American Lithium Files Robust PEA for Falchani Hard Rock Lithium Project with Highlights Including a Tripling of After-tax NPV8 to US$5.11 Billion
American Lithium Files Robust PEA for Falchani Hard Rock Lithium Project with
Highlights Including a Tripling of After-tax NPV8 to US$5.11 Billion
VANCOUVER, BRITISH COLUMBIA, February 26, 2024 – American Lithium Corp. (“American Lithium” or
the “Company”) (TSX -V:LI | Nasdaq:AMLI | Frankfurt:5LA1) is pleased to announce it has filed an
independent National Instrument 43 -101 Technical Report (“Report”) on the Preliminary Economic
Assessment (“PEA ”) for the Falchani Lithium Project (“Falchani”) located in Puno, southwestern Peru
Highlights of the PEA were previously announced on January 10, 2024.
The PEA and accompanying Technical Report were completed by DRA Global and Stantec Consulting
Services Inc. (“Stantec”). The PEA demonstrates that Falchani has the potential to become a substantial,
low-cost, long-life producer of high purity Lithium Carbonate (“LCE” or “Li2CO3”) with the potential to also
produce Sulfate of Potash (“SOP”) and Cesium Sulfate (“CsS” or “Cs2SO4”) by-products alongside LCE.
Falchani PEA Highlights (Base Case – LCE only production):
• Pre-tax Net Present Value (“NPV”)8% $8.41 billion at $22,500/tonne (“t”) LCE
• After-tax NPV8% $5.11 billion at $22,500/t LCE
o NPV has tripled versus 2019 PEA After-tax NPV8% $1.5 billion at $12,000/t LCE
• Pre-tax Internal Rate of Return (“IRR”) of 40.7%
• After-tax IRR of 32.0%
• Pre-tax initial capital payback period 2.5 years; after-tax payback 3.0 years
• Average LOM annual pre-tax cash flow: $1,019 million; annual after-tax cash flow: $ 644 million
• Initial Capital Costs (“Capex”) estimated at $681 million
• Total Capex LOM estimated at $2,565 million; Sustaining Capital estimated at $236 million
• Operating cost (“Opex”) estimated at $5,092/t LCE
• PEA mine and processing plan produces 2.64 Mt LCE LOM over 43 years
• Steady-state Ave. of 23,145 tpa LCE Phase 1; 45,084 tpa Phase 2; and 72,624 tpa Phase 3
“We are very pleased to have filed this updated PEA on Falchani, which shows very robust economics for
this large-scale, high purity, hard rock project,” stated Simon Clarke, CEO of American Lithium. “This is a
major milestone in the process to complete pre-feasibility and move the Project into mine permitting. The
filing of the Semi -Detailed Environmental Impact Assessment late last year also positions the Project to
be fast-tracked. Falchani has demonstrated the potential for long life, high annual production, with one
of the lowest operating cost profiles globally for developers.”
Falchani PEA Highlights Alternate Case – LCE-only in Phase 1; SOP + Cs2SO4 added from Phase 2:
• Identical LCE production scenario, but with added average production of 81,556 tpa of SOP and 3,796
tpa of Cs2SO4 from Years 6-43
• Pre-tax NPV8% $9.25 billion at $22,500/t LCE, $1,000/t SOP & $58,000/t Cs2SO4
• After-tax NPV8% $5.58 billion at $22,500/t LCE, $1,000/t SOP & $58,000/t Cs2SO4
• Pre-tax Internal Rate of Return (“IRR”) of 38.5%
• After-tax IRR of 29.9%
• Pre-tax initial capital payback period 2.5 years; after-tax payback 3.0 years
• Average LOM pre-tax annual cash flow (excluding initial capital): $1,227 million; annual after-tax
cash flow: $ 774 million
• Initial Capital Costs (“Capex”) estimated at $681 million
• Total Capex estimated at $3,466 million; Sustaining Capital estimated at $260 million
• Opex estimated at $5,705/t LCE (for all products)
• Opex estimated at $1,361/t LCE, inclusive of SOP & Cs2SO4 credits
• PEA mine plan produces 2.64 Mt LCE and 3.10 Mt SOP and 144,247 t Cs2SO4 LOM over 43 years
Readers are encouraged to review the related January 10, 2024 News Release, and the Report titled
“Falchani Lithium Project NI 43-101 Technical Report – Preliminary Economic Assessment” dated February
22, 2024 with an effective date of January 10, 2024, which was prepared by DRA Global and Stantec and
can be found under the Company’s profile on SEDAR+ (www.sedarplus.ca) and on the Company’s website.
The PEA is preliminary in nature and includes inferred resources that are considered too speculative to
have the economic considerations applied to them that would enable them to be categorized as mineral
reserves and there is no certainty the estimates presented in the PEA will be realized.
Ted O'Connor, PGeo, Executive Vice-President of American Lithium, and a qualified person as defined by
NI 43-101, 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 enabling the shift to
the new energy paradigm through the continued d evelopment of its strategically located TLC lithium
project (“TLC”) in the richly mineralized Esmeralda lithium district in Nevada, as well as continuing to
advance its Falchani lithium (“Falchani”) and Macusani uranium (“Macusani”) development-stage projects
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 is advancing well TLC and Falchani.
For more information, please contact the Company at [email protected] or visit our website
at www.americanlithiumcorp.com.
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 fa ct, are forward -looking statements. Forward -looking
statements in this news release include, but are not limited to, 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 ev ents 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 w ill 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 g oals;, 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 ongoing ability to wor k
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 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 obta ining 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, 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 unk nown 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 January 15, 2024, and in recent securities filings available at
www.sedarplus.ca. 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 32 Concessions
Thirty-two of the one -hundred-seventy-four concessions comprising the Falc hani and Macusani Projects
are currently subject to Administrative and Judicial processes in Peru to overturn resolutions issued by
INGEMMET and the Mining Council of MINEM in February 2019 and July 2019, respectively, which declared
title to thirty-two concessions invalid due to late receipt of the annual validity payments. On November 2,
2021, American Lithium was awarded a favorable ruling in regard to title to the concessions, but on
November 26, 2021, appeals of the judicial ruling were lodged by INGE MMET and MINEM. A three-judge
tribunal of Peru’s Superior Court unanimously upheld the ruling in a decision reported in November 2023.
American Lithium was subsequently notified that INGEMMET and MINEM have filed petitions to the
Supreme Court of Peru to assume jurisdiction in the proceedings. Given the precedent of the original ruling
it is hoped that the Supreme Court will not assume jurisdiction; however, there is no assurance of the
outcome at this time.