American Lithium Corp. (“American Lithium” or the “Company”)
(TSX-V:LI | OTCQB:LIACF | Frankfurt:5LA1) is pleased to announce an
updated Mineral Resource Estimate (“MRE”) that significantly
increases the contained lithium resources for the Tonopah Lithium
Claims (“TLC”) project located in the Esmerelda lithium district
northwest of Tonopah, Nevada. This MRE was completed as part of the
process of compiling the maiden preliminary economic assessment on
TLC (“PEA”) and will be incorporated into the Mine Plan within the
PEA scheduled to be completed and announced shortly.
Highlights:
(see Table 1 New TLC MRE & Table 2 Original TLC MRE, below)Link
to: Figure 1 – TLC Project Mineral Resource Block Outline and Drill
Hole Location Map (also see below)
- Measured +
Indicated Resource LCE increases 64% from original April 2020
Mineral Resource Estimate
- Measured
Resource - 4.2 Mt Lithium Carbonate Equivalent (“LCE”) (860 Mt @
924 ppm Li)
- Indicated
Resource – 4.63 Mt LCE (1192 Mt @ 727 ppm Li)
- Measured +
Indicated Resource – 8.83 Mt LCE (2052 Mt @ 809 ppm Li)
- Inferred
Resource – 1.86 Mt LCE (486 Mt @ 713 ppm Li)
- Base Case
cut-off of 500 ppm Li employed – up from 400 ppm Li in the original
resource due to anticipated increased processing cost inflation
between 2020 and 2022.
- Infill RC and
Diamond drilling validates size and scale of existing measured core
resource, expands the core resource and defines areas of high-grade
shallow mineralization.
- Using a 1200 ppm
Li cut-off: Measured + Indicated mineral resource contains 1.60 Mt
LCE comprising 214 Mt averaging 1,402 ppm Li, which should
positively impact project economics.
- RC exploration
drilling highlights deeper lithium mineralization to the west and
northwest of the core Measured resource and thinner, lower grade
sections to east and south next to the sub-basin edge.
Simon Clarke, CEO of American Lithium
states, “We are very pleased with the results of our 2022
drill programs culminating in a much larger mineral resource at TLC
which underlines our position as one of the largest lithium
projects in North America. In addition, the higher-grade shallow
lithium mineralization identified in our core Measured resource
area provides focus for early production that should have a
positive impact on the economic potential of TLC. This will be
reflected in a robust maiden PEA, which we are in the process of
completing in conjunction with DRA Global, and should help
fast-track the Project’s move through feasibility.
Of equal importance, the mineral resource block
model and extensive new drilling has increased our geological
understanding of the complexity, geometry, depth and location of
the TLC mineralized claystone and has confirmed to us that American
Lithium holds the most prospective ground for the location of
shallow lithium-rich claystone in the TLC sub-basin.”
Table 1 – New TLC Mineral Resource Estimate –
updated November 29, 2022
Cutoff |
Volume |
Tonnes |
Li |
Million Tonnes (Mt) |
Li (ppm) |
(Mm^3) |
(Mt) |
(ppm) |
Li |
Li2CO3 |
LiOH*H2O |
Measured |
500 |
506 |
860 |
924 |
0.79 |
4.2 |
4.78 |
1000 |
203 |
345 |
1255 |
0.43 |
2.29 |
2.60 |
1200 |
104 |
177 |
1401 |
0.25 |
1.33 |
1.51 |
Indicated |
500 |
701 |
1192 |
727 |
0.87 |
4.63 |
5.26 |
1000 |
80 |
136 |
1148 |
0.16 |
0.85 |
0.97 |
1200 |
22 |
37 |
1328 |
0.05 |
0.27 |
0.30 |
Measured +Indicated |
500 |
1207 |
2052 |
809 |
1.66 |
8.83 |
10.04 |
1000 |
283 |
481 |
1227 |
0.59 |
3.14 |
3.57 |
1200 |
126 |
214 |
1402 |
0.30 |
1.60 |
1.81 |
Inferred |
500 |
286 |
486 |
713 |
0.35 |
1.86 |
2.12 |
1000 |
31 |
53 |
1151 |
0.06 |
0.32 |
0.36 |
1200 |
8 |
14 |
1315 |
0.02 |
0.11 |
0.12 |
- CIM definitions
are followed for classification of Mineral Resource.
