concentrate over its lifespan.
Key figures of the PEA include:
- Capex: US$47.4 million
- C1 Cash Costs: US$2.63 per pound (lb)
- After-tax Net Present Value at an 8% discount rate: US$149 million
These figures serve as a reference point in the research report against which the expected improvements of the next study are to be measured.
Pre-Feasibility Study and Initial Reserve in Q1 2026: Report Expects “Significantly” Better Results
Based on the updated resource estimate, analysts expect American West to publish a Pre-Feasibility Study and an initial reserve in the first quarter of calendar year 2026. According to MST Access, American West anticipates “significantly improved” financial results – based on several expected factors:
- higher copper and silver prices,
- higher metal recovery rates,
- higher-grade concentrate,
- capital and operating efficiencies.
The fact that the updated MRE simultaneously upgrades the resource category is seen as an element that improves the basis for reserve and mine planning.
West Desert: Indium Resource in the USA – Gallium Potential as a Second Pillar
In addition to Storm, experts highlight West Desert as a strategically relevant project. It is mentioned that West Desert hosts the only indium resource in the USA and also shows gallium potential, which, according to the report, “could compete with world-class deposits in the region.”
As a justification for its strategic importance, the report cites a clear supply aspect: The USA imports 100% of its indium and gallium. Against this background and given the goal of building local supply chains for critical minerals, the report sees American West in a strong position to realize West Desert’s potential.
MST Access Sees Price Target for American West at AUD 0.17
Given these recent developments, the experts are raising their valuation from the previous AUD 0.14 to AUD 0.17. Storm is cited as the main driver, with MST expecting growth beyond the current PEA.
The analysts justify the increased valuation with two key points:
- higher confidence in Storm’s mine life,
- increase in the assumed copper price assumption to US$5.00/pound (previously US$4.75/lb).
At the same time, the report clearly lists the significant risks:
- the possibility that the results of the Pre-Feasibility Study fall short of expectations,
- delays in permits, and the
- copper price (price risk).
Thus, in their report, the analysts at MST Access paint a picture of a project (Storm) that has gained substance through the updated resource estimate and is moving into a crucial next phase in 2026 with a Pre-Feasibility Study and reserve estimate – flanked by a US project positioned in the context of critical raw materials.
