Investors Eye Storm as major Arctic Copper discoveryAre we in...

Investors Eye Storm as major Arctic Copper discovery

Are we in the “Eye of the Storm”, quite possible. With copper assays pending release, ongoing arctic diamond and RC rig drilling during the summer exploration season and the Managing Director travelling to site during July, news flow from the Arctic Storm Copper Project could be set to yield a major copper resource in coming months.

The Storm Copper Project is shaping up to be a major globally significant new high grade copper region, containing copper sulphide and traces of zinc sulphide mineralogy as Chalcopyrite, Bornite, Chalcocite, Covellite and Sphalerite minerals.

Drill hole SR23-13reporting 1.5 metres @8.2%Cu from 86.9 metres (22/6/23)

Storm Copper Project is located on Somerset Island, is well serviced by the nearby shipping channel, regional air service and community at Resolute.

Historically, only Lead-Zinc Mining Operations had occurred at Polaris and Nanisivik mines for 21 and 26 years respectively until their closure due to declining metal prices and depleted resources. Polaris resource was 23 million tonnes grading 14.1% zinc (worth AUD$8 billion) and Nanisivik resource was around 10 million tonnes grading 10% zinc and 1% lead (valued at AUD$3 billion). The economic mineralisation was found in the form of disseminated sulphides (pyrite, sphalerite, and galena) that have replaced the host rock. Interestingly, the American West Metals Undeveloped Seal Zinc Project (1 Mt @ 10.3% Zn & 46.5 g/t Ag) resource remains open in all directions and shares a similar mineralisation as the Polaris orebody.

The Storm Project area has strong evidence of becoming a major copper system. The geology of the area displays all the elements required in the sediment-hosted ore forming process, including:

· Permeable carbonate rocks to act as a fluid conduit and host mineralisation

· Hydrocarbons to reduce metal-bearing fluids and force metal precipitation

· Sulphur source from bitumen and sour gas

· Proximity to faults known to be an effective source for plumbing

· A favourable structural setting

In addition, a distinct zonation of metal and mineralogy is observed at Storm. The zonation appears as a large copper-rich core (chalcocite, bornite and covellite) that gives way laterally and vertically to thinner peripheral zones of copper-iron (chalcopyrite), iron (pyrite), zinc (sphalerite) and minor lead (galena). This zonation providesa powerful vector for exploration ultimately targeting the Copper MotherLode!!!

These key features are like many of the world's major sediment-hosted copper systems, including the deposits of the Kalahari Copper Belt (Botswana) and Central African Copper Belt (DRC, Zambia) containing billion tonne copper resources.

Importantly, Drill hole ST22-10 intersected the peripheral mineralogical assemblage (chalcopyrite, pyrite, sphalerite and galena) suggesting the potential for a nearby larger, more copper-rich system.

ASX:AW1 - (Figures 5-6), Breakthrough results identify ‘Mother Lode’ copper target at the Storm Copper Project, Canada, 13^th June ASX Announcement

Schematic exploration concept of the Storm/Seal Projects. Drill hole ST22-10 is interpreted to have intersected the margins of the area labelled as Copper Target: Sediment Hosted Copper Mineralisation (Source - Aston Bay Holdings).

Overall, the drilling and geophysical evidence strongly supports the potential for a large-scale copper system within the Storm Project area and hence AW1’s main exploration focus. The geology and mineralization of the area are similar to those of other major sediment-hosted copper systems, and the zonation of metal and mineralogy provides a powerful vector for exploration as recently identified.

To gauge the scale of American West Metals (ASX:AW1) Arctic and USA exploration package, I have compiled the following matrix (Table 1) to highlight the exploration activities underway.

The matrix encompasses the Storm Copper Project, splitting the 4100N Zone exploration into the Direct Shipment Ore (DSO, or near surface mineralisation) and the deeper Motherlode resource (top two lines).

IMHO, the DSO resource (low level accuracy based on known information) could equate to 10 million tonnes @2.15% Cu, 20 g/t Ag (worth AUD$ 2.5 billion). While the deeper Motherlode resource (very low accuracy) is estimated at a conservative 1 billion tonnes @ 1.5% Cu, 10 g/t Ag and 0.05% Zn (worth a staggering AUD$169 billion, at today’s metal prices). Obviously, the scale of the strike length, thickness and orebody depth have discount factors of 0.5 to 0.8 applied as we are in the early days of resource evaluation.

The Storm Copper Project (4100N [DSO & Motherlode], 2750N, 2200N, 3500N Zones) could contain upwards of 15.5 million tonnes of copper, 330 million ounces of silver, 500 thousand tonnes of zinc. This equates to an amazing AUD$173 billion of recovered metals, or the PERFECT STORM.

The Seal Zinc and Silver Deposit is (NI 43-101) contains 1 Mt @10.3% Zn and 46.5 g/t Ag thus valuing the resource at AUD$333 million.

While the West Desert (Utah, USA) 33.7 Mt @ 0.15% Cu, 9.1 g/t Ag & 3.83% Zn resource is worth AUD$4.5 billion.

I hope this helps to further our early understanding of the arctic copper resource potential.

Met2020