American West Metals looks set to acquire an 80 per cent share of the Storm project in Canada’s Nunavut province from Aston Bay Holdings after completing its exploration spend requirement at the operation.
The company entered into an option agreement with Aston Bay in March, 2021, granting it the exclusive right to grab the commanding slice of the project once exploration expenditure of C$10 million (AU$11.475 million) was completed.
Management says the exploration spend was finalised during this year’s drill program and it then decided to exercise its option. An unincorporated joint venture (JV) between the two companies is now expected to be formed, with Aston Bay holding 20 per cent and American West talking the role of project operator.
Just this month, the explorer unveiled bonanza copper grades at Storm, with a 0.3m intercept at a whopping 42.8 per cent copper from 67m, in addition to identifying a new zone of mineralisation. The impressive hit was contained within 46m going 2.2 per cent from 64m, including 15.6m grading 4.2 per cent from 65m.
The impressive hit at the company’s 4100N zone was contained within a 46m section going 2.2 per cent copper from 64m that also included a 15.6m segment grading 4.2 per cent from 65m.
A second hole sunk into the operation’s 2750N zone recorded a 27.4m hit at 1.5 per cent copper from surface, including 7.6m going 4 per cent copper from 7.6m. The same hole also recorded a deeper 27.4m section grading 1.3 per cent copper from 30.5m, including 9.1m reading 2.15 per cent copper from 33.5m.
Management says a single exploration reverse-circulation (RC) drillhole made another discovery of near-surface mineralisation in a large, underexplored area between its 2750N, 2200N and Thunder prospects. The new discovery has been named “Lightning Ridge”.
Additional assays have confirmed near-surface mineralisation with hits showing 41m grading 4.18 per cent copper from 38m, including 5m at 24.28 per cent copper from 48m, in addition to 46m going 2.2 per cent copper from 64m, including 15.6m reading 4.2 per cent copper from 65m.
American West Metals managing director David O’Neill said: “This has been a defining year for the Storm Project with significant expansion of the near-surface high-grade copper and a breakthrough discovery of the deeper, regional sediment-hosted copper system. Securing an 80% interest in Storm through the efficient and timely completion of exploration programs required under the option agreement is a fantastic outcome for the Company and our shareholders.”
Storm sits within a 4145-square-kilometre land package that also includes the Seal zinc project on Somerset Island. Together, Storm and Seal constitute the Nunavut projects.
The area has undergone extensive historical drilling and two separate copper sulphide systems have been discovered, with multiple near-surface high-grade copper zones identified at several target zones in drilling across 15sq km.
Since the start of the Storm option agreement, American West has advanced the operation with systematic exploration aimed at defining maiden resources and expanding the footprint of the high-grade, near-surface copper mineralisation, in addition to exploring for sediment-hosted copper at depth and within the broader project area.
Under the new JV with Aston Bay, the company plans to increase the resource and exploration programs at Storm with a ramp-up of activities throughout next year. Drilling will aim to further expand the copper mineralisation footprint, particularly around new discoveries at Thunder and Lightning Ridge, in addition to along strike at the Tornado and Blizzard areas.
Assays are pending for 29 drill holes from American West’s latest drill campaign that includes the Thunder and Lightning Ridge discovery holes, with results expected next month.
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