American West gears up for copper drilling deluge in Canada

American West Metals is charging into exploration season at its flagship Storm copper project in Nunavut, Canada, with the drill bits primed to probe a bevy of deep, high-grade copper targets across its massive 2200-square-kilometre tenure.

Topping the company’s hit list is Cirrus Deeps, a high-priority electromagnetic (EM) anomaly beneath its existing Cirrus deposit. It sits in the same stratigraphic sweet spot as the project’s largest deposit, Cyclone. 

Cirrus is linked to the mineral-rich Southern Graben Fault. Early drilling intersected fractured zones of sporadic copper sulphides, offering an encouraging sign of a significant mineralisation host.

The company also seems buoyed by its Cyclone Deeps target, where a deep diamond hole last year struck 10 metres at 1.2 per cent copper from 311m. The hit was considerably deeper than the main Cyclone deposit’s depth, suggesting a faulted extension that could run for more than 5km in strike.

Closer to surface, a reverse circulation drilling program will target resource expansion activities at American West’s Thunder, Lightning Ridge and Corona deposits, alongside high-grade prospects such as The Gap that last year returned a stellar 20m at 2.3 per cent copper.

The company says it is rolling out a regional mobile magneto-telluric survey to test for signs of deeper copper sulphide targets across the 110km copper belt. The survey promises sharper resolution than historic geophysics, potentially lighting up new drill targets in the Midway-Storm-Tornado corridor and beyond.

American West Metals managing director Dave O’Neill said: “Discovery of further high-grade copper mineralisation at depth below the known deposits has the potential to confirm the stacked copper horizon model and to quickly define large areas for further resource growth. Early success in these areas will help to prioritise and focus the remainder of the deep diamond drilling program. The RC drill rig will aim to move quickly through initial resource target areas and then onto a more expansive and exploration-focused program.”

The Storm project has a mineral resource of 20.6 million tonnes grading 1.11 per cent copper and 3.34 grams per tonne (g/t) silver, equating to 228,500 tonnes of contained copper and 2.21 million ounces of silver. With less than 5 per cent of the 110km belt systematically explored, American West is betting on a string of high-grade discoveries to elevate Storm to a district-scale copper system.

A robust economic assessment already pegged Storm with a US$149 million net present value and a two-year payback time for its low-capex, 10-year mining operation. The company is flat out preparing its camp for exploration season, targeting a pipeline of prospects that could significantly expand the project’s already impressive resource base.

Management is pushing ahead in the meantime with pre-feasibility study work to potentially lock-in 100 per cent debt financing. It has already sewn up 80 per cent of its initial capex thanks to a 100 per cent offtake agreement with United Kingdom-based trading services company Ocean Partners Holdings.

As drilling ramps up and the upcoming mobile survey delivers new targets, American West looks poised to expand its already considerable resource base at Storm. The project seems to be shaping up as a low-risk, high-reward copper development play with plenty of resource upside.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au