- Mineral Resource
surface pit extent has been estimated using a lithium carbonate
price of US20,000 US$/tonne and mining cost of US$3.00 per tonne, a
lithium recovery of 90%, fixed density of 1.70 g/cm3 (1.43
tons/yd3)
- Conversions: 1
metric tonne = 1.102 short tons, metric m3 = 1.308 yd3, Li2CO3:Li
ratio = 5.32, LiOH.H2O:Li ratio =6.05
- Totals may not
represent the sum of the parts due to rounding.
- The Mineral
Resource estimate has been prepared by Joan Kester, PG and Derek
Loveday, P. Geo. Of Stantec Consulting Services Inc. in conformity
with CIM “Estimation of Mineral Resource and Mineral Reserves Best
Practices” guidelines and are reported in accordance with the
Canadian Securities Administrators NI 43-101. Mineral resources are
not mineral reserves and do not have demonstrated economic
viability. There is no certainty that any mineral resource will be
converted into mineral reserve.
Table 2 – Original TLC Mineral Resource Estimate
– April 15, 2020
Cutoff |
Volume |
Tonnes |
Li |
Million Tonnes (Mt) |
Li (ppm) |
(Mm3) |
(Mt) |
(ppm) |
Li |
Li2CO3 |
LiOH*H2O |
Measured |
400 |
400 |
680 |
932 |
0.63 |
3.35 |
3.81 |
1000 |
169 |
287 |
1256 |
0.36 |
1.92 |
2.18 |
Indicated |
400 |
251 |
427 |
898 |
0.38 |
2.02 |
2.30 |
1000 |
95 |
162 |
1256 |
0.20 |
1.06 |
1.21 |
Measured + Indicated |
400 |
651 |
1107 |
912 |
1.01 |
5.37 |
6.11 |
1000 |
264 |
449 |
1247 |
0.56 |
2.98 |
3.39 |
Inferred |
400 |
213 |
362 |
912 |
0.33 |
1.76 |
2.00 |
1000 |
84 |
143 |
1228 |
0.18 |
0.96 |
1.09 |
- CIM definitions
are followed for classification of Mineral Resource.
- Mineral Resource
surface pit extent has been estimated using a lithium carbonate
price of US10,000 US$/tonne and mining cost of US$2.00 per tonne, a
lithium recovery of 80%, fixed density of 1.70 g/cm3 (1.43
tons/yd3)
- Conversions: 1
metric tonne = 1.102 short tons, metric m3 = 1.308 yd3, Li2CO3:Li
ratio = 5.32, LiOH.H2O:Li ratio =6.05
- Totals may not
represent the sum of the parts due to rounding.
- The Mineral
Resource estimate has been prepared by Derek Loveday, P. Geo. of
Stantec Consulting Services Ltd. in conformity with CIM “Estimation
of Mineral Resource and Mineral Reserves Best Practices” guidelines
and are reported in accordance with the Canadian Securities
Administrators NI 43-101. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. There is
no certainty that any mineral resource will be converted into
mineral reserve.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3f9b76fd-6f22-477f-9da8-81f8de79d45f
Mineral Resource Estimation Calculation
MethodologyThe geologic model used for reporting of
lithium resources was developed using Hexagon Mining’s geological
modelling and mine planning software, MinePlan version 16.0.4. The
geologic model from which lithium resources are reported is a 3D
block model developed using the Nevada State Plane Central Zone
NAD83 coordinate system and U.S. customary units. Block size is
50ft-X, 50ft-Y and 20ft-Z. Modeling method and approach is similar
to that described in the prior Technical Report (Loveday, 2020) but
with a re-interpretation of geologic controls on mineralization
using the additional exploration data and increased model size
covering the expanded mineral claim boundary. A significant new
addition to the resource is the recognition of an additional
lithium clay resource below a tuffaceous marker horizon.
