Beaver Creek: American West Metals’ Squall discovery spurs new copper camp hopes in Nunavut

Beaver Creek, Colo. – American West Metals (ASX: AW1; US-OTC: AWMLF) has identified a new copper zone, Squall, at its Storm copper project, where early visual indicators point to strong copper mineralization.

Squall, discovered in the southern part of the Storm project in central Nunavut, returned strong visual copper sulphides including visual chalcocite from about 181.4 metres depth, the company reported on Sept. 3. Squall is the second major find this year, after the Thunder zone, and highlights the continued exploration potential of the under-explored Storm region.

“This new discovery, Squall, is a game-changer for us,” managing director Dave O’Neill told The Northern Miner in an interview. “We’re revealing more copper with each drill campaign, and we’re seeing the real potential for Storm to become a district-scale copper camp.”

Located on Somerset Island in Nunavut’s Qikiqtaaluk region, Squall is the second major discovery this year. Further exploration this year at Thunder, which was initially discovered last year, revealed it’s importance, with an intercept of 50 metres grading 3% copper from about 50 metres depth. That highlighted its potential as a high-grade copper zone that could contribute significantly to future resource expansion at Storm.

Though Nunavut’s remote location and sparse infrastructure present many challenges for resource development, its mineral richness and supportive regulations draw much mining activity. Major mining companies like Agnico Eagle Mines (TSX: AEM; NYSE: AEM) and B2Gold (TSX: BTO, NYSE-A: BTG) are active in the territory.

More work on Squall

For Squall to contribute to a potential copper camp at Storm, more drilling and confirmed assays will be needed to define its size and grade. If future results mirror the success seen at Thunder and Cyclone – at Storm’s northern end – the cumulative discoveries could form the foundation of a larger district-scale mining operation, O’Neill said.

Despite the copper discovery momentum, at A11¢ apiece on Thursday, the company’s equity has dropped 51% over the past 12 months, touching 9.2¢ and 26.5¢. It has a market capitalization of A$54.6 million ($49.6 million).

American West’s 2024 drilling program has already surpassed 20,000 metres, and the company is working on resource expansion and uncovering new copper zones.

Cyclone cornerstone

The company’s exploration focus has mainly been on the Cyclone deposit, where it has confirmed high-grade copper mineralization.

Recent highlight assays including 13.5% copper over 1.5 metres from 55 metres depth, and 23 grams silver per tonne from 54.9 metres depth. Another intercept recorded 3.1 metres grading 3.9% copper and 10.5 grams silver, including a higher-grade section of 1.5 metres at 5.9% copper and 16 grams silver from 57.9 metres downhole. Cyclone demonstrates significant resource expansion potential as the deposit remains open in all directions, O’Neill said.

He stressed that Cyclone remains open in all directions, with further drilling likely to expand the resource base.

O’Neill also believes the combination of resource growth at Cyclone and discoveries like Squall indicate Storm’s broader potential. American West controls over 100 km of prospective ground in Nunavut, and its geophysical surveys continue to reveal high-priority copper targets for future drilling.

“Every year, we’re making new discoveries that expand what’s possible here,” O’Neill said. “We believe Storm could become a copper source for decades, and the discoveries we’re making now are just the beginning.”

American West has significantly ramped up its drilling efforts this year, completing over 128 reverse circulation and 14 diamond drill holes. The company is on track to release a resource upgrade by year-end, with substantial growth expected in the Cyclone and Chinook deposits, at Storm’s east end.

Stormy discovery

The discovery of the Storm copper project came in a stroke of luck. As the story goes, geologists from Cominco were conducting helicopter prospecting in the 1990s when they were forced to land in the Aston Bay area due to bad weather.

With time on their hands, they explored the surrounding area and discovered copper boulders in a creek. Samples taken from the site revealed copper grades as high as 60%, which led to the development of what is now known as the Storm project.

Over the years, the project passed through several hands before American West Metals took over in September 2021 after acquiring an 80% interest from Aston Bay Holdings (TSXV: BAY).

The company is working to build on that early discovery with modern exploration techniques and a focused effort to turn the project into a new copper camp.

O’Neill says the company took the Storm project from exploration concept to an initial resource in 12 months. In January it reported a JORC-compliant indicated resource of 4.8 million tonnes grading 1.26% copper and 3.45 grams silver per tonne for 61,600 tonnes coper metal and 541,100 oz. silver, and 12.6 million inferred tonnes at 1.14% copper and 3.35 grams silver for 143,400 tonnes copper and 1.4 million oz. silver.