American West Metals: Major Copper Resource Expansion at Storm Copper Project
AW1 (AW1) Share Update July 2024 Wednesday 17th
American West Metals Announces Major Copper Resource Expansion
American West Metals Limited (ASX: AW1, OTCQB: AWMLF) has announced a significant expansion of its copper resources at the Storm Copper Project in Nunavut, Canada. This development underscores the company's growth potential and strategic positioning in the copper market.
Instant Summary:
- Storm Copper Project defines 17.5Mt @ 1.2% Cu, 3.4g/t Ag.
- West Desert Project holds 33Mt @ 3.83% Zn, 0.15% Cu, 9g/t Ag, 20g/t In.
- Copper Warrior Project shows widespread copper within drilling.
- Resource expansion and project-wide exploration underway.
- Studies on low-cost, high-margin DSO potential.
Storm Copper Project
American West Metals has defined a maiden JORC resource of 17.5 million tonnes (Mt) at 1.2% copper (Cu) and 3.4 grams per tonne (g/t) silver (Ag) at the Storm Copper Project. This resource is near-surface and suitable for open-pit mining, highlighting the project's potential for rapid development.
The Storm Copper Project comprises four robust, near-surface orebodies with over 205,000 tonnes of copper and 1.9 million ounces of silver defined. The exploration concept to maiden resource took only 12 months, showcasing the project's rapid growth potential.
West Desert Project
The West Desert Project in Utah, USA, is another significant asset for American West Metals. It boasts a large zinc and copper inventory with a JORC-compliant resource of 33 million tonnes at 3.83% zinc (Zn), 0.15% copper (Cu), 9g/t silver (Ag), and 20g/t indium (In). This project is fully permitted for open-pit and underground mining, with outstanding infrastructure in a low-cost jurisdiction.
Copper Warrior Project
Located in Utah's Paradox Basin, the Copper Warrior Project is strategically positioned only 15km from Utah's second-largest copper mine. Drilling has confirmed widespread copper, indicating significant potential for future resource development. The project benefits from direct road access to mine infrastructure and processing plants.
Exploration and Development
American West Metals is actively expanding its resource base with ongoing exploration and drilling at multiple prospects, including Thunder, Lightning Ridge, Cyclone North, and The Gap. The company has identified numerous high-priority electromagnetic (EM) and induced polarization (IP) anomalies, which correlate with high-grade copper sulphides.
Studies are also underway to assess the potential for low-cost, high-margin direct shipping ore (DSO) development at the Storm Copper Project. Early results indicate the possibility of a simple open-pit operation producing both DSO ore and lower-grade copper ore for stockpiling.
The expansion of the copper resources at the Storm Copper Project significantly enhances American West Metals' growth prospects. This development is likely to positively impact the company's stock price as investors recognize the increased resource base and potential for rapid project development. The focus on low-cost, high-margin DSO production further strengthens the company's strategic position in the copper market.
Investor Reaction:
Analysts and investors have reacted positively to the announcement, highlighting the rapid resource growth and the strategic importance of the Storm Copper Project. The potential for low-cost, high-margin production is seen as a key driver for future profitability.
Conclusion:
Investors should keep a close eye on American West Metals as it continues to expand its resource base and advance its copper projects. The company's strategic focus on low-cost, high-margin production and rapid resource growth positions it well for future success in the copper market.