A base case lithium resource cut-off grade has
been calculated based on the economics of a medium size (100 Mtpa)
run-of-mine (ROM) surface mining operation that does not require
blasting. Processing of the mineralized material would be onsite
extracting lithium from claystone using an acid digestion method.
Resources are reported from within an economic pit shell at
45-degree constant slope using Hexagon mining Pseudoflow algorithm.
Maximum pit depth is limited to 1,000 feet (304.8 m) below surface.
No underground mining is considered.
The following mining, processing, royalty, and
recovery costs, in US$, were used to derive a base case cut-off
grade to produce a lithium carbonate (Li2CO3) equivalent
product:
- Mining costs
US$3/tonne;
- Processing costs
US$49/tonne;
- Royalties
US$1/tonne;
- General and
administration US$1/tonne; and Processing recovery 90%.
Revenue from a lithium carbonate product is
estimated to be US$20,000/tonne for the cutoff grade calculation.
Using the above inputs and Li2CO3:Li ratio of 5.32, a base case
cut-off grade for lithium is estimated to be 500 ppm, rounded from
501 ppm. The base case cut-off grade of 500 ppm lithium is greater
than the prior (Loveday, 2020) Mineral Resource Estimate (“MRE”) of
400 ppm lithium, mostly due to an increase in assumed processing
costs when compared to the prior MRE.
The updated base case MRE represents an increase
of 64 percent Li2CO3 equivalent tonnes in the Measured plus
Indicated category (500 ppm Li cutoff) when compared to the prior
MRE (400 ppm Li cutoff). Inferred Li2CO3 equivalent tonnes have
increased by 6 percent when compared to the prior MRE for the base
case.
Resource Estimate
Parameters:
- Resource Update Effective Date –
October 6, 2022:
- 29,757’ (9070 m) additional
drilling from 53 drill holes (2020 to 2022)
- The new total of 39,062’ (11,906 m)
from 82 drill holes (2019 to 2022)
- 8 Sonic holes – 2020 to 2022
- 35 RC holes – 2021 to 2022
- 10 Core holes – 2022
- 20 Core holes
(2022) awaiting assays and not yet used in model
Quality Assurance, Quality Control and
Data VerificationDiamond drilling was conducted by First
Drilling of Montrose, Colorado using large diameter, PQ-size
drilling entirely vertical holes. Drill core samples are nominally
5-foot (1.53 m) length and are cut longitudinally, and one half is
cut a second time longitudinally with a diamond saw with
one-quarter of the core placed in sealed bags and shipped to
analytical laboratories.
Reverse Circulation (RC) drilling was conducted
by Harris Exploration Drilling and Associates Inc., of Fallon,
Nevada with 5.5-inch diameter face centred bit on vertical drill
holes. Sampling was conducted using a riffle splitter or a cyclone
splitter depending on the moisture content of the sampled material.
Sampling was conducted over 5-foot (1.52m) intervals with
individual samples placed in sealed bags and transported to the
respective analytical labs.
Samples were shipped to either American Assay
Laboratories (AAL) in Sparks, Nevada or Paragon analytical
laboratories in Reno, Nevada for sample preparation, processing and
ICP-MS multi-element analysis. Pulps and rejects are returned and
retained by the Company. AAL and Paragon are ISO/IEC 17025
certified assay laboratories. The QA/QC program includes a
comprehensive analytical quality assurance and control routine
comprising the systematic use of Company inserted standards, blanks
and field duplicate samples, internal laboratory QA/QC standard
operating procedures, and cross check analyses at other accredited
laboratories. Downhole lengths (depths) for vertical drill holes
are considered accurate true depth intersections for the
essentially flat-lying, to gently dipping TLC host
stratigraphy.
