American West Metals Unveils Major Resource Growth and New Copper Discoveries at Storm
American West Metals has reported a substantial increase in its Storm Copper Project's mineral resource, alongside new high-grade copper discoveries and a successful A$7 million capital raise to fund further exploration and development.
- Storm Copper Project mineral resource estimate grows to 20.6Mt at 1.1% Cu
- Over 23,000m of drilling and 38,000 line-metres of EM surveys completed in 2024
- New high-grade copper discoveries at The Gap, Squall, and Hailstorm prospects
- A$7 million raised to advance exploration and development activities
- Cost-saving sealift logistics operation completed, reducing 2025 budget by approx. $4 million
Strong Growth at Storm Copper Project
American West Metals Limited (ASX: AW1) has delivered a robust update on its flagship Storm Copper Project in Nunavut, Canada, marking a year of significant exploration success and resource expansion. The company completed an extensive 2024 drilling and geophysical program, comprising over 23,000 metres of drilling and more than 38,000 line-metres of electromagnetic (EM) surveys, which have collectively underpinned a substantial upgrade to the project's maiden JORC 2012 compliant Mineral Resource Estimate (MRE).
The updated MRE now stands at 20.6 million tonnes grading 1.1% copper and 3.3 grams per tonne silver, containing approximately 229,000 tonnes of copper and 2.2 million ounces of silver. Notably, more than 61% of this resource is classified in the higher confidence Indicated category, a critical milestone for advancing mine planning and permitting. The entire resource lies within 200 metres of surface and consists of fresh, chalcocite-dominant copper sulphides amenable to straightforward beneficiation techniques, including ore sorting.
New Discoveries and Exploration Upside
The 2024 exploration campaign also yielded multiple new high-grade copper discoveries near surface and at depth, including The Gap, Squall, and Hailstorm prospects. The Gap Prospect, situated between the Corona and Cirrus deposits, returned impressive intercepts such as 8 metres at 5.3% copper, reinforcing its potential for resource expansion. The Squall Prospect was confirmed as a new near-surface copper discovery through drilling of a strong EM anomaly, while Hailstorm, identified through surface sampling, returned assay grades exceeding 50% copper in chalcocite boulders, positioning it as a high-priority drill target for 2025.
Deep drilling also confirmed the presence of a 'Deep Copper Horizon' beneath the known deposits, with thick zones of copper sulphide mineralisation intersected in multiple holes. This horizon remains open and represents a compelling target for further resource growth, particularly in the Central Graben area where mineralisation continuity has been demonstrated over a 10 square kilometre area.
Regional Exploration and Cost Efficiency
Beyond the immediate Storm area, regional exploration has identified promising targets along the 110-kilometre prospective copper belt. The Seabreeze Prospect, located 40 kilometres northwest of Storm, has shown anomalous copper geochemistry and strong gravity anomalies indicative of dense sulphide mineralisation. Similarly, the Tornado Prospect, just 5 kilometres from Storm, hosts significant EM anomalies and copper geochemical signatures, warranting follow-up drilling.
Operationally, American West Metals achieved a key logistical milestone with the successful completion of a sealift cargo delivery to the remote Storm site. This initiative is expected to reduce the 2025 exploration season's logistics costs by approximately $4 million, demonstrating the company's focus on cost management alongside growth.
West Desert Project and Strategic Funding
In parallel, the company is advancing its West Desert Project in Utah, USA, home to the only JORC-compliant indium resource in the country. With an inferred resource of 33.7 million tonnes grading 20 grams per tonne indium, West Desert is among the largest undeveloped indium deposits globally. Given indium's critical role in high-tech and defense sectors and the US government's strategic interest, American West is exploring options including a potential spin-out to unlock value.
To support its aggressive exploration and development agenda, American West Metals successfully raised A$7 million through an institutional placement in late 2024. These funds will accelerate resource upgrades, feasibility studies, and the 2025 drilling program at Storm, underpinning the company's ambition to establish a major copper mining camp in Canada.
Outlook
Managing Director Dave O'Neill highlighted the transformative nature of the 2024 program, emphasizing the de-risking of the Storm resource and the strong pipeline of high-quality exploration targets. With a strengthened balance sheet, enhanced resource confidence, and operational efficiencies in place, American West Metals is well positioned to deliver continued growth and value creation in 2025.
Bottom Line?
American West Metals is poised to accelerate its transition from exploration to development, with resource growth and cost efficiencies setting the stage for a pivotal year ahead.
Questions in the middle?
- How will upcoming drilling at deep targets like Cyclone Deeps and Cirrus Deeps impact the resource size and confidence?
- What are the timelines and strategic considerations for potential spin-out or commercialization of the West Desert indium project?
- How will global copper and critical mineral market dynamics influence funding and development decisions for Storm and West Desert?