The market might be under pressure today but there's one ASX mining share that's surging ahead this morning on positive drill results.
The outperformer is the American West Metals Ltd (ASX: AW1) share price. It jumped 48% to a high of 18.5 cents this morning, its highest since May, before retreating to trade at 15.5 cents at the time of writing. That's still a 24% gain on yesterday's closing price.
In contrast, the All Ordinaries Index (ASX: XAO) is 0.52% lower as the August reporting season rolls on.
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The small ASX mining share in the spotlight
American West is stealing some of the spotlight today after it announced a major copper discovery at its Storm Project in Canada.
Its drill hole (ST22-10) intersected over 68 metres of stratiform copper sulphide mineralisation from a 277-metre downhole.
This is significant, according to the small cap ASX mining share. It noted that the discovery is associated with an 800m by 300m electromagnetic (EM) plate, with six other similar large EM plates yet to be tested.
Details of the drilling result from this ASX mining share
The mineralisation is interpreted to be stratiform and is hosted within a vuggy, bituminous, and fossiliferous carbonate unit.
This is consistent with the typical mineralisation model for sedimentary copper systems. This style of permeable host rocks could form chemical traps for the deposition of copper-rich fluids.
The ASX mineral explorer was quick to point out that many other large copper systems have similar geology.
What American West is saying
The managing director of American West Dave O'Neill said:
This is a game changing discovery at the Storm Copper Project. Exploration drilling has intersected stratiform copper sulphide mineralisation at depth which supports our geological assumptions that there is a major copper system lying below the high-grade near surface mineralisation.
The new copper mineralisation is associated with a large EM plate that is one of six untested plates, most of which are located in highly prospective positions – below or adjacent to the known high-grade copper prospects and fault system
The American West share price snapshot
The surge in the American West share price today pushes the ASX mining share to a gain of more than 10% for the year.
That's well above the All Ordinaries, which has shed around 7% over the same period, and the S&P/ASX 300 Metal & Mining index, which inched up 2.1%.
Other ASX copper miners have turned in mixed performances. The Sandfire Resources Ltd (ASX: SFR) share price has fallen 15%, while the OZ Minerals Limited (ASX: OZL) share price is up 21% in the past 12 months.
American West is a junior explorer with projects in Canada and in Utah, USA.