Mineral Resource Estimate
PreparationThe Mineral Resource estimate has been prepared
by Joan Kester, PG and Derek Loveday, P. Geo. of Stantec Consulting
Services Inc. in conformity with CIM “Estimation of Mineral
Resource and Mineral Reserves Best Practices” guidelines and are
reported in accordance with the Canadian Securities Administrators
NI 43-101. Mineral resources are not mineral reserves and do not
have demonstrated economic viability. There is no certainty that
any mineral resource will be converted into mineral reserve.
Qualified PersonsMs. Joan
Kester, PG and Mr. Derek Loveday, P. Geo. of Stantec Consulting
Services Inc. are Qualified Persons as defined by National
Instrument 43-101 Standards of Disclosure for Mineral Projects,
have prepared or supervised the preparation of, or have reviewed
and approved, the scientific and technical data pertaining to the
Mineral Resource estimates contained in this release, and will be
preparing the NI-43-101 Technical Report for filing on SEDAR within
45 days.
Mr. Ted O’Connor, P.Geo., Executive Vice
President of American Lithium, and a Qualified Person as defined by
National Instrument 43-101 Standards of Disclosure for Mineral
Projects, has reviewed and approved the scientific and technical
information contained in this news release.
About American
LithiumAmerican Lithium, a member of the TSX Venture 50,
is actively engaged in the development of large-scale lithium
projects within mining-friendly jurisdictions throughout the
Americas. The Company is currently focused on enabling the shift to
the new energy paradigm through the continued development of its
strategically located TLC lithium claystone project in the richly
mineralized Esmeralda lithium district in Nevada, as well as
continuing to advance its Falchani lithium and Macusani uranium
development-stage projects in southeastern Peru. Both Falchani and
Macusani have been through robust preliminary economic assessments,
exhibit strong significant expansion potential and enjoy strong
community support. Pre-feasibility work has now commenced at
Falchani.
The TSX Venture 50 is a ranking of the top
performers in each of 5 industry sectors in the TSX Venture
Exchange over the last year.
For more information, please contact the Company
at info@americanlithiumcorp.com or visit our website
at www.americanlithiumcorp.com for project update videos
and related background information.
Follow us on Facebook, Twitter and
LinkedIn.
On behalf of the Board of Directors of
American Lithium Corp.
“Simon Clarke”
CEO & Director
Tel: 604 428 6128
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
Cautionary Statement Regarding Forward
Looking InformationThis news release contains certain
forward-looking information and forward-looking statements
(collectively “forward-looking statements”) within the meaning of
applicable securities legislation. All statements, other than
statements of historical fact, are forward-looking statements.
Forward-looking statements in this news release include, but are
not limited to, statements regarding the ability to appeal the
judicial ruling, and any other statements regarding the business
plans, expectations and objectives of American Lithium.
Forward-looking statements are frequently identified by such words
as "may", "will", "plan", "expect", "anticipate", "estimate",
"intend", “indicate”, “scheduled”, “target”, “goal”, “potential”,
“subject”, “efforts”, “option” and similar words, or the negative
connotations thereof, referring to future events and results.
