US-China Tensions Spotlight Risks and Opportunities at West Desert Critical Metals Project
American West Metals is ramping up exploration and development at its West Desert Project in Utah, targeting critical metals like indium, molybdenum, and gallium amid supportive US government policies and tightening Chinese export controls.
- Accelerated drilling for copper, molybdenum, gallium, and indium in 2025
- West Desert hosts large JORC-compliant resources including the largest undeveloped indium deposit in the US
- US government executive order prioritizes domestic critical mineral production
- China's export restrictions on indium, molybdenum, and gallium increase strategic value
- Drill permits secured; company exploring funding and commercial strategies including spin-out or earn-in
Strategic Context and Project Overview
American West Metals Limited (ASX – AW1) has announced a significant acceleration in exploration activities at its 100%-owned West Desert Project in Utah, USA. This move aligns with a recent US Presidential Executive Order aimed at boosting domestic mineral production, underscoring the strategic importance of critical metals in national security and technological supply chains.
Located in Utah, rated the world’s top mining jurisdiction by the Fraser Institute, West Desert already boasts large JORC-compliant resources of indium, zinc, silver, copper, and gold. The project is particularly notable for hosting the largest undeveloped indium resource in the United States, a metal essential for semiconductors, solar panels, military hardware, and consumer electronics.
Exploration Focus and Resource Potential
In 2025, American West plans to accelerate drilling programs targeting copper, molybdenum, and gallium, alongside expansion drilling to upgrade and grow the indium resource. Molybdenum, used extensively in strengthening steel for military applications, has shown promising thick and high-grade intervals in recent drilling. Gallium, another critical metal with limited US supply, has been detected in anomalous zones, with only a fraction of drilling assays completed so far, indicating substantial upside potential.
The company is also advancing resource modelling for molybdenum and exploring the potential of iron-ore byproducts from magnetite skarn mineralisation. Notably, the West Desert deposit shares geological similarities with Utah’s giant Bingham Canyon mine, suggesting the possibility of a large-scale porphyry system.
Geopolitical and Market Implications
China’s recent export restrictions on indium, molybdenum, gallium, and germanium to the US have heightened the strategic urgency to develop domestic sources. American West’s West Desert Project stands to play a pivotal role in reducing US reliance on foreign critical metals. The company is actively engaging with US government agencies to explore non-dilutive funding opportunities, reflecting the broader national agenda to secure critical mineral supply chains.
Permitting is fully secured across private and Bureau of Land Management claims, positioning the project for rapid advancement. American West is also evaluating commercial strategies to unlock value, including potential spin-outs or earn-in partnerships with major mining companies, while maintaining focus on its flagship Storm Copper Project.
Looking Ahead
With only about 10% of the interpreted porphyry contact explored to date, West Desert offers significant exploration upside. High-grade copper zones, near-mine targets, and critical metal expansions present multiple avenues for resource growth. The project’s location, infrastructure, and tenure security further enhance its development prospects.
American West Metals’ strategic push at West Desert exemplifies the intersection of geology, geopolitics, and market demand shaping the future of critical metals supply in the US.
Bottom Line?
As American West Metals advances West Desert, the project could become a cornerstone of US critical metals independence amid shifting global supply dynamics.
Questions in the middle?
- How will American West secure government funding or partnerships to accelerate development?
- What are the timelines and expected milestones for molybdenum resource estimation and gallium exploration?
- Could a spin-out or earn-in deal reshape the company’s portfolio and shareholder value?
