Funding and Exploration Risks Loom as Assays Pending at Storm Project

Exploration Momentum at Storm Copper Project

American West Metals Limited (ASX, AW1) has delivered a robust quarterly update for June 2025, showcasing significant progress at its flagship Storm Copper Project in Nunavut, Canada. The company’s deep diamond drilling program has intersected thick intervals of visual copper sulphides, including a standout hole (ST25-02) that revealed approximately 47 metres of sediment-hosted copper mineralisation. These early visual results, pending laboratory assays, suggest the potential for a substantial copper deposit extending beyond the known Cyclone Deposit.

Complementing drilling efforts, a regional Mobile MagnetoTellurics (MMT) geophysical survey has successfully delineated six strong conductive anomalies within 350 metres depth and additional deeper targets exceeding 350 metres. This survey has confirmed the presence of the Cyclone Deposit and uncovered new exploration targets along the Midway-Storm-Tornado corridor, an area now mapped to contain over 8 kilometres of copper-bearing outcrops and gossans. The company is advancing reverse circulation drilling to test these promising fault-related copper occurrences.

Strategic Funding and Offtake Agreement

In a critical corporate development, American West Metals has secured a US$2 million private placement from Ocean Partners Holdings Ltd, a global metals trading and advisory firm. This investment grants Ocean Partners a 9.4% stake in the company and is coupled with a binding offtake agreement covering 100% of the base production of copper, silver, and gold from the Storm Project for at least eight years or the life of the resource as defined in the recent Preliminary Economic Assessment. This alliance not only de-risks the project’s funding but also accelerates processing development and optimisation activities.

Advancing Critical Minerals at West Desert and Copper Warrior

Beyond Storm, American West is progressing its West Desert Project in Utah, USA, which hosts significant JORC-compliant resources of indium, zinc, silver, copper, and gold. The company is actively modelling molybdenum mineralisation, with drill intersections indicating a large porphyry system analogous to Utah’s Bingham Canyon mine. Exploration for gallium and germanium is underway, with early drilling revealing thick anomalous zones of gallium mineralisation, underscoring the project’s critical minerals potential.

Permitting and business development continue at the Copper Warrior Project, also in Utah, strategically located near the Lisbon Valley Copper Mine, recently fast-tracked under the US government’s FAST-41 program to accelerate critical minerals production. The project is poised for further exploration with permits in place for drilling along key mineralised structures.

Government Support and Financial Position

Highlighting the strategic importance of the Storm Project, the Nunavut Government has awarded CAD$250,000 in funding to support ongoing drilling activities, reflecting strong local and governmental backing. Financially, American West Metals reported a net cash outflow from operations and investing activities for the quarter but maintains a healthy cash balance of A$9.27 million, sufficient to fund operations for nearly two quarters without immediate need for additional capital.

Laboratory assays for the recent drilling and sampling programs are expected within the next 4 to 8 weeks, which will provide critical data to validate the visual mineralisation and guide further exploration and development decisions.