Indium Classified as a Strategic Mineral

American West Metals (ASX: AW1; FRA: R84; OTCQB: AWMLF) is not a one-trick pony. For the main project Storm on Somerset Island in Nunavut, the first copper resource is expected early next year, followed by a DSO study. However, American West’s portfolio also includes the advanced West Desert project with zinc, copper, and indium in Utah. It is one of the largest and highest-grade undeveloped indium deposits in the world and is the only indium deposit in the USA!

No wonder the project has landed on the radar of government representatives, as the USA currently imports 100% of its indium, which is classified as a critical mineral. American West has now presented an expanded resource estimate for the project for the first time, including both base metals zinc and copper as well as indium, gold, and silver. The independent JORC resource estimate (MRE) for West Desert defines 33.7 million tonnes with 20 g/t In and 0.1 g/t Au. The open-pit suitable portion comprises 18.7 million t with 13 g/t In and 0.09 g/t Ag. The higher-grade underground portion of the resource amounts to 15 Mt @ 28.7g/t In and 0.12g/t Au. The updated JORC MRE adds 23.8 million ounces of indium and 119,000 ounces of gold to the existing 1.3 million tonnes of zinc, 49 million tonnes of copper, and 10 million ounces of silver in West Desert.

However, only 35% of the drill samples used in the historical and JORC resource estimates were assayed for indium, suggesting that the extent of indium occurrence at West Desert is potentially much larger than currently defined.

Location in a World-Class Mining District in the USA

West Desert is located in a world-class mining district in Utah, which also includes Kennecott’s world-class Bingham Canyon copper mine. Despite the resource, only a small part of the license area has been explored. Recently, drilling identified a new high-grade ‘Copper Zone’ (including 17.22m @ 1.04% Cu, 0.58g/t Au and 12.46g/t In from 325.21m in WD22-01c). These results have not yet been included in the resource estimate. 250 m west of the current resource, high-grade indium-zinc-copper mineralization (including 4.58 m @ 5.21% Zn, 0.46% Cu, 0.6 g/t Au, 18.68 g/t Ag, 88.05 g/t In from 455.65 m in WD22-19) was discovered, which has also not yet been considered.

Dave O’Neill, Managing Director of American West Metals, commented: “The updated MRE adds a world-class indium resource to the existing large quantities of zinc, copper, and silver defined in the first resource reported in February this year. Indium and gold were omitted from the first MRE for West Desert due to data gaps in historical drilling, but further studies now allow us to add these two extremely valuable metals as inferred resources.”

Indium Classified as a Strategic Mineral

Indium is classified as a critical and strategic mineral and is used in aerospace, defense, energy, and telecommunications. In 2021, the USA was a 100% net importer of indium, sourced from China, Canada, the Republic of Korea, and France (U.S. Geological Survey, 2022).

Indium is most commonly recovered from sphalerite, a zinc sulfide mineral, where indium occurs in amounts ranging from less than 1 part per million (ppm) to 100 ppm (U.S. Geological Survey, 2022). It also occurs in roquesite (copper-indium sulfide) and magnetite (iron ore) in West Desert. In the USA, indium is primarily found in porphyry and skarn deposits.

Due to the unique characteristics of the West Desert deposit, the Utah Geological Survey (UGS) received a federal grant of $300,000 to conduct a detailed study on indium in West Desert (see ASX announcement dated November 9, 2022 – US Federal Grant for West Desert Critical Metals Study).

West Desert Has Great Potential for Further Growth

The geologists at American West Metals see considerable potential to expand the current resource. Several historical and current drill holes around the West Desert deposit have intersected high-grade zinc and copper mineralization outside the current resource envelope (Figure 3). Drill hole WD22-01C provided evidence that the mineralization at West Desert is associated with a large underlying molybdenum-rich porphyry system. Significantly, the metal associations and volume of mineralization within the porphyry also show striking similarities to the giant Bingham Canyon mine in Utah (the current resource averages 0.017% Mo. Source – Rio Tinto, February 17, 2021). Only 10% of the porphyry contact has been explored so far. Additionally, there is great potential for further high-grade skarn-type mineralization. (See Figure 3)

Conclusion: With now 33.7 million tons of ore, the West Desert resource has already reached a considerable size. The updated resource estimate adds 23.8 million ounces of indium and 119,000 ounces of gold to the existing 1.3 million tons of zinc, 49 million tons of copper, and 10 million ounces of silver in West Desert. While the project remains primarily a zinc-copper project, the extremely high-grade indium adds a significant economic, and likely political, bonus. West Desert is the only indium resource in the USA and one of the largest undeveloped deposits of the metal worldwide. Given increasing geopolitical risks in supply chains in the raw materials sector, the project could gain strategic importance in the USA. The project can also continue to grow, as only a small part of the license has been explored so far.