Shares in American West Metals surged more than 80 per cent in intraday trading following the delivery of a robust set of maiden assay results from diamond drilling at its Storm project in Canada. The results include 41m at 4.18 per cent copper from 38m with a higher grade 15m parcel going 10.05 per cent from 47m.
The company has labelled the numbers “outstanding” and pointed to a 5m hit running a cool 24.28 per cent copper from 48m inside the larger 15m result as a highlight of the recent program.
The drilling program was across a highly prospective zone known as “2750N”. Historical drilling in the region yielded a slew of compelling intersections including a 110m hit at 2.45 per cent copper from surface and 56.3m grading 3.07 per cent copper from 12.2m.
American West has shifted about 1,500m of dirt at Storm this year and almost two thirds of this has been focused on the shallow, high-grade area known as 2750N.
Management says drilling at 2750N is yet to close off the area’s mineralisation which now stretches over 200m in strike length and remains open to the east, west and at depth.
The company believes the zone boasts excellent expansion opportunities with significant copper anomalism detected in soil and rock chip samples over 1km from the area’s known mineralisation.
Massive chalcocite – a mineral with a significant proportion of copper - has also been defined in an area about 600m west of the 2750N zone. Rock chip analysis of the structure has seen the company notch copper grades as high as 62 per cent.
American West now plans to launch additional diamond drilling at 2750N. The Perth-based explorer believes the thick, shallow and high-grade occurrences of copper could permit an open pit mine at the site.
The company is also looking to drill test a handful of additional zones at Storm, including “2200N” and “4100N”. Historical exploration at the sites has delivered near-surface, high-grade copper.
American West also plans to launch seismic surveys over a newly defined copper structure at 4100N. The sediment hosted feature is linked to a large-scale electromagnetic anomaly immediately west of 4100N.
In addition, the company hopes to kick off beneficiation and metallurgical test work on drill cores pulled from its programs at 2750N. Management
is looking to put together a definitive flow sheet for a direct shipping ore or “DSO” operation using material from the zone.
Earlier tests on core pulled from Storm delivered a DSO product running over 53 per cent copper a full scale ore sorter.
DSO ore can be dispatched directly to customers after minimal and reasonably priced processing methods including crushing, screening, sorting and blending.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
