Highlights

  • American West Metals has completed the Pre-Feasibility Study for the Storm Copper Project in Nunavut, Canada, declaring a maiden Ore Reserve of 12.58 million tonnes at 1.2 per cent copper and 3.7 grams per tonne silver, underpinning an initial 11-year open-pit mine life.
  • The PFS outlines an innovative processing strategy using ore sorting, gravity beneficiation, and small-scale flotation to produce a copper-silver product of approximately 15 per cent copper grade, requiring relatively modest initial Capital and targeting low operating costs.
  • The PFS Economics are expressed at a conservative copper price assumption, with significant Leverage to higher prices; the project has a final Investment decision targeted for early 2028 and first copper production targeted for 2030.
  • The project benefits from an existing strategic Partnership with Ocean Partners, which includes a binding offtake agreement covering 100 per cent of concentrate production and a conditional senior secured Loan facility, subject to completion of a bankable feasibility study.

American West Metals Limited (ASX:AW1) is an ASX-listed critical metals company focused on the Storm Copper Project on Somerset Island in Nunavut, Canada. The project is located within the Cornwallis Lead-Zinc District and covers a portion of a sediment-hosted copper belt with more than 110 kilometres of strike. American West holds an 80 per cent interest in the project, with Aston Bay Holdings Ltd holding the remaining 20 per cent on a free-carried basis until a decision to mine. On 5 November 2026, the company announced the results of the Pre-Feasibility Study and the declaration of a maiden Ore Reserve.

Maiden Ore Reserve and Resource Position

The maiden Ore Reserve for the Storm Copper Project is classified entirely as Probable and totals 12.58 million tonnes at 1.2 per cent copper and 3.7 grams per tonne silver, containing 151,000 tonnes of copper and 1.5 million ounces of silver. The Reserve covers four of the seven defined copper deposits at Storm — Cyclone, Chinook, Corona, and Thunder — providing a foundation for a staged open-pit Mining operation. The PFS mine plan is structured to bring higher-grade ore and lower stripping forward, with Chinook scheduled first as its higher grades suit the initial plant start-up conditions. The broader mineral resource totals 28.2 million tonnes at an average copper grade and also includes silver, with the remaining three deposits — Cirrus, Gap, and Lightning Ridge — classified as Inferred and treated as waste for the purposes of the reserve and mine plan.

The processing strategy adopted for the PFS is a central Competitive Advantage of the project. The dominant copper mineral, chalcocite, has distinct physical properties relative to the host dolomite rock, allowing effective separation through sensor-based ore sorting without the high water and tailings demands of conventional flotation milling. The process plant design incorporates three-stage crushing, dry X-ray transmission ore sorting of the coarse fraction, and jig gravity concentration and small-scale flotation for fines, producing a copper-silver product of approximately 15 per cent copper grade suitable for direct sale to smelters. The dry processing approach is well-suited to the Arctic environment and minimises the environmental footprint of the operation.

Development Economics and Strategic Context

The PFS has been prepared at an accuracy level reflecting the confidence range of the various modifying factors and assumptions. At the PFS base case pricing assumptions, the project is estimated to have a post-tax NPV and a post-tax IRR that the company considers compelling, with meaningful upside at current spot copper prices which are significantly above the PFS base case. The initial capital requirement for Stage 1 development is modest relative to many comparable projects, reflecting the ore-sorting processing approach and the staged plant design that avoids large up-front infrastructure capital. Total life of mine capital across both stages remains within a range that the company considers manageable given the project's economics.

The development timeline targets a final investment decision in early 2028, with pre-development activity in the second half of 2028, construction during 2029 and 2030, and first copper production in 2030. The project has the support of an existing partnership with Ocean Partners, which provides offtake for 100 per cent of concentrate production and a conditional senior secured Debt Facility subject to a bankable feasibility study. Project permitting and environmental studies are described as well advanced, with the final mining application submitted during Q4 2026 to the Nunavut Impact Review Board.

Key Takeaways

The Storm Copper PFS represents a significant maturation milestone for American West Metals, converting the project's resource base into a maiden Ore Reserve and demonstrating the technical and economic viability of a development pathway that uses innovative ore-sorting processing to reduce capital intensity and environmental footprint. The PFS economics at conservative copper price assumptions, the existing Ocean Partners offtake and financing partnership, and the advanced permitting position provide a credible framework for advancing toward a final investment decision. The key milestones between now and the targeted early 2028 FID include the completion of the Definitive Feasibility Study, the progression of environmental assessment through the NIRB process, and the finalisation of project financing arrangements.