American Lithium files TLC PEA Report Highlighting Potential for Excellent Project Economics PFS for TLC immediately Launched with DRA Global; Bulk Sampling Commenced
American Lithium files TLC PEA Report Highlighting Potential for Excellent
Project Economics
PFS for TLC immediately Launched with DRA Global; Bulk Sampling Commenced
VANCOUVER, British Columbia, March 20, 2023 -- American Lithium Corp. (“ American Lithium ” or the “Company”) (TSX-
V:LI | NASDAQ:AMLI | Frankfurt:5LA1) announces it has filed an independent National Instrument 43-101 Technical Report
(the “Report”) on the Preliminary Economic Assessment (“PEA”) for the Tonopah Lithium Claims (“TLC”) project located in the
Esmerelda lithium district northwest of Tonopah, Nevada. Highlights of the PEA were previously announced on February 1,
2023. The PEA and accompanying Technical Report were completed by DRA Global and Stantec Consulting Services Inc.
(“Stantec”) and demonstrate that the TLC project has the potential to become a substantial, long-life producer of low-cost,
high purity lithium carbonate (“LCE”).
The Company also announces that it has engaged DRA Global as lead engineer for the TLC Preliminary Feasibility Study
(“PFS”). As part of the initial PFS work, large diameter (5.7”) diamond core drilling has commenced at TLC with 10 holes
planned to target 10-15 tonnes of high grade TLC lithium claystone mineralization. The 10-hole program is spread throughout
the proposed PEA mine plan footprint and will provide sufficient quantity and variability of mineralized material for detailed
metallurgical and pilot process plant testing later in the year.
Simon Clarke, CEO of American Lithium states, “We are extremely pleased to have filed the PEA for TLC which shows the
strong economic potential of the Project utilizing best of breed conventional mining and recovery techniques. The report is
based on detailed process metallurgical work with robust mining and processing operating and capital costing, which allows
us to move directly into our PFS work and should enable us to fast-track that process. We have commenced large diameter
drilling at TLC to collect sufficient material for our detailed metallurgical test work to be undertaken in close consultation with
DRA, enabling the completion of the PFS and running of pilot operations.”
Key Highlights of February 1, 2023 News Release:
TLC PEA Highlights (Base Case – Ramp-up Production Li only production):
• Pre-tax Net Present Value (“NPV”) 8% $3.64 billion at $20,000/tonne (“t”) LCE
• After-tax NPV8% $3.26 billion at $20,000/t LCE
• Pre-tax Internal Rate of Return (“IRR”) of 28.8%
• After-tax IRR of 27.5%
• PEA mine and processing plan produces 1.46 Mt LCE LOM over 40 years
• Pre-tax initial capital payback period 3.6 years; after-tax payback 3.7 years**
• Average LOM annual pre-tax cash flow: $435 million; annual after tax cash flow: $396 million
• Initial Capital Costs (“Capex”) estimated at $819 million
• Total Capex estimated at $1,456 million; Sustaining Capital estimated at $767 million
• Operating cost (“Opex”) estimated at $7,443/t LCE inclusive of power credits
** Payback is based on Phase 1 capital alone, with undiscounted cashflows
TLC PEA Highlights (Alternate Case – Ramp-Up Production Li + Magnesium Sulfate production):
• Identical LCE production scenario, but with added LOM average production of 1,681,856 tpa of magnesium sulfate
(“MgSO4” - monohydrate and heptahydrate) by-products
• Pre-tax Net Present Value (“NPV”) 8% $6.06 billion at $20,000/t LCE & $150/t MgSO 4
• After-tax NPV8% $5.16 billion at $20,000/t LCE & $150/t MgSO 4;
• Pre-tax Internal Rate of Return (“IRR”) of 38.6%
• After-tax IRR of 36.0%
• Pre-tax initial capital payback period 2.6 years; after-tax payback 2.8 years
• Average LOM pre-tax annual cash flow: $684 million; annual after tax cash flow: $591 million
• Initial Capital Costs (“Capex”) estimated at $827 million
• Total Capex estimated at $1,464 million; Sustaining Capital estimated at $738 million
• Operating cost (“Opex”) estimated at $7,443/t LCE inclusive of power credits
• Operating cost (“Opex”) estimated at $817/t LCE, inclusive of power & MgSO 4 credits
• PEA mine plan produces 1.46 Mt LCE and 64.9 Mt MgSO4 LOM over 40 years
Readers are encouraged to review the related February 1, 2023 News Release, and the Report titled “Tonopah Lithium Claims
Project NI 43-101 Technical Report – Preliminary Economic Assessment” dated March 17, 2023, with an effective date of
January 31, 2023, which was prepared by DRA Global and Stantec and can be found under the Company’s profile on SEDAR
(www.sedar.com) and on the Company’s website. There are no material differences in the Report from the information
disclosed in the February 1, 2023 news release.
Updated to Option, RSU and PSU Grant
The Company notes that its news release of February 2, 2023 referred to the grant of certain incentive stock options (the
“Options”), restricted share units (the “RSUs”) and performance share units. The Options are exercisable over a term of sixty-
months until February 2, 2028, and the RSUs vest after twenty-four months on February 2, 2025, and not as previously noted.
Qualified Persons
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 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. 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 has now
commenced at TLC and Falchani.
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, 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; 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 “Risk Factors”
section of American Lithium’s Management’s Discussion and Analysis filed on June 28, 2022, 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.