Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
American West Metals (ASX: AW1; US-OTC: AWMLF) on Monday announced bonanza-grade copper and zinc grab samples at the Tempest prospect of the Storm project in Nunavut.
Samples assayed up to 38.2% copper in an underexplored area, are fast becoming the focus of an aggressive exploration program planned for 2024.
“The copper and zinc grades we’ve found are exceptional. We’re looking at major potential here at Tempest,” American West managing director Dave O’Neill said in a release.
American West, which this summer earned an 80% interest in the project from 20%-partner Aston Bay Holdings (TSXV: BAY; US-OTC: ATBHF), has traced rich gossans over 4 km, hinting at a large-scale mineralized system. Ground electromagnetic (EM) surveys align these gossans with aerial EM anomalies, presenting clear drilling targets, the company said.
Since gossans result from the oxidation of sulphide mineral deposits, they can guide geologists to sulphide-rich ore bodies that may be economically viable for mining. The presence of a gossan can lead to more detailed exploration techniques to determine the size and grade of the ore body.
American West believes the Tempest discovery is on a structural unconformity, a setting ripe for base metals discovery, since the contact between two geological terranes is highly prospective, with the basement rocks being an important potential source of metals and the contact, a zone of high permeability for mineralizing fluids, American West said.
The upcoming exploration agenda is busy, with geochemical sampling and advanced EM surveys on the books, targeting the anomalies.
The forward program for the Storm project includes ongoing ore sorting and beneficiation, resource modelling and estimation, environmental reporting, and logistical planning for the 2024 exploration program.
The partners reported in August a major copper discovery at the Storm property.
The Storm copper project on Somerset Island, Nunavut, has been the focus of intensive exploration efforts. Drilling aims to uncover hidden gravity targets beneath the established near-surface mineralization.
Sydney-traded shares opened Tuesday down 2.35% at A12.7¢ per share, taking the 12-month trend to 1.6% after touching 4.3¢ and 37.5¢. It has a market capitalization of $44.5 million.
