American West Metals Confirms Low-Cost Production Potential at Storm Copper Project
AW1 (AW1) Share Update August 2024 Sunday 11th
American West Metals Confirms Low-Cost Production Potential at Storm Copper Project
American West Metals Limited (ASX: AW1) has announced significant findings from their metallurgical study at the Storm Copper Project in Canada, highlighting the potential for low-cost and low-footprint production.
Instant Summary:
- Metallurgical study confirms commercial grade Direct Shipping Ore (DSO) products.
- Two-circuit ore sorting and Inline Pressure Jig (IPJ) stream capable of producing high-grade copper concentrates.
- Production modeling with 1.5 million tonnes per annum throughput.
- Estimated capital costs of US$18-23 million for DSO plant and US$4/tonne processing costs.
- Excellent ESG outcomes with a very small environmental footprint and zero deleterious elements.
Metallurgical Study Results
The metallurgical study and test work program on representative Cyclone and Chinook Deposit mineralization have successfully generated commercial grade Direct Shipping Ore (DSO) products. The two-circuit ore sorting and Inline Pressure Jig (IPJ) stream is capable of producing a range of DSO concentrate grades with excellent yields of copper.
Production modeling with a nominated 1.5 million tonnes per annum throughput delivers significant outputs. The Cyclone Deposit, with feed grades of 1.2% Cu to 1.5% Cu, can produce 16-22% Cu concentrate, yielding 10-14k tpa Cu metal. Similarly, the Chinook Deposit, with a 1.5% Cu feed grade, can produce 16-22% Cu concentrate, yielding 15-16ktpa Cu metal. The estimated capital costs for the DSO plant range from US$18-23 million, with processing costs at US$4/tonne.
Environmental and Economic Benefits
The DSO process can be easily optimized to suit increased mining production rates and selective concentrate grades. Ongoing test work has shown further upside potential, including continuing variability, comminution, and optimization studies on the Cyclone, Chinook, and Thunder Deposits. The development opportunity has excellent ESG outcomes, featuring a very small environmental footprint and zero deleterious elements.
Future Prospects
Resource infill and expansion drilling continues toward delivering an upgraded Mineral Resource Estimation, significantly building on the current JORC Code 2012 MRE of 17.5Mt @ 1.2% Cu, 3.4g/t Ag (205Kt Cu, 1.9Moz Ag). The ongoing efforts aim to further enhance the project's economic viability and environmental sustainability.
The confirmation of low-cost production potential and high-grade copper concentrates at the Storm Copper Project is a significant milestone for American West Metals. This development not only enhances the project's economic viability but also positions the company as a leader in ESG-sensitive mining practices. The estimated capital and processing costs are competitive, which could positively influence the company's stock price as investors recognize the potential for high returns on investment.
Investor Reaction:
Analysts are likely to react positively to the announcement, given the project's strong economic and environmental credentials. The confirmation of commercial grade DSO products and the low-cost production potential are key factors that could drive investor confidence and interest. However, the final impact on the stock price will depend on the company's ability to deliver on these projections and the broader market conditions.
Conclusion:
Investors should closely monitor the developments at the Storm Copper Project, particularly the upcoming resource infill and expansion drilling results. The project's low-cost production potential and excellent ESG outcomes make it an attractive investment opportunity. American West Metals' strategic focus on sustainable mining practices is likely to resonate well with investors looking for long-term value.