American West Metals has delivered more thick, juicy Canadian copper hits at its flagship Storm project in Nunavut, with high-grade assays continuing to flow from both its Chinook and Cyclone deposits.
The company says its latest drilling has further bolstered the Chinook deposit’s potential as an open-pit starter mine, with high-grade copper mineralisation starting from surface at the site.
Among the standout latest results from Chinook was a generous intersection of 42.7m running at some 3.1 per cent copper and 4 grams per tonne silver from surface, another chunk of 35.1m at a grade of 2.7 per cent copper and 5.8g/t silver from 22.9m downhole and a final intersection from surface of 29m going 2.6 per cent copper and 4.3g/t silver. The latter slice also included 3.1m at a stunning 11.1per cent copper and 1.5g/t silver from 1.5m downhole
Management insists the deposit remains open at depth and along strike and believes Chinook’s resource expansion potential is now firmly on the radar through follow-up drilling.
Meanwhile, drilling at Cyclone has also delivered more eye-catching results, with assays confirming thick intervals of copper mineralisation both within and beyond the current 12.2 million tonnes at 1.2 per cent copper and 3.8g/t silver resource envelope.
A notable hit returned 16.8m of 1 per cent copper and 4g/t silver from 15.2m before going on to pierce a further 33.5m grading 1.5 per cent copper and 8.5g/t silver from 35.1m downhole. Further assays have also been received from drilling at Cyclone, which the company says highlights the potential to both upgrade and expand the deposit with further thick zones of copper mineralisation.
American West Metals managing director David O’Neill said: “The drilling at Chinook has intersected thick intervals of copper mineralisation at surface, including very high-grade zones with individual assays up to 11.1% Cu. The drilling was designed to upgrade the current inferred resources and has also expanded the near-surface footprint of copper mineralisation. We believe this will enhance the development opportunity of Chinook, highlighting the deposit as a potential starter mine at Storm.”
With the latest batch of drilling now completed for the year, substantial news flow is expected for American West, which has confirmed that the balance of remaining assays are likely to be released in the coming weeks. The assay results will feed into updated resource models at Chinook and Cyclone, while ongoing economic studies at Storm are also anticipated to be delivered before year’s end.
The Chinook and Cyclone deposits represent just two of American West’s seven discoveries in the southern graben area to date and management says strong potential remains for multiple further discoveries within the extensive 100km-long copper-bearing fault network at Storm, where just five 5 per cent of tenure has been tested to date.
The company tabled a sizable maiden resource estimate for its regional play in January this year, reporting 17.5 million tonnes at 1.2 per cent copper and 3.4g/t silver – equating to 205,000 tonnes of copper and 1.9 million ounces of silver.
It has since completed 23,000m of drilling, uncovering additional high-grade satellite discoveries at the nearby Thunder, Lightning Ridge, Cyclone North and Cyclone South-west prospects. Notable hits include 48.6m grading 3 per cent copper, 15.2m at 2.3 per cent, 27.4m running at 1.1 per cent and 15.4m coming in at 1.4 per cent – all of which are yet to be included in the resource estimate.
American West has pulled off many successful royalty and institutional funding runs in recent months, insisting timing was of the essence to allow bulk supplies and equipment to be ordered for next year’s exploration campaigns. The supplies are now destination bound and expected to be delivered soon, shaving almost AU$4 million off the likely logistics bill for next year.
The company says studies are underway to firm up economics for a lower-cost direct shipping ore (DSO) operation at Storm. Sitting on a bevy of cash and a big resource that continues to grow, the next year is stacking up to be an eventful one for the aggressive Canadian copper hopeful.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Andrew Todd
