American West Metals (ASX:AW1) is targeting a final investment decision in early 2028 after a Prefeasibility Study (PFS) outlined an 11-year copper mine at its Storm Copper Project on Somerset Island, Nunavut, Canada.
The study includes a maiden probable ore reserve of 12.58 million tonnes (Mt) @ 1.2% copper (Cu) and 3.71 grams per tonne silver (Ag), containing 151,000 tonnes of Cu and 1.5 million ounces of Ag.
The mine plan covers four of the seven Storm deposits using conventional open-pit methods and a contractor fleet.
Output averages about 10,000 tonnes Cu a year, peaking at 14,000 tonnes, from a plant with peak throughput of 1.3Mt a year.
Processing combines three-stage crushing, X-ray ore sorting, jigging, and small-scale flotation to produce a copper-silver concentrate grading about 15% copper, with life-of-mine copper recovery of about 68%.
At a base case of US$5.30 a pound of copper and US$50 an ounce for silver, the project returns a post-tax net present value (NPV) of US$119 million ($169.8 million) at a 7% discount rate and an internal rate of return of 32.8%, with payback in 3.6 years.
At spot prices on 2 November 2026 of US$6.53 a pound copper and US$49.98 an ounce silver, NPV rises to US$233 million and payback shortens to 2.7 years.
Initial capital is US$81 million, with total life-of-mine capital of US$118.5 million.
Three of the seven deposits sit in the inferred category only, and the company sees upgrade potential there.
Ocean Partners holds an offtake agreement over all concentrate production and has agreed to a conditional senior secured loan of up to US$40 million, subject to a bankable feasibility study and final documentation.
American West holds 80% of the project, with Aston Bay Holdings (TSX-V:BAY) holding the remaining 20%, free carried until a decision to mine.
Permitting and environmental studies are well advanced, with the final mining application targeted for the December quarter of 2026.
Managing Director Dave O’Neill says the study confirms a ‘capital-efficient operation’, with room to grow the resource.
“We see substantial opportunities to further enhance the Project’s scale and value through exploration across the broader mineralised belt,” O’Neill says.
American West Metals is targeting first copper production for 2030.
Write to JC Villarba at Mining.com.au
Images: American West Metals
