American West Metals (ASX:AW1) pulls 1,065g/t silver from unsampled drill core

Only 35% of historical indium samples were ever tested, and the rest is rewriting West Desert

The most interesting thing about American West Metals’ (ASX:AW1) latest update on its West Desert project in Utah is not the drilling. It is the cupboard. The company resampled 1,155 intervals of historical drill core that previous owners never bothered to assay properly, and the numbers that came back are unusually strong.

Peak grades include 1,065g/t silver, 155g/t indium, 40.4g/t gallium, plus zinc, copper and lead hits of 9.5%, 2.34% and 9.9% respectively. These are not subtle results. The reason they were never reported before is that only 35% of historical drilling was ever assayed for indium, and even less for gallium.

West Desert already hosts what AW1 describes as the largest undeveloped indium resource in the US, sitting at 33.7Mt grading 3.83% zinc, 20g/t indium and 9g/t silver. Today’s news suggests that resource has been understated for years simply because nobody ran the right tests on the core that already existed.

Why a sampling update matters more than another drill hole right now

Resampling historical core is the cheapest ounce of resource growth a junior explorer can buy. The drilling has already been done and paid for, the holes are already in the ground, and the geological context is already mapped. All that is needed is to send the previously ignored core to the lab.

Several of the resampled intervals have visibly expanded. Hole C07-01 went from 1.2m at 19g/t indium to 3.6m at 20g/t indium. Hole C07-03 stretched from 13.2m at 9.5% zinc to 22.6m at 5.9% zinc. The grade per metre comes down in some cases, but the contained metal goes up, and that is what matters when the resource model gets rebuilt.

The other thing this data does is push parts of the indium and gold resource toward the indicated category. Right now the entire 23.8 million ounces of indium at West Desert sit in the inferred bucket, largely because the historical operators only assayed 35% of holes for it. That classification gap is now closing.

The Washington meetings are not just window dressing

AW1 also disclosed that management attended the Aerospace and Defence 2026 Conference in Washington and held discussions with US Government officials at the White House Complex on critical metal development. We would normally treat lines like this with a healthy dose of skepticism, because every junior explorer claims strategic relevance these days.

But indium and gallium are genuinely on the US critical minerals list, and China dominates global supply of both. A US-based, undeveloped indium resource of this scale is a small list to begin with. AW1 was already awarded a US Federal Grant for a West Desert critical metals study back in 2022, which gives the current engagement some credibility.

The skeptical read is that government conversations rarely translate into cheques quickly. The constructive read is that AW1 is positioning itself for the kind of grant or offtake support that is starting to flow under domestic supply chain programs.

What still needs to go right

The 2026 drill program is now running two rigs, with assays from hole WD26-01 due within a week and WD26-02 in three to five weeks. Down-hole electromagnetic surveys are being prepared on both, which is how AW1 plans to identify new skarn targets along the porphyry margin and the 4km magnetic trend.

Our concern is the gap between resource growth and a development decision. West Desert had a Preliminary Economic Assessment done back in 2014 under previous ownership, but a JORC-compliant updated study has not yet been delivered under AW1. Until that arrives, the project’s economics remain conceptual rather than bankable.

The other watch item is share count. AW1 says it is fully funded for the expanded program, but small-cap explorers with multi-year development timelines tend to come back to the market more than once.

The Investors Takeaway for American West Metals

The pathway over the next twelve months is reasonably clear. AW1 needs to convert the resampled core data into an upgraded MRE, lift more of the indium and gold tonnes into the indicated category, and deliver assay results from the active drill program that materially extend the deposit. If those three things land, the West Desert story stops being about geology and starts being about study work.

Beyond that, the US Government engagement is the optional but high-impact catalyst. A funding announcement or offtake interest from a defence-linked buyer would change how the market values a domestic indium resource of this scale. Investors can find more in-depth coverage of ASX-listed critical minerals names at stocksdownunder.