AW1 is working to prove its high grade Storm deposit on Somerset Island in Canada’s north could be a high grade direct shipping ore exporter. Pic: American West Metals.
Mining
Special Report: The latest batch assays from resource extension drilling of American West Metals’ Cyclone deposit at its Storm project in Canada have intersected further thick, high-grade copper up to 14.4%.
The results reinforce American West Metals (ASX:AW1) resource expansion and upgrade potential for Cyclone, with the 9.1m hit at 14.4% copper and 21.3g/t silver from 93m downhole coming within broader intersections of 22.9m at 8.5% Cu and 17.8g/t Ag and 53.3m at 3.9% Cu and 12.6g/t Ag.
There’s more where that came from, with other high grade hits in additional drill holes, and given the strike was 75m south of the current resource, it’s yet to be calculated in the Storm project’s already significant copper inventory.
The drill hits continue the good news for AW1 at Storm, where it’s been hitting the target on multiple fronts.
From a funding perspective, up to US$12.5m worth of royalty funding from TMRF Canada was secured a week ago. It is based on hitting exploration markers of delivering a pre-feasibility study and resource upgrade to at least 400,000t copper at Storm.
US$5m of that funding is already on its way, US$3.5m will be unlocked upon delivery of the PFS and US$4m upon announcement of a resource increase to 400,000t copper that grades at least 1%.
Storm currently has a resource of 17.5Mt at 1.2% copper and 3.4g/t silver (at a 0.35% copper cut-off) for 205,000t of copper and 1.9Moz of silver. The latest assays put AW1 well on the path to growing that bounty.
Very thick and high-grade intersections of copper within and outside of the current resource envelope have been confirmed at Cyclone, particularly at the west end, and to the south of the deposit.
The west end of Cyclone hosts the shallowest and highest-grade copper mineralisation within the deposit, which AW1 reckons is very favourable for the potential open-pit mining operation.
Two other holes drilled nearby intersected further significant copper grades, at a tenor rarely seen in modern exploration.
Drill hole SR24-070 struck 45.7m at 1.9% Cu and 9.4g/t Ag from 35.1m downhole, with contained intervals of 27.4m at 3.1% Cu and 14.6g/t Ag from 35.1m and the first 15.2m of that at 4.2% Cu and 16.2g/t AG.
Hole SR24-045 struck 57.9m at 1% Cu and 4.3g/t Ag from 32m, with a 10.7m section from 65.5m at 3.2% Cu and 16g/t Ag.
AW1 says the infill drilling also continues to confirm the excellent lateral continuity of the orebody as it looks to move inferred classified resources into the higher confidence indicated category.
Company managing director Dave O’Neill said the program has now exceeded 22,500m of drilling and still continues to impress with the exceptional quality of copper mineralisation at Storm.
“The latest assays from the Cyclone deposit have delivered one of the best copper intersections at the project to date, with a true-width interval of 22.9m grading 8.5% copper,” O’Neill said.
“This interval includes semi-massive sulphide zones with individual assays up to 27% Cu. The intersection is located outside of the current resource and clearly continues to highlight the expansion and growth potential of the deposit.
“Another significant milestone and cost saving initiative has been achieved at Storm with the completion of the sealift.”
In preparation for AW1’s 2025 exploration and development programs for Storm, NEAS cargo ship MV Mitiq successfully completed a sealift operation to Somerset Island where the project lies, which is expected to save an estimated $4m on next year’s budget.
Bulk samples containing copper were also transported offsite via the cargo ship, demonstrating the complete logistics chain for Storm’s direct shipping ore mining potential.
“The latest results and progress clearly demonstrate the potential of the project to keep delivering stunning intersections and innovative logistical solutions. We look forward to sharing further news flow on this exciting program in the coming weeks,” O’Neill said.
This article was developed in collaboration with American West Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
