American Lithium Announces 476% Increase in Measured + Indicated Lithium Resources at Falchani – Adds K, Cs and Rb to Block Model
American Lithium Announces 476% Increase in Measured + Indicated Lithium
Resources at Falchani – Adds K, Cs and Rb to Block Model
VANCOUVER, BRITISH COLUMBIA, October 31, 2023 – American Lithium Corp. (“American Lithium” or
the “Company”) (TSX-V:LI | NASDAQ:AMLI | Frankfurt:5LA1) is pleased to announce an updated Mineral
Resource Estimate (“MRE”) that significantly increases the contained lithium (“Li”) for the Falchani Lithium
deposit (“Falchani”) located in Puno, southwestern Peru from the previous March 2019 MRE. The updated
MRE update was comp leted by Stantec Consulting Services Inc. (“Stantec”) as part of the process of
updating the preliminary economic assessment (“PEA”) for Falchani and will be incorporated into the mine
plan within the updated PEA. DRA Global (Lead Engineer for the updated PEA and PFS on Falchani) is now
finalizing the updated PEA with completion expected during November.
Stantec is preparing a NI-43-101 Technical Report for the updated Falchani Project MRE which is expected
to be published within 45 days.
Highlights: (see Table 1 - New Falchani MRE and Table 2 - Original Falchani MRE)
Link to: Figure 1 – Falchani Project Mineral Classification and Drill Platform Location Map
• Measured + Indicated – 5.53 million tonnes (“Mt”) Lithium Carbonate Equivalent (“LCE”) (447 Mt @
2,327 ppm Li) an increase of 476%;
o Measured Resource – 1.01 Mt LCE (69 Mt @ 2,792 ppm Li);
o Indicated Resource – 4.52 Mt LCE (378 Mt @ 2,251 ppm Li);
• Inferred Resource – 3.99 Mt LCE (506 Mt @ 1,481 ppm Li);
• Base Case cut-off has been lowered to 600 ppm Li from previous 1,000 ppm cutoff based on strong
project economics specifically updated operating costs and $20,000/tonne (“t”) LC selling price;
• At 1,000 ppm cut-off, the updated Measured + Indicated Resource is 5.32 Mt LCE versus 0.96 Mt LCE
from previous March 2019 MRE – an increase of 455%; and
• Increased size and grade of resource supports long production potential at Falchani.
Simon Clarke, CEO of American Lithium states, “We are extremely pleased with the results of our EIA drill
program and the very large increase in resources at Falchani which includes , doubling the contained
lithium. Falchani is now one of the largest hard rock lithium projects globally with the ability to produce
high purity battery grade lithium carbonate. The inclusion of potassium, cesium and rubidium in the
resource block model provides the opportunity to include Sulfate of Potash (SOP) and Cs-Rb potential by-
products into future financial modelling of Falchani. DRA Global has commenced mine plan modelling and
updating capital and operating costs for the updated PEA, expected within the next several weeks. These
strong and strategic updates to the PEA will enable us to fast-track the completion of the PFS.”
Table 1 – New Falchani Mineral Resource Estimate (October 23, 2023)
Cutoff Volume Tonnes Li Million Tonnes (Mt) Cs K Rb
Li (ppm) (Mm^3) (Mt) (ppm) Li Li2CO3 LiOH*H2O (ppm) (%) ppm
Measured
600 29 69 2792 0.19 1.01 1.15 631 2.74 1171
1000 27 65 2915 0.19 1.01 1.15 647 2.71 1208
1200 25 61 3142 0.18 0.96 1.09 616 2.74 1228
Indicated
600 156 378 2251 0.85 4.52 5.14 1039 2.92 1055
1000 136 327 2472 0.81 4.31 4.9 1095 2.87 1104
1200 129 310 2549 0.79 4.20 4.78 1069 2.86 1146
Measured +Indicated
600 185 447 2327 1.04 5.53 6.29 976 2.90 1072
1000 163 392 2551 1.00 5.32 6.05 1021 2.84 1121
1200 154 371 2615 0.97 5.16 5.87 1009 2.84 1130
Inferred
600 198 506 1481 0.75 3.99 4.54 778 3.31 736
1000 138 348 1785 0.6 3.3 3.75 886 3.18 796
1200 110 276 1961 0.54 2.87 3.27 942 3.10 850
• 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$3.00 per tonne, a lithium
recovery of 80%, fixed density of 2.40 g/cm 3 for the mineralized Upper Breccia, Lithium Rich Tuff and Lower Breccia Geological Units and a fixed density of 2.70
g/cm3 for the mineralized Coarse Felsic Intrusion.
• Tonnes are Metric
• Conversions: Li2CO3:Li ratio = 5.32, LiOH.H2O:Li ratio =6.05
• Totals may not represent the sum of the parts due to rounding.
• The Mineral Resource estimate has been prepared by Mariea Kartick, P. Geo. , and Derek Loveday, P. Geo. Of Stantec Consulting Services Inc. in conformity with
CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with the Canadian Securities Administrators
NI 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The effective date of the Mineral Resource Estimate is
October 30,2023. There is no certainty that any mineral resource will be converted into mineral reserve.
