How American West Metals is Shaping North America’s Critical Metals Future
American West Metals Limited reveals a promising Preliminary Economic Analysis for its Storm Copper Project in Canada alongside significant resource growth at its West Desert Project in Utah, positioning itself as a key player in North America's critical metals sector.
- Storm Copper Project PEA outlines low-cost, near-term open-pit copper production
- US$40 million funding and offtake agreement secured with Ocean Partners
- West Desert Project hosts largest undeveloped indium resource in the US
- Significant exploration upside for gallium, copper, gold, and molybdenum at West Desert
- Strategic alignment with US critical minerals policy initiatives to reduce foreign dependence
Overview of American West Metals’ Strategic Growth
American West Metals Limited (ASX: AW1) has provided a comprehensive update on its North American copper and critical metals projects, spotlighting the Storm Copper Project in Canada and the West Desert Project in Utah, USA. The company’s recent Preliminary Economic Analysis (PEA) for the Storm Project highlights a low-capital, near-term open-pit copper operation supported by a US$40 million funding and offtake agreement with global metals trader Ocean Partners.
Meanwhile, the West Desert Project emerges as a critical asset with the largest undeveloped indium resource in the United States, alongside promising exploration potential for gallium, copper, gold, and molybdenum. These developments position American West Metals at the forefront of the North American critical minerals sector, a space increasingly prioritised by government policies aimed at reshoring supply chains and reducing reliance on foreign sources.
Storm Copper Project: Near-Term Production with Strong Economics
The Storm Copper Project in Canada is shaping up as a compelling near-term development opportunity. The PEA outlines an initial capital expenditure of approximately US$47.4 million to establish a series of open-pit mines and a mineral processing facility. The project’s economics are robust, featuring a post-tax net present value (NPV) of around US$149 million and an internal rate of return (IRR) of approximately 46%, with a rapid payback period of about three years.
Key to the project’s appeal is its simple, efficient, and environmentally sensitive processing method, which employs ore-sorting and beneficiation technologies that generate no tailings and require no chemicals. This approach not only reduces environmental risk but also supports expedited development timelines. The PEA production schedule targets steady-state annual copper production of 14,000 tonnes with all-in sustaining costs (AISC) estimated at US$2.99 per pound.
Backing this development is a strategic alliance with Ocean Partners, which has committed up to US$40 million in project financing and acquired a US$2 million equity stake in American West Metals. Ocean Partners will also handle 100% of the offtake for copper and silver products, providing both financial and market certainty for the Storm Project.
West Desert Project: A Critical Metals Powerhouse
Located in Utah, the West Desert Project is distinguished by its vast and high-grade resource base, including 33.7 million tonnes at 3.83% zinc and 20 grams per tonne indium, making it the largest undeveloped indium resource in the US. Indium is a strategic metal essential for electronics and semiconductors, with the US currently 100% reliant on imports, predominantly from China.
Exploration at West Desert has also confirmed significant gallium mineralisation, with grades reaching up to 84.2 grams per tonne in drilling assays. Gallium is another critical metal with near-monopoly supply from China, underscoring the strategic importance of developing domestic sources. Additional targets for copper, gold, and molybdenum further enhance the project’s growth potential, with less than 10% of the district explored to date.
The project benefits from excellent infrastructure, including proximity to Salt Lake City, and is fully permitted for open-pit mining and exploration shaft construction. The US government’s critical minerals initiatives, including executive orders and Department of the Interior programs, align closely with the project’s objectives to secure domestic supply chains for essential metals.
Strategic and Corporate Strength
American West Metals is led by a seasoned management team with extensive experience in exploration and mine development. The company holds 100% ownership of both the Storm and West Desert projects, controlling a significant land package with district-scale exploration upside. The company’s market capitalisation stands at approximately A$52 million, supported by a solid cash position of A$6.77 million as of December 2025.
With strong backing from strategic partners and alignment with favourable regulatory trends, American West Metals is well-positioned to advance its projects through feasibility studies and towards production, potentially delivering significant value for investors and contributing to North American critical minerals security.
Bottom Line?
American West Metals is advancing critical copper and metals projects that could reshape North American supply chains amid rising geopolitical and economic pressures.
Questions in the middle?
- How will American West Metals secure the remaining funding required beyond the US$40 million commitment from Ocean Partners?
- What are the timelines and key milestones for progressing the Storm Copper Project from PEA to production?
- How will evolving US critical minerals policies impact permitting and development pace at the West Desert Project?
