With two targeted diamond drill holes 680 m apart, American West Metals Limited (ASX: AW1; OTCQB: AWMLF; FRA: R84) has confirmed its thesis of the presence of a continuous, large sedimentary copper system on the Storm Copper Project on Somerset Island, Nunavut. After the announcement of the results, the stock rose 22.5 percent to 0.245 AUD in Australian trading, with 85 million shares traded. At the beginning of the drilling season, American West’s stock was still trading at 0.05 AUD. The drilling success has so far only been confirmed by the evaluation of the stratigraphy and visual mineralogical inspection. The detailed analysis of the drill cores in the laboratory is still pending.

In drill hole ST23-01, a total of 45.5 m of visible sulfides were intersected, including 15 m in a visible horizon of copper sulfide from 342 m depth. Diamond drill hole ST23-02 intersected a second, even more impressive discovery intersection: 37 m of visible brecciated copper sulfide (predominantly chalcocite) between 333 m and 370 m borehole depth (see Figure 1), including localized breccias with up to 30% of the copper mineral chalcocite (79.8% copper). Drill hole ST23-01 also intersected and extended northward the known near-surface copper zone 4100N in the upper section. The continuity of the mineralized horizon and the size of the gravity anomaly (>5 km long and up to 1 km wide) at depth suggest that the drilling has identified a very large copper deposit. (see Figures 2 and 3). Diamond drilling on high-ranking copper targets continues. The third diamond drill hole is underway and is being drilled approximately 1.7 km south of ST23-02 and 1 km west of the high-grade Zone 2750N.

Dave O’Neill, Managing Director of American West Metals, commented: “We are thrilled to announce that the diamond drilling has had immediate success and delivered spectacular results confirming the presence of a large copper system within the Storm Project. These outstanding results are the outcome of systematic and persistent exploration and underscore the quality and enormous exploration potential of the property. The first two drill holes have discovered a new copper deposit below the near-surface mineralization, with both holes intersecting thick sections of copper sulfide in the same stratigraphic horizon. Given the large spacing between the drill holes and the size of the modeled gravity anomalies, the potential volume of mineralization is very large. This is a significant copper discovery. The scale of the opportunity is enormous, with airborne and ground-based gravity anomalies extending over 10 km to the east into our Blizzard and Tornado prospect areas.”

Copper System at Storm Could Extend for Kilometers

The copper mineralization and geology in drill holes ST23-01, ST23-02, and ST22-10 are very similar, suggesting that the stratigraphy of the mineralized system is horizontally very extensive. The geometry of the host package is interpreted to be relatively flat and predictable, with thick sequences of altered sediments consisting of dolomite and carbonate rock. The majority of the extensive system has yet to be tested. These gravity targets extend over an area of more than 7.5 square kilometers, giving the Storm area significant potential for a world-class copper system.

Conclusion: With its spectacular copper discovery, American West has also confirmed its exploration model. The gravity anomaly was interpreted as an indication of a horizon of sedimentary copper. The drilling has now confirmed exactly this continuous horizon along with the mineralogy typical for this type of deposit. The effectiveness of the exploration method is a good sign for future drilling, as the potential of Storm has not even begun to be fully captured. So far, only the first of five gravity anomalies has been tested, and the regional potential of Storm may be even greater. Airborne data indicate gravity targets that can be traced over 10 km to the east along the graben and into the Tornado/Blizzard prospects, where copper is exposed at the surface.
The advantage of the sedimentary copper deposit type can hardly be overstated. Now the geologists know the target depth of the stratigraphically bound horizon and can systematically test its extent. The foundation of all this is Storm’s favorable geology. It exhibits all the elements required for the processes of ore formation in the sediments: permeable carbonate rock that acts as a fluid conduit and hosts the mineralization, hydrocarbons that reduce the metal-bearing fluids and force metal precipitation, a sulfur source from bitumen and sour gas, and a favorable structural environment that serves as a pipeline system for the metal-bearing fluids. For investors, it can really pay off to improve their geological understanding on this point. Apart from that, the pipeline for news at American West is well-filled. We look forward to what’s coming.