Table 2 – Previous Falchani Mineral Resource Estimate (March 1, 2019)
Cutoff Tonnes Li Million Tonnes (Mt)
Li (ppm) (Mt) (ppm) Li2CO3 LiOH*H2O
Measured
1000 0 0 0 0
Indicated
1000 60.92 2954 0.96 1.09
Measured +Indicated
1000 60.92 2954 0.96 1.09
Inferred
1000 260.07 2706 3.75 4.26
• CIM definitions are followed for classification of Mineral Resource.
• Minor discrepancies due to rounding may occur.
• Cut-off 1,000 ppm Li
• Tonnes are Metric
• Li Conversion Factors as follows: Li:Li2O=2.153; Li:Li2CO3=5.323; Li2O:Li2CO3=2.473
• Geological losses of 5% or 10% have been applied, based on geological structure and data density. The average geological loss is 6%.
• Mineral Resource surface pit extent has been estimated using a lithium carbonate price of US1 2,000 US$/tonne and mining cost of US$3.00 per tonne, a lithium
recovery of 90%, fixed density of 2.40 g/cm3
• The Mineral Resource estimate was prepared by Mr. Stewart Nupen (“QP”) of The Mineral Corporation effective November 1, 2019.
Figure 1 – Falchani Project Mineral Classification and Drill Platform Location Map
Mineral Resource Estimation Calculation Methodology
The geologic model used for reporting of lithium resources was developed using Seequent’s Leapfrog
geological modelling software, Leapfrog Geo version 2023.1. and Hexagon Mining’s resource modelling
and mine planning software, MinePlan version 16.1.1. The geologic model from which lithium resources
are reported is a 3D block model developed using the World Geodetic System (WGS) 1984 UTM Zone 19S
and is in metric units. Block size is 20m -X, 20m -Y and 5m -Z. Modeling method and approach is
development of a multiple ore percent standard block model with interpretation of geologic controls on
mineralization based on exploration data. A significant new addition to the resource is the recognition of
an additional mineralized basement lithological unit below the lower mineralized volcanic breccia horizon.
A base case lithium resource cut-off grade has been calculated based on the economics of a medium size
(100 Mtpa) run-of-mine (ROM) surface mining operation. Processing of the mineralized material would
be onsite extracting lithium from volcanic tuffs, vol canic breccias and a coarse felsic intrusion using an
acid digestion method. Resources are reported from within an economic pit shell at 45 -degree constant
slope using Hexagon mining pseudoflow algorithm. Maximum pit depth is limited to 300 metres (“m”)
below surface. No underground mining is considered.
The following mining, processing, royalty, and recovery costs, in US$, were used to derive a base case cut-
off grade to produce a lithium carbonate (Li2CO3) equivalent product:
• Mining costs US$2.5/tonne;
• Processing costs US$50/tonne;
• General and administration US$1/tonne; and processing recovery of 80%.
Revenue from a lithium carbonate product is estimated to be US$20,000/t 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
600 ppm. The base case cut-off grade of 600 ppm lithium is lower than the previous MRE (Riordan et al.,
2020) cut-off grade of 1,000 ppm lithium, mostly due to an increase in the assumed LC price.
Resource Update Effective Date – October 30, 2023:
Exploration Data:
▪ 3,075 m of additional drilling from 15 drill holes (2022 to 2023);
▪ New total of 12,317 m from 67 drill holes from 35 platforms (2017 to 2023);
▪ 15 vertical piezometer core holes from 10 platforms (2022 to 2023);
▪ 52 Core holes (vertical and inclined) from 25 platforms (2017 to 2019).
Quality Assurance, Quality Control and Data Verification
Diamond drilling is being conducted using Company -owned drill rigs with local contract personnel. Drill
core samples are cut longitudinally with a diamond saw, with one -half of the core placed in sealed bags
and shipped to Certimin’s sample analytical labo ratory in Lima for sample preparation, processing and
ICP-MS/OES multi-element analysis. Certimin is an ISO 9000 certified assay laboratory. The program is
designed to include a comprehensive analytical quality assurance and control routine comprising the
systematic use of Company inserted standards, blanks and field duplicate samples, internal laboratory
standards and has also included check analyses at other accredited laboratories. Downhole thicknesses
for vertical drill holes are considered accurate true thickness intersections.
Mineral Resource Estimate Preparation
The MRE has been prepared by Mariea Kartick, P.Geo. 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 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 Persons
Ms. Mariea Kartick, P. Geo. 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 ha ve reviewed and approved, the scientific and
technical data pertaining to the MRE 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 Lithium
American Lithium is actively engaged in the development of large -scale lithium projects within mining -
friendly jurisdictions throughout the Americas. The Company is currently focused on 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 Hard -rock Lithium Project and
Macusani Uranium Project in southeastern Peru. All three projects, TLC, Falchani and Macusani have been
through robust preliminary economic assessments, exhibit strong significant expansion potential and
enjoy strong community support. Pre-feasibility work is advancing well at Falchani and at TLC.
For more information, please contact the Company at [email protected] 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 Information
This 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, the anticipated
completion of pre -feasibility work , and any other statements regar ding 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 and 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;, 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; the ongoi ng 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; 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 developme nt 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 commo dity
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 t he global market generally, 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 a dditional 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 “Risk Factors” section of American Lithium’s Management’s Discussion and Analysis filed
on May 29, 2023, 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 concessi ons 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 obt ained 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 a nd 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 proces s. 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.