American West Metals Ltd (American West or the Company) (ASX: AW1 | OTCQB: AWMLF) is pleased to report that it has successfully completed the expenditure required to acquire 80% of the Storm Project from Aston Bay Holdings Ltd (Aston Bay) (TSXV: BAY).
- American West Metals has completed the expenditure requirement to proceed to acquisition of 80% of the Storm Project in Nunavut, Canada
- Exploration by American West since 2021 has produced game-changing results for the potential copper endowment at Storm and re-rated the Project as a rare copper opportunity of global significance
- Drilling programs completed by American West have substantially expanded the near- surface high-grade copper footprint at Storm and delivered the breakthrough discovery of a deeper, regional scale sediment-hosted copper system that has similarities to the world-class copper belts in Central Africa and Botswana
- Outstanding copper intersections from American West’s drilling include:
- 41m @ 4.18% Cu from 38m (Drill hole ST22-05)
- 57m @ 2.5% Cu from 8m (Drill hole ST22-02)
- 46m @ 2.2% Cu from 64m, incl. 15.6m @ 4.2% Cu from 65m (Drill hole SM23-02)
- 67.1m @ 1.1% Cu from 54.9m (Drill hole SR23-03)
- The Project also hosts the high-grade Seal Zinc-Silver Deposit (NI 43-101) which is a look-alike for the nearby Polaris zinc mine that was operated by Teck Resources Limited for more than 22 years
- Assays are pending for 29 drill holes from the 2023 drill program – including those for the Thunder and Lightning Ridge discovery holes – with results due on a regular basis over the next 4-6 weeks
The Company and Aston Bay entered into an Option Agreement dated 9 March 2021 whereby American West was granted the exclusive right and option to acquire an 80% interest in the Storm Project upon completion of Project exploration expenditure of CAD$10,000,000. Details of the Option Agreement are set out in the Company’s Prospectus dated 29 October 2021.
That exploration expenditure was completed during the 2023 drilling program and American West has exercised the option to acquire 80% of Storm. An unincorporated joint venture with Aston Bay will be formed between the two parties – 80% American West, 20% Aston Bay – with American West as manager of the Joint Venture.
Dave O’Neill, Managing Director of American West Metals commented:
“Building on the outstanding and ongoing success of the drilling and exploration programs at Storm, we are pleased to report that American West has now completed the earn-in for an 80% interest in the Storm Project.
“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.
“We look forward to continuing the partnership with Aston Bay on this exciting Project.”
Figure 1: Location and license area of the Storm Project.
STORM PROJECT – AN EMERGING COPPER OPPORTUNITY WITH GLOBAL SIGNIFICANCE
The Storm Project is located in a historical and Tier 1 mining district with nearby mines including the Polaris Zinc-Lead mine (22Mt @ 14.1% Zn, 4% Pb) and the Nanisivik Zinc-Lead-Silver mine (18Mt @ 9% Zn, 0.7% Pb, 35g/t Ag).
Storm is located approximately 15km from the coast with access to a deepwater bay and a designated shipping route, providing robust logistics. The land package at Storm comprises 219,257 hectares and hosts over 80km strike of prospective stratigraphy – representing a rare, district scale opportunity.
Since commencement of the Storm option agreement in 2021, American West has advanced the Project with systematic exploration focused on two clear strategies: (1) define maiden resources and expand the footprint of the high-grade, near-surface copper mineralisation, and: (2) explore for sediment-hosted copper at depth and within the broader Project area.
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