American West Metals : Massive Sulphides in Fourth Drill Hole at West Desert

ASX RELEASE

(ASX: AW1)

Tuesday, 29th March 2022

Massive zinc and copper sulphides intersected in fourth drill hole at

West Desert

• • Very thick intersection with over 157m of continuous strong mineralisation visually identified in drill core of WD22-03, the fourth diamond drill hole completed by AW1 at the West Desert Project

• • Massive zinc and copper sulphides visually logged in WD22-03 with assays pending

• • The drill hole is located on the eastern flank of the deposit and confirms the continuity of strong copper and zinc mineralisation towards the east

• • Fifth drill hole is currently underway targeting further high-grade copper mineralisation along the porphyry skarn contact to extend the copper rich zone to the east

American West Metals Limited (American West or the Company) (ASX: AW1) is pleased to announce that a very thick zone of mineralisation has been intersected by the fourth diamond drill hole of the current drill campaign at the West Desert Project in Utah (West Desert or the Project).

Drill hole WD22-03 was designed to test the continuity of strong copper and zinc mineralisation in the eastern portion of the Main Zone of the deposit. The hole was drilled to 550m downhole.

WD22-03 intersected a total of 165m of copper and zinc mineralisation including a continuous mineralised interval of 157m, based on visual logging of the drill core (Figure 2). The mineralisation is particularly strong in a number of massive sulphide dominant intervals. The drill hole confirms the continuity and coherent nature of strong mineralisation in the Main Zone of the deposit.

Dave O'Neill, Managing Director of American West Metals commented:

"The drilling is continuing to highlight the significant scale and growth potential of the West Desert Deposit.

"The visual observations from WD22-03 show more than 165m of zinc and copper mineralisation in a wide undrilled section of the deposit.

"This is our first drill hole in this part of the orebody and it indicates that a number of the ore lenses in the Main Zone may join in this location to form a thick and coherent body of mineralisation. We expect laboratory assays to confirm some high-grade intersections as there are a number of intervals with massive zinc and copper sulphides logged in the drill core.

"We look forward to reporting the assays in the next couple of weeks."

American West Metals Limited

Suite 2, 28 Ord Street West Perth WA 6005

[e-mail]: 645 960 550

www.americanwestmetals.com(ASX: AW1)

Figure 1: Photo of massive zinc sulphide comprising red-brown sphalerite at approximately 332.8m (1092ft) down hole in drill hole WD22-03. Calcite (calcium carbonate) can be seen as white veins.

WD22-03 - HIGHLIGHTING RESOURCE QUALITY

WD22-03 is the fourth drill hole of American West's drill program and was designed to extend open intervals of high-grade zinc and copper in the eastern flank of the West Desert Deposit - a key section of growth potential in our resource model.

WD22-03 was drilled on section 289040E where historical drill spacing along this section is over 80m (Figure 4). The hole was drilled to a depth of 550m and encountered over 165m metres of visual and variable mineralisation within a single major zone (Figure 2 & Table 2). Intersections are expressed as downhole widths and are interpreted to be close to true widths.

Drill hole WD22-03 has confirmed the continuation of the Main Zone mineralisation in a key section of the West Desert resource.

The upper most interval is approximately 8m thick and hosted within massive dolomite. The interval contains weak to moderate sphalerite and iron oxides as disseminations and veinlets.

The main interval of mineralisation is over 150m thick and contains a variety of mineralisation styles.

Figure 2: Schematic geological section at 289040E showing main geological units and drilling. The zinc and copper dominant mineralisation intersected in WD22-03 is shown.

Strong, sphalerite rich Carbonate Replacement Deposit (CRD) style mineralisation was encountered between 224 and 323 metres downhole. This zone is hosted within dolomite and contains a strongly weathered and mineralised zone of sooty and gossanous material. The gossan shows relic textures after sulphide and contains visual zinc oxides and is likely the result of weathering along a large fault.

The lower part of the interval is comprised of massive magnetite skarn with strong zinc and copper sulphides. This mineralisation is strongest between 323 and 340 metres downhole where zones of massive sphalerite (Figure 1) and chalcopyrite are present. Potential roquesite, a copper indium sulphide, is present in the lower zones of the magnetite skarn.

Hole ID	From (m)	To (m)	Min	Description
WD22-03	187	195	sph	Sphalerite as disseminations and veinlets in massive dolomite
224	291	sph	Strong CRD style mineralisation within dolomite and consisting of magnetite and sphalerite
291	312	Sph, Zn-ox	Sooty, highly weathered sulphide zone. Looks to contain gossanous textures after magnetite and sphalerite. Potential parallel structure to Juab Fault.
312	323	sph	Strong CRD style mineralisation within dolomite and consisting of magnetite and sphalerite
323	340	sph, chpy	Massive magnetite skarn with increasing abundance of sphalerite and chalcopyrite. The lower 11m interval includes massive sphalerite and chalcopyrite.
340	381	sph, roq	Massive magnetite skarn with strong sphalerite and potential roquesite (copper/indium sulphide) mineralisation

Table 1: Description of intervals with visually identified mineralisation. Mineralogy key is sph = sphalerite, chpy = chalcopyrite, py = pyrite, roq = roquesite, mol = molybdenite, bor = bornite

DISCUSSION OF DRILL RESULTS

American West is assessing a number of different development options for West Desert including a proposal that is focused on mining the high-grade core through an open-pit operation that transitions to underground mining at depth. Drill hole WD22-03 is located in an area that could support the commencement of underground development.

The historical resource at West Desert is a large historical and foreign resource (Ni 43-101 compliant) of over 59Mt, including a higher-grade core of approximately 16Mt @ 6.3% Zn, 0.3% Cu and 33g/t In. A Preliminary Economic Assessment dated 2 May 2014 prepared in compliance with Canadian National Instrument 43-101 outlined the economic potential for the West Desert Deposit.

The single, wide zone of mineralisation encountered within WD22-03 is similar to other intersections within the eastern part of the deposit and suggests that a number of ore lenses merge and form a single, very broad and coherent ore zone. Historical intersections from this area include 70.1m @ 4.6% Zn (From 321.4m in drill hole CC-24), which includes higher grade intervals of 12.6m @ 9.6% Zn and 5.2m @ 12.7% Zn. Intersections within the copper rich zones proximal to the porphyry contact include 16.3m @ 1.4% Cu, 0.46g/t Au and 28g/t Ag (From 443.64m in drill hole CC-31), with grades up to 3.4% Cu, and are open at depth and to the east.

The location of drill hole WD22-03 (Figure 3) is important as this area may support the transition from an open pit to underground operation. The thick and coherent nature of the Main Zone in this location is highly favourable for a number of different development scenarios.

Figure 3: Long section view (looking north) of the West Desert Deposit (Red shading showing current >2% Zn ore blocks, purple shading showing current >1% Cu ore blocks), current open pit design and drilling. Drill hole WD22-03 is located close to the proposed open pit where underground development is expected to commence.

FORWARD PROGRAM

Drilling continues on the approximate 7,500m program, with assays for all holes pending and expected in the coming weeks.

The fifth drill hole (WD22-04) has commenced and will aim to extend the copper rich zones targeted by WD22-01C towards the east. There is very little drilling along this part of porphyry contact and further mineralisation in this zone could extend the known resources significantly. The definition of further high-grade copper in this zone also has the potential to enhance the overall copper grade of the West Desert resource.