Forward-looking statements are based on the current opinions and
expectations of management are not, and cannot be, a guarantee of
future results or events. Although American Lithium believes that
the current opinions and expectations reflected in such
forward-looking statements are reasonable based on information
available at the time, undue reliance should not be placed on
forward-looking statements since American Lithium can provide no
assurance that such opinions and expectations will prove to be
correct. All forward-looking statements are inherently uncertain
and subject to a variety of assumptions, risks and uncertainties,
including risks, uncertainties and assumptions related to: American
Lithium’s ability to achieve its stated goals; risks and
uncertainties relating to the COVID-19 pandemic and the extent and
manner to which measures taken by governments and their agencies,
American Lithium or others to attempt to reduce the spread of
COVID-19 could affect American Lithium, which could have a material
adverse impact on many aspects of American Lithium’s businesses
including but not limited to: the ability to access mineral
properties for indeterminate amounts of time, the health of the
employees or consultants resulting in delays or diminished
capacity, social or political instability in Peru which in turn
could impact American Lithium’s ability to maintain the continuity
of its business operating requirements, may result in the reduced
availability or failures of various local administration and
critical infrastructure, reduced demand for the American Lithium’s
potential products, availability of materials, global travel
restrictions, and the availability of insurance and the associated
costs; the judicial appeal process in Peru, and any and all future
remedies pursued by American Lithium and its subsidiary Macusani to
resolve the title for 32 of its concessions; risks regarding the
ongoing Ontario Securities Commission regulatory proceedings; the
ongoing ability to work cooperatively with stakeholders, including
but not limited to local communities and all levels of government;
the potential for delays in exploration or development activities
due to the COVID-19 pandemic; the interpretation of drill results,
the geology, grade and continuity of mineral deposits; the
possibility that any future exploration, development or mining
results will not be consistent with our expectations; risks that
permits will not be obtained as planned or delays in obtaining
permits; mining and development risks, including risks related to
accidents, equipment breakdowns, labour disputes (including work
stoppages, strikes and loss of personnel) or other unanticipated
difficulties with or interruptions in exploration and development;
risks related to commodity price and foreign exchange rate
fluctuations; risks related to foreign operations; the cyclical
nature of the industry in which American Lithium operates; risks
related to failure to obtain adequate financing on a timely basis
and on acceptable terms or delays in obtaining governmental
approvals; risks related to environmental regulation and liability;
political and regulatory risks associated with mining and
exploration; risks related to the uncertain global economic
environment and the effects upon the global market generally, and
due to the COVID-19 pandemic measures taken to reduce the spread of
COVID-19, any of which could continue to negatively affect global
financial markets, including the trading price of American
Lithium’s shares and could negatively affect American Lithium’s
ability to raise capital and may also result in additional and
unknown risks or liabilities to American Lithium. Other risks and
uncertainties related to prospects, properties and business
strategy of American Lithium are identified in the “Risks and
Uncertainties” section of Plateau’s Management’s Discussion and
Analysis filed on January 19, 2021, in the “Risk Factors” section
of American Lithium’s Management’s Discussion and Analysis filed on
January 29, 2021, and in recent securities filings available at
www.sedar.com. Actual events or results may differ materially from
those projected in the forward-looking statements. American Lithium
undertakes no obligation to update forward-looking statements
except as required by applicable securities laws. Investors should
not place undue reliance on forward-looking statements. Cautionary
Note Regarding Macusani Concessions Thirty-two of the 169
concessions held by American Lithium’s subsidiary Macusani, are
currently subject to Administrative and Judicial processes
(together, the “Processes”) in Peru to overturn resolutions issued
by INGEMMET and the Mining Council of MINEM in February 2019 and
July 2019, respectively, which declared Macusani’s title to 32 of
the concessions invalid due to late receipt of the annual validity
payments. In November 2019, Macusani applied for injunctive relief
on 32 concessions in a Court in Lima, Peru and was successful in
obtaining such an injunction on 17 of the concessions including
three of the four concessions included in the Macusani Uranium
Project PEA. The grant of the Precautionary Measure (Medida
Cautelar) has restored the title, rights and validity of those 17
concessions to Macusani until a final decision is obtained at the
last stage of the judicial process. A Precautionary Measure
application was made at the same time for the remaining 15
concessions and was ultimately granted by a Court in Lima, Peru on
March 2, 2021 which has also restored the title, rights and
validity of those 15 remaining concessions to Macusani, with the
result being that all 32 concessions are now protected by
Precautionary Measure (Medida Cautelar) until a final decision on
this matter is obtained at the last stage of the judicial process.
The favourable judge’s ruling confirming title to all 32
concessions from November 3, 2021 represents the final stage of the
current judicial process. However, this ruling has recently been
appealed by MINEM and INGEMMET. American Lithium has no assurance
that the outcome of these appeals will be in the Company’s
favour.
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