American West Metals is embarking on an exciting exploration season at its flagship Storm copper project in Nunavut, Canada. With drill bits ready to delve into a plethora of deep, high-grade copper targets spread across its extensive 2200-square-kilometre territory, the company is set for a promising endeavor.
One of the primary focuses for American West is the Cirrus Deeps, an intriguing high-priority electromagnetic anomaly situated beneath the existing Cirrus deposit. Positioned in the same favorable geological layer as the project’s largest deposit, Cyclone, Cirrus is intricately linked to the mineral-rich Southern Graben Fault. Initial drilling activities have revealed fractured zones containing sporadic copper sulphides, hinting at the possibility of substantial mineralization.
Excitement is also brewing around the Cyclone Deeps target, where a deep diamond hole from the previous year yielded a significant discovery – 10 meters at 1.2 percent copper from a depth of 311 meters. This find, deeper than the main Cyclone deposit, suggests a potentially extensive faulted extension spanning over 5 kilometers. In addition to these deep explorations, American West is gearing up for a reverse circulation drilling program to expand resources at deposits like Thunder, Lightning Ridge, and Corona, as well as promising prospects such as The Gap, which delivered remarkable results of 20 meters at 2.3 percent copper last year.
American West’s strategic approach includes deploying a regional mobile magneto-telluric survey to detect signs of deeper copper sulphide targets throughout the 110-kilometer copper belt. This cutting-edge survey aims to offer enhanced resolution compared to previous geophysical methods, potentially uncovering new drilling opportunities within the Midway-Storm-Tornado corridor and beyond.
The potential discovery of additional high-grade copper mineralization at depth could confirm the stacked copper horizon model and swiftly delineate extensive areas for further resource expansion. Early successes in exploration will help streamline the deep diamond drilling program’s focus, with plans to swiftly progress through initial resource targets before delving into a broader exploration initiative.
With a current mineral resource estimate of 20.6 million tonnes grading 1.11 percent copper and 3.34 grams per tonne silver, Storm already boasts substantial reserves – 228,500 tonnes of copper and 2.21 million ounces of silver. Despite exploring less than 5 percent of the vast 110-kilometer belt, American West is banking on a series of high-grade discoveries to transform Storm into a comprehensive district-scale copper system.
A robust economic evaluation has positioned Storm with a net present value of US$149 million and a two-year payback period for its low-capex, 10-year mining operation. The company is diligently preparing its camp for the upcoming exploration season, targeting a range of prospects that could significantly augment the project’s already impressive resource base. Management is concurrently advancing pre-feasibility study work to potentially secure 100 percent debt financing, having secured 80 percent of the initial capex through a strategic offtake agreement with Ocean Partners Holdings.
As drilling activities intensify and the forthcoming mobile survey unveils fresh targets, American West appears poised to bolster its extensive resource base at Storm. The project is shaping up to be a low-risk, high-reward copper development opportunity with significant potential for resource expansion and lucrative outcomes. The stage is set for American West to make substantial strides in the realm of copper exploration and development, promising a future brimming with possibilities.
