American Lithium to Secure Water Rights for Continued Development of TLC Lithium Project, Nevada
July 27 2020 - 8:00AM
American Lithium Corp. (TSXV: LI) (OTCQB: LIACF)
(Frankfurt: 5LA1) (“American Lithium” or the “Company”) a
leading lithium exploration and development operator is pleased to
announce the signing of a letter of intent to acquire a 100%
interest in certain privately held lands and the accompanying 1,176
acre-feet of water rights (the “LOI”). The acquisition of the water
rights will allow American Lithium to continue advancing its
flagship TLC project, near Tonopah, Nevada, by guaranteeing a
supply of water for any planned future development.
The water rights come from a 326-acre farm whose
water rights are part of the same hydrographic basin as the TLC
Project, Basin 137-a, or ‘Big Smoky Valley – Tonopah Flat’. The
purchase of the farm is a critical step in securing the required
makeup water for the innovative patent-pending lithium recovery
process for TLC’s unique lithium bearing claystones. Work to date
has identified a pit-constrained resource (at 400 ppm cut-off) of
1.107 billion tonnes measured and indicated (“M+I”) plus 362 Mt
inferred containing 5.37 million tonnes lithium carbonate
equivalent (“LCE”) M+I and 1.76 million tonnes LCE inferred (see
American Lithium news release dated May 20, 2020).
In addition, ongoing metallurgical processing
and testing by McClelland Laboratories Inc. has shown highly
encouraging results in simplifying the process for recovering
lithium, that the lithium is consistently highly leachable
throughout the project and that average extraction grades of 87%
lithium can be achieved in minutes of leach contact time without
the use of agitation or heat (see American Lithium news release
dated June 17, 2020).
Pursuant to the LOI, American Lithium has paid a
deposit to an arm's length vendor of $15,000, to allow for a due
diligence period until August 31, 2020. On completion of
satisfactory due diligence, the Company will complete a definitive
purchase wherein transfer of the property interest and the water
rights will be finalized through payment of $1.3 million USD, over
a four-year period.
Michael Kobler, CEO of American Lithium, stated,
“the goal of the lithium recovery process that is and continues to
be developed for the TLC project is to be as water efficient as is
practically possible. That said, there is makeup water required,
and our goal with this purchase is to supply all the makeup water
for the project. Our vision of resource and water conservation
within the TLC project fits in with this acquisition. Our target is
to have minimal impact on the land and water of the area around the
project, and our efficient lithium recovery process and water
rights are aligned with this goal.”
About the TLC PropertyThe TLC
sedimentary lithium discovery is an exploration and development
project located 12 kilometres northwest of Tonopah, Nev., and
easily accessible by paved highway. Work to date has identified a
5.3-million-tonne measured and indicated lithium carbonate
equivalent resource, with an additional 1.7 million tonnes
inferred, placing the Company's resource amongst a handful of
potential lithium deposits in Western North America capable of
development. TLC is near surface, relatively flat-lying and a
free-digging lithium sedimentary deposit that the company expects
to advance through an early-stage economic study in 2020. Just
south of the Crescent Dunes solar energy plant, the project is
favourably located for future production given the immediate access
to some of the cheapest electricity in Nevada.
About American Lithium
Corp.American Lithium is actively engaged in the
acquisition, exploration and development of lithium deposits within
mining-friendly jurisdictions throughout the Americas. The Company
is currently exploring and developing the TLC project located in
the highly prospective Esmeralda lithium district in Nevada. TLC is
close to infrastructure, 3.5 hours south of the Tesla Gigafactory,
and in the same basinal environment as Albemarle's Silver Peak
lithium mine, and several advancing deposits and resources,
including Ioneer Ltd.'s (formerly Global Geoscience) Rhyolite Ridge
and Cypress Development Corp.'s Clayton Valley project.
The technical information within this news
release has been reviewed and approved by Bruce Kienlen, P.Geo., a
consultant to the Company and a qualified person under National
Instrument 43-101.
Please watch our corporate video at
https://www.americanlithiumcorp.com/our-company/ and review our
informative short project update videos and related background
information at
https://www.americanlithiumcorp.com/projects/tlc-nevada/.
For more information, please contact the Company
at info@americanlithiumcorp.com or visit our website at
www.americanlithiumcorp.com. Follow us
on Facebook, Twitter and LinkedIn.
On behalf of the Board,
American Lithium Corp.Michael
Kobler, Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-looking
statementsStatements in this release that are
forward-looking information are subject to various risks and
uncertainties concerning the specific factors disclosed here.
Information provided in this release is necessarily summarized and
may not contain all available material information. All such
forward-looking information and statements are based on certain
assumptions and analyses made by American Lithium management in
light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are appropriate in the
circumstances. These statements, however, are subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking information or statements.
Important factors that could cause actual results to differ from
these forward-looking statements include those described under the
heading “Risks Factors” in American Lithium's most recently filed
MD&A. The Company does not intend, and expressly
disclaims any obligation to, update or revise the forward-looking
information contained in this news release, except as required by
law. Readers are cautioned not to place undue reliance on
forward-looking information or statements.
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