Potential for Cost-Effective Value Enhancement of the Project

In our coverage of the Australian American West Metals (WKN A3DE4Y / ASX AW1), we have so far primarily focused on the promising explorer’s Storm project in the Canadian province of Nunavut. Rightly so, we believe, as American West has been most active there recently – and has consistently been able to report spectacular drilling results. However, as the name suggests, the company also has projects in the United States. American West has now begun its first drilling on the Copper Warrior project in Utah. And in our opinion, the location of this copper project alone makes it extremely exciting.

This is because Copper Warrior not only directly borders the formerly producing copper mine Big Indian, but is also located just 15 kilometers from Utah’s second-largest producing copper mine, Lisbon Valley.

In 2022, American West conducted an Induced Polarisation (IP) survey on the project area and identified several large target zones, whose geophysical signature, according to the company, indicates copper mineralization. This theory was further strengthened by the fact that when geochemical samples were taken from outcrops above IP anomaly 1, which extends over an area of 850 to 550 meters, high copper grades of up to 3.3% copper were measured!

First Ever Drilling Program Underway

American West has now launched its first-ever reverse circulation drilling program on Copper Warrior. It initially consists of ten drill holes, each reaching a depth of no more than 150 meters. However, this is not only intended to investigate the IP anomalies discovered in 2022. American West also aims to confirm that regionally known, promising copper horizons extend to the Copper Warrior area.

The copper mineralization in the Lisbon Valley mine is found in both Dakota and Lower Burro Canyon sandstone, with mineralization in the Lower Burro Canyon unit accounting for about 80% of the reserves and geological resource (40.4 million tonnes at 0.46% copper for over 180,000 tonnes of copper). All resources at Big Indian were in the Lower Burro Canyon unit. The copper mineralization at Copper Warrior consists of disseminated chalcocite in the sandstone units as well as chalcocite, azurite, and malachite where the mineralization outcrops. Vein-like and higher-grade mineralization is widespread in the project area near the Lisbon Valley Fault, the main source of copper-bearing fluids.

Additionally, exposed Dakota and Lower Burro Canyon sandstone occurs on the Copper Warrior property with widespread occurrences of disseminated and fracture-controlled sediment-hosted copper mineralization. The surface outcrops in the project area are very similar to those of the Big Indian Copper Mine, which borders Copper Warrior, and the Lisbon Valley Copper Mine, which as mentioned is 15 kilometers to the south, according to the company.

Potential for Multiple Large Copper Deposits in the Project Area

American West plans to use the results of these initial drillings to design further exploration programs, which are expected to include additional drilling and geophysical surveys. This is because the size and distribution of the known IP anomalies already indicate, according to the company, that there is potential 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 occurrences bordering and along strike from Copper Warrior, and copper outcrops already identified throughout our tenure, the project represents a compelling, low-cost opportunity to potentially discover significant volumes of copper mineralization. […] The modeling and interpretation of the IP survey data has resulted in strong anomalies that show distinct similarities to the geophysical signature of known copper deposits in this 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 significantly enhance the value of the project.

Conclusion: Recently, the market’s attention – understandably – has been almost exclusively focused on American West Metals’ highly promising Storm project. However, Copper Warrior (and West Desert) in the USA should not be forgotten. As Managing Director Dave O’Neill stated, there is potential here to significantly increase the value of Copper Warrior at comparatively low costs. Given the drilling now underway there and the pending exploration and drilling results from Storm, American West shareholders should look forward to a steady news flow and a busy end of the year.