American West Metals (ASX:AW1) has released results of a Pre-Feasibility Study (PFS) and maiden Ore Reserve for the Storm Copper Project on Somerset Island, Nunavut, Canada, outlining an 11-year mine life with average annual copper production of approximately 10,000 tonnes and a post-tax NPV7 of US$119 million at the base case copper price.

Key Points

  • Maiden Ore Reserve of 12.58Mt at 1.2% Cu and 3.7g/t Ag, containing 151,000 tonnes of copper and 1,500,000 ounces of silver
  • Base case post-tax NPV7 of US$119 million, IRR of 32.8%, and post-tax free cash flow of US$179 million; at spot pricing the post-tax NPV7 rises to US$233 million
  • Initial capital expenditure estimated at US$81.0 million with total life-of-mine CAPEX of US$118.5 million and a payback period of 3.6 years at base case
  • Processing strategy incorporates ore sorting and beneficiation to produce a copper-silver concentrate grading approximately 15% copper with no deleterious elements
  • Final investment decision targeted for early 2028, with construction during 2029–2030 and first copper production targeted for 2030

Maiden Ore Reserve and Mine Plan Details

The Storm Copper Project PFS establishes a maiden Probable Ore Reserve of 12.58Mt grading 1.2% copper and 3.7g/t silver, containing 151,000 tonnes of copper and 1,500,000 ounces of silver. The 1.3 million tonne per annum development scenario supports an 11-year mine life at an average of approximately 10,000 tonnes of copper per annum, with the potential for production of up to 14,000 tonnes annually. The project incorporates seven defined copper deposits, four of which are supported by Probable Ore Reserves, allowing for staged mine development. The final mining application is targeted for submission during the fourth quarter of 2026.

Project Economics Across Pricing Scenarios

Under the base case economics, the PFS returns a post-tax NPV7 of US$119 million, a post-tax IRR of 32.8%, post-tax free cash flow of US$179 million, and a payback period of 3.6 years. At the copper spot price of US$6.53 per pound recorded on 2 November 2026, the post-tax NPV7 increases to US$233 million, the IRR rises to 55.1%, post-tax free cash flow reaches US$338 million, and the payback period shortens to 2.7 years. Life-of-mine revenue is disclosed at US$1.2 billion under the base case and US$1.5 billion at spot pricing. Pre-development capital is US$27.3 million, initial capital is US$81.0 million, expansion capital is US$10.2 million, and total life-of-mine CAPEX is US$118.5 million. Operating costs are stated at US$57.30 per tonne of material.

Growth Opportunities and 2027 Work Program

The filing identifies several near-term growth pathways for the Storm project. Three of the seven copper deposits within the existing Mineral Resource Estimate are classified as Inferred resources, with potential for upgrade to the Indicated category. The existing resource remains open, with thick zones of mineralisation identified outside current mine designs. Seven advanced exploration targets have been defined along the 110-kilometre copper belt. Planned 2027 activities include resource and exploration drilling, geotechnical and metallurgical drilling and testwork, final engineering design, and a sealift of fuel and supplies. The project is supported by a funding partnership with Ocean Partners, comprising an offtake agreement and a conditional senior secured debt facility.