Background: American West Metals Ltd (ASX: AW1) listed in December 2021 on the Australian Securities Exchange raising $12 million at $0.20/share. The company portfolio consists of three base metals projects. This short note is solely focused on the flagship West Desert polymetallic project, 100% owned.
Strategy: The previous owners delineated a significant mineral resource of 66.6 million tonnes at 1.98% Zn, 0.21% Cu and 24g/t In for 1,320,500 tonne of zinc, 143,200 tonnes of copper and 1,604 tonnes of indium metals contained (2014 Technical Report). AW1’s strategy is to re-evaluate the project focusing on the high grade zones. Preliminary investigations by Entech (Independent Geologist’s Report, Oct 2021) have confirmed that those present good geological continuity. Going forward, AW1 shall capitalise on the high grade zones with resource infill and extensional drilling.
Higher Grade Resource: Using a 2.4% Zn cut-off grade, the mineral resource is estimated at 16.5 million tonnes at 6.29% Zn and 0.3% Cu for 1,039,500 tonnes of zinc and 49,500 tonnes of copper contained (IGR, Oct 2021)
Copper Resource Growth: there are a number of high grade copper lenses not included in the high grade zinc mineral resource estimate with excellent intercepts such as 5.1m @ 3.45% Cu from 262m (Hole CC-0) and 10.4m @ 3.2% Cu from 469m (Hole CC-39).
Precious Metals Add-Ons: discovered in the 1950’s, a historic mineral resource estimate for the West Desert deposit by Noble Peak Resource Ltd reported both silver and gold (Henderson, 1995) as follows, at 2% Zn cut-off grade: 15.7 million tonnes at 6.17% Zn, 0.27% Cu, 14 g/t Ag and 0.17 g/t Au. This MRE is quite similar in tonnage and grade to the high-grade resource mentioned above. So we can look forward to seeing precious metals included in the future JORC compliant MRE by AW1. Assays are available and include outstanding intercepts such as 46m @124 g/t Ag from 173m (Hole C08